This article details a plan that is about to be introduced in Pennsylvania, by Gov. Edward Rendell, to tax the natural gas industry. This plan, if put into motion, could put hundreds of millions of dollars back into a struggling budget. When looking at last year’s numbers it was estimated that with the tax the state would have made $107 million in its first year.
The idea for this tax arises because of the great influx of energy giants coming to drill for natural gas in the state. For example Mobil has just agreed to pay $41 billion for XTO Energy Inc. in part because of the drilling sites it holds in Pennsylvania. There was also an instance when the state opened 32,000 acres of state forestland to drilling; the leases brought in $128.5 million-- twice the amount officials expected.
With the increase of drilling the state is making more money, but there are some concerns regarding the environment. Drilling for natural gas is done through a process called hydrofracking, a process requiring millions of gallons of water. With its demand for so much water it creates a few environmental problems, including water pollution, and forest fragmentation.
To alleviate these concerns the Susquehanna River Basin Commission regulates how much water companies can withdraw for fracking. They are hoping that with the tax there will be more money to hire more inspectors to cover the increasing amount of wells. In addition to the regulations PennFuture has called for a temporary stop to drilling in state forests until scientists have studied its effects on wildlife and habitat.
I think that the tax is an excellent idea; it has the ability to increase the state’s budget. This in turn allows the state to better public education, and public roads among other important things. I also believe that the state of Pennsylvania is taking many steps in the right direction to make sure that the drilling companies are not hurting the environment while they go about their business.
--Joe Wascavage
