Former PA Governor going after marcellus companies

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Joe Ferretti Sep 7, 2011 10:49 pm	Former PA Governor going after marcellus companies conference Wednesday, September 07, 2011 By Laura Olson, Pittsburgh Post-Gazette PHILADELPHIA -- Former Gov. Ed Rendell issued a sharp rebuke this afternoon to the gas-drilling executives gathered here regarding what he described as the industry's failures to back a reasonable severance tax and to properly invest in the state's environment. Ed RendellThe Democratic politician, who oversaw the beginning of the Marcellus Shale exploration in Pennsylvania and handed over the reins to Republican Gov. Tom Corbett in January, pointed to the protesters outside the Marcellus Shale Coalition conference earlier today as an annoyance that has grown into "a serious, long-term problem." He urged companies to publicly support a tax on natural gas extraction and to write to Gov. Corbett indicating their support. Mr. Corbett has signed a pledge not to raise taxes during his term, specifically opposing the severance tax that Mr. Rendell twice failed to enact. Mr. Rendell's comments were in sharp contrast to another former governor, Tom Ridge, who earlier in the day encouraged the state to embrace natural gas drilling as a national security measure. Mr. Rendell said that he backed away from his initial push for a tax so the industry could grow, but pointed to the current year's dramatic budget cuts as a reason for the increasing public pressure for a gas levy. "They see $2 million sliced ... or $3.8 million or $400,000, and each one of [those programs] develops a rallying cry, and the rallying cry is, 'Why aren't we taxing those Marcellus Shale companies who are making 64 percent return on investment?" Mr. Rendell told the crowd. "There seems to be no cogent answer to respond to them." While some drillers, particularly the larger firms active in the commonwealth, have repeatedly said they would support a tax or fee on their development, the former governor said that support should be repeated loudly. He also urged them to make more significant investments in the state's environment, scolding the drillers for what he outlined as a poor record regarding violations that could be prevented and an unnecessary number of water buffaloes appearing at homes in rural Pennsylvania after water becomes polluted. A brief initial rebuttal came from Tom Lopus, a member of the coalition's executive committee who followed Mr. Rendell at the podium. "On some of his points, we are going to agree to disagree," said Mr. Lopus, the Appalachian business manager for J-W Operating Co. Read more: http://www.post-gazette.com/pg/11250/1172744-100.stm#ixzz1XKEzEkpM

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Message

Joe Ferretti

Sep 7, 2011

10:49 pm

Former PA Governor going after marcellus companies

conference
Wednesday, September 07, 2011
By Laura Olson, Pittsburgh Post-Gazette
PHILADELPHIA --

Former Gov. Ed Rendell issued a sharp rebuke this afternoon to the gas-drilling executives gathered here regarding what he described as the industry's failures to back a reasonable severance tax and to properly invest in the state's environment.

Ed RendellThe Democratic politician, who oversaw the beginning of the Marcellus Shale exploration in Pennsylvania and handed over the reins to Republican Gov. Tom Corbett in January, pointed to the protesters outside the Marcellus Shale Coalition conference earlier today as an annoyance that has grown into "a serious, long-term problem."

He urged companies to publicly support a tax on natural gas extraction and to write to Gov. Corbett indicating their support. Mr. Corbett has signed a pledge not to raise taxes during his term, specifically opposing the severance tax that Mr. Rendell twice failed to enact.

Mr. Rendell's comments were in sharp contrast to another former governor, Tom Ridge, who earlier in the day encouraged the state to embrace natural gas drilling as a national security measure.

Mr. Rendell said that he backed away from his initial push for a tax so the industry could grow, but pointed to the current year's dramatic budget cuts as a reason for the increasing public pressure for a gas levy.

"They see $2 million sliced ... or $3.8 million or $400,000, and each one of [those programs] develops a rallying cry, and the rallying cry is, 'Why aren't we taxing those Marcellus Shale companies who are making 64 percent return on investment?" Mr. Rendell told the crowd. "There seems to be no cogent answer to respond to them."

While some drillers, particularly the larger firms active in the commonwealth, have repeatedly said they would support a tax or fee on their development, the former governor said that support should be repeated loudly.

He also urged them to make more significant investments in the state's environment, scolding the drillers for what he outlined as a poor record regarding violations that could be prevented and an unnecessary number of water buffaloes appearing at homes in rural Pennsylvania after water becomes polluted.

A brief initial rebuttal came from Tom Lopus, a member of the coalition's executive committee who followed Mr. Rendell at the podium. "On some of his points, we are going to agree to disagree," said Mr. Lopus, the Appalachian business manager for J-W Operating Co.

Read more: http://www.post-gazette.com/pg/11250/1172744-100.stm#ixzz1XKEzEkpM

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