New
tax sought for natural gas drilling
By Amanda Cregan,
Intelligencer, March 17, 2009
Environmental groups across the state are pushing for a
tax on gas drillers to help clean up the mess after they're gone.
Environmental advocates are hoping the new gas drilling
boom won't leave Pennsylvanians holding the bill for potentially poisoned waterways, desecrated wildlife habitats, damaged
local roads and polluted air.
A coalition of environmental, conservation and sporting
groups, along with state and local legislators, launched a campaign Monday to impose a tax on natural gas drilling.
The groups are pushing for a portion of tax revenues to
be dedicated to conservation, local governments dealing with environmental damage, the Fish and Boat Commission and Game Commission.
Hoping to generate extra revenue to fill a gap in the state's
budget, Gov. Ed Rendell proposed a new tax on gas drillers. The tax could bring in $107 million this year, according to state
estimates.
Thirty-nine other states already impose a tax on natural
gas and other mineral extraction.
"It's only fair and reasonable that drillers pay a tax,"
said Andy Loza, executive director of the Pennsylvania Land Trust Association. "The extraction can and will impose hefty costs
on our communities."
President of the Pennsylvania Oil and Gas Association Stephen
Rhoads says that's not the case and the new tax is a bad idea.
"We oppose the severance tax. We don't think it's necessary.
We think it does the industry harm, and it's not going to generate any money to help plug the budget deficit," he said. "The
governor's budget projections for this severance tax are a complete fantasy."
In a recent statewide poll, 87 percent of residents said
they would support a dedicated portion of an extraction tax to be used to protect land, water and wildlife.
"The breadth of support for conservation is astounding,"
Loza said.
But Rhoads disputes that support and says it's all about
who is asking the questions, citing another statewide survey, which was conducted by a university and sponsored by a newspaper,
saying that only 34 percent were in favor of taxing gas drillers.
The environmental groups maintain their survey was conducted
by an independent public opinion polling team.
State regulators and environmental groups focus primarily
on the massive Marcellus Shale formation, which cuts through much of western and northern Pennsylvania and holds 363 trillion cubic feet of natural gas, reportedly enough to supply the
nation for generations.
Although Nockamixon is not included in the Marcellus Shale,
residents and supervisors have their eye on much of the legislation, court decisions and environmental issues as gas drillers
come knocking.
In the Upper Bucks community, Michigan-based drilling company
Arbor Resources has been signing leases and fighting with local lawmakers in court to begin exploratory drilling in Nockamixon,
the only spot in the Philadelphia region.
Dulcie Flaharty, executive director of Montgomery County
Lands Trust, says it's essential to get tax money devoted to cleaning up any potential mess before it happens, or Pennsylvania may be dealing with another hazard comparable to the massive, state-wide coal mining
bust.
"I think that with the understanding that the governor is
going to look for a tax on extraction, we should look that these natural resources that people value so much are protected,"
said Flaharty, who also serves on the policy committee for the Pennsylvania Land Trust Association. "The extraction of natural
gas takes a substantial toll on the environment."
"That's all nonsense," said Rhoads, regarding pollution
generated from drilling. "Those who are saying that don't know any better. There are very few impacts on the landscape from
natural gas drilling and the impacts are temporary."
Rhoads also says there is no reason to fear that natural
gas drilling would poison the groundwater.
"There are infinitely small instances of when gas drilling
affects the water supply," he said. "The department of environmental protection has restrictions already in place to protect
groundwater."
But Flaharty says residents should be concerned about the
long-term impact.
She hopes that when the natural gas rush diminishes, the
next generation won't be left cleaning up the mess like this generation has had to deal with environmental clean-up after
years of minimally regulated coal mining.
"There are 11,000 miles of streams that have been impacted
so severely that they can't function. There are no fish, no plant life or wildlife that can live there. Before we have another
huge impact on these natural resources, we need to be very careful on these policies."
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