Taxation 54 - Marcellus Drilling News

New Study Says Ohio’s Gas Severance Tax Lowest, Even If…

May 17, 2012May 17, 2012

A new study released by the accounting firm Ernst & Young says that even if Ohio Gov. John Kasich gets his way and boosts the severance tax in the state on oil and gas drilling, Ohio’s severance tax rate would still be less than other states. Kasich wants to rob Peter to pay Paul, taking even more money from energy companies and landowners in the form of higher severance taxes in order to reduce the state income tax for everyone.

Apparently the Ohio Business Roundtable is in Kasich’s hip pocket because they are the ones who commissioned the study. This is the first time MDN has ever heard of a “business group” who wanted higher taxes.

Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA PUC Adopts Guidelines for Impact Fee Collection/Disbursement

May 11, 2012May 11, 2012

The Pennsylvania Public Utility Commission (PUC) yesterday finalized provisions of Act 13 of 2012 related to the collection and disbursement of the impact fee for unconventional natural gas well drilling. Known as Chapter 23 of Act 13, the PUC voted 5-0 to finalize the procedures they would use to implement, collect and distribute the impact fee. A copy of the “Chapter 23 Final Implementation Order” as adopted is embedded below.

Because of an active lawsuit by seven townships and others against zoning provisions in Act 13 (known as Chapter 33 of Act 13), the PUC delayed action on that section of the new law.

Unproductive PA Wells Still Liable for Partial Impact Fee

May 7, 2012May 7, 2012

The price for drilling a Marcellus Shale gas well in Pennsylvania that “misses” and is not economically viable may have just gotten a lot steeper. It looks like the state Public Utility Commission (PUC), charged with collecting and distributing the new impact fee under Act 13, is going to levy the fee on exploratory wells that end up not being productive and plugged.

Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

No O&G Severance Tax Hike in Ohio This Year

April 26, 2012April 26, 2012

It looks like a severance tax hike for drillers in Ohio won’t happen this year. Yesterday, the Ohio House passed a “sweeping package of spending and policy initiatives” from Ohio Gov. John Kasich. The one thing not among the package? Kasich’s proposal to hike the severance tax for Utica Shale oil and gas drillers.

Maryland Legislature Fails to Act on Fracking Bill

April 16, 2012April 16, 2012

Forgive the editorial smirk, but MDN always enjoys reading about the status of fracking in Maryland because Maryland is the only place even more dysfunctional than New York (MDN’s home turf) when it comes to the issue of hydraulic fracturing. The Maryland General Assembly meets in session for 90 days each year to pass new legislation. The session for 2012 has just ended and several bills dealing with hydraulic fracturing did not receive enough support to come to a vote.

Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

Online Map Shows How Much PA Towns Will Make from Impact Fee

April 4, 2012April 4, 2012

A website MDN has previously highlighted, FrackTrack.org, has published an interactive map that helps Pennsylvania residents track whether or not their county and local municipality has voted to accept the recently passed impact fee law (screen shot below). The map includes a clock counting down to the final deadline. The first deadline under the new law is for counties, which was 60 days from when the measure passed. The second deadline is for municipalities, which is 60 days after that. Combining the two you get 120 days total, of which we now have 69 days left.

Industrywide Issues | Ohio | Statewide OH | Taxation

OOGA Comes Out Swinging Against Kasich Tax Proposal

March 28, 2012March 28, 2012

The Ohio Oil and Gas Association (OOGA) issued a press release on Monday taking Ohio Gov. John Kasich to task for his proposal to slap a severance tax increase on the nascent Utica Shale drilling industry and use the proceeds to give taxpayers an income tax reduction. The new tax increase on drillers has been tentatively removed from budget discussions, but OOGA believes Kasich won’t let it rest and will likely try to resurrect it.

