Archive for the ‘Pennsylvania Natural Gas Drilling’ Category
MSC: Transportation Safety Day in State College “A Huge Success”
October 13th, 2010 | 
Author: Natural gas industry committed to safety on the roads, communities in which we operate
Canonsburg, PA – At a day-long seminar yesterday in State College, the Marcellus Shale Coalition (MSC), in collaboration with the Pennsylvania State Police, Pennsylvania Department of Transportation (PennDOT), the Public Utility Commission (PUC) and the Department of Environmental Protection (DEP), hosted the first Marcellus Transportation Safety Day. The seminar’s aim was to “Better educate carriers and truck drivers supporting the natural gas industry of Pennsylvania’s regulations to improve their safe operating practices.”
The seminar included remarks from Kathryn Klaber, president and executive director of the MSC; Scott Christie, deputy secretary for Highway Administration, PennDOT; and Colonel Frank E. Pawlowski, commissioner, Pennsylvania State Police. Photos from yesterday’s event are available on the MSC’s Facebook page; to view them, click HERE.
“The natural gas industry is committed to working with state regulators and safety officials at every level of government to ensure that the safety and integrity of our roads and infrastructure are maintained as increased truck traffic associated with Marcellus development expands across the Commonwealth,” said Kathryn Klaber. “The safety of our workers and the communities in which we operate is an integral part of our Guiding Principles, and we will continue to work each day with local, state and federal officials to address these important issues. By all accounts, this event was a huge success toward achieving that common goal.”
The seminar, held at The Penn Stater Conference Center, attracted over two hundred transportation experts, truck drivers and safety coordinators that support the development of the Marcellus Shale across Pennsylvania.
Seminar breakout sessions included:
- PA State Police: Pennsylvania State Police motor carrier enforcement personnel discussed the motor carrier safety regulations with particular emphasis placed upon the most common violations found during roadside inspections of trucks supporting gas drilling operations. Following a classroom presentation, attendees participated in an actual walk-around truck inspection performed by experienced field motor carrier inspectors.
- PA Public Utility Commission: The PUC discussed the Commonwealth’s Unified Carrier Registration (UCR) program, along with the requirement for certain carriers to obtain PUC operating authority. Pennsylvania’s New Entrant Audit and Compliance Review programs and their impact on carrier operations were also addressed during this session.
- PA Dept. of Environmental Protection: DEP, Bureau of Waste Management, addressed Pennsylvania’s regulations pertaining to the transportation of environmental waste, with particular emphasis placed on the regulations that govern the transportation of waste water from Marcellus Shale gas drilling operations.
- PA Dept. of Transportation: Special Hauling Permits are required and issued for Oversize and Overweight loads using Pennsylvania’s Interstate Highways, US Routes and State Highways. During this session, PennDOT discussed the process by which these permits can be obtained and the penalties for violating their terms and conditions. This session also addressed PennDOT’s posted and bonded roads program.
- Federal Motor Carrier Safety Administration: FMCSA discussed the process by which they determine a carrier’s safety fitness rating and the consequences and intervention taken on carrier’s determined to be unsatisfactory. A new safety fitness system, Comprehensive Safety Analysis 2010, will be implemented this year and was discussed in detail.
NOTE: Click HERE to view a recent Lock Haven Express op-ed by Kathryn Klaber, which underscores the MSC’s commitment to road and infrastructure investment and safety.
Copyright Marcelluscoalition.org
Posted in Pennsylvania Natural Gas Drilling | 
Tags: pennsylvania state police, state | 
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Gas well regulation approved
HARRISBURG – Natural gas drillers will have to use stronger cement in wells and publicly disclose more information about chemicals used in fracking fluids under a rule approved Tuesday by a state board.
The well-construction rule approved 14-1 by the Environmental Quality Board aims to prevent gas from migrating into water supplies as a result of drilling operations and establishing notification procedures in the event of spills or water-pollution problems.
