The Legal Case Against NY Law Taxing O&G $75B for Global Warming
Not only did New York Gov. Kathy Hochul, an extremist liberal, sign a ban on using carbon dioxide to frack wells in the state at the last minute before the end of the current legislative session (see New York Has Fallen: Gov. Hochul Signs CO2 Frack Ban Into Law), she followed it up by signing into law a new climate bill forcing fossil fuel companies to pay $75 billion in “recovery” assessments over the next 25 years for their alleged role in causing “extreme weather” (see NY Gov. Hochul Goes Nuts: Signs Law Billing O&G Companies $75B). A Forbes article discusses how the NY law is completely unconstitutional and illegal. Read More “The Legal Case Against NY Law Taxing O&G $75B for Global Warming”
You can’t fix stupid. You can only vote it out of office. From the outskirts of New York to the Delaware River shoreline across from Philadelphia, New Jersey is home to numerous oil and natural gas facilities. A New Jersey Senate committee is seriously discussing (planning) an insane new tax on those facilities as a way of creating a slush fund supposedly to help the state fight the effects of climate change. It would be just another pile of money for corrupt politicians to line their own (and friends’) pockets with. Hello, Tony Soprano! 
Pennsylvania assesses an impact fee (PA’s version of a severance tax) on shale drillers, raising revenues that are paid to local municipalities and the black hole of Harrisburg politicians. Yesterday, the PA Independent Fiscal Office (IFO) issued an estimate for how much the impact fee will raise this year, which will be distributed next year. The IFO says it thinks, based on the price of low natural gas and the number of new and existing wells, that PA will generate $163.8 million from the impact fee in 2024, a decrease of $15.8 million (8.8%) from 2023. Looking back further, the price is down $115.1 million (41%) from 2022. Why did impact fee revenues drop so dramatically over the past two years? 
In May, MDN told you that several Republican Pennsylvania State Senators were planning to introduce a bill to cut off millions of dollars in impact fee revenues to municipalities that set protective standards on the development of natural gas that “imposes a standard or condition on well development that conflicts with or exceeds those contained” in state law (see 
Yesterday, the Pennsylvania Senate approved Senate Bill (SB) 1058 that would repeal the state’s participation in the so-called Regional Greenhouse Gas Initiative (RGGI), an illegal carbon tax enacted via executive order by then Gov. Tom Wolf in 2019 (see 
In 2019, when then-Pennsylvania Gov. Tom Wolf announced he would unilaterally force the state to join the Regional Greenhouse Gas Initiative (RGGI), a carbon tax scheme aimed at forcing coal- and gas-fired plants out of business, he claimed the tax would only amount to a few dollars per allowance (or “short ton”) of CO2 (see 
We’re forced to report on a bill in New York State that is so stupid, it’s beyond words. We’ll do our best. The Democrats in the NY legislature passed a bill earlier this year that would create a “superfund” (big old pot of money) to be fed by slapping an illegal tax/fee on oil and gas corporations. The fee is to “pay back” the state for causing mythical global warming. (Create a mythical problem out of nothing, then create a faux cause of that problem — burning fossil fuels — in order to justify shaking down specific companies.) The NY bill would extract an astonishing $75 billion over the next 25 years — roughly $3 billion a year. It will never happen (never work) because O&G companies will fight it in court for years to come, but perhaps that is the point: to tie up O&G in court and encourage them to leave the state. You see, NY is closed for business. 
Pennsylvania’s Democrat Party is hellbent on driving the Marcellus Shale industry out of the state. They have been for years. That’s just a truthful observation and beyond dispute. One year ago, the Dems in the PA House passed a resolution by a single vote that directs the Legislative Budget and Finance Committee (LBFC) to “study” Pennsylvania’s revenue from the oil and gas industry, comparing it with the top five states for natural gas production in the U.S. (see 
Last week, MDN brought you the news that the Pennsylvania Public Utility Commission (PUC) is now distributing money raised by the shale impact fee (PA’s version of a severance tax) from 2023 to municipalities and government agencies (see 
In March, Pennsylvania Gov. Josh Shapiro traveled to Scranton, PA, to announce a proposal to “immediately pull Pennsylvania out of a multi-state carbon cap-and-trade program” (the so-called Regional Greenhouse Gas Initiative, or RGGI) and instead enroll PA in its very own RGGI-like carbon tax program (see 
There’s no way to sugarcoat bad news. The Pennsylvania Public Utility Commission (PUC) predicted in January that money raised by the shale impact fee (PA’s version of a severance tax) would plummet this year (see 
As we report in a companion post today, Pennsylvania is currently dishing out close to $180 million in impact fees raised from 2023 shale activity — PA’s version of a severance tax (see PA PUC Distributes 2023 Impact Fee – Revenue Dropped $99M YOY). As the name implies, some 60% of the money raised goes to the counties and municipalities where drilling happens, those “impacted” by shale drilling. The other 40% goes to the black hole of Harrisburg for redistribution to various state agencies and the other counties with no shale drilling. Let’s look at how some counties and towns will spend the money coming their way.