Tuesday, July 13, 2010
Wednesday, March 17, 2010
WestoverEnergyCompany.Com. - Westover Energy Blog - RSS NEWSShale
- March 17 (Bloomberg) -- Reliance Industries Ltd. , the owner of the world’s largest fuel-making complex, is in talks with Atlas Energy Inc. to invest in the U.S. natural-gas producer’s shaleassets, a person familiar with the negotiations said.Bloomberg - Mar 16 9:21 PM
- Horizontal drilling and the ability to fracture shale seams to release gas have made shale gas viable. Some Aussie firms are out front of this development.Resource Investor - 34 minutes ago
- March 16 (Bloomberg) -- Reliance Industries Ltd. , India’s biggest company by market value, is interested in buying stakes in shale-gas assets in the U.S., a person familiar with the energy explorer’s plans said.Bloomberg - Mar 16 9:21 AM
- March 16 (Bloomberg) -- Reliance Industries Ltd. may acquire a 40 percent to 50 percent stake in a U.S. Shale Gas asset, the CNBC television reported today, citing sources it didn’t identify.Bloomberg - Mar 16 3:21 AM
- COUDERSPORT — Drilling on the Marcellus Shale is going to have huge financial benefits to Potter and McKean counties. That was the message Tuesday evening at the preview event for the Natural Gas Expo in Coudersport.The Bradford Era - 2 hours, 13 minutes ago
- State Rep. Greg Vitali, D-166, of Haverford, recently joined legislators and environmentalists asking that Gov. Ed Rendell stop granting permits to drill in state forest land over the Marcellus Shaleregion, a huge deposit of natural gas lying under much of the state.Main Line Suburban Life - Mar 17 12:41 AM
- March 16 (Bloomberg) -- Reliance Industries Ltd. , India’s biggest company by market value, may acquire a 40 percent to 50 percent stake in a U.S. shale-gas asset, CNBC TV18 reported, citing people it didn’t identify.Bloomberg - Mar 16 4:21 AM
- HARRISBURG -- The first regulatory legislation in the Northern Tier relating to the Marcellus Shaleis on its way to Gov. Ed Rendell’s office. State Sen. Gene Yaw sponsored the bill.WENY-TV - Mar 16 10:02 PM
- Reliance Industries, India's biggest company by market value, is interested in buying stakes inshale-gas assets in the US, a person familiar with the energy explorer's plans said.Express India - Mar 16 2:46 PM
- After missing out on the U.S. shale gas rush, most of the biggest Western oil and gas companies are getting in early in exploring for shale gas in Europe.Reuters via Yahoo! UK & Ireland News - Mar 16 2:01 AM
- Mainland Resources, Inc. , a Nevada Corporation reports that the Company and an undisclosed buyer have executed a Purchase and Sale Agreement for Mainland's Haynesville Shale interest on the Company's DeSoto Parish, Louisiana leases. ÂPR Newswire via Yahoo! Finance - Mar 15 6:15 AM
- HARRISBURG (AP) — Pennsylvania will join other major natural-gas states in requiring the prompt disclosure of production results. State senators unanimously approved the measure Tuesday, six days after the House did the same. Gov.Pocono Record - Mar 16 3:39 PM
- President Barack Obama's top environmental adviser urged the natural gas industry on Tuesday to disclose the chemicals it uses in drilling, warning that the development of massive U.S. shale gas reserves could be held back otherwise. Joseph Aldy, special assistant to the president for energy and the environment, said concerns about water contamination from drilling chemicals could lead to states ...Environmental News Network - 13 minutes ago
- Please enable Javascript to view this content. Get free industry updates via email. Daily News Weekly News Equipment Updates Job Alert Event Alert Our privacy pledge.Rigzone - Mar 16 11:42 AM
- Consol Energy is joining the shale gas party. And its $3.5 billion deal to buy assets from Dominion Resources looks like a bargain. But the investors who knocked Consol’s share price are rightly skeptical, Breakingviews says . By hedging its energy bets, the coal company risks confusing investors and sealing in a conglomerate discount, the publication argues.New York Times - Mar 16 1:56 AM