The well-construction rule is one of several being implemented by the Department of Environmental Protection in response to the drilling boom under way in the Marcellus Shale. But key well-casing provisions would apply also to established shallow-gas wells in Northwest Pennsylvania.
DEP first proposed the well rule last year, but it added requirements in the wake of a well blowout in June in Clearfield County. The focus on preventing gas migration gained priority after the well-publicized contamination of drinking water wells in Dimock Twp. due to faulty or overpressurized casing in Marcellus Shale wells.
Key provisions would:
– Require greater use of well blowout prevention equipment.
– Require drillers to report water pollution or water-loss problems within 24 hours instead of by the current 10 days.
– Require drillers to publicly disclose chemicals, chemical additives, volume of fluids and sources of water and recycled water used in hydraulic fracturing operations. Drillers can designate some information such as the concentration of chemicals as proprietary trade secrets. In that case, public release of that information would be governed by the state right-to-know law, DEP officials said.
– Contain new requirements for driller notification in the event of gas-migration problems.
– Set guidelines for exploration of deeper gas deposits in the Onondaga and Utica formations.
“These rules now are as strong as any in the country,” said DEP Secretary John Hanger who predicted that gas-migration problems will decline as a result.
However, the Environmental Defense Fund, a Washington D.C.-based nonprofit that works on environmental issues, said the rules would be stronger if they were to include four proposals it suggested. These include more monitoring of the pressure between a well casing and rock formation, a requirement to keep well-cementing records on permanent file instead of just five years, giving DEP authority to take the lead in investigating well problems and a clearer definition of protected water supplies.
The well-construction rule now faces review by the House and Senate environmental resources committees and a final vote by the Independent Regulatory Review Commission before it takes effect.
View article here.
Copyright: The Citizens Voice
Gas ‘pooling’ law unlikely this year
Gas ‘pooling’ law unlikely this year
Measure expected in next session
A controversial provision natural gas companies are looking for is unlikely to become state law just yet, because the legislative year is coming to an end – but discussion on the subject is far from over.
“Forced pooling,” or “fair pooling” as the natural gas industry calls it, would allow gas companies to drill beneath the properties of holdout landowners in a drilling block.
Although there was talk of including forced/fair pooling in the natural gas severance tax that passed in the House and is now being considered in the Senate, Senate Republican President Pro Tempore Joseph Scarnati, R-25, Jefferson County, has indicated it isn’t likely to happen this term.
Thursday will be the Senate’s last voting day this year and, “We in the Senate have made a commitment not to go into lame-duck session after the election for voting,” State Sen. Lisa Baker, R-20, Lehman Twp., said.
Lackawanna County landowner Leslie Avakian, founder of ProtectMyRightsPA .org, who has participated in rallies at the Capitol in Harrisburg to oppose forced pooling, thinks it’s “terrific” the subject is off the table.
“I’m glad things are moving forward,” she said. “But I don’t think this issue has died. One of my concerns is they are pushing it into the next legislative session.”
Won’t let it drop
The natural gas industry is not about to let it drop. Fair pooling “dramatically reduces above-ground disturbance” and allows gas to be collected in an orderly manner, Marcellus Shale Coalition spokesman Travis Windle said.
“It’s an absolute environmental winner, and that’s why virtually every other energy-producing state in the nation has this on the books,” he said.
Mr. Windle said fair pooling is good for landowners – “Everyone’s compensated for production, whether they have a lease or not, under a pooling statute” – and for consumers, who would benefit from more supply in the market.
New technology allows companies to drill underground for a mile horizontally, which can be far away from a landowner who does not want a drilling rig on his or her property, he said.
And Mr. Windle said pooling would not hurt landowners’ ability to negotiate a lease.
“I don’t think it takes away their negotiating power in any way,” he said. “I think it increases their ability to leverage.”
Ms. Avakian disagreed.
