Gas Prices Lengthen Odds on Pa. Gov’s Shale Tax PlanFebruary 12, 2015 – In The News
Phil Hinerman was quoted in the Law360 article “Gas Prices Lengthen Odds on Pa. Gov’s Shale Tax Plan.” Full text can be found in the February 12, 2015, issue, but a synopsis is below.
Sinking energy prices have heightened the challenge that Pennsylvania Gov. Tom Wolf faces in pushing a newly proposed shale gas tax through the state legislature.
Wolf’s announcement that he would seek a five percent severance tax to fund public education in the state came as little surprise, as he ran on the need to tax gas extraction to help close a $2 billion structural budget gap.
Wolf now confronts an additional obstacle, as the price of natural gas has dropped more than a dollar per million British thermal units since his election.
“The price of gas has impacted basic decisions on drilling. The only thing that’s different is that the market is now worse than it was before,” explained Phil Hinerman.