Posts Tagged ‘Marcellus Shale’

PSU Cooperative Extension: “In counties with ten or more Marcellus wells…tax income increased 325.3 percent”

Canonsburg, Pa. – The Marcellus Education Team at Penn State University’s Cooperative Extension recently issued a comprehensive analysis highlighting the positive and growing tax revenues being generated throughout the Commonwealth tied directly to the responsible development of clean-burning, homegrown natural gas. Kathryn Klaber, president and executive director of the Marcellus Shale Coalition (MSC), issued this statement regarding Penn State’s findings:

“The responsible development of clean-burning natural gas is creating tens of thousands of good-paying jobs, providing stable, American energy supplies for consumers and generating hundreds of millions of dollars in tax revenues at the same time. This data brings into perspective the enormous amount of taxes our industry’s work is generating for Pennsylvania’s economy, especially in rural communities. Without question, each and every Pennsylvanian is benefitting from Marcellus Shale development.

“Unfortunately the ongoing tax debate has been framed too narrowly. This study, however, importantly broadens the understanding of the tax revenues our industry is helping to produce for state and local governments.”

Key excepts from Penn State University’s new study: “State Tax Implications of Marcellus Shale: What the Pennsylvania Data Say in 2010”

• State Sales Tax Revenues Soar in Marcellus Producing Counties: “The data indicate that counties with 150 or more Marcellus wells experienced an 11.36 percent increase in state sales tax collections between 2007 and 2010. Counties with fewer Marcellus wells reported declining state sales tax collections, but they still did better than counties with no Marcellus wells, which reported steeper declines. These data suggest that counties with Marcellus shale development fared better in retail sales during the years 2007–2010 than those counties without.
• Realty Transfer Tax Collections in Marcellus Producing Counties Stronger than Non-Marcellus Counties: “Across the state, realty transfer tax collections were down between July 2007 and June 2010, reflecting overall weaknesses in the real estate market. However, counties with Marcellus shale development typically declined less than those without such development.”
• “Counties With Marcellus Activity Showed Greater Increases in Tax Income”: “The state personal income tax is a levy on personal income, including wages and salaries, investment income, and leasing and royalty income. Counties with Marcellus activity showed greater increases in tax income than non-Marcellus counties even though there was little difference in the number of returns filed. Counties with ten or more wells reported an average 6.96 percent increase in taxable income, and counties with between one and nine wells reported a 3.08 percent increase. Those areas with no wells witnessed a 0.89 percent increase in taxable income.”
  • “In counties with ten or more Marcellus wells, returns reporting royalty income increased 44.1 percent and tax income increased 325.3 percent.”
    
  • “Counties with ten or more wells recorded an 10.8 percent increase in net profits[what business owners pay on their business earnings] between 2007 and 2008, and counties with fewer than ten wells saw a 7.1 percent increase in such income. Counties with no gas activity had increases of only 1.5 percent.”

• “Positive Economic Activity for [Marcellus] Communities”: “State tax collections in counties with significant activity related to Marcellus shale on average had larger increases in sales and personal income tax collections and less precipitous declines in realty transfer tax collections than did other Pennsylvania counties. The data indicate that Marcellus shale development brings some positive economic activity for communities.”

NOTE: Click HERE to view this study online.

Copyright: MarcellusCoalition.org

PSU Cooperative Extension: “In counties with ten or more Marcellus wells…tax income increased 325.3 percent”

Canonsburg, Pa. – The Marcellus Education Team at Penn State University’s Cooperative Extension recently issued a comprehensive analysis highlighting the positive and growing tax revenues being generated throughout the Commonwealth tied directly to the responsible development of clean-burning, homegrown natural gas. Kathryn Klaber, president and executive director of the Marcellus Shale Coalition (MSC), issued this statement regarding Penn State’s findings:

“The responsible development of clean-burning natural gas is creating tens of thousands of good-paying jobs, providing stable, American energy supplies for consumers and generating hundreds of millions of dollars in tax revenues at the same time. This data brings into perspective the enormous amount of taxes our industry’s work is generating for Pennsylvania’s economy, especially in rural communities. Without question, each and every Pennsylvanian is benefitting from Marcellus Shale development.

“Unfortunately the ongoing tax debate has been framed too narrowly. This study, however, importantly broadens the understanding of the tax revenues our industry is helping to produce for state and local governments.”

