Causer: Proposal Would Help
Create Jobs, Expand Industry
HARRISBURG - Rep. Martin Causer (R-Turtlepoint) said today he is encouraged by a proposal that should help create jobs by expanding the natural gas industry in the Commonwealth while also generating revenue for the state and affected communities.
At a Capitol press conference Tuesday, House Republicans unveiled legislation that calls for allowing natural gas drilling on 390,000 acres of state forest land during the next three years. The lease fees alone would generate approximately $260 million per year to be shared between state and local governments and conservation districts. Once the natural gas is harvested, additional revenue would be generated from royalty payments to the Commonwealth.
"The difference between our proposal and the governor's tax on natural gas is like night and day," Causer said. "While Republicans want to support this growing industry and the good-paying jobs it will create, the governor's plan would stifle the industry and likely drive many potential employers out of our state."
Causer said the governor's tax plan would also place a heavy burden on land owners who lease their land for drilling and many small, family-operated shallow well businesses.
"The governor has portrayed his proposal as a tax on large corporations that can afford to pay a few extra dollars to the state, but the way the proposal is written, many small operators could be forced out of business," he added. "That's the last thing we need in today's economy."
Because of the vast natural gas reserves buried deep in the Marcellus Shale, it is estimated that recovery of this resource could generate as many as 100,000 jobs. The natural gas industry estimates that the governor's proposed tax would result in the loss of approximately 53,000 jobs during the next five years. The Republican proposal would not lead to any job loss and in fact would create an additional 7,000 new private-sector jobs.
Under House Bill 1050, the state Department of Conservation and Natural Resources would offer for lease 130,000 acres of state forest land to natural gas drilling companies in each of the next three years. The legislation establishes a minimum bid payment of $2,000 per acre, resulting in $260 million in revenue per year. Most of the revenue (80 percent) would go toward the state budget. Local governments that host existing natural gas, oil or coal shallow well drilling sites would share 12.5 percent of the money, while local governments that host new Marcellus Shale drilling operations would share 2.5 percent. Conservation districts across the state would share the remaining 5 percent to pay for programs that protect the environment.
"I believe this proposal holds a great deal of promise for the future of our regional economy," Causer said. "As a member of the House Environmental Resources and Energy Committee, I look forward to the opportunity to review this plan in detail and refine it as necessary to meet the needs of our citizens and the Commonwealth."
At a Capitol press conference Tuesday, House Republicans unveiled legislation that calls for allowing natural gas drilling on 390,000 acres of state forest land during the next three years. The lease fees alone would generate approximately $260 million per year to be shared between state and local governments and conservation districts. Once the natural gas is harvested, additional revenue would be generated from royalty payments to the Commonwealth.
"The difference between our proposal and the governor's tax on natural gas is like night and day," Causer said. "While Republicans want to support this growing industry and the good-paying jobs it will create, the governor's plan would stifle the industry and likely drive many potential employers out of our state."
Causer said the governor's tax plan would also place a heavy burden on land owners who lease their land for drilling and many small, family-operated shallow well businesses.
"The governor has portrayed his proposal as a tax on large corporations that can afford to pay a few extra dollars to the state, but the way the proposal is written, many small operators could be forced out of business," he added. "That's the last thing we need in today's economy."
Because of the vast natural gas reserves buried deep in the Marcellus Shale, it is estimated that recovery of this resource could generate as many as 100,000 jobs. The natural gas industry estimates that the governor's proposed tax would result in the loss of approximately 53,000 jobs during the next five years. The Republican proposal would not lead to any job loss and in fact would create an additional 7,000 new private-sector jobs.
Under House Bill 1050, the state Department of Conservation and Natural Resources would offer for lease 130,000 acres of state forest land to natural gas drilling companies in each of the next three years. The legislation establishes a minimum bid payment of $2,000 per acre, resulting in $260 million in revenue per year. Most of the revenue (80 percent) would go toward the state budget. Local governments that host existing natural gas, oil or coal shallow well drilling sites would share 12.5 percent of the money, while local governments that host new Marcellus Shale drilling operations would share 2.5 percent. Conservation districts across the state would share the remaining 5 percent to pay for programs that protect the environment.
"I believe this proposal holds a great deal of promise for the future of our regional economy," Causer said. "As a member of the House Environmental Resources and Energy Committee, I look forward to the opportunity to review this plan in detail and refine it as necessary to meet the needs of our citizens and the Commonwealth."
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