04/22/24 - 117 New Stories - REAL Environmental & Conservation Leadership In PA: http://tinyurl.com/9bh4zbtr
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Opinion - Gas Severance Fee Missing From Marcellus Commission Plan
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By Sen. John Yudichak Last month, the governor's Marcellus Shale Advisory Commission unveiled its final report. We had eagerly awaited its release, considering the governor did not want to move forward on Marcellus Shale energy policy in Pennsylvania until the commission concluded its work.
Among the recommendations in the report was the implementation of an impact fee that would benefit only those communities where drilling occurs. While I applaud the commission for recognizing that communities on the front lines are facing serious impacts from drilling, I am disappointed that there was no discussion of a fair and responsible severance fee that would benefit the entire Commonwealth.
The ripple effects of natural gas drilling reach into every corner of our state — from pipeline safety and water quality concerns in the southeast to the need for quality jobs statewide. Right now we have an opportunity to grow our economy and boost job creation throughout Pennsylvania — a fact that seems to get buried in the Marcellus Shale debate. The industry is benefiting greatly from the abundant resource existing in the ground under Pennsylvania. That prosperity should be shared.
The potential to create jobs in pipeline construction and other manufacturing sectors can't be underestimated. Just as national indicators show a significant drop in manufacturing, Pennsylvania has been handed a golden opportunity. Manufacturing, construction and other industries should be a part of the Marcellus Shale equation. It is sound economic development and job-creation strategy.
By increasing the use of gas from Marcellus Shale wells to heat homes and fuel cars, we bolster Pennsylvania's clean energy efforts — again creating jobs. With five major U.S. pipelines in southeast Pennsylvania, stepping up our efforts to improve both productivity and safety would be a valuable investment. Further developing our railways and ports and investing in a natural gas corridor will strengthen our abilities to get natural gas to market, boosting Pennsylvania's economy further.
If we continue to brush this issue aside, the Marcellus Shale industry could become the "King Coal" of this generation, where our natural resources are extracted from the ground and sent to fuel the world while Pennsylvania taxpayers are stuck with the cleanup bill. In many cases, we are still forced to pay significantly to clean up a site before it can be developed to attract business. Decades later, we are still dealing with the scars left by coal companies that are now long gone.
This past session, I worked with several colleagues from both sides of the aisle to craft common-sense legislation for such a Marcellus Shale severance fee that would benefit all Pennsylvanians. The legislation would have generated approximately $205 million in the first year and $260 million in the second year. The funds would have been distributed to conservation districts, emergency responders, local governments, Growing Greener programs and the Hazardous Sites Cleanup fund. Despite bi-partisan support, the measure was not voted on, and implementation of a Marcellus Shale energy policy for Pennsylvania fell by the wayside.
Now that the recommendations of the commission have been released, there is no reason to delay any further. We must press ahead and pass a fair and reasonable severance fee on drilling as soon as the Legislature returns to session. Further delay in the Legislature will only delay the benefits of Marcellus Shale and the booming industry it brought here from being realized by all Pennsylvanians.
Sen. John Yudichak (D-Luzerne) serves as Minority Chair of the Senate Environmental Resources and Energy Committee.
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8/15/2011 |
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