drilling

News Flash! Marcellus Shale Coalition Takes on PA Charities

By Stephen Herzenberg, Third and State

Thanks to Citizens United, we are all the beneficiaries of unlimited corporate money in our elections — witness the onslaught of TV ads interrupting our ballgames and the fall lineup of TV shows.

In a new twist, the very groups that agitated to spend unlimited funds to promote their point of view are now critical of others who challenge them. What brings this to mind is an Associated Press story this morning that the Marcellus Shale Coalition is not happy about the funding priorities of the Heinz Endowments and William Penn Foundation.

Citizens groups and nonprofits around the nation are asking questions about environmental and health impacts of natural gas hydraulic fracturing, or fracking, and Pennsylvania charities are funding much of the debate.

Foundations from Philadelphia to Pittsburgh have provided more than $19 million for gas-drilling-related grants since 2009, according to an Associated Press review of charity data. The money has paid for scientific studies, films, radio programs, websites and even trout fishing groups that monitor water quality.

That’s led to expressions of gratitude from those who say state and federal governments aren’t doing enough on the issue but also protests from some in the gas-drilling industry, who claim there’s bias in the campaigns...

But the Marcellus Shale Coalition, a leading industry group, criticized what it sees as a “record of bankrolling organizations and institutions opposed to the safe development of job-creating American natural gas.”

(Full disclosure: the Keystone Research Center receives funding from the William Penn Foundation and Heinz Endowments.)

What the groups, and their funders, are critical of is the unsafe development of natural gas. Since Pennsylvania’s official Marcellus policy is drill baby drill, somebody has to do the due diligence, so thank your local charity.

A related story provides heartening news that public debate can smoke out research that is simply advancing the perspective of the group that paid for the study.

A natural-gas driller’s group has canceled a Pennsylvania State University study of hydraulic fracturing after some faculty members balked at the project that had drawn criticism for being slanted toward industry.

The Marcellus Shale Coalition, which paid more than $146,000 for three previous studies, ended this year’s report after work had started, said Kathryn Klaber, coalition president.

The earlier studies were co-written by former Penn State professor Tim Considine, an economist now at the University of Wyoming who has produced research on economic and energy issues under contract to trade associations. The first study, in 2009, initially failed to disclose its industry funding and was used by lawmakers to kill a state tax on gas drillers. It was characterized as advocacy for producers by groups such as the nonprofit Pennsylvania Budget and Policy Center in Harrisburg...

The Marcellus Shale Coalition, a Pittsburgh-based drillers group, paid Penn State for the three economic-impact studies beginning in 2009, according to John Hanold, senior associate director of Penn State’s Office of Sponsored Programs...

Subsequent studies by other researchers have found that gas drilling created fewer than half the jobs projected by Considine in 2009.

The public needs reliable data to understand what drilling does and what it doesn’t do — information that the industry just won’t provide. Rational, independent studies funded by an unbiased government or private foundations, are in this post-Citizens United environment the antidote to unlimited, year-round campaign commercials, like the ones offered by our friends in the gas industry.

Pennsylvania's Natural Gas Tax Giveaway Exceeds $500 Million Mark

By Michael Wood, Third and State

The state's Department of Environmental Production (DEP) recently published a biannual report on Marcellus Shale production in Pennsylvania. (Most states require monthly reporting, but that is a different story.) In the data, we can now see how much the state has really given away by refusing to put a robust gas extraction tax in place — and the sum is staggering.

From July 2009 to June 2012, over $8 billion worth of natural gas was extracted from Pennsylvania’s share of the Marcellus Shale. The Commonwealth would have collected more than $500 million had we had West Virginia's natural gas tax in place. Instead, we got $0.

The recent DEP report was incomplete, as the Associated Press highlighted. Production from Chesapeake Energy (likely the state's largest gas producer) wasn't included nor disclosed as being missing in the initial release. Add in the production from Chesapeake over the last six months, and the lost tax revenue figure would be even bigger.

You may remember the Pennsylvania Budget and Policy Center's "drilling tax ticker," which tallied up the lost revenue to the state from not having a meaningful drilling tax in place. Those figures were based on conservative estimates of per-well Marcellus Shale production. We now have real production data (well, all drillers but Chesapeake) to analyze — giving us more accurate estimates.

Gas producers will pay an annual drilling impact fee beginning September 1, 2012, but the proceeds from the fee are expected to be lower than a modest drilling tax would bring in — even at today's low natural gas prices.
Click to enlarge

How could this foregone $500 million over the last three years been used?

  • Rehire 3,000 teachers;
  • Save General Assistance for 68,000 needy Pennsylvanians;
  • Restore funding for parks and environmental protection; or
  • Help the state meet growing pension obligations.

Pennsylvania continues to lose out on this one-time resource and may possibly be turning our natural bounty into a resource curse. These new data give us an idea of how much we are giving away.

No fracking way!

Crossposted at several national blogs

This Earth Day, while an oil rig was burning and sinking and spilling out into the Gulf of Mexico, I joined a small band of protesters during my lunch break to tell the government to stop a similar crime against nature, one that is taking place in my home state of Pennsylvania. There are no offshore oil rigs here, of course, but the new and dangerous method of extracting natural gas through fracking is becoming a larger and larger threat to our water, our land, and our climate. And Pennsylvania is ground zero.

So I took to the streets at a Green Party-organized protest. We stood outside the regional Department of Environmental Protection and made our voices heard.

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