“It kills negotiating power, absolutely,” she said. “How much negotiating power do you have if you know that in the end, they can take your gas anyway? It kills the free market.”
Ms. Avakian said forced pooling means savings for the gas industry because of the landowners’ reduced negotiating power, and also because companies don’t need to drill on every property – they only need limited surface access. Once they can take all the gas from beneath a property without a lease, the gas companies could drill without giving landowners an up-front payment, and the only way the owner would be compensated is if the gas is withdrawn, she said.
‘Not a fair trade’
“That’s money that comes out of the pockets of Pennsylvanians,” Ms. Avakian said. “That’s not a fair trade at all.”
Although some property owners do favor pooling because, as Mr. Windle pointed out, their minerals may not be developed otherwise and they would miss out on royalties, others are more leery of the concept.
“Pro-gas, anti-gas, Republican, Democratic – this is bad for all of us,” Ms. Avakian said.
Gary Ide, president of Citizens for Cleaner Energy, said members of his group want to learn more.
“Not all people in this pro-gas drilling group are convinced that this forced pooling is a good idea,” he said. “‘Forced pooling’ doesn’t sound like a very friendly thing, and I don’t even like the term ‘fair pooling.’â”
Mr. Ide wants to see how forced/fair pooling works in other states, and notes that it is premature for the state Legislature to make a determination on whether it is right for Pennsylvania.
“I just think that now is the wrong time to try to take a permanent position, because I think we need to learn a little bit more about how this affects the leaseholders, the gas companies and the people who oppose drilling,” he said.
Mr. Ide’s concern is that “the wrong people,” such as gas companies, the legislature, a coalition of some sort, would write the law in a way to benefit one particular group.
“There may be a much simpler way of doing this than something we don’t understand, and have to deal with once it’s passed,” he said. “This is one of those situations where it’s more important to be right than to be popular.”
Similar thoughts
Ms. Avakian has similar thoughts.
“I really believe this can be solved a different way,” she said. “We need to look at some creative solutions.”
Local lawmakers, sensitive to constituents’ concerns, have taken stands. Ms. Baker has stated her opposition to forced pooling.
So has her fellow Back Mountain lawmaker, state Rep. Karen Boback, R-117, Harveys Lake, who stated, “I remain firmly against any efforts to infringe on a landowner’s right to decide what happens on and under his or her property.”
State Reps. Mike Carroll, D-118, Hughestown, and John Yudichak, D-119, Nanticoke, also oppose forced pooling.
“I’m very sensitive about taking power away from local property owners, local leaders. I think they need to weigh in on these issues,” Mr. Yudichak said. “We need to protect them.”
Other local lawmakers didn’t support the idea of including pooling in the severance tax bill, either.
“My position is, I was not willing to discuss forced pooling or any other aspects of the gas industry until we had voted on and made into law a severance tax,” said state Rep. Eddie Day Pashinski, D-Wilkes-Barre.
Mr. Windle denies the industry group was seeking a quid-pro-quo for a severance tax.
“Not in exchange, as part of a comprehensive modernization. It’s not just an ‘I’ll-give-you-that-if-you’ll-give-me-this,’” he said.
Mr. Windle noted, “A lot of proponents of the severance tax in Harrisburg say we need one because every other state has one. If you follow that logic, doesn’t Pennsylvania need a fair pooling statute because every other state has one?”
Contact the writer: eskrapits@citizensvoice.com
View article here.
Copyright: The Scranton Times
Marcellus Shale Players Make Promise To Pennsylvanians
Marcellus Shale Coalition
WBGH-TV/Newschannel34.com
Wednesday, October 6, 2010
The economic, energy security and environmental benefits associated with the responsible development of the Marcellus Shale’s clean-burning, abundant natural gas reserves represents a historic opportunity for the region and for the nation. And it’s an opportunity that must be done right.
To further reinforce the industry’s promise the region, the communities where we operate and to our local workforce, Gov. Tom Ridge – a Marcellus Shale Coalition (MSC) strategic advisor – joined the MSC’s leadership last week in formally unveiling the organization’s “Guiding Principles.”
