The topic I hear about most these last days of summer is Marcellus Shale. Imposing a severance tax on drilling natural gas was part of the budget deal, so I imagine that a tax will be forthcoming this September. The question on everybody’s mind is where the tax money goes. The environmental groups I’ve spoken with think the money will be used to protect the environment. Local governments think they will get part of the money for the additional services they have to provide and to repair infrastructure. People in areas where the drilling is heaviest think they will receive a large share of the money for community development. And last, but not least, many legislators believe that this “gold rush” is the answer to the state’s budget deficit. I think that several interests will receive a portion of the money and none will be happy. It will be interesting to see how this unfolds.
-John
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