Ohio Governor proposes increased fracking tax
Thursday, February 5, 2015
Ohio Governor John Kasich tried to raise the tax rate on fracking in 2014, and now he’s proposed another such plan, The Plain Dealer reports.
Kasich’s plan calls for Ohio’s horizontal drillers to pay a 6.5 percent severance tax for crude oil and natural gas sold at the source. As of now, oil is charged 20 cents per barrel. The current tax on natural gas is 3 cents per thousand cubic feet. Conventional drillers would pay the current rate on oil and natural gas.
This tax money would help to cover proposed business and personal income tax cuts. It would bring in an estimated $260 million over the next two years. Twenty percent of the revenue from the severance tax would go to local governments in the Utica and Marcellus Shale plays in the eastern part of the state.
Related: Pennsylvania lawmakers propose natural gas extraction tax
Via: The Plain Dealer > Ohio’s fracking tax would jump significantly under Gov. John Kasich’s budget plan
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
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.