“As a coalition it’s our responsibility to develop this resource the right way. Our core values include the safety of our employees, our landowners and the communities where we work, environmental stewardship, transparency, and a commitment to best practices. Most importantly, while this is complex technology, we need to keep things simple – we must, and are committed to doing things right,” said MSC chairman and Range Resources senior vice-president, Ray N. Walker, Jr.
MSC president and executive director Kathryn Klaber adds, “The MSC’s ‘Commitment to the Community’ underscores the industry’s steadfastness to ensuring that this generational opportunity ‘is done right,’ so that the nearly 12 million Pennsylvanians, and beyond, realize its overwhelmingly benefits.”
NOTE: Click HERE to view the MSC’s “Commitment to the Community.”
LINK TO OP-ED: http://j.mp/cB3f0z
New Lycoming College Poll: “Public opinion is largely supportive of the development of Marcellus Shale”
Canonsburg, Pa. – A new Lycoming College poll released today finds that “public opinion is largely supportive of the development of Marcellus Shale” in central and northeastern Pennsylvania, a region that is experiencing significant natural gas activity and production. Kathryn Klaber, president and executive director of the Marcellus Shale Coalition (MSC), issued this statement following the release of the poll:
“These results are welcomed news, and affirm the fact that as responsible Marcellus development continues throughout the region, more jobs and more supplies of affordable, clean-burning, homegrown energy will continue to be realized. Pennsylvanians – particularly in communities where Marcellus production is underway – understand this too and this research bears that out.
“But while a clear majority of Pennsylvanians understand the historic economic, energy security and clean energy benefits associated with responsible Marcellus development, it is incumbent our industry to equip citizens with the facts about our industry’s work.
“We’re not only committed to ensuring that communities are well-informed and educated about these critical issues and the environmental safeguards that we are applying to every aspect of our operations, but we’re also working each day to attract and retain a talented local workforce.”
Key poll findings:
- When offered a list of possible benefits that might result from the development of Marcellus Shale in the region, respondents were most optimistic about its potential for the creation of many new jobs for the region; in total 78 percent felt the creation of many new jobs was very likely or somewhat likely to occur.
- Similarly, 71 percent felt that the natural gas industry would create needed economic development in the region.
- Sixty-one percent agreed that natural gas development would be very likely or somewhat likely to reduce our reliance on foreign sources of energy.
NOTE: The Lycoming College poll is available on-line HERE. Last week, the MSC formally unveiled a set of guiding principles — “Our Commitment to the Community” — by which Marcellus operators will conduct their work and ultimately be judged. Also, click HERE to view the MSC’s new web video, “The Marcellus: An American Renewal.”
Tests: Wells already had issues
LAKE TWP. – Before natural gas drilling even started in Lake Township, many property owners had some form of contamination in their private water wells.
Geologist Brian Oram revealed at Monday’s meeting of the pro-drilling Citizens for Cleaner Energy that of 220 private wells tested near the drilling site, more than half had detectable – though not dangerous – levels of methane gas, and nearly half had high levels of bacteria.
“For a pro-drilling crowd, the first two subjects we talked about are fresh drinking water and how to (protect the environment) as we proceed,” Citizens for Cleaner Energy President Gary Ide noted to the more than 60 people attending the meeting at Outlet Free Methodist Church. “Everybody wants responsible drilling.”
Encana Oil & Gas USA Inc. started drilling on the Zosh Road property of Paul and Amy Salansky a few weeks ago, after wrapping up drilling on Edward Buda’s property off Route 118 in Fairmount Township. Amy Salansky said Encana finished drilling about 7,000 feet down and started drilling horizontally on Monday.
Before drilling started, Encana had the wells of property owners within a one-mile radius of the drill site tested. Oram said 247 samples were taken: 220 from private wells, 12 ponds, 10 streams and five springs.
