Charles A. Schliebs
Managing Director, Stone Pier Capital Advisors, LP
What are the prospects for Tom Wolf’s proposed severance tax after losing the first round with the Pennsylvania legislature? Charlie Schliebs evaluates.
When we published our last issue of our company newsletter in July of last year, we were simply waiting for the 2015-16 Pennsylvania budget to be approved by Governor Wolf before publishing the next issue, in which we planned to explain how the key budget compromises were made and what they meant for the shale gas industry, not only in Pennsylvania but also in adjoining states.
Well, we waited, and we waited, and we waited, and things were really never solved. Instead, the Governor lost on all accounts (shale gas severance tax and otherwise) and all the cans were kicked down the road for another try with the 2016-17 budget due at the end of this month, June 30, 2016. What happens next with the 2016-17 budget? Well, let me offer some observations.