Statewide PA

The Scranton Times-Tribune reports that Pennsylvania Democrats, including Gov. Ed Rendell, are on a mission to tax natural gas drilling in the Marcellus. Let’s name some names, shall we?

House Finance Chairman David Levdansky, D-39, Pittsburgh, and Environmental Resources Chairman Camille George, D-74, Houtzdale, joined with statewide conservation groups Monday to widen the debate over proposed state taxation of natural gas produced by drilling deep pockets in the Marcellus Shale formation, underlying much of western and Northeast Pennsylvania.

Gov. Ed Rendell has proposed a 5 percent severance tax in hopes of generating an estimated $107 million for state coffers. The tax would be levied on the value of natural gas at the well.

Not to be outdone by the government, the so-called conservation groups have their hands out too:

The conservation groups, including PennFuture and Pennsylvania Federation of Sportsmen’s Clubs, say some of that revenue should go for conservation projects, the state Game and Fish and Boat Commissions and to help local governments repair roads.

The coalition isn’t suggesting a specific amount at this point, said Andy Loza, an official with the Pennsylvania Land Trust Association.

And the pièce de résistance:

“Implementing a severance tax on natural gas is a no-brainer,” said Mr. George, who is drafting legislation to set standards for treating water used in drilling.

Taxing the fledgling PA gas industry into oblivion is a real no-brainer for those with no brains!

Read the full article: Shale tax ideas debated

Below is a joint press release issued by the Independent Oil & Gas Association of Pennsylvania and the Pennsylvania Oil & Gas Association about the ridiculous legislation proposed by PA Democrats.

PITTSBURGH, March 9 — The Independent Oil & Gas Association of Pennsylvania and The Pennsylvania Oil & Gas Association today released the following joint statement in response to Rep. Bill DeWeese’s proposed legislation to impose an oil and gas property tax at the local level. A more thorough evaluation of this proposal will be conducted in the coming days.

“The natural gas and crude oil industry has sustained the economic base of many rural Western Pennsylvania communities for more than 100 years, and with the prospect of the Marcellus Shale, it is the brightest spot in the Commonwealth for job growth and economic development. Yet before we even begin to develop the Marcellus Shale, state and local governments are anxious to tax it, potentially jeopardizing its growth in the process and hundreds if not thousands of Pennsylvania jobs. Tens of thousands of Pennsylvanians are currently employed by the oil and gas industry and contribute significant revenues to local taxing authorities. The potential for many new jobs as drilling activity increases will only add to these benefits.

“We strongly believe the legislature wants Pennsylvania to be a leader in the development of this important energy source. The Marcellus Shale could provide an economic boost for the Commonwealth for many generations, but not if it is prohibited from developing through a hastily imposed property tax.

“There is never a good time to slap unnecessary taxes on job-creating industries, but with the current state of the global economy any new taxes will certainly stunt economic growth and send a bad signal to the business community. The price of natural gas sold for $13.105 per Mcf just last July and is now selling at $3.87 per Mcf. At the same time, the number of national onshore natural gas drilling rigs stood at 1,306 last September and has since fallen to 917 with more rigs expected to drop in the coming weeks and months.

“History has shown that crude oil and natural gas drilling does not place a burden on local services that needs to be made up with new taxes. Even still, companies investing in Pennsylvania Marcellus Shale development have and will continue to work with local officials to minimize impacts and address and/or provide compensation for any impacts caused by operations. For instance, the industry has invested millions of dollars across the Commonwealth in constructing new roads — at no cost to taxpayers or local governments.

“Repairs to roads are made at the expense of the drilling company and insured through bonding arrangements; frequently resulting in better roads than what existed prior to drilling. Drilling places no burden on counties, which would collect a large share of an imposed property tax.

“Pennsylvania is blessed with rich natural resources, including a potentially large natural gas field in the Marcellus Shale. Although the associations strongly oppose new forms of taxation, especially while the development of the Marcellus Shale is in its infancy, the industry remains willing to work with the legislature on issues to promote the development of the resource.”

About IOGA-PA

The Independent Oil and Gas Association of Pennsylvania (IOGA) is the principal non-profit trade association representing Pennsylvania’s Independent oil and natural gas producers, marketers, service companies and related businesses.

About POGAM

The Pennsylvania Oil & Gas Association is the non-profit trade association of the Commonwealth’s independent oil and gas producers. The association promotes the general welfare of Pennsylvania’s crude oil and natural gas exploration and production industry. The association and its members are committed to the economical and environmentally responsible development, production and use of the Commonwealth’s crude oil and natural gas resources.