Wilkes University, which Oram is affiliated with, established a database that allows people to share their well water test results so it can be compiled, analyzed and put to use.
“I work for absolutely no gas companies. I never had,” Oram informed the group.
Of the private wells near the Salansky site, 45 percent had coliform bacteria levels and 5 percent had E. Coli bacteria counts that exceeded drinking water standards, Oram said.
There were 131 wells with detectable traces of methane, but only one of them – an unusually deep well – had a high level, he said. He said it is not gas from the Marcellus Shale, but from the shallower Catskill rock formation.
All 220 wells had detectable amounts of sodium, chloride, lead and naturally-occurring radioactive substances. But 25 wells had high lead levels, eight wells had high levels of arsenic and four wells had radiation levels above the standard.
“This should be important to all of us,” Ide noted of the test result findings.
Two representatives of the SCE Environmental Group, President Jody Cordaro and Principal Geologist Joseph G. Casey also spoke about some of their natural gas-related environmental cleanup work and what gas companies can do to minimize the risk of accidents, such as taking measures to contain stormwater runoff.
Afterwards, Cordaro, Casey and Oram answered questions from the audience.
In answer to questions about the potential for contamination of water supplies such as the Huntsville and Ceasetown reservoirs, Oram said this is the time to pay more attention to water protection, no matter what source the pollution could come from.
Cordaro said he would be more concerned about the possibility of contamination from a 1,000 gallon fuel tank at a drilling site than from the process of hydraulic fracturing.
The goal of Citizens for Cleaner Energy is to encourage natural gas drilling to proceed in a “responsible, environmentally-sensitive way that protects our water sources,” Ide said.
To show its support for the industry, the organization, which already has had “Welcome Encana” signs made up, now has “I’m a Friend of Marcellus” yard signs for members to display.
eskrapits@citizensvoice.com, 570-821-2072
View article here.
Copyright: The Citizens Voice
Property owners stump for drilling rights at Wayne County barbecue
DYBERRY TWP. – The constitutionality of the Delaware River Basin Commission’s role in regulating the burgeoning natural gas industry in Wayne County came into question Saturday afternoon at a gathering of drilling advocates.
“Our nemesis is the Delaware River Basin Commission,” said Bob Suhosky, a member of the Wayne County Oil and Gas Task Force who holds a lease individually in Cherry Ridge Twp. “They’re taking a certain amount of constitutional rights from us.”
Mr. Suhosky was addressing the Northern Wayne Property Owners Alliance’s annual meeting and barbecue at the Wayne County Fair Grounds. He said he feels the commission’s permit moratorium on natural gas drilling in the Delaware River watershed effectively robs landowners in the area of their right to develop their property.
“We have the rights down below, and we have the right to reap the fruit of that,” Mr. Suhosky said.
The commission is developing draft natural gas regulations in response to the industry’s drive to exploit natural gas reserves in the Delaware River watershed. The agency is responsible for protecting water quality for the multistate watershed, which provides drinking water to an estimated 15 million people. The draft regulations are expected to be published this month.
Marian Schweighofer, executive director of the Northern Wayne Property Owners Alliance, concurred with Mr. Suhosky’s views.
“In America, we own the property. We own it from here to China,” Ms. Schweighofer said. “If there’s a taking, you’re supposed to be compensated for it.”
According to Ms. Schweighofer, the Delaware River Basin Commission entered into the natural gas arena shortly after the Susquehanna River Basin Commission did so in 2008. The difference is that the SRBC established regulations within the year, whereas the DRBC has yet to produce a draft of its own regulations.
“It’s definitely a delay in developing our well potential,” Ms. Schweighofer said. “We can’t get past step one.”
David Mandelbaum, legal counsel for the Alliance, confirmed he expects those regulations soon.
“The likely outcome of this is there will be regulations that are reasonable and will allow substantial natural gas drilling,” Mr. Mandelbaum said.