- Reliance Industries Ltd., the owner of the world’s largest fuel-making complex, is in talks with a western Pennsylvania company to invest in U.S. shale assets, a person familiar with the negotiations said.Times Leader - 2 hours, 40 minutes ago
- Chris Morrison is the mayor of Tamaqua, a community with super-high cancer rates, abandoned toxic coal mines and corporate suitors eager to fill those pits with toxic sludge and fly ash.Centre Daily Times - Mar 15 10:07 PM
- The state Public Utility Commission wants to clarify its role in regulating natural- gas collection and gathering pipelines in the Marcellus Shale region. Century-old regulations need to be rewritten in the face of the explosion of Marcellus drilling inThe Scranton Times-Tribune - 2 hours, 46 minutes ago
- Oil and gas company Continental Resources Inc. said Tuesday that it has completed nine wells in the Bakken shale in North Dakota and one in Montana this year along with additional wells in North Dakota and Michigan.AP via Yahoo! Finance - Mar 16 10:21 AM
- King's Lynn fans get their first chance to see the Stars on track tonight when the club hosts a team preview event at the Norfolk Arena. The Young Stars - who have just won a sponsorship deal with Poultec - will be out first, with the senior squad taking to the shale at around 8pm.EDP24 - Eastern Daily Press - 2 hours, 58 minutes ago
- The Economist has a report on the "shale gale" revolution that has changed the market for natural gas in North America. The energy boom has created new questions about the economics of developing ...Fairbanks Daily News-Miner - Mar 16 4:22 PM
- LONDON, March 16 (Reuters) - After missing out on the U.S. shale gas rush, most of the biggest Western oil and gas companies are getting in early in exploring for shale gas in Europe. The following are details of where the big players are active. For an analysis on Shale gas in Europe, please click onInteractive Investor - Mar 16 2:44 AM
- March 15 (Bloomberg) -- Consol Energy Inc., a coal and natural gas producer, agreed to buy Dominion Resources Inc.’s natural gas and oil exploration and production business for $3.48 billion to expand Marcellus Shale reserves.Bloomberg - Mar 15 5:59 AM
- State Sen. Andy Dinniman, D-19th, of West Whiteland, has introduced legislation that would impose a tax on Marcellus Shale natural-gas extraction and use the revenues from that tax to give Pennsylvania homeowners property-tax rebates.Main Line Suburban Life - Mar 16 12:41 AM
- Consol Energy Inc., a coal and natural gas producer, agreed to buy Dominion Resources Inc.'s natural gas and oil exploration and production business for $3.48 billion to expand its MarcellusShale hol ...Tulsa World - Mar 16 12:39 AM
- KINGSTON TOWNSHIP - With the advent of natural gas drilling in the Marcellus Shale formation nearing in Luzerne County, residents are starting to express concerns about potential effects on the environment, especially water supplies.A newly formed groupThe Hazleton Standard-Speaker - Mar 15 6:23 PM
- The company announced the multi-billion-dollar acquisition of Dominion, Inc.'s exploration and production business, expanding Consol's Marcellus Shale drilling acreage in Pennsylvania and West Virginia.WOWK-TV West Virginia - Mar 15 9:37 AM
- VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2010) - TransAmerican Energy Inc. (TSX VENTURE:TAE)(FRANKFURT:YQJ) is pleased to announce that it has entered into a Letter of Intent to acquire (the "Acquisition") a 100% interest in 10 Utica shale oil and gas properties comprising 136,000 acres located in Quebec. In consideration therefor, the Company has agreed to pay the vendor a $25,000 ...Marketwire - Mar 15 11:38 AM
- HARRISBURG, Pa.—Pennsylvania will join other major natural-gas states in requiring the prompt disclosure of production results.The York Dispatch - Mar 16 2:43 PM
