Thursday, March 22, 2012

Corrupt Pennsylvania history holds lessons for fracking

Abandoned Pennsylvania coal mine

The excerpt below is taken from Fracking: Corruption a Part of Pennsylvania’s Heritage,
an article written by Walter Brasch in Dissident Voice, a liberal, pro-labor blog.

While Mr. Brasch brings a distinct "point of view" to his discussion of natural gas drilling in Pennsylvania, he raises questions about industry and politics that merit attention and discussion. Tell us what you think in the comment box at the bottom of the page.  If one is not visible, activate it by clicking on the tiny 'comments' link.

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"Mixed into Pennsylvania’s energy production is not only a symbiotic relationship of business and government, but a history of corruption and influence-peddling. Between 1859, when an economical method to drill for oil was developed near Titusville, Pa., and 1933, the beginning of Franklin D. Roosevelt’s “New Deal,” Pennsylvania, under almost continual Republican administration, was among the nation’s most corrupt states. The robber barons of the timber, oil, coal, steel, and transportation industries essentially bought their right to be unregulated. In addition to widespread bribery, the energy industries, especially coal, assured the election of preferred candidates by giving pre-marked ballots to workers, many of whom didn’t read English.

"In a letter to the editor of The New York Times in March 2011, John Wilmer, a former attorney for the Pennsylvania Department of Environmental Protection (DEP), explained that “Pennsylvania’s shameful legacy of corruption and mismanagement caused 2,500 miles of streams to be totally dead from acid mine drainage; left many miles of scarred landscape; enriched the coal barons; and impoverished the local citizens.” His words serve as a warning about what is happening in the natural gas fields.

"Pennsylvania’s new law that regulates and gives favorable treatment to the natural gas industry was initiated and passed by the Republican-controlled General Assembly and signed by Republican Gov. Tom Corbett. The House voted 101–90 for passage; the Senate voted, 31–19. Both votes were mostly along party lines.

"In addition to forbidding physicians and health care professionals from disclosing what the industry believes are “trade secrets” in what it uses in fracking that may cause air and water pollution, there are other industry-favorable provisions.

"The new law guts local governments’ rights of zoning and long-term planning, doesn’t allow for local health and environmental regulation, forbids municipalities to appeal state decisions about well permits, and provides subsidies to the natural gas industry and payments for out-of-state workers to get housing but provides for no incentives or tax credits to companies to hire Pennsylvania workers.

"It also requires companies to provide fresh water, which can be bottled water, to areas in which they contaminate the water supply, but doesn’t require the companies to clean up the pollution or even to track transportation and deposit of contaminated wastewater. The law allows companies to place wells 300 feet from houses, streams and wetlands. The law also allows compressor stations to be placed 750 feet from houses, and gives natural gas companies authority to operate these stations continuously at up to 60 decibels, the equivalent of continuous conversation in restaurants. The noise level and constant artificial lighting has adverse effects upon wildlife.

"As a result of all the concessions, the natural gas industry is given special considerations not given any other business or industry in Pennsylvania.

"Each well is expected to generate about $16 million during its lifetime, which can be as few as ten years, according to the Pennsylvania Budget and Policy Center (PBPC). The effective tax and impact fee is about 2 percent. Corbett had originally wanted no tax or impact fees placed upon natural gas drilling; as public discontent increased, he suggested a 1 percent tax, which was in the original House bill. In contrast, other states that allow natural gas fracking have tax rates as high as 7.5 percent of market value (Texas) and 25–50 percent of net income (Alaska). The Pennsylvania rate can vary, based upon the price of natural gas and inflation, but will still be among the five lowest of the 32 states that allow natural gas drilling. Over the lifetime of a well, Pennsylvania will collect about $190,000–$350,000, while West Virginia will collect about $993,700, Texas will collect about $878,500, and Arkansas will collect about $555,700, according to PBPC data and analyses.

"State Sen. Daylin Leach, a Democrat from suburban Philadelphia, says he opposed the bill because, “At a time when we are closing our schools and eliminating vital human services, to leave billions on the table as a gift to industry that is already going to be making billions is obscene.” 

Read the entire article at: Fracking: Corruption a Part of Pennsylvania’s Heritage

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