Still, that may only be the opening salvo between pro- and anti-drilling factions.
“I expect to get a draft this month and then a war to start,” he added.
Contact the writer: domalley@timesshamrock.com
View article here.
Copyright: The Scranton Times
Property owners stump for drilling rights at Wayne County barbecue
DYBERRY TWP. – The constitutionality of the Delaware River Basin Commission’s role in regulating the burgeoning natural gas industry in Wayne County came into question Saturday afternoon at a gathering of drilling advocates.
“Our nemesis is the Delaware River Basin Commission,” said Bob Suhosky, a member of the Wayne County Oil and Gas Task Force who holds a lease individually in Cherry Ridge Twp. “They’re taking a certain amount of constitutional rights from us.”
Mr. Suhosky was addressing the Northern Wayne Property Owners Alliance’s annual meeting and barbecue at the Wayne County Fair Grounds. He said he feels the commission’s permit moratorium on natural gas drilling in the Delaware River watershed effectively robs landowners in the area of their right to develop their property.
“We have the rights down below, and we have the right to reap the fruit of that,” Mr. Suhosky said.
The commission is developing draft natural gas regulations in response to the industry’s drive to exploit natural gas reserves in the Delaware River watershed. The agency is responsible for protecting water quality for the multistate watershed, which provides drinking water to an estimated 15 million people. The draft regulations are expected to be published this month.
Marian Schweighofer, executive director of the Northern Wayne Property Owners Alliance, concurred with Mr. Suhosky’s views.
“In America, we own the property. We own it from here to China,” Ms. Schweighofer said. “If there’s a taking, you’re supposed to be compensated for it.”
According to Ms. Schweighofer, the Delaware River Basin Commission entered into the natural gas arena shortly after the Susquehanna River Basin Commission did so in 2008. The difference is that the SRBC established regulations within the year, whereas the DRBC has yet to produce a draft of its own regulations.
“It’s definitely a delay in developing our well potential,” Ms. Schweighofer said. “We can’t get past step one.”
David Mandelbaum, legal counsel for the Alliance, confirmed he expects those regulations soon.
“The likely outcome of this is there will be regulations that are reasonable and will allow substantial natural gas drilling,” Mr. Mandelbaum said.
Still, that may only be the opening salvo between pro- and anti-drilling factions.
“I expect to get a draft this month and then a war to start,” he added.
Contact the writer: domalley@timesshamrock.com
View article here.
Copyright: The Scranton Times
Gov. Ridge, MSC Unveil Landmark Industry-Wide “Commitment to the Community” Guiding Principles
Pittsburgh, Pa.– Today, the Marcellus Shale Coalition (MSC) leadership and Gov. Tom Ridge, an MSC strategic advisor, formally unveiled a sweeping set of principles by which the industry will live by “each and every day” and “embrace.” These principles were first rolled out last night at the MSC’s annual members meeting in Pittsburgh.
“We have an unprecedented opportunity with the Marcellus Shale – the second largest natural gas field in the entire world. Of course though, we need to be smart – and responsible – at every step of the way as this tremendous opportunity is realized. And we are, and will continue to be,” said Gov. Tom Ridge. “We will protect our environment while creating tens of thousands of family-sustaining jobs. We will continue to work to strengthen local communities and see to their needs while we work to create sustainable, long-term economic and energy security benefits for every Pennsylvanian. We will focus on developing new demand for natural gas while we improve our efforts to conserve energy. And our guiding principles reinforce this commitment.”
“The responsible development of the Marcellus Shale formation’s abundant, job-creating and clean-burning natural gas reserves represents a historic opportunity to strengthen the region’s economy and workforce, and holds the promise to dramatically bolster the nation’s energy security and put America on a path toward a cleaner energy economy,” said Kathryn Klaber, MSC president and executive direction. “The MSC’s ‘Commitment to the Community’ underscores the industry’s steadfastness to ensuring that this generational opportunity ‘is done right,’ so that the nearly 12 million Pennsylvanians, and beyond, realize its overwhelmingly benefits.”