From the OOGA press release:

Industrywide Issues | Maryland | Statewide MD | Taxation

Maryland House Votes to Tax Non-Existent Shale Drilling

March 27, 2012March 27, 2012

From the “things that amuse us from Maryland” file: The Maryland House of Delegates passed a vote on a severance tax on shale gas drilling in the state. They generously reduced the original proposal from a 15 percent tax down to 7.5 percent. Thing is, there is no shale gas drilling in the state and there won’t be until 2014 at the earliest when a report commissioned by Gov. Martin O’Malley is due. And it’s a big “if” as to whether or not Maryland will ever allow drilling. The House seems awfully eager to tax something they haven’t even decided they will allow.

Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA Dem Seeks to Tax Marcellus Towns to Cover Trooper Costs

March 26, 2012March 26, 2012

Pennsylvania Rep. Mike Sturla, D-Lancaster, wants to assess a tax on rural municipalities in Marcellus Shale areas without a police department who rely on PA State Troopers to assist them, to help fund the expense of the troopers. Sturla, chairman of the House Democratic Policy Committee, says the money the state spends on troopers for some 1,300 municipalities is money not available to spend on other transportation-related purposes.

Industrywide Issues | Ohio | Statewide OH | Taxation

Ohio House Tells Kasich “Not so Fast” with New Severance Tax

March 19, 2012March 19, 2012

The Ohio House of Representatives is telling Gov. John Kasich, in essence, “not so fast” with your severance-tax-increase-on-drillers-to-give-everyone-a-tax-cut plan.

Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Taxation

Ohio Proposal for Revamped Severance Tax, New Impact Fee

March 15, 2012March 15, 2012

new taxes ahead As MDN reported last week, Ohio Gov. John Kasich introduced a shale gas and oil severance tax overhaul yesterday. The leaked details from last week were correct—but we now have the full proposal (embedded below). Gov. Kasich is tying a revamped severance tax to lowering income taxes for all Ohioans—by up to $1 billion over five years.

Industrywide Issues | Ohio | Statewide OH | Taxation

Details on Ohio Gov. Kasich’s New Tax on Shale Drilling

March 9, 2012March 9, 2012

sign taxes ahead Details of Gov. John Kasich’s plan to raise taxes on the nascent shale drilling industry in Ohio (see this MDN story) are starting to leak out. Gov. Kasich plans to unveil his plans officially next week, but here’s what we know so far:

Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH Gov. Kasich to Introduce New Tax on Shale Gas Drilling

March 5, 2012March 5, 2012

This one is sure to disappoint landowners. In an Obamaesque move, conservative Republican Ohio Gov. John Kasich is set to propose a new tax on Utica and Marcellus shale gas drilling in order to reduce Ohio state income taxes.

Industrywide Issues | Pennsylvania | Statewide PA | Taxation

2012 PA Impact Fee Revenue of $180M – Where Will it Go?

February 16, 2012February 16, 2012

pie chart Pennsylvania finally passed new Marcellus Shale drilling legislation last week, and Gov. Corbett signed the new legislation into law on Monday of this week (see this MDN story). One of the key provisions, and certainly one of the most contentious, is a provision to collect a new impact fee. But let’s be honest among friends, it’s really just a tax (see this MDN story for why we call it a tax). Regardless of what it’s called, the new fee/tax will raise an estimated $180 million in new revenue for state and local coffers this year alone. So where will all that money go?

Six PA Counties to Receive $10M+ from New Impact Fee in 2012

February 16, 2012February 16, 2012

Washington County is among six counties in Pennsylvania that stand to receive more than $10 million in impact fee revenue this year from the newly adopted Marcellus drilling legislation signed into law by Gov. Corbett on Monday.

Butler County | Industrywide Issues | Pennsylvania | Taxation

Butler County Adopts New PA Impact Fee Ordinance in 2 Days

February 16, 2012February 16, 2012

Butler County, PA commissioners have already voted to adopt an ordinance to collect the newly created impact fee, just two days after the new law was enacted: