Rendell says agreement unlikely on Marcellus Shale tax

September 09, 2010|By John P. Martin, Inquirer Staff Writer
  • Gov. Rendell discussed his proposal to tax gas from the Marcellus Shale formation during an appearance at Coventry Woods Preserve in North Coventry, Chester County. He said he would veto any plan that didn't come "awfully close" to his.

Gov. Rendell said Wednesday that he doubted he and state lawmakers would meet their Oct. 1 deadline to pass a tax on natural-gas drillers - which could pour hundreds of millions of dollars into state and local governments' recession-ravaged coffers.

Speaking to reporters after a gathering with local officials and environmentalists in Chester County, Rendell said he would veto any proposal that didn't come "awfully close" to his plan for a 5 percent tax on sales of the extracted gas, plus an additional 4.7 cents for every 1,000 cubic feet of gas produced.

Asked if he was confident that he and legislative leaders would get a gas tax enacted by their self-imposed deadline, the governor shook his head, smiled, and said, "No."

Story continues below.

Leaders in the Republican-controlled Senate are expected to offer details of their own plan next week. They generally have rejected Rendell's as untenable.

"We're not confident that the House Democratic caucus and the governor can be reasonable on the tax rate," Andrew Crompton, chief of staff to Senate President Pro Tem Joe Scarnati (R., Jefferson), said Wednesday.

The comment signaled new trouble for the so-called gas severance tax, a plan that collapsed about the same time last year. The governor revived the idea this year, and, as part of budget negotiations, he and lawmakers agreed to reach a deal by Oct. 1. Rendell spokesman Gary Tuma said Wednesday night that "no legal or practical reason" prevented all sides from working toward a tax until the legislative session ends in mid-October.

Dozens of bills are floating around Harrisburg, and the next few weeks are expected to bring with them a frantic dose of lobbying and deal-making over the fate of the proposed tax.

In the balance could be one of the biggest single sources of state funding to emerge in decades - potentially hundreds of millions of dollars flowing from wells in the gas-rich Marcellus Shale formation beneath the state - and tens of thousands of jobs.

The Pennsylvania deposit underlies most of the state except for its southeastern corner. Thousands of drill permits have been issued in the affected counties in the last two years, and more are expected.

The surge has sparked water-pollution and safety concerns from environmentalists, along with worries from municipalities that fear being overburdened.

1 | 2 | 3 | Next »
|
|
|
|
|