DeLissio On Taxing Marcellus Drilling

The state representative discussed the issue at a town hall meeting Tuesday.

Although the is on top of the House of Representatives agenda this session, state Rep. Pam DeLissio, D-194, said taxing the Marcellus Shale is hot in the Senate.

There are three schools of thought when it comes to taxing the drilling, DeLissio said. Some do not want to tax the drilling because Gov. Tom Corbett and others have signed a no new tax pledge. Others want to drill based on the volume extracted and another group wants to implement an impact fee where most, if not all, of the money would stay in the community where the drilling occurred.

"There is no drilling going on in Philadelphia but if our water supply is affected we will be paying for consequences without any benefit," DeLissio said. "We are a commonwealth, not what happens in Vegas stays in Vegas."

A new proposal suggests taxing per well rather than the amount extracted. 

"We would be leaving money on the table," she said.

Residents expressed concerned about the fracking process and how it would affect water quality and the potential release of toxic chemicals.

"We have to do this very responsibly, there are benefits because it could create jobs," she said. "We just have to learn from the coaling industry and what happened before."

lexrex October 14, 2011 at 02:03 PM
No matter what approach is adopted the state government should ensure that PA is a more favorable place to do business than other Marcellus formation states such as WV and NY. Pennsylvania is in competition with these states for the presence of energy companies. By way of example, North Dakota has a 3.8% unemployment rate due to an oil and natural gas boom. Energy companies have set up operations in N. Dakota rather than nearby Montana because of government regulations there. Given the taxation and regulatory environments in WV and NY the Commonwealth would not have to relinquish very much in order to distinguish itself.


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