Taxation

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    Dela. Riverkeeper Hopes New PA Gov Will Stop Marcellus Drilling

    StateImpact Pennsylvania, an online publication populated with lefty advocates who call themselves “reporters” from Pennsylvania’s PBS stations, interviewed a variety of people from both industry and those opposed to drilling in compiling a story on what Tom Wolf’s win as the new Democrat governor of PA will mean for the drilling industry. Of particular interest to MDN are the (many) words in the article attributed to THE Delaware Riverkeeper, the arrogant Maya van Rossum. Among her (many) words is her desire/hope that Wolf will implement a moratorium on all new Marcellus Shale drilling in the state…
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    Cuomo Dithers and Towns Like Gerry, NY Pay the Bill

    Not only has NY Gov. Andrew Cuomo’s dithering and refusal to make a decision on whether or not to allow horizontal hydraulic fracturing in the state materially harmed tens of thousands of landowners and farmers in the state (not to mention all of those who would have had high-paying jobs in the industry), it’s also harmed taxpayers in places like Gerry (Chautauqua County), NY. Because Cuomo dithered and Norse Energy went bankrupt, a division of Norse, Norse Pipeline, also went bankrupt because the gas wasn’t available to run through their pipeline in places like Gerry. That pipeline was sold to Emkey and a court has just re-adjusted the assessment of that pipeline’s value–from $2,616,444 to $320,439, causing Gerry to lose $2,305,368 of its tax base. Not only that…
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    PA Republican Senator Hands Out $2M+ in Impact Fee Money

    Being President Pro Tempore of the Pennsylvania State Senate has its privileges–like handing out $2,086,132 in grants for six energy, trail and water and sewer projects in your district–just two weeks before the election. Senator Joe Scarnati (R-Jefferson) announced awards yesterday to fund projects including $150K for a recreation trail in Elk County, nearly half a mil for a flood mitigation project in Senator’s home county of Jefferson, and $546K to buy some sort of biogas contraption for a pig farm in Tioga County (something that turns pig crap into electricity). All of these projects are funded by PA shale drillers through the Act 13 law and the impact fee collected…
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    New PA Legislation SB 1499 Would Stop Many Pipeline Projects

    In a cleverly disguised move to stop Marcellus drilling, two Philadelphia-area state senators–Andy Dinniman (Democrat, Chester) and John Rafferty (RINO, Montgomery)–have teamed up to introduce legislation, Senate Bill (SB) 1499 (full copy below) that would assess an “impact fee” on new pipelines and possibly existing pipelines re-purposed for a different use. The pipelines getting this new fee are pipelines that specifically carry natural gas, NGLs or oil (other pipelines don’t count). The fee would only be assessed on pipelines in what they define as “high-consequence areas” like, you know, the Philly area. Places with lots of residences and businesses. You live in the sticks? They don’t care. You don’t get nuthin. You live someplace “important” like Philly? Soak ’em. Similar to the current drilling impact fee part of Act 13 (this is what’s clever), the money raised stays local–50% of it to the county, 40% to the town/city where the pipeline runs, and 10% to the state Public Utility Commission. How much of this new “impact fee” does the landowner get–the people who are most inconvenienced by having the pipeline? 0%…
    Read More “New PA Legislation SB 1499 Would Stop Many Pipeline Projects”

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    Corbett Starting to Cave on Taxing Natgas? Sort of…

    In a fight for his political life, PA Gov. Tom Corbett is dipping his toe in waters he has, until now, not been willing to enter. In an interview with the anti-drilling PBS reporters at StateImpact Pennsylvania, Corbett talked about the possibility of a “transmission tax” on natural gas. He still doesn’t support a severance tax (thank God), but he is talking about a new tax on gas flowing through pipelines in the state. Dangerous talk, if you ask us. Corbett’s best shot at re-election is to NOT cave on the issue of unfairly taxing the drilling industry so grubby politicians in Harrisburg can redistribute the wealth, spending it on their own pet projects (pork barreling)…
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    PA Democrats Introduce 5% Severance Tax to Kill Shale Drilling

