Not long ago we highlighted the problem of falling severance tax revenue in West Virginia (see Falling WV Severance Tax Revenue a Problem for Gov. Justice). The state previously forecast severance tax revenues of $85 million for July, August and September. They got $59 million–or $26 million less. Unfortunately for WV the same downward trend continued in October.
Read More “WV State Severance Tax Revenue Whacked by Low NatGas Price”
We have, for years, brought you arguments about the superiority of an impact fee over a severance tax (see Allegheny Institute: PA Impact Fee is Better than a Severance Tax and Showdown: Comparing PA Impact Fee to WV Severance Tax). One of the problems with a severance tax is that when the price of gas is high, the tax revenues flow, but when the price of gas goes low, severance taxes on that gas dry up. That’s what’s happening in West Virginia right now–where they have a 5% severance tax on natural gas production.
Read More “Falling WV Severance Tax Revenue a Problem for Gov. Justice”
Opposition to Pennsylvania Gov. Tom Wolf’s plan to have PA join with northeastern states in the so-called Regional Greenhouse Gas Initiative (RGGI) continues. Big opposition. Earlier this month Pennsylvania Gov. Tom Wolf went completely off his rocker with a power-grab to force PA into a regional alliance to tax natural gas-fired electric plants out of existence (see Gov. Wolf Goes Bonkers: EO Destroying Gas-Fired Elec, Carbon Tax). The reaction was swift–on both sides of the issue (see Reaction to Gov. Wolf’s Bonkers Plan to Strangle NatGas Elec Plants). Reaction against the plan continues. The Indiana County, PA Board of Commissioners recently adopted a unanimous resolution against Wolf’s foolish plan, laying out in dollars and cents the very high cost such a plan will have on the county (in lost taxes and lost jobs).
Read More “The Real Costs of PA Gov. Wolf’s Carbon Tax by Joining RGGI”
Earlier this month Pennsylvania Gov. Tom Wolf went completely off his rocker with a power-grab to force PA into a regional alliance to tax natural gas-fired electric plants out of existence (see Gov. Wolf Goes Bonkers: EO Destroying Gas-Fired Elec, Carbon Tax). The reaction was swift–on both sides of the issue (see Reaction to Gov. Wolf’s Bonkers Plan to Strangle NatGas Elec Plants). Following up, the Allegheny Institute for Public Policy has issued an analysis that exposes why joining the tax alliance is the wrong move for PA. And the Blank Rome law firm explains why joining the alliance is not likely to happen.
Read More “Why Wolf’s Regional Greenhouse Gas Initiative is Disaster for PA”
Xtreme Energy Co., headquartered in Victoria, Texas, has been ordered by the Pennsylvania Dept. of Environmental Protection (DEP) to shut down/stop producing at two Marcellus wells operated by the company located in Somerset County, PA, in the southwestern part of the state. Why? Because, says the DEP, Xtreme has not paid its impact fee (i.e. severance tax) for those wells for 2014, 2015 and 2016.
Read More “PA DEP Shuts Down 2 Marcellus Wells for Not Paying Impact Tax”
Eight of Ohio’s top Utica Shale development counties collected nearly $142 million in real estate property taxes on oil and natural gas production from 2010 through 2017, according to an updated report by Energy In Depth (EID) and the Ohio Oil and Gas Association (OOGA). The Utica Shale Local Support Series report titled, “2019 Update: Ohio’s Oil and Gas Industry Property Tax Payments” (full copy below) analyzes the economic impacts of oil and natural gas real estate property taxes (called “ad valorem” taxes) paid in eight counties: Belmont, Carroll, Columbiana, Guernsey, Harrison, Jefferson, Monroe and Noble.
Read More “8 OH Counties Rake in $142M in Real Estate Taxes from Utica Shale”
Leftist Democrats in Pennsylvania are still hopping mad that they couldn’t block Invenergy’s 1,480 megawatt, $1 billion Marcellus gas-fired electric plant called the Lackawanna Energy Center, located near Scranton, PA (see Huge Marcellus-Fired Power Plant Near Scranton Now 100% Complete). So they’ve decided to NEVER let it happen again. How? By introducing what they’re trying to pass off as a “reasonable” new law to establish “minimum standards for host community agreements between new power plants and their surrounding communities and school districts as well as a minimum host community fee.” In other words, the new law will micromanage and tax any prospective new gas-fired power project right out of the state.
Read More “PA Dems Intro Bill to Block New Marcellus-Fired Power Plants”
West Virginia shale producers pay a 5% severance tax on all natural gas produced–you knew that, right? And in 2018 WV’s oil and gas producers (mostly shale) paid $138 million in severance taxes (see WV O&G Pays $138M in Severance Tax in ’18, Up 4.3% from ’17). But did you know that producers (i.e. drillers) also pay property taxes, on top of severance taxes? That’s right! And in 2019 WV’s drillers will pay an extra $123 million in property tax on top of the severance tax they pay this year–up 40% from last year.
