MSC Statement on Ongoing Legislative Developments in Harrisburg

We’re regretful that there wasn’t closure brought toward achieving commonsense legislative initiatives

Canonsburg, PA – As the Pennsylvania General Assembly’s legislative session draws to a close, Marcellus Shale Coalition (MSC) president and executive director Kathryn Klaber issued the following statement regarding the months of good-faith, broad-based discussions that the industry continues to participate in with the goal of reaching sound, legislative and regulatory solutions that will encourage economic growth and job creation, while helping to put the Commonwealth on a path towards a cleaner energy future:

“From the outset of these discussions, our industry has been working closely with elected leaders and key stakeholders in an effort to modernize the Commonwealth’s legislative and regulatory framework. These commonsense and shared goals will help ensure that capital investment will continue to flow into Pennsylvania, which is critical to expand job opportunities during this period of high unemployment and economic uncertainty.

“Expanding the responsible development of the Marcellus Shale’s abundant, clean-burning natural gas resources will also help put our region and the nation on a path toward a cleaner and more secure environmental future.

“As part of a well thought out and considerate comprehensive overhaul that includes legislative and regulatory modernizations, our industry maintains its support for a competitively structured severance tax that allows for capital recovery and reinvestment, comparable to other leading shale gas producing states, such as Arkansas, Texas and Louisiana.

“The leadership in the state senate deserves credit for their months of work in crafting a competitive, well-balanced package of reforms that would help ensure Pennsylvania remains a leader in responsible shale gas development.

“While our commitment to achieve these shared goals remains steadfast, we’re regretful that there wasn’t closure brought toward achieving these commonsense initiatives during this legislative session. We must get this historic opportunity right; we cannot afford not to.”

NOTE: Below are a host of MSC statements regarding regulatory and legislative developments and proposals:

  • “Kathryn Klaber … says the bill the House passed is more than double what is the least competitive severance tax in other shale gas states. The House bill would put a 39 cent tax on every thousand cubic feet of gas drilled. Klaber says a severance tax that is not competitive with other states would stifle competition in Pennsylvania.” (WDUQ, 10/11/10)
  • “A competitively structured tax in Pennsylvania, that allows for critical capital investment, coupled with smart regulatory and legislative modernizations, is key to ensuring that this historic opportunity is realized in ways that benefit each and every Pennsylvanian.” (MSC statement, 9/29/10)
  • “A fair, competitive and updated regulatory framework and tax structure has been, and continues to be the position of the Marcellus Shale Coalition – a position the industry has conveyed to both the executive and legislative branches of our state government.” (MSC statement, 9/20/10)
  • “Kathryn Klaber, executive director of the MSC, an advocacy group representing almost all of the state’s shale gas producers, said the Arkansas [tax] model is one the coalition has been encouraging because ‘we view it as a good way to encourage development and return some revenue to local governments.’” (Pittsburgh Post-Gazette, 9/8/10)
  • “MSC President Kathryn Klaber says the fiscal code language about the severance tax proposal includes a commitment by elected leaders to conduct a comprehensive evaluation of ‘how best to seize on the opportunities of the Marcellus in the future, and do so in a manner that benefits all Pennsylvanians.’ … ’We need an updated and modernized regulatory and legislative framework, and a fair tax strategy that keeps our state ahead of the curve in attracting the investment needed to bring these resources to the surface.’” (WDUQ, 7/7/10)
  • “MSC members will continue to be key participants in this iterative, ongoing process, working alongside the General Assembly, the administration and stakeholders across the Commonwealth to put our state in the best possible position to seize on the extraordinary opportunities of the Marcellus. And when it comes to that objective, there’s nothing more important than having a tax, regulatory and legislative framework in place that’s collaborative in its approach, and comprehensive in its design. Today’s agreement moves us one step closer toward the realization of such a plan.” (MSC statement, 7/6/10)
  • “We will continue to work closely with the General Assembly, the governor and his administration, as well as county and local officials, to craft commonsense solutions – especially modernizing our outdated regulatory framework – that encourage competitiveness, expanded job creation and energy security.” (MSC statement, 6/15/10)
  • “Kathryn Klaber, president of the MSC … said state regulations need to be ‘dusted off and modernized’ but emphasized the competitive nature of the gas drilling industry and its economic benefits for the state.” (Pittsburgh Post-Gazette, 5/4/10)
  • “We stand ready to work with you on a plan to convert this potential into historic opportunities for the future – and look forward to continuing to update you and your colleagues on our progress and priorities in the weeks and months to come.” (MSC letter to General Assembly, 4/8/10)
  • “The MSC is committed to an ongoing dialogue with key stakeholders on the development of this framework. This opportunity is far too important for Pennsylvania’s economic future and the future of clean energy development for the nation. We will continue to work closely with lawmakers and regulators to make sure Pennsylvania gets it right, especially given how fortunate we all are to have this once-in-a-lifetime chance to make a difference in the lives of so many.” (MSC statement, 2/9/10)