    Voters in Pennsylvania stand on a precipice. If they elect a Democrat governor and restore Democrat control to the PA House and Senate, there is no doubt a severance tax will be enacted on shale drilling, *in addition to* the existing impact fee that has now collected over $630 million in three years. Such a tax would be an unmitigated disaster. It would almost completely stop shale drilling in Pennsylvania–and no, it’s not an empty threat or hyperbole to say so. It is reality. Need evidence? Last week PA’s Democrats introduced yet another bill that would implement a severance tax–HB 2508 (see it below). Fortunately the existing Act 13 has a provision that if a severance tax is ever enacted, the impact fee disappears. However, you can count on the Dems to repeal that part of the Act 13 law and double-dip on the drilling industry, thereby killing shale drilling in PA…
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    Former Gov. Tom Ridge Predicts PA Will Get Severance Tax

    Although we have a run-down on the news coming from the Shale Insight conference in today’s lineup (see Shale Insight News – Roundup of Who Said What), there is one bit of news that to us, towers above the rest. Former PA Gov. Tom Ridge was always a bit squishy back in the day–not truly a conservative. But an OK guy and an able governor. He’s a very important figure in Pennsylvania politics, even today. Ridge was, as you may recall, the very first Secretary of Homeland Security under George W. Bush following the 9/11 Islamic terrorist attack on this country. At yesterday’s closing session, Ridge said he believes Pennsylvania will adopt a severance tax, which is a very bad sign in our opinion…
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    Kasich to Laser Focus on Hiking Utica Severance Tax

    Apparently Ohio’s RINO Gov. John Kasich–he who calls skilled gas field workers from Texas and Oklahoma “foreigners” (although he loves the money and jobs provided by companies headquartered there)–hasn’t been “focusing” on the issue of soaking Utica drillers with high taxes and apparently that’s why it hasn’t yet happened. So Gov. Kasich will center himself, hum a mantra and focus really hard on screwing the Utica Shale industry in the coming year and that, he hopes, will do the trick to raise the severance tax rate in his state…
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    MSC Video Tells the Truth About Marcellus Industry & Taxes

    Somehow Pennyslvania’s Democrats (and anti-drillers) have been successful in planting the mind virus that the Marcellus drilling industry “isn’t paying it’s fair share” and needs to be taxed even more than it’s already taxed. MDN has pointed out the fallacy of this lie numerous times. The facts are: PA has a corporate income tax and also has an “impact fee” (a tax in our book) that taxes drillers in PA at rates comparable or higher than states like Texas that do have a so-called severance tax. In fact, over the past three years PA drillers have paid out $630 million in impact fees that have benefited all Pennsylvanians. That’s the point the Marcellus Shale Coalition (MSC) makes with a short video just out…
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    PA Spending $6M on Program to Convert Vehicles to Natgas

    The Pennsylvania Marcellus is a gift that keeps on giving. Pennsylvania Gov. Tom Corbett announced yesterday that the third round of funding from Act 13 funds to convert vehicles to run on natural gas will open tomorrow–August 30th. So far PA has collected over $600 million in “impact fees” from Marcellus drillers under the Act 13 law passed by Corbett early in his administration. Most (60%) of impact fee revenue goes back to the local communities where drilling occurs–to compensate them for the hassles or “impacts” that come with drilling. But 40% of the impact fee money goes to communities (or programs) with no active drilling. We uncharitably call it political walking around money. Necessary to grease the hands of greedy politicians. Some of that walking around money goes to fund the conversion of cars and trucks to run on compressed natural gas–a worthy cause in our opinion. This time around $6 million of impact fee money will go to fund natgas vehicle conversions. Who can apply? Just about anyone–except individuals. It must be a company, non-profit or government agency/entity…
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    PA Rep White Introduces Bill to Double-Tax Marcellus Drilling