Read More “WV Property Taxes on Shale Jump 40% from 2018 to 2019”
In 2012, Pennsylvania State Senator Andy Dinniman, Democrat from Chester County, PA (near Philadelphia) voted against passage of the Act 13 law that created the impact “fee” (actually a tax) on Marcellus Shale drillers in the state. Yet earlier this week Dinniman issued a press release to tout $740,000 in new grants for “green” projects in his district, essentially taking credit for getting the money for those projects, paid for by impact fee revenue! Is it any wonder politicians like Dinniman rate below used car salesman in opinion polls?
Read More “PA Sen. Dinniman Takes Credit for Green Projects Funded by Shale”
Can it be possible that the shale industry and anti-shale environmentalists (those who irrationally espouse the end of using all fossil fuels) can actually agree on something? Turns out, we can! The something we agree on is opposition to PA Gov. Tom Wolf’s plan to tax a single industry, shale drilling, $4.5 billion in order to use that money for Big Government programs.
Read More “Wolf’s PA Severance Tax Now Much Less Likely – Enviros Oppose”
One of the most liberal governors in America, Pennsylvania Gov. Tom Wolf, continues his campaign to kill the Marcellus Shale by slapping a severance tax on top of an already-high impact tax. He’s now getting a little help from his lib friends at the polling unit at Franklin & Marshall College. When asked a misleading question, a recent poll of 627 PA residents found 69% of them “strongly” or “somewhat” favor Wolf’s Santa Claus promises in his “Restore PA” plan–if it’s funded by a severance tax on Marcellus Shale.
Read More “F&M Push Poll Finds Majority PA Residents Want Severance Tax”
In March, Pennsylvania Gov. Tom Wolf traveled to an elementary school in South Philadelphia with the message that only a severance tax on Marcellus Shale production stands in the way of cleaning up lead paint problems that are poisoning the little kiddies at the school (see Gov. Wolf’s Campaign of Lies re Severance Tax Continues in Philly). We were, rightly, incensed. If children are being poisoned by lead paint in Philly schools, find the money somewhere and fix the problem–NOW. It seems we weren’t the only ones thinking that way. Wolf has magically found $4.3 million to fix the problem…without a severance tax.
Read More “PA Gov Magically Finds $ to Fix Philly Schools w/o Severance Tax”
It’s not every day you read an editorial in a prominent Pennsylvania newspaper lending a full-throated endorsement for PA’s impact fee over a so-called severance tax, but it just happened in Williamsport. The Sun-Gazette editorial board published a column pointing out the superiority of an impact fee (actually an impact tax) over a severance tax. They make some great points, pointing out the numbers speak for themselves…
Read More “Newspaper Editors Say Impact Fee Superior to Severance Tax in PA”
Each June the Pennsylvania Public Utility Commission (PUC), the agency charged with keeping tabs on impact fee revenue from shale drillers (PA’s version of a severance tax) releases the final numbers of impact fee revenues and disbursements for the prior calendar year. Yesterday was the appointed day for 2018 fee revenue generated. The PUC reports impact fees on natural gas producers in 2018 totaled $242,964,000–the highest-ever yearly amount of revenue generated since the fee/tax was implemented in 2011. If you add in another $8,866,900 disbursed after a court case was settled about “stripper wells,” the total that was disbursed this year amounts to a whopping $251,830,900–a quarter of a billion dollars!
Read More “PA PUC Distributes $252M from Impact Tax – Highest Ever!”
Last Wednesday the West Virginia Supreme Court issued a consolidated opinion lumping together seven similar lawsuits filed by Antero Resources and CNX Resources against the WV state tax commissioner and the Doddridge County Commission. The lawsuits take issue with the way gas well valuations are calculated for property taxes.
Read More “WV Supreme Court Tweaks Shale Well Property Tax Calculation”
It looks like Pennsylvania Gov. Tom Wolf’s “promise them anything and everything” Santa Claus routine is working. We’re referring to Wolf’s so-called Restore PA plan that will provide (over a number of years) $4.5 BILLION worth of goodies to Pennsylvanians by slapping a Marcellus-killing severance tax on the already impact taxed shale industry. Legislation was introduced yesterday in the PA House to create Restore PA (House Bill 1585) and fund it with a severance tax, and we’ll be darned if there weren’t 99 House members who signed up to sponsor it (16 of them traitorous Republicans).
Read More “PA Severance Tax Bills Intro’d in House & Senate w/Strong Support”