Key excepts from Penn State University’s new study: “State Tax Implications of Marcellus Shale: What the Pennsylvania Data Say in 2010”

• State Sales Tax Revenues Soar in Marcellus Producing Counties: “The data indicate that counties with 150 or more Marcellus wells experienced an 11.36 percent increase in state sales tax collections between 2007 and 2010. Counties with fewer Marcellus wells reported declining state sales tax collections, but they still did better than counties with no Marcellus wells, which reported steeper declines. These data suggest that counties with Marcellus shale development fared better in retail sales during the years 2007–2010 than those counties without.
• Realty Transfer Tax Collections in Marcellus Producing Counties Stronger than Non-Marcellus Counties: “Across the state, realty transfer tax collections were down between July 2007 and June 2010, reflecting overall weaknesses in the real estate market. However, counties with Marcellus shale development typically declined less than those without such development.”
• “Counties With Marcellus Activity Showed Greater Increases in Tax Income”: “The state personal income tax is a levy on personal income, including wages and salaries, investment income, and leasing and royalty income. Counties with Marcellus activity showed greater increases in tax income than non-Marcellus counties even though there was little difference in the number of returns filed. Counties with ten or more wells reported an average 6.96 percent increase in taxable income, and counties with between one and nine wells reported a 3.08 percent increase. Those areas with no wells witnessed a 0.89 percent increase in taxable income.”
  • “In counties with ten or more Marcellus wells, returns reporting royalty income increased 44.1 percent and tax income increased 325.3 percent.”
    
  • “Counties with ten or more wells recorded an 10.8 percent increase in net profits [what business owners pay on their business earnings] between 2007 and 2008, and counties with fewer than ten wells saw a 7.1 percent increase in such income. Counties with no gas activity had increases of only 1.5 percent.”

• “Positive Economic Activity for [Marcellus] Communities”: “State tax collections in counties with significant activity related to Marcellus shale on average had larger increases in sales and personal income tax collections and less precipitous declines in realty transfer tax collections than did other Pennsylvania counties. The data indicate that Marcellus shale development brings some positive economic activity for communities.”

NOTE: Click HERE to view this study online.

Canonsburg, PA – At the 23^rd Annual Junior Achievement (JA) of Western Pennsylvania Spirit of Enterprise Dinner and Awards Ceremony this week, the Marcellus Shale Coalition (MSC) received the prestigious “Impact Industry of the Year” award for its commitment to furthering the ideals and principles of the education-focused, non-profit organization. Past award recipients include CONSOL Energy, UPMC, Giant Eagle, the Pittsburgh Steelers, and Eat’n Park.

“It’s a tremendous honor to receive this award on behalf of our industry,” said Kathryn Klaber, president and executive director of the MSC. “Our members recognize the positive impact Junior Achievement has on the young people of Western Pennsylvania, and we share a commitment to develop and retain a skilled local workforce. As responsible Marcellus development expands, our industry is eager to work alongside organizations like JA to help ensure that our school-age children and young adults are equipped with the necessary skills to be the next generation’s business and community leaders.”

Junior Achievement of Western Pennsylvania, America’s first JA chapter, recognizes and honors individuals and/or organizations from western Pennsylvania who have made, or are positioned to make, outstanding contributions to the business, social and cultural assets of this area. Honorees must exhibit strong leadership, an entrepreneurial spirit and adhere to a high level of ethical principles.

“Junior Achievement is proud to recognize the members of the Marcellus Shale Coalition with the Impact Industry of the Year Award at our 23rd Annual Spirit of Enterprise Dinner,” said Dennis Gilfoyle, President of Junior Achievement of Western PA.  “Since 1939, JA has been preparing young people for the world of work, and our partnership with the Marcellus Sale Coalition will provide practical, useful information to thousands of school children across Western PA.  It is our hope to prepare these students for future career opportunities within the industry.”

MSC member companies who attended or supported the Spirit of Enterprise Dinner and Awards Ceremony include: Atlas Energy, Cabot Oil & Gas, Chesapeake Energy, CONSOL Energy, Eckert Seamans, EQT Corporation, J-W Operating, Mine Safety Appliances, PricewaterhouseCoopers, Range Resources, Talisman Energy USA, U. S. Steel Corporation and Universal Well Services. Click HERE to view a photo of the MSC at the JA event.

About JA: JA Worldwide is the world’s largest organization dedicated to educating students about workforce readiness, entrepreneurship and financial literacy through experiential, hands-on programs. Junior Achievement programs help prepare young people for the real world by showing them how to generate wealth and effectively manage it, how to create jobs which make their communities more robust, and how to apply entrepreneurial thinking to the workplace. Students put these lessons into action and learn the value of contributing to their communities.

