Utica Shale Industry has (So Far) Invested $70B in Ohio
Did you know that at least $70 billion has been spent in Ohio on drilling and pipelines and other infrastructure to support the Utica Shale industry since 2011? No, we didn’t either. That is an astounding number! How about this number: Ad valorem (i.e. property) taxes paid by the shale industry from 2010 through 2018 have totaled ~$132 million. That’s money that goes to fund local schools and towns. Amazing!
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One of the arguments often heard from those who oppose natural gas pipelines is that “nobody” benefits from the pipeline except the sleazy Big Corporation that builds and profits from it. A single pipeline running through Ohio and Michigan puts that lie to rest. Rover Pipeline, built and operated by Energy Transfer, paid out some $73 million in local property taxes in 2018 when the pipeline first began operation. For 2019, with the full pipeline operating at 100% capacity for the entire year, Rover says they will pay out ~$180 million in property taxes! Taxes that fund schools, roads, first responders and other worthy causes.
What happened? Just a few weeks ago MDN told you that the West Virginia legislature had passed a bill with bipartisan support (and support from both the drilling industry and surface owners) that would redirect monies from low-producing oil and gas wells to fund a program to plug old abandoned wells (see 
How many times will Pennsyvlania voters (voters in general across the U.S.) continue to fall for the same old Democrat lies? “All it takes is more money. We’re almost there. Raise XYZ taxes [like a new 4.5% “severance” tax in PA] and we’ll have it. That will cure [fill in the blank]…lead problems in schools, hunger, heck, it might even cure cancer!” That’s the line of bull being fed by PA Gov. Wolf to (really stupid and gullible) Pennsylvanians about the need for a Marcellus-killing severance tax.
West Virginia has the right idea. Their legislature meets for 60 days total at the beginning of each new year, and then they’re pretty much done for the year. Go to Charleston, work hard, then leave and go back to your day job. Part-time legislators. Love it! The 2019 session is now done and dusted. In the closing days of the session, two bills to help the oil and gas industry got passed and now wait for Gov. Jim Justice to sign them. However, one very important bill for the industry did not pass.
In late December, the Pennsylvania Supreme Court ruled that so-called “stripper wells” can be taxed under the 2012 Act 13 law, slapped with an impact fee assessment if those wells produce more than 90 thousand cubic feet per day (Mcf/d) of gas in a single month, any month (see 
We won’t pretend to understand the wacky math Pennsylvania Gov. Tom Wolf is attempting to perpetrate on the good citizens of PA. The state Dept. of Environmental Protection (DEP) wants to raise permit fees on Marcellus Shale drillers by 250% in order to help fund the agency, claiming the oil and gas program loses $800,000 per month (see 
A partisan left-wing group calling itself the West Virginia Center on Budget & Policy along with another partisan left-wing group called the Institute for Energy Economics and Financial Analysis (IEEFA) released a report last week that claims WV’s shale industry has “fallen short” in delivering on economic promises, and the way to fix it is to boost the severance tax from 5% to 10%! Yeah, they’re out of their collectivist minds.
NEXUS Pipeline, a $2.6 billion, 255-mile interstate pipeline that runs from Ohio into Michigan, began a partial startup in October, and was fully online in November. Although there was early opposition to the project, and some complaints from landowners along the route of construction, the project is noteworthy for the just how little complaining there actually was.
Yes, we told you so. We told you that if our friends in PA were to unwisely reelect Tom Wolf for a second (and thankfully final) term as governor, he would continue to fight for a Marcellus-killing severance tax each and every year of his ignominious second term. Democrats (and some Republicans) just can’t keep their hands off other people’s money–it’s in their DNA.
MDN previously reported on efforts in both Ohio and Pennsylvania to plug orphaned and abandoned oil and gas wells (all of them conventional/vertical wells), which present a health and safety issue. It’s all too easy to hit one of these old wells when drilling a new horizontal shale well. In WV, a new effort to plug old wells is causing concern for some–that the effort to plug old wells may inflict economic damage on WV counties. Huh?!
We didn’t think it would take long for the oil and gas industry to push back against efforts to raise the state’s severance tax from 5% to 6% and use the “extra” money to fix secondary roads in the state (see 
Since 2012, Pennsylvania has collected the equivalent of a severance tax from Marcellus Shale drillers via something called an impact fee. Same concept as a severance tax. You drill a well, gas comes out, you pay a tax. Except with an impact fee you pay whether or not anything comes out of the ground–a more reliable source of tax revenue than a severance tax!
Why do politicians never seem to grasp the obvious? Distressingly, we’re now reading that a West Virginia State Senator, Randy Smith (Republican, Tucker County), wants to add another 1% to the already-high 5% natural gas and oil severance tax, in order to use the money to fix back roads across the Mountain State.