NY DEC Panel Quietly Considers New Shale Gas Drilling Tax

The New York State Department of Environmental Conservation, while holding up a release of new drilling regulations, has “quietly” begun considering different taxation scenarios for when and if shale gas drilling actually begins. Last month, the DEC sent 7 of the 18 members of the Hydraulic Fracturing Advisory Panel three separate charts with scenarios for taxing shale gas production. The members receiving the charts sit on a subcommittee charged with figuring out a way to pay for additional staff and resources that would be needed by the DEC and other state agencies once drilling begins.

Bear in mind under existing New York State law there is already an ad valorem tax (property tax) that will yield a lot of money from shale gas production, but all of that money stays in the local community, going to the town, county and school districts. The DEC Advisory Committee is tasked with figuring out how to grab a piece of the drilling revenue pie in order to fund their own expansion as they ramp up to handle the demands of new drilling activity.

To view this content, log into your member account. (Not a member? Join Today!)