CANONSBURG, Pa. – Following up on the release of a news story by Reuters stringer Jon Hurdle this week indicating the city of Philadelphia’s intention to “refuse to buy natural gas obtained by the controversial method of hydraulic fracturing,” Marcellus Shale Coalition (MSC) president Kathryn Klaber issued the following statement and collection of supporting facts that, taken together, provide a degree of context not found in the original Reuters piece:

“This decision by the Philadelphia Gas Commission is not based in fact or reality and clearly demonstrates a lack of understanding of how natural gas is transmitted and delivered to consumers,” said Klaber. “If what was passed yesterday is put into effect, PGC would essentially deny the residents and businesses in the City of Philadelphia access to the very energy source used to heat homes and offices, cook meals and deployed for other daily uses.  Gas and oil harvested from hydraulically-fractured wells is proven, safe and has been deployed for decades on more than 1.1 million occasions without harm to drinking water supplies. PGC’s position that it will prohibit the procurement of gas from hydraulically fractured wells disqualifies the vast majority of natural gas produced onshore in the United States. This is more than unfortunate for the residents of the City.”

Additional background/context:

• State law directs PGW to purchase natural gas based on price. “Craig White, the city-owned utility’s executive vice president, said state and local regulations oblige PGW to buy the lowest-cost fuel on behalf of its customers, regardless of its origins. “PGW is required by both state law and city ordinance to pursue a least-cost procurement policy in order to benefit our ratepayers with a stable supply of natural gas at the lowest possible cost,” he said in written statement.” (Philadelphia Inquirer, 9.28.10)
• PGW is already under long-term contract to purchase natural gas from Gulf Coast.“White said that PGW buys all its natural gas under contract from Gulf Coast producers. It has signed long-term contracts with interstate pipelines to carry the fuel to Philadelphia.” (Philadelphia Inquirer, 9.28.10)
• Significant portion of PGW’s Gulf Coast natural gas comes from other U.S. shale formations, and is thus obtained through common hydraulic fracturing technologies.PGW procures a large quantity of its gas from the Transcontinental Pipeline, which connects up with many other pipelines as it makes its way from the Gulf Coast to the Northeast. According tothis transmission map posted on Transcontinental’s site (page 13), the pipeline gathers natural gas from a variety of sources – including the Haynesville, Eagle Ford and even the Marcellus Shale, all of which require fracture stimulation to remain viable.

Philadelphia Inquirer
Sat, Nov. 20, 2010
 
The editorial “Buying good publicity” (Saturday) states that, “The greatest safety concerns from Marcellus Shale drilling stem from the impact on drinking water by the use of a water-and-chemical mix to break through to gas formations thousands of feet underground.” However, your readers should understand that fracturing fluids are 99.5 percent water and sand, with a fraction of additives used to reduce friction in the well bore and to kill bacteria (all components are listed on the state Department of Environmental Protection’s website). These fluids have never impacted groundwater, a fact that has been confirmed by DEP Secretary John Hanger.
 
The shale-gas industry – which, according to experts at Penn State, will have helped create 88,000 jobs in the commonwealth by year’s end – is committed to responsibly ensuring that we maximize the economic, energy security, and environmental benefits of the Marcellus Shale for all Pennsylvanians. We are devoted to getting this opportunity right. Our industry is taking commonsense steps to ensure that groundwater is protected and that responsible Marcellus development will continue to help put tens of thousands of Pennsylvanians to work. At the same time, our industry’s work is generating much-needed revenues for our cash-strapped state government, as well as for local municipalities, while also directing our nation on a path toward a more secure, cleaner energy future.
 
Kathryn Z. Klaber
President & Executive Director
Marcellus Shale Coalition
Canonsburg

Read this editorial on the Philadelphia Inquirer website: http://www.philly.com/philly/opinion/20101120_Letters__Maximizing_the_benefits_of_natural_gas_for_all_Pa_.html

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.”

Centre Daily Times
Promising results from exploratory gas wells in Centre County have focused the interest of some energy companies on the area, making it likely the county will see increased drilling in coming years.

The Patriot-News
The Marcellus Shale Coalition has been trumpeting the fact that the drilling industry is one of the few adding jobs in a sour economy in Pennsylvania. It’s right up there with casino gambling establishments. The economic impact of the drilling industry — particularly in rural areas of the state — is indisputable.