Gabler Endorses Energize PA Plan
HARRISBURG - State Rep. Matt Gabler (R-Clearfield/Elk) has endorsed the Energize PA energy plan, a product of the House Republican Policy Committee, over Gov. Ed Rendell's proposal to add a new severance tax to natural gas drilling operations in Pennsylvania. Gabler feels a new tax would make it less attractive for natural gas drilling companies to expand their operations in the commonwealth, leading to fewer job opportunities for Pennsylvania workers.
"Instead of slapping new taxes on a potential new industry and Pennsylvania consumers as the Governor proposes, the Energize PA plan promotes energy production, economic development, and lower home heating costs for Pennsylvanians," said Gabler. "It would allow the PA Department of Conservation and Natural Resources to lease out 390,000 acres of state forest land over three years to private companies for Marcellus Shale natural gas exploration. The plan only opens state forest lands to potential drilling, not state game lands and not state parks. Drilling has occurred on state forest lands for over 50 years."
The Energize PA plan is projected to generate $260 million in new revenues during the first year alone, which would be shared by the state with local counties and municipalities. The governor estimates that his tax will raise only $107 million during the first year, with that money targeted for the state level on his pet programs.
Contrary to assertions that revenues under Energize PA would fall off after three years of leases, Gabler counters that the most substantial revenues would actually result from royalty payments collected in future years. In total, he estimates the Energize PA plan will provide an estimated $5.7 billion in new state revenues over the next ten years. As is the case with wells on private lands, the royalty payments continue for the life of the well.
Gabler says experts indicate that Marcellus Shale development could create over 107,000 new private-sector jobs during the next decade. The Governor's tax not only discourages new investment in the region, but it will also put existing small natural gas producers out of business. The family-owned companies that operate small shallow wells will be crippled by a new tax. In fact, estimates show that Rendell's severance tax proposal is likely to cost Pennsylvania 53,000 jobs during the next five years.
"Pennsylvania stands at a crossroads," Gabler added. "Either we facilitate and foster new economic development, local energy production and job growth in Pennsylvania, or we close our doors to the natural gas industry by taxing these job creators out of business or sending them out of our area.
"I stand ready to move our area's economy forward by supporting this plan, which will create local jobs and get our citizens back on their feet."
"Instead of slapping new taxes on a potential new industry and Pennsylvania consumers as the Governor proposes, the Energize PA plan promotes energy production, economic development, and lower home heating costs for Pennsylvanians," said Gabler. "It would allow the PA Department of Conservation and Natural Resources to lease out 390,000 acres of state forest land over three years to private companies for Marcellus Shale natural gas exploration. The plan only opens state forest lands to potential drilling, not state game lands and not state parks. Drilling has occurred on state forest lands for over 50 years."
The Energize PA plan is projected to generate $260 million in new revenues during the first year alone, which would be shared by the state with local counties and municipalities. The governor estimates that his tax will raise only $107 million during the first year, with that money targeted for the state level on his pet programs.
Contrary to assertions that revenues under Energize PA would fall off after three years of leases, Gabler counters that the most substantial revenues would actually result from royalty payments collected in future years. In total, he estimates the Energize PA plan will provide an estimated $5.7 billion in new state revenues over the next ten years. As is the case with wells on private lands, the royalty payments continue for the life of the well.
Gabler says experts indicate that Marcellus Shale development could create over 107,000 new private-sector jobs during the next decade. The Governor's tax not only discourages new investment in the region, but it will also put existing small natural gas producers out of business. The family-owned companies that operate small shallow wells will be crippled by a new tax. In fact, estimates show that Rendell's severance tax proposal is likely to cost Pennsylvania 53,000 jobs during the next five years.
"Pennsylvania stands at a crossroads," Gabler added. "Either we facilitate and foster new economic development, local energy production and job growth in Pennsylvania, or we close our doors to the natural gas industry by taxing these job creators out of business or sending them out of our area.
"I stand ready to move our area's economy forward by supporting this plan, which will create local jobs and get our citizens back on their feet."
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