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This Is No Time for More Taxes and Regulation on Gas!

severance tax - Doug Berkley ReportsDouglas Berkley
Noise Solutions, Technical Sales & Solutions
Publisher: Tri-State Shale Traveler

Pennsylvania Governor Tom Wolf keeps attacking natural gas with proposed taxes and regulation. Is he trying to smother the industry? It looks like it.

It’s clear the shale industry in Pennsylvania has slowed down.  Drilling has significantly dropped for a variety of reasons, the oversupply of natural gas being one reason along with a lack of pipelines to get the clean-burning energy source to markets that need it.  I’ve witnessed it firsthand, being involved in the industry.  Towns that were booming have slowed significantly.  Many businesses in the supply chain suffer as a result, and jobs have been lost. This is no time more taxes and regulation.

Does this seem like a time to add onerous new methane-mitigating rules and regulations as well as a sweeping new severance tax to the shale gas industry?  If you are our governor here in Pennsylvania and independently wealthy with a political debt to anti-gas special interests, that answer would appear to be yes.

taxes and regulation

Governor Wolf keeps snarling at natural gas industry

Governor Tom Wolf’s personal quest to tax and regulate the shale industry out of Pennsylvania is pretty easy to see these days.  While he claims the industry is a vital piece of the energy plan and economy in Pennsylvania (never mind all the natural gas New York depends on getting from us), it’s clear he and his team are trying force the industry out of the state with more taxes and regulation. 

A new severance tax would cripple an industry that already pays an impact fee that funnels funds back to the areas where drilling has occurred.  This is where those funds belong, almost a billion dollars having been placed in to areas where drilling occurs since 2008. 

New methane-mitigation rules?  The numbers clearly show emissions have been dropping as ever more natural gas has been developed and used, now dominating the energy grid.

Make no mistake, the industry will leave Pennsylvania even faster if these practices continue, which is, of course, exactly what Wolf’s fractivist friends desire.  Yes, the Pennsylvania Marcellus Shale is loaded with gas and isn’t going anywhere.  But, that same Marcellus Shale and, also Utica Shale, also exist in West Virginia and Ohio, areas that are starting to look much more friendly to an industry seeing a down cycle.  Do not be surprised to see more business move across state lines, taking well-paying, family sustaining jobs with them. 

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4 thoughts on “This Is No Time for More Taxes and Regulation on Gas!

  1. He makes it sound like this tax will fully fund education. The fact is even if he were to get a billion dollars, as he first said in the beginning, that would only provide around 1/10th of the little over 10 billion already provided by the state. Now factor in that he wants to use over 200 million to replace the fee and a good part of it to fund his projects like solar energy that will even leave a lot less for schools.

    Remember the property tax decrease promised by Rendell when we brought the casinos to the state ?? I never saw it. Our local school district used that payment to partially fund an 8 million dollar gymnasium several years ago. The rest is being funded because they raised our taxes for it. To make matters worse they laid off 6 teachers last year because they face an ever growing pension crisis. They aren’t the only school district that is raising taxes here because of this. There are many. The ones who are receiving royalties from the natural gas industry aren’t. Not all of our schools are in areas that can be drilled to receive royalty money here.

  2. when considering the total process of NG it is far from the “Clean Burning alternative .HVHF will never be Safe because it is industrial and will ALWAYS have industrial related issues .Surely venting and all other hazards are far from clean ,but are overlooked in the main stream data .

    • WHAT INDUSTRIAL ACTIVITY ISI 100% “SAFE”? AS SEC. OF ENERGY MONETZ SAID “YES THERE ARE ISSUES, BUT THEY CAN BE MANAGED”. NY STATE IS NOT MANAGING, BUT THE STATES THAT ARE PERMITTING DRILLING ARE LEARNING. AND PROGRESSING.

      • Bill wants people to believe that HVHF is an ongoing industrial operation and the equipment is there running forever. It is a temporary process. Once the well is in operation all you have is a well head and maybe some tanks left.

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