- VANCOUVER, BRITISH COLUMBIA--(Marketwire - 03/15/10) - TransAmerican Energy Inc. (TSX-V: TAE - News )(Frankfurt: YQJ - News ) is pleased to announce that it has entered into a Letter of Intent to acquire (the "Acquisition") a 100% interest in 10 Utica shale oil and gas properties comprising 136,000 acres located in Quebec. In consideration therefor, the Company has agreed to pay the vendor a $25 ...Marketwire via Yahoo! Finance - Mar 15 11:35 AM
Sort Results by: Relevance | Date
Sort Results by: Relevance | Date
Marcellus Shale News - MarcellusShale.WestoverEnergyCompany.Com
WestoverEnergyCompany.Com - Petroleum Land & Legal Services - Texas, Pennsylvania, Louisiana, Wyoming, North Dakota, Colorado, Oklahoma
Sort Results by: Relevance | Date
- Mainland Resources, Inc. , a Nevada Corporation reports that the Company and an undisclosed buyer have executed a Purchase and Sale Agreement for Mainland's Haynesville Shale interest on the Company's DeSoto Parish, Louisiana leases. ÂPR Newswire via Yahoo! Finance - Mar 15 6:15 AM
- HARRISBURG (AP) — Pennsylvania will join other major natural-gas states in requiring the prompt disclosure of production results. State senators unanimously approved the measure Tuesday, six days after the House did the same. Gov.Pocono Record - Mar 16 3:39 PM
- President Barack Obama's top environmental adviser urged the natural gas industry on Tuesday to disclose the chemicals it uses in drilling, warning that the development of massive U.S. shale gas reserves could be held back otherwise. Joseph Aldy, special assistant to the president for energy and the environment, said concerns about water contamination from drilling chemicals could lead to states ...Environmental News Network - 13 minutes ago
- Please enable Javascript to view this content. Get free industry updates via email. Daily News Weekly News Equipment Updates Job Alert Event Alert Our privacy pledge.Rigzone - Mar 16 11:42 AM
- Consol Energy is joining the shale gas party. And its $3.5 billion deal to buy assets from Dominion Resources looks like a bargain. But the investors who knocked Consol’s share price are rightly skeptical, Breakingviews says . By hedging its energy bets, the coal company risks confusing investors and sealing in a conglomerate discount, the publication argues.New York Times - Mar 16 1:56 AM
- Reliance Industries Ltd., the owner of the world’s largest fuel-making complex, is in talks with a western Pennsylvania company to invest in U.S. shale assets, a person familiar with the negotiations said.Times Leader - 2 hours, 40 minutes ago
- Chris Morrison is the mayor of Tamaqua, a community with super-high cancer rates, abandoned toxic coal mines and corporate suitors eager to fill those pits with toxic sludge and fly ash.Centre Daily Times - Mar 15 10:07 PM
- The state Public Utility Commission wants to clarify its role in regulating natural- gas collection and gathering pipelines in the Marcellus Shale region. Century-old regulations need to be rewritten in the face of the explosion of Marcellus drilling inThe Scranton Times-Tribune - 2 hours, 46 minutes ago
- Oil and gas company Continental Resources Inc. said Tuesday that it has completed nine wells in the Bakken shale in North Dakota and one in Montana this year along with additional wells in North Dakota and Michigan.AP via Yahoo! Finance - Mar 16 10:21 AM
- King's Lynn fans get their first chance to see the Stars on track tonight when the club hosts a team preview event at the Norfolk Arena. The Young Stars - who have just won a sponsorship deal with Poultec - will be out first, with the senior squad taking to the shale at around 8pm.EDP24 - Eastern Daily Press - 2 hours, 58 minutes ago
- Reliance Industries (RIL) is seeking a joint venture with Atlas Energy to develop the US firm's Marcellus Shale gas operations, a source with direct knowledge of the matter said.Business Standard India - Mar 16 11:44 AM
