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| FOR IMMEDIATE RELEASE |
| State Rep. Phyllis Mundy |
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An early Christmas present for big oil and gas
HARRISBURG, Nov. 17 – State Rep. Phyllis Mundy said a Republican-backed bill (H.B. 1950) that passed the state House today is an early Christmas gift to Marcellus Shale gas drillers that fails to compensate Luzerne County for impacts from the industry, such as heavy truck traffic, gas pipelines and compressor stations.
"This bill is a slap in the face to the residents of the 120th Legislative District and millions of Pennsylvanians who have demanded the legislature enact responsible legislation governing gas drillers," said Mundy, D-Luzerne. "It raises little revenue from corporations that are making huge profits from the Commonwealth's natural resources, erodes local control over drillers and gives the secretary of the Department of Conservation and Natural Resources nearly unfettered power to take land for this industry.
"House Republicans have blown an opportunity to provide funds to address many problems, such as flood control projects and damage to roads and bridges caused by heavy truck traffic from drilling," Mundy added. "A modest tax on this industry also could have renewed funding for the Growing Greener program, which has helped restore mine-scarred land, preserved farmland and open space and provided many other environmental benefits to the Commonwealth."
The "drill-baby-drill bill" has an effective tax rate of 1 percent and would raise $160,000 over the life of a well. The average Marcellus Shale gas well in Pennsylvania is projected to generate $16 million over its life.
It has the lowest effective tax rate of several proposals offered in the state House and Senate.
"It's even lower than the 2.5 percent rate suggested by the Marcellus Shale Coalition in August 2010," Mundy said. "The industry can well afford to pay a modest tax that can help the state during a time in which we have made painful cuts to education and human service programs."
Mundy noted that other states with natural gas drilling have significantly higher tax rates on the industry, including 6.1 percent in neighboring West Virginia.
"Unlike other states such as West Virginia, Texas and Arkansas, whose governors and legislators seized the opportunity to make life better for their citizens by enacting appropriate levels of taxation on the gas and oil industry, we choose to enrich the few at the expense of the many citizens who are relying on us to serve their interests," Mundy said.
Mundy said the bill would strip local government of their power to regulate the industry and give the Pennsylvania attorney general the power to review local ordinances and determine if they are acceptable. It also would allow gas companies to sue local government to recoup their legal fees, further discouraging local governments, which have limited resources, to regulate the industry.
Mundy said she's also troubled because the legislation would allow the DCNR to take land for the industry.
"It essentially gives the DCNR secretary eminent domain power, except he or she would be seizing land for private interests instead of the good of the public," Mundy said.