Tube City Almanac

October 12, 2010

Tom Corbett: He's a Gas!

Category: Cartoons, Commentary/Editorial || By

Tom Corbett --- Champion of the Underprivileged and Oppressed



Fun fact: Pennsylvania is the only major natural gas producing state that levies absolutely no tax on natural gas production.

Pennsylvania Gov. Ed Rendell and the Democratic-controlled state House proposed a tax structure identical to one levied in neighboring West Virginia.

But the state Senate, which has a Republican majority, is said to be "worlds apart" from the lame-duck governor and the lower house of the General Assembly.

The state Senate is expected to adjourn Thursday without taking action, according to the Associated Press.

. . .
The Marcellus Shale Coalition, representing ExxonMobil, Royal Dutch Shell and EOG (formally Enron Oil and Gas), among others, favors a plan that would tax, at most, one-third of total well production at the full tax rate. The coalition's plan would assess a much lower rate on the first five years of production and eliminate it altogether in later years.

Setting a rate in Pennsylvania comparable to that of West Virginia is well within the range of comparable producing states and could eliminate tax competition between the two states. The rate hasn't hurt West Virginia's production; in fact, as of 2009, more Marcellus Shale wells had been drilled in West Virginia than in Pennsylvania.

(Guest commentary, Pittsburgh Post-Gazette, Sept. 19)

. . .
Municipalities in which drilling occurs also will need help repairing roads damaged by heavy truck traffic and providing additional services to meet swelling populations. Many lawmakers recognize the burden and are willing to divert a portion of an extraction tax to municipalities. Yet, Corbett, citing his no-tax-increase pledge, is among those politicians arguing a new levy will send drillers elsewhere.

That argument doesn't hold water. Drillers already have invested heavily to reap the Marcellus Shale payoff. According to geology.com, the extractions from Pennsylvania, Ohio, New York and West Virginia have a wellhead value approaching $1 trillion.

(Editorial, Wilkes-Barre Times Leader, Oct. 2)

. . .
What, no tax? There are no other states we know that allow such a free ticket. Even Texas and Oklahoma have gas taxes.

Common Cause PA and Conservation Voters of Pennsylvania have launched a web site, www.marcellusmoney.org, listing reported donations to various officials, including the Republican and Democratic gubernatorial candidates. It shows ... Pennsylvania GOP Gubernatorial candidate Tom Corbett has received $372,720. Pennsylvania Democratic Gubernatorial candidate Dan Onorato has received $74,300.

The contributions go back some years, we would note. We'll let you decide why Corbett has received so much more than Onorato. Perhaps it's because Corbett does not support any severance tax on natural gas.

("In Harrisburg" column, Lock Haven Express, Sept. 21)

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Feedback on “Tom Corbett: He's a Gas!”

Boy, talk about a tax-payer rip-off. My guess – the oil and gas companies are using Pennsylvania as a stalking horse to try and convince other states, even those with extraction taxes now, to cut or eliminate them in the future. Shades of the oil depletion allowace of years gone by!
ebtnut - October 13, 2010




Why raise taxes ? That’s just more money for the government to waste. Let the free market dole out the dough to the communities directly involved….if we can get CHEAP energy, think of the employment boom that could occur ! We might even be able to manufacture something again in Pa. that could be exported…(maybe that would help corporations get competitive since the corporate taxes are so freeking high putting the
U S at such a disadvantage in the world market)
andrew sellwood - October 13, 2010




Let the free market dole out the dough to the communities involved? Uh, isn’t that essentially what’s being proposed here? Believe me, the “free market ain’t handing out any dough to any jurisdiction through the goodness of their hearts. The gas resource belongs to the state, and the state should get some compensation for allowing its extraction. And something else – someone is going to have to deal with the serious pollution problems that seem to be inevitable with this extraction process. See: Macondo oil well, Gulf of Mexico.
ebtnut - October 13, 2010




Personally, I hope Corbett wins, because he’s easier to draw than Onorato.
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