- Consol Energy will buy the Appalachian natural gas properties of Dominion Resources for $3.48 billion in cash, giving it a leading position in the growing Marcellus Shale field, Reuters reports.New York Times - Mar 15 6:41 AM
- HOUSTON, March 16 (Reuters) - Exxon Mobil Corp has received clearance from U.S. and Dutch regulators for its $27 billion acquisition of U.S. oil and gas company XTO Energy Inc , Exxon said in a regulatory filing on Tuesday. The approvals put the U.S. oil major one step closer to completing a deal meant to ramp up global exploration for natural gas in substances like shale or impermeable sands ...Interactive Investor - Mar 16 12:12 PM
- Consol Energy Inc. said today it has agreed to buy Dominion Resources Inc.'s Appalachian exploration and production business for $3.475 billion, substantially increasing its natural gas reserves and production capacity.Houston Chronicle - Mar 15 7:09 AM
- CONSOL Energy Inc agreed to buy Dominion Resources Inc's Appalachian natural gas properties for $3.48 billion in cash, giving CONSOL a leading position in the growing Marcellus Shale field.Reuters via Yahoo! News - Mar 15 5:55 AM
- Consol will spend $3.48 billion for the gas reserves, which will give it a leading position in the growing Marcellus Shale field.New York Times - Mar 15 6:05 AM
- Following the March 15, 2010 announcement that it has entered into a Purchase and Sale Agreement of its producing Haynesville Shale assets in De Soto Parish, North Louisiana for proceeds of over $27 million, Mainland Resources, Inc. , a Nevada Corporation , provides the following operational update concerning its current assets and business plan:PR Newswire via Yahoo! Finance - Mar 16 12:49 PM
- MUMBAI, March 16 (Reuters) - Indian energy major Reliance Industries is seeking a joint venture with Atlas Energy to develop the U.S. firm's Marcellus Shale gas operations, a source with direct knowledge of the matter said. Independent oil and gas company Atlas is seeking a partner for its operations in the booming Marcellus Shale in the eastern United States, sources told Reuters last month ...Interactive Investor - Mar 16 6:42 AM
- March 15 (Bloomberg) -- Consol Energy Inc. , a coal and natural gas producer, agreed to buy Dominion Resources Inc.’s natural gas and oil exploration and production business for $3.48 billion to expand its Marcellus Shale holdings.Bloomberg - Mar 15 1:35 PM
- A study of the small earthquakes near the Dallas/Fort Worth International Airport in 2008 and 2009 says the saltwater injection disposal wells in the area were a “plausible cause” for seismic activity.Fort Worth Business Press - Mar 15 3:09 AM
Sort Results by: Relevance | Date
Thursday, May 21, 2009
Monday, May 18, 2009
netDockets Bankruptcy and Corporate Restructuring Blog: Harvest Oil & Gas/Saratoga Resources Creditors' Committee Appointed
The numbers are clear, (according to Baker Hughes) rig counts are down and are decreasing, with the exception of Haynesville Shale that actually reflected a current increase in rigs. I have submitted an additional previous post regarding the current," Rig Count," report.
Thousands of Petroleum Landmen through out the US are currently unemployed and energy companies, energy service companies and many of the vendors that have business & revenue linked to the energy industry are reeling from the energy industries current fledgling existence.
As reflected below in the submitted article, the energy industry is not immune to the current recession, so just as it is not and has never been contemplated to tax the Airlines and the Auto Industry, outrageous severance taxation after they enjoy a few quarters of successful profits, even when both have a consistent track record of bailouts, every few years...now is not the time to have federal or state taxation that will inhibit or stagnate domestic energy exploration or domestic energy production.
