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A blog post by Sharon Ward, originally published at Third and State.
In a recent article examining the impact of Marcellus Shale drilling in Pennsylvania, The New York Times asked me to put the state’s tax policy on gas drilling in perspective. I explained that drilling isn’t producing the tax revenue needed to address the significant impacts of drilling or to support shared state priorities. Reporting from Montrose, Pa., reporter Kit Seelye writes:
The [Marcellus Shale] gas boom is transforming small towns like this one (population 4,400 and growing) and revitalizing the economy of this once-forgotten stretch of rural northeastern Pennsylvania. The few hotels here have expanded, restaurants are packed and housing rentals have more than doubled …
But the boom — brought on by an advanced drilling technique called hydraulic fracturing, known as fracking — has brought problems too. While the gas companies have created numerous high-paying drilling jobs, many residents lack the skills for them. Some people’s drinking water has been contaminated. Narrow country roads are crumbling under the weight of heavy trucks. With housing scarce and expensive, more residents are becoming homeless. Local services and infrastructure are strained.
“Very little tax revenue goes to local governments to help them share in the benefits of the economic development,” said Sharon Ward, executive director of the Pennsylvania Budget and Policy Center, an independent policy research organization.
And some are asking whether short-term gains have obscured the long-term view of an industry marked by boom-bust cycles.
3 Comments
Thank you for highlighting this. I’ve heard from relatives in northern Pennsylvania that, with the influx of gas company employees, rents have doubled and
there are now serious problems of homelessness in communities where it was previously almost unknown. Churches are being asked to provide for these
homeless, many of them working poor, because the state has basically abdicated its responsibilities.
a nation of whores selling our backyards to poison merchants
what’s next? selling our children’s body parts?
this is just another article outlining issues and not following through with the entire story, I guess I will just start here ” While the gas companies have created numerous high-paying drilling jobs, many residents lack the skills for them” This was the case when drilling first bacame prevalent but the majority of employees are local residents who have been training at the expense of the drilling companies to work these jobs. “Some people’s drinking water has been contaminated” along with anything comes risk and due to the negligence of a drilling company in dimock, Other safe practicing companies will continue to utilize the advancement in technology to take the necessary precautions. Technology such as closed loop fracing, new frac fluids such as clean stim, and on site ozonix recycling tanks. “Narrow country roads are crumbling under the weight of heavy trucks.” which have always been a problem in this area due to logging, milk trucks, dirt roads, these roads are atleast being fixed along the way now at the expense of the gas companies, it could be improved but it is all a process. ” With housing scarce and expensive, more residents are becoming homeless. Local services and infrastructure are strained.” absolutely a problem and there are many meetings taking place to try and come up with ideas to help in this situation. “Very little tax revenue goes to local governments to help them share in the benefits of the economic development” This is the responsibility of the local governments to come up with ways to recover this revenue and they are currently taking steps to do so by implementing more and higher real estate taxes. I know that with higher pay came much much higher local income taxes paid by many. I believe that we always need to address the issues with gas drilling and it needs to be regulated but along with this our news reporting and opinions need to be educated and filled with facts so we may also educate those who read it.