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Marcellus Shale: drillers move in, environmentalists rally for tax and habitat relief

The largest gas deposit in North America, a reservoir lodged in rock 6,000 feet under the ground, is luring big gas drillers from around the world to our region.

It’s also causing concern among environmental groups across the state.

Houston-based Cabot Oil & Gas recently opened a regional office in Pittsburgh to better position the company for Marcellus Shale business, a deposit that spans four states and may contain 50 trillion cubic feet in natural gas estimated at $1 trillion. 

Pittsburgh is the firm's new North Region office; the company’s offices in Charleston, W.Va. and Denver, Colo. will close by the end of the summer and more than half of the impacted staff will move to Pittsburgh, according to the company.

Environmental concerns about the drilling have prompted local groups to rally for a state severance tax on the drillers, money they believe should go to restore and preserve local habitats and urban streams, such as the restored Nine Mile Run Watershed in the East End.

In addition to the tax, PennFuture and others want to place a portion of the funds in the state's Environmental Stewardship Fund, which would reinvest in parks, habitats, waterways and open spaces.

The Marcellus Shale gas deposit runs from upstate New York, across most of Pennsylvania and into West Virginia and eastern Ohio. Most states charge drillers a small tax in exchange for extraction rights.  Pennsylvania should do the same, say tax supporters.

If approved, the tax could generate more than $100 million next year and $600 million by 2013, says Joylette Portlock, Western Pennsylvania outreach coordinator for PennFuture.

PA Republican senate leaders are against the tax. Now is the time to contact legislators before the drilling is well established, Portlock told an assembled group at East Liberty Presbyterian Church last week.

“There are tremendous environmental impacts of drilling on the local economy,” added Hannah Hardy of the Pennsylvania Environmental Council. “This is the best way to ensure that there will be benefits to our community.”

To join PennFuture in support of the severance tax, click here.

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Writer: Debra Diamond Smit
Source: Joylette Portlock, PennFuture

Image courtesy flickr.com


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