Arguably, a more comprehensive and possibly higher rate of taxation should have been in place prior to the recent boom in profits that many energy companies enjoyed, but taking into account that many of those recent profits have turned to loses and our needs for energy will certainly increase, especially when the economy rebounds, it is incumbent for law makers and policy decisions to be proactive for anticipation of what occurred last summer and for the reality that we are going to need to have ready available domestic sources of energy when the economy reinvigorates to a normal or excellent status.
Reasonable taxation for production should be implemented, but to be reasonable considerations must be given to fostering and promoting energy production and energy exploration before the fact and not after the fact, with respect to meeting the energy needs of our nation.
Sunday, May 17, 2009
Harvest Oil & Gas/Saratoga Resources Creditors' Committee Appointed
The United States Trustee has appointed the members of the Official Committee of Unsecured Creditors in the Harvest Oil and Gas, LLC and Saratoga Resources, Inc. bankruptcy cases. The companies filed for bankruptcy protection on March 31st in the Western District of Louisiana bankruptcy court. The members of the Creditors' Committee are:
* XPLOR Energy Operating Company
* River Rental Tools, Inc.
* Quality Energy Services, Inc.
* Southern Flow Companies, Inc.
* Thru Tubing Systems, Inc.
Download copies of every document filed in these bankruptcy cases and the bankruptcy cases of over 550 other major corporations using netDockets. Sign up now for a free trial account and $100 of free research.
Posted by Randall Reese at 10:39 PM
Labels: appoint, bankrupt, chapter 11, committee, creditor, gas, harvest, official, oil, resources, saratoga, trustee, unsecured
netDockets Bankruptcy and Corporate Restructuring Blog: Harvest Oil & Gas/Saratoga Resources Creditors' Committee Appointed
Thousands of Petroleum Landmen through out the US are currently unemployed and energy companies, energy service companies and many of the vendors that have business & revenue linked to the energy industry are reeling from the energy industries current fledgling existence.
As reflected below in the submitted article, the energy industry is not immune to the current recession, so just as it is not and has never been contemplated to tax the Airlines and the Auto Industry, outrageous severance taxation after they enjoy a few quarters of successful profits, even when both have a consistent track record of bailouts, every few years...now is not the time to have federal or state taxation that will inhibit or stagnate domestic energy exploration or domestic energy production.
Arguably, a more comprehensive and possibly higher rate of taxation should have been in place prior to the recent boom in profits that many energy companies enjoyed, but taking into account that many of those recent profits have turned to loses and our needs for energy will certainly increase, especially when the economy rebounds, it is incumbent for law makers and policy decisions to be proactive for anticipation of what occurred last summer and for the reality that we are going to need to have ready available domestic sources of energy when the economy reinvigorates to a normal or excellent status.
Reasonable taxation for production should be implemented, but to be reasonable considerations must be given to fostering and promoting energy production and energy exploration before the fact and not after the fact, with respect to meeting the energy needs of our nation.
Sunday, May 17, 2009
Harvest Oil & Gas/Saratoga Resources Creditors' Committee Appointed
The United States Trustee has appointed the members of the Official Committee of Unsecured Creditors in the Harvest Oil and Gas, LLC and Saratoga Resources, Inc. bankruptcy cases. The companies filed for bankruptcy protection on March 31st in the Western District of Louisiana bankruptcy court. The members of the Creditors' Committee are:
* XPLOR Energy Operating Company
* River Rental Tools, Inc.
* Quality Energy Services, Inc.
* Southern Flow Companies, Inc.
* Thru Tubing Systems, Inc.
Download copies of every document filed in these bankruptcy cases and the bankruptcy cases of over 550 other major corporations using netDockets. Sign up now for a free trial account and $100 of free research.
Posted by Randall Reese at 10:39 PM
Labels: appoint, bankrupt, chapter 11, committee, creditor, gas, harvest, official, oil, resources, saratoga, trustee, unsecured
netDockets Bankruptcy and Corporate Restructuring Blog: Harvest Oil & Gas/Saratoga Resources Creditors' Committee Appointed
Sunday, May 17, 2009
Marcellus Shale Production Companies are not R.J. Nabisco or selling Cigarettes.
