NY DEC Panel Quietly Considers New Shale Gas Drilling Tax
The New York State Department of Environmental Conservation, while holding up a release of new drilling regulations, has “quietly” begun considering different taxation scenarios for when and if shale gas drilling actually begins. Last month, the DEC sent 7 of the 18 members of the Hydraulic Fracturing Advisory Panel three separate charts with scenarios for taxing shale gas production. The members receiving the charts sit on a subcommittee charged with figuring out a way to pay for additional staff and resources that would be needed by the DEC and other state agencies once drilling begins.
Bear in mind under existing New York State law there is already an ad valorem tax (property tax) that will yield a lot of money from shale gas production, but all of that money stays in the local community, going to the town, county and school districts. The DEC Advisory Committee is tasked with figuring out how to grab a piece of the drilling revenue pie in order to fund their own expansion as they ramp up to handle the demands of new drilling activity.
Read More “NY DEC Panel Quietly Considers New Shale Gas Drilling Tax”

An editorial in yesterday’s New York Post says that New York DEC Commissioner Joe Martens is leading a mutiny against Gov. Andrew Cuomo on the matter of allowing hydraulic fracturing to move forward in the state and asks the question, Is Gov. Cuomo up to the task of putting down the mutiny? Good question!
An excellent commentary in today’s New York Post by Abby Wisse Schachter addresses the fear mongering and just plain kookiness heard from anti-drillers. From the opening:
Now that New York Department of Environmental Conservation (DEC) Commissioner Joe Martens has let the cat out of the bag that Marcellus and Utica Shale drilling permits will likely not be issued in 2012, the mainstream media has come along to prop him up with excuse stories for why New York will continue to delay drilling—to give Martens political cover for the coming firestorm. The simple fact is, the longer drilling is delayed, the more likely it will never happen—and anti-drillers know it. MDN believes these delays are by design, not an “aw shucks, things are jest turnin’ out this way” as Mr. Martens wants us to believe.