Gov. Revising ‘frack tax’ proposal
Tuesday, June 18, 2013
Could the third time be the charm? Ohio Gov. John Kasich is hoping so. He’s trying, again, to gain support for his plan to raise the state’s severance tax on shale gas and oil drillers, according to Columbus Business First.
Kasich has revised his previous failed ‘frack tax’ for the current proposal. The current proposal gives 25 percent of the tax revenue to Appalachian counties involved in the shale play. The rest of the revenue would go to support a statewide income tax cut.
According to Columbus Business First, it’s not the way the tax money is distributed that’s the problem, it’s collecting the tax in the first place. Ohio House Speaker Bill Batchelder believes if the tax is passed, gas and oil companies will look elsewhere.
The plan would impose a 4.5 percent tax on oil and wet gas from shale gas wells. A 1 percent tax will be issued on dry gas.
» Via: Columbus Business First › Kasich revising ‘frack tax’ proposal but still can’t get backing from Statehouse GOP
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.