Today, it came to my attention that some people outside of the energy industry don't understand how the supply and demand curve has really done a 180 since last summer.
In writing this, it was not my intention to overly criticize or engage deeply into politics...I am merely pleading for policy makers to possibly use common sense, do some research and look outside of your backyard (Pennsylvania), such is applicable also to you Mr. President (USA )- as many of you hopefully recall, that this week Russia, did not mince words regarding what they deemed to be an impending energy shortage that will have effects to the entire world and that such energy shortage, may likely lead to wars or military conflicts, yet Obama wants tax heavily on production, regardless of the fact that the United States is merely one reinvigorated economy away from again being ill prepared and without the necessary production resources to handle domestic energy supply and demand.
Yes, I too have a bad taste in my mouth from taking a 2nd mortgages out every time I had to fill up last summer and then hearing, “Exxon Mobile, record profits, “ etc, but the energy companies that are the gatekeepers to big energy- the independents, the small companies and the medium companies, need to be able to operate, in an industry that is not merely called ”exploration, “ haphazardly, because drilling and production often calls for speculation and is not always a given for being profitable. So again, my point is that taxation, should be done on production, but in a manner that is not grossly disproportional to the intended purpose of fairly taxing without causing an aggregate chilling effect. Because, Energy companies can choose another venue other than Pennsylvania’s Marcellus Shale for drilling that may be more profitable, due to the severance taxation liability that some are proposing, but the citizens of Pennsylvania who deserve and often, who are in need of the residual revenue of Marcellus Production deserve policy makers elected by them to consider policies and taxations under the totality of circumstances (benefit + burden = aggregate value & intended value), before Robbing Peter to Pay Paul and throwing some delusional number out to people in a recession, “$100 million dollars in generated production taxation , “ that is a speculative number, if production were to remain as projected, IF companies can main production, when other plays might then become cheaper to produce?
While, I don't pretend to know a significant amount regarding Pennsylvania Politics...I do know an abundance about the State of Pennsylvania and the great people that make up, one of my favorite places...they deserve, rational and contemplated taxation polices that will not have chilling effects, due to those whom are proposing such taxation not understanding the present state of the industry they desire to seek 100 million dollars from, which, in theory is a great number that would be useful, but in reality, arguably such taxation would induce losing more than would be gained, in terms of aggregate loses (jobs, production decreasing or stagnating, etc).
So here we go, this article stemmed from my receiving this article today. An insert (full article blog article enclosed below) , from Inside Harrisburg - insight and perspective from The Morning Call's state house reporter John L. Micek...regarding severe taxation on Marcellus Shale Production, makes me wonder how some Politicians arrive at their policy decisions and rationales? Horse shoes, darts or flipping a coin?
Case and point... "He's also proposed a $100 million ''severance'' tax on the natural gas extracted from the Marcellus Shale deposits in northeastern Pennsylvania.
Republicans have balked at the severance tax, arguing that it will strangle a fledgling industry that could pump untold billions into the state's economy if it's given the proper incentives. But Rendell has said the state would be making a major mistake if it didn't capitalize on a rich, new stream of revenue.
The Democratic governor also wants to impose new levies on cigars and smokeless tobacco and a 10-cent increase to the state's cigarette tax, raising a total of $100 million."
I will not attempt a lengthy and articulated tirade regarding Pennsylvania Politics, with respect the enclosed, as my knowledge and capacity of the Politics in the Great State of Pennsylvania are remedial at best and such efforts would be disingenuous. With that being said, the blog article, with respect to propositions of extreme severance Taxation on Marcellus Shale Production, is not about Democrats or Republicans, it's about ignorance.