“As a coalition it’s our responsibility to develop this resource the right way. Our core values include the safety of our employees, our landowners and the communities where we work, environmental stewardship, transparency, and a commitment to best practices. Most importantly, while this is complex technology, we need to keep things simple – we must, and are committed to doing things right,” said Ray N. Walker, Jr., senior vice president of Range Resources and chairman of the MSC. “Our ‘Commitment to the Community’ will help make certain that we will deliver on what is looking more like maybe the greatest economic opportunity this Commonwealth has seen in generations. We will continue to strive to set the standard for the rest of the world and ensure that not only will we create jobs, economic opportunities, and cleaner, cheaper energy, but the communities where we work will be far better off because of us. We have a great opportunity and with that comes an even greater responsibility.”
The MSC’s “Commitment to the Community” Guiding Principles are as follows and are available on-line HERE:
We, the members of the Marcellus Shale Coalition, embrace and operate by the following guiding principles:
- We provide the safest possible workplace for our employees, with our contractors, and in the communities in which we operate;
- We implement state-of-the-art environmental protection across our operations;
- We continuously improve our practices and seek transparency in our operations;
- We strive to attract and retain a talented and engaged local workforce;
- We are committed to being responsible members of the communities in which we work;
- We encourage spirited public dialogue and fact-based education about responsible shale gas development; and
- We conduct our business in a manner that will provide sustainable and broad-based economic and energy-security benefits for all.
We recognize that to succeed in business, we not only embrace these principles, we live by them each and every day. This will be our legacy.
MSC Statement on the PA House Passed Severance Tax
Senate should consider alternative to House’s uncompetitive approach
Canonsburg, Pa. – This evening, the Pennsylvania House of Representatives passed a massive, uncompetitive new tax on the responsible development of clean-burning natural gas from the Marcellus Shale formation, which has helped create nearly 88,000 jobs in Pennsylvania alone as the state’s unemployment rate continues to remain near double-digits. This massive new tax – 39 cents per mcf of natural gas – represents the nation’s highest among shale gas producing states. In fact, this onerous tax on shale gas production is twice as high as West Virginia’s, currently the nation’s highest.
Equally problematic, this enormous tax does not allow for natural gas producers to recover and reinvest the millions of dollars required to produce shale gas from the Marcellus, as virtually every other major shale gas producing state does. Many members of the House of Representatives voted against this massive tax, recognizing the negative impact it would have on job creation and investment in Pennsylvania.
Kathryn Klaber, president and executive director the Marcellus Shale Coalition (MSC), issued this statement following the vote:
“Votes for this misguided, unprecedented tax that narrowly passed this evening, are votes against the job creation and the responsible development of clean-burning domestic natural gas, which is helping to lower energy prices for Pennsylvania consumers and driving down our nation’s dependence on foreign sources of energy.
“We are confident, based on Senator Scarnati’s public comments this evening, that the Senate will remain steadfast in their commitment to realize a competitive climate for growth for this industry, and prosperity for Pennsylvanians.
“To make certain that Pennsylvania’s economy and workforce remain ahead of the curve in the increasingly competitive global economy requires commonsense solutions that encourage capital investment in the Commonwealth. A competitively structured tax in Pennsylvania, that allows for critical capital investment, coupled with smart regulatory and legislative modernizations, is key to ensuring that this historic opportunity is realized in ways that benefit each and every Pennsylvanian.”
NOTE: In a statement, Rep. Dwight Evans (D-Philadelphia), chairman of the House Appropriations Committee, underscored the fact that “We need a tax that is competitive with other shale states.” Rep. Evans adds: “I also recognize the industry will want to weigh in and argue for a tax with a rate and characteristics that allow for capital recovery, a tax it can support as it does in every other state where drilling occurs. These issues are all negotiable.”
