Site last updated: Friday, April 19, 2024

Log In

Reset Password
MENU
Butler County's great daily newspaper

Don't overtax shale drillers, or they might leave

Butler County is “a shining example” of how impact fees on natural gas drilling were meant to be used, according to David Spigelmyer, president of the Marcellus Shale Coalition.

Spigelmyer’s remarks came Tuesday as the Marcellus Shale Coalition hosted county commissioners, state legislators and various township officials for a series of speeches.

Over the past eight years, Pennsylvania Public Utility Coalition has collected and distributed almost $1.7 billion in natural gas impact fees to communities across the state.

Impact fees generate revenue for local and state governments in exchange for the imposition of gas drilling sites.

The PUC reports Butler County received about $3.1 million from the fees last year and that municipalities within the county got a combined $5.1 million.

Municipalities can use the revenue for, among other things, infrastructure programs and capital improvements.

Gov. Tom Wolf wants to add a severance tax on drillers. The tax would be based on the amount of natural gas removed from wells.

Spigelmyer and some county representatives don’t like Wolf’s plan.

Some warn that overtaxation of any industry, including gas drilling, would drive business out of Pennsylvania.

A severance tax would “kill the golden goose,” state Sen. Scott Hutchinson, R-21st, said during Tuesday’s event.

Spigelmyer specified why he doesn’t like an additional severance tax.

“If we upset the balance for capital investment in Pennsylvania, operators leave to locations where they can invest more profitably than they can in Western Pennsylvania,” he said.

The coalition has said a severance tax would “cost consumers, hurt local jobs ... and negatively impact investment.”

We agree.

It’s better to keep the impact fees as the shale industry booms in the state.

Adding an additional tax might drive drillers away.

More in Our Opinion

Subscribe to our Daily Newsletter

* indicates required
TODAY'S PHOTOS