    What is it with politicians like PA Rep. Jesse White (Democrat, Washington County) and their need to suck taxes out of any and every business and person they can? White, you may recall, was caught using fake online IDs, pretending to be some of his own constituents, using anonymity to attack his own constituents who disagree with his anti-drilling positions (see How the Mighty Have Fallen: PA Rep White Admits Guilt, Not Sorry). PA legislators (mostly Republican) who crafted the state’s update to oil and gas drilling laws, called Act 13, wisely (presciently) included a clause in the Act 13 law that says if greedy politicians (like White) pass a severance tax on drilling in the state, the current impact fee will end. The intent was to have an impact fee instead of a severance tax. White has just introduced a bill (DOA of course) that will strip out the sunset clause and keep the impact fee even if a severance tax is passed. That is, White and others of his ilk want to double-tax the Marcellus industry in PA, with the end result of killing it…
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    Will PA’s Marcellus Miracle be Snuffed Out by a Severance Tax?

    Every now again you need to step back and consider the big picture when it comes to the miracle of fracking and horizontal drilling. Pennsylvania has seen an economic revolution from the Marcellus Shale industry. That revolution is in danger of being snuffed out by Democrats like gubernatorial candidate Tom Wolf who, if elected, promises to implement a Marcellus-killing severance tax. And no, this is not wild speculation. If you look at recent history, such a scenario is supported by the evidence. David Spigelmyer, president of the Marcellus Shale Coalition, penned an op-ed piece that ran in the Philadelphia Inquirer yesterday to “set the record straight” on just what the Marcellus industry has meant in PA and what a severance tax would do to the industry in that state should it be implemented…
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    IMF Book Says Counties Should Tax Fossil Fuels Higher

    The International Monetary Fund, a liberal quasi-governmental organization released a new book yesterday in which they say countries like the United States don’t tax energy, particularly fossil fuels, enough. For the first time ever the IMF lays out what it says is the appropriate level of taxation on coal, natural gas, diesel fuel and gasoline for 156 countries. Of course global warming nuttery plays a major role in their calculations–got to reduce that darned carbon dioxide, ya know (the stuff you breathe out with every breath). IMF chief Christine Lagarde made up some cockamamie excuse why the IMF is concerned about so-called environmental damage instead of sticking to monetary policy. At a gala event last week in Washington, DC, Lagarde, who arrived from Europe on a fossil fuel jetliner and was chauffeured to the event in a fossil fuel powered limousine, said countries shouldn’t wait for everyone to agree. Just start taxing the #$@! out of their citizens now–to force them to give up those evil, nasty fossil fuels. Oh, and don’t forget to chip in a few billion to the IMF along the way…
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    PA Lt Gov Candidate Supports Raiding Drillers for Big Education

    Democrat Mike Stack, a PA State Senator from Philadelphia, is his party’s nominee for Lt. Governor this fall. Stack has close ties to big education and is a tool of teacher unions who want to raid another industry–shale gas drilling–to feed their addiction to ever-higher salaries while turning in ever-lower education standards for their students. So it’s no surprise that Stack is one of the toadies that introduced legislation to enact a sky-high severance tax on Marcellus Shale drilling…
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    PA Budget Signed by Gov. Corbett – No Severance Tax This Year

    Pennsylvania Gov. Tom Corbett, a Republican, signed a Republican-passed budget for the state yesterday. The budget, thankfully, does not include a Marcellus Shale severance tax. It does, however, include new regulations that separate drilling standards between conventional (vertical only) and unconventional (shale) drilling. MDN has long chronicled the battle by PA’s Democrats to transfer wealth from the drilling industry to PA schools, and in the process kill the goose laying the golden eggs in PA (see PPG Op-Ed: Don’t Kill the Marcellus Goose Laying the Golden Eggs). In signing the budget, Corbett axed a bunch of money from the legislature’s budget, which has led to a Republican civil war in Harrisburg…
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    PA’s Act 13 Impact Fees Help Fund Affordable Housing

    Pennsylvania Gov. Tom Corbett’s office announced yesterday that since 2011, the PA Housing Affordability and Rehabilitation Enhancement Program (PHARE) has invested $49.8 million from natural gas and federal funding sources has been invested in housing initiatives by the Corbett administration to address housing needs created by the growing natural gas industry presence in Pennsylvania. Much of that money has come from Act 13 impact fees…
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