About MSC

Formed in 2008, the Marcellus Shale committee represents the oil and gas industry in Pennsylvania on matters pertaining to the acquisition, exploration, drilling, and development of the Marcellus Shale natural gas resource and provides a unified voice before all state, county, and local government or regulatory bodies. The committee, sponsored jointly by the Pennsylvania Oil and Gas Association and the Independent Oil and Gas Association of Pennsylvania, includes independent producers with historical expertise in the Pennsylvania oil and gas fields and national companies dedicated to bringing their industry experience and resources to achieve common goals.

The tax-you-to-death Democrats in Pennsylvania are like big spending Democrats everywhere: They lie about who new taxes will affect, and their appetite to get their hands on YOUR money is insatiable. Case in point from the Pittsburgh Tribune-Review:

HARRISBURG — Natural gas from the vast Marcellus Shale reserve will be taxed under the ground and when it is extracted, if Democratic lawmakers and the governor have their way.

Fifty-four of 67 counties would be able to levy real estate taxes on the underground value of natural gas and oil under a bill proposed Monday by House Majority Whip Bill DeWeese, D-Greene County.

Of course, taxing natural gas deposits in the ground is not enough (never mind how you can even come close to calculating the size of a deposit before you pump it out), let’s tax it when it comes out too:

Gov. Ed Rendell last month proposed a state severance tax on extracted natural gas. Rep. Bud George, D-Clearfield County, is expected to propose the severance tax in legislation.

Here comes lie Number One: “It’s for the children.”

Forty-five of the poorest school districts would benefit from levying a real estate tax on natural gas, said Timothy Allwein, an official with the Pennsylvania School Boards Association, one of several groups that joined DeWeese at a news conference.

And lie Number Two: “It won’t affect the landowner.”

DeWeese said the real estate tax on natural gas would hit developers and drillers, not landowners and farmers.

And lie Number Three: “It’ll keep your taxes low.”

David Coder, chairman of the County Commissioners Association of Pennsylvania, said the revenue would be used to lower property taxes or prevent the rise of property taxes.

Really? You think energy companies will not adjust their lease terms and royalties to account for this rape of their profits? Do you really think any single locality in PA will either hold the line, or reduce your property taxes, if this legislation is passed? Come on. Don’t fall for the same, tired old lies trotted out by the Democrats!

Here’s what will happen: If the Democrats in PA pass this legislation, energy companies will stop expanding and drilling in PA and instead go to New York, Ohio, West Virginia and other Marcellus locations. If you’re a landowner living in PA, make some noise with your state representatives about this issue before it’s too late.

Read the full article: Bill revives tax on gas, oil underground (Pittsburgh Times-Review)

In a Times-Tribune editorial about Pennsylvania’s impending budget deficit, which is now projected to be $2.3 billion, Gov. Ed Rendell is quoted saying a proposed tax on drilling in the Marcellus Shale won’t be more “severe” than in other states:

The governor is ready to propose a first-time severance tax on natural gas produced at the wells being sunk across the Marcellus Shale formation.

“The industry is used to paying severance taxes,” he said. “Our tax will not be more severe than other places.”

Scranton Times-Tribune: Feds could ease pain for states

Pennsylvania Gov. Ed Rendell has violated his own hiring freeze and appointed an ally, former Democrat State Representative Dan Surra, as senior adviser on the Pennsylvania Wilds to DCNR (Department of Conservation and Natural Resources) Secretary Michael DiBerardinis. The position pays $95,000 per year and includes “protecting interests” with regard to Marcellus Shale drilling.

In his new position, one of Surra’s responsibilities will be to focus on protecting the interests of recreationists and sportsmen as Marcellus Shale drilling expands.

“The Marcellus Shale gas deposits represent an enormous economic opportunity for the state if done correctly,” [State Rep. Camille “Bud”] George [D-Houtzdale] said. “I think Dan Surra will do a bang-up job in the position. His work with me on the House Environmental Resources and Energy Committee dovetails perfectly for this position. He’s a sportsman who is also well versed on mineral extraction.”

And this comment from State Sen. Mary Jo White, R-Oil City:

“I don’t know enough about the PA Wilds to know if this particular job is needed. My understanding from the governor is that Mr. Surra will be doing work regarding the Marcellus Shale natural gas development,” White said. “This is an important economic opportunity for Pennsylvania, so to that end I am hopeful that he is successful in working with all affected parties.”

Courier-Express/Tri-County: Lawmakers react to ex-Rep. Surra’s $95,000/year new job

Pennsylvania Gov. Ed Rendell, in commenting on a serious budget shortfall in Pennsylvania, is proposing a new tax on gas production coming from wells tapping the Marcellus Shale formation.

The governor also said he will seek a “severance” tax, or extraction tax, on gas produced in the vast Marcellus Shale formation. Pennsylvania is the only gas-producing state without such a tax. The governor’s plan to establish one, at the level set by other states, would help to increase state revenue without adversely affecting gas exploration and extraction.

Scranton Times-Tribune: Grim, realistic across board.