Taxation 55 - Marcellus Drilling News

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:

Gov. Corbett Signs New Marcellus Drilling Law

February 14, 2012April 16, 2026

private No public ceremony for the signing of historic legislation to regulate Marcellus Shale gas drilling in Pennsylvania. Monday evening, Gov. Tom Corbett’s office announced he had privately signed the new legislation into law. A detailed summary of the legislation is embedded below.

Among the key provisions in the final bill:

Maryland Delegates Propose 15% Severance Tax

February 14, 2012February 14, 2012

They must be smoking something good in Maryland—at least in the Maryland House of Delegates where Del. Maggie McIntosh (D-Baltimore) and Del. Sheila Hixson (D-Montgomery) introduced a bill last Friday that would require the state collect 15 percent of the wholesale value of any natural gas produced from Maryland’s portion of the Marcellus Shale.

How Much Revenue will NE PA Counties Get from Impact Fee?

February 13, 2012February 13, 2012

Pennsylvania’s northeastern counties stand to bring in millions of new revenue this year under the impact fee that Gov. Corbett is soon due to sign. Once the legislation is signed, county governments will have 60 days to decide whether or not to adopt an ordinance adopting the new fee structure, along with the restrictions it imposes on a county’s ability to regulate drilling via zoning (see this MDN story). Each county is allowed to keep 60 percent of the total impact fee collected. The other 40 percent? That goes to the state. The 40 percent is the “spread the wealth around” compromise lawmakers needed to strike in order to pass the legislation.

Here’s a rundown on how much in new revenue northeastern PA counties stand to collect in direct fees, the 60 percent portion:

Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

PA’s New Tax on Drilling (er Sorry, Impact Fee)

February 13, 2012February 13, 2012

The new Marcellus drilling legislation passed by the Pennsylvania House and Senate (both controlled by Republicans), and due to be signed by Gov. Tom Corbett (also a Republican) is a great milestone. It places new restrictions on drilling and makes regulation of drilling across the state more even-handed. There are many things to like about the new legislation.

But it’s also a disappointment. The so-called impact fee is really just a tax trying to fly under the radar as a fee. Why a tax? Because the fee as originally proposed would stay in the areas where drilling happens, where drilling is having an “impact.” If a municipality has to repair roads, or spend more on emergency services and policing, or hire extra workers in government offices—that extra expense should be reimbursed. That’s what an impact fee is supposed to do.

Key Dates/Events for New PA Impact Fee

February 9, 2012February 9, 2012

With the passage of the new Marcellus drilling law in Pennsylvania that establishes an impact fee, what happens next? The StateImpact website has a helpful timeline, which includes:

Industrywide Issues | Pennsylvania | Statewide PA | Taxation

New Deal on Marcellus Shale Well Impact Fee in PA

February 6, 2012February 6, 2012

Pennsylvania legislators in both the PA House and Senate have debated for months on passage of new Marcellus drilling legislation. The main sticking point has been a local impact fee. Last week, Gov. Tom Corbett, a Republican now in his second year in office, sent the Republican-controlled legislature a “hurry up and get it done” letter. Legislators were busy finalizing details over the weekend and a plan has now emerged. Likely to be voted on this week, the plan calls for the amount of the fee to vary depending on the rate of inflation and the commodity price of natural gas.

MD Marcellus Shale Commission’s First Report Issued

January 10, 2012January 10, 2012

Alice in Wonderland

The first of three reports due from the Maryland Marcellus Shale Safe Drilling Initiative Advisory Commission has just been issued. A copy of the 46-page report—about how to tax and sue the drilling industry—is embedded below. It’s interesting reading.

On June 6, 2011, Maryland Gov. Martin O’Malley signed an Executive Order establishing the Marcellus Shale Safe Drilling Initiative, which includes an Advisory Commission with 13 members to assist the Maryland Department of the Environment (MDE) and the Department of Natural Resources (DNR) in a multi-year study of potential Marcellus Shale drilling in the state. “In the state” actually means just two western counties where there is Marcellus Shale: Allegany and Garrett.