Politics aside, it comes down to economics, if that ridiculous and punitive severance tax is passed, it will having a chilling effect that will negate revenue that would have been generated, by any reasonably proposed severance tax. Apparently, these same people proposing to tax Marcellus Shale production at an alarming figure, believe such is akin to taxation of liquor or tobacco? Do they realize that there is another abundant Play available for energy production over in Louisiana in the Haynesville Shale, minus some the production cost associated with drilling in Pennsylvania? Moreover, many companies are selling their ready to produce mineral interest due to present market demand for natural gas driving prices below profitable drilling endeavors.
Ok, so rather than to induce production during extremely low exploration efforts, in which many companies are waiting/stalling or slow to produce (producing at minimal levels when production must occur), why not propose an outrageous severance tax on production...to eliminates jobs, cause Joe & Jane Mineral Holder to have to wait for another day, another year, etc to see their mailbox money, because drilling became too expensive, on top of which the net gain in raising such a disproportionate tax will be less than which would be generated by a reasonable tax when considering the macro effects of such tax, i.e., the chilling effect quashes or diminishes new production and/or impedes the stability for maintaining current production. Moreover, if such a disproportionate severance tax were to occur, it would not just make the Haynesville Shale a more attractive alternative producing venue, it would also push focus to other production plays such as the less risky, Barnett Shale that has a much more proven track record, with accessible data, via companies selling mineral interests, acreage that is still available for lease or from leases that were not 3/2 (3 year with a 2 year option) that are expiring. Point being, yes, eventually, regardless of the severance tax, Marcellus will be eventually produced, but to many in Pennsylvania now is a sense a of urgency for needing their piece of the pie of Marcellus Shale production during these anomaly economic times.
An important note, regarding some of the dialog by Pennsylvania Policy Makers that was the impetus for my writing this blog.
Energy Production is not comparable to tobacco commerce, Energy Production is meshed in our National Security and it insulates the threads of prosperity through fueling commerce. Without steady and affordable energy, national security and commerce are at risk or diminished, so let’s not compare tobacco to energy production or alcohol either, because, while a cold beer is up there on my list of earthly nirvana, it is not the fuel that feeds our country's stability. Using any rationalization of energy production taxation in the same paragraph as justification of Alcohol or Tobacco Taxation is inexplicably irresponsible.
All of us, recall last summer when paid extravagant gasoline prices and soon after, big energy announced record profits, not all of the producers are Exxon Mobile and these same producers who are Partners with Pennsylvania to produce & share fair profits would lose money to produce under a punitive severance tax in Pennsylvania, when other producing areas, without such taxes are begging for more production.
Again, something of something is better than something of nothing or as they say in Texas, "the pig eats, but the hog gets slaughtered"...fair and balanced taxation to foster growth, heck why not, Pennsylvania deserves it, but fair, not irrational exuberance (to borrow a quote from Mr. Greenspan) , so in order to maintain revenue streams, foster growth, because the other alternative is a diminished return, when production stagnates, and/or decreases and possibly is moved out of Pennsylvania...don't treat production companies like they are cigarette companies, make them pay their fair share as Pennsylvania is deserving, but don’t lose sight of the fact that in the big picture of a supply and demand dictated business operation, the relationship is a synergy, symbiotic for lack of a better word, they have to thrive in order for the partnership to work.
The full article blog and article cited from is enclosed below.
Thank you for reading this and I look forward to any and all who agree or disagree with my opinion(s) to expound on this discussion, as it is an important topic. As, I have had the pleasure of meeting so many nice people while working and staying in Pennsylvania, regardless of perspectives or views, it is generally enriching, as Penn Pride is never a supply and demand issue, regardless of the economy.
Thank you and God Bless,
-F. Sam Tallis, J.D.
Enclosed cited source and full article:
May 17, 2009
Your Handy State Budget Primer.
Categories: Current Affairs
Here's Everything You Need To Know ...
... about this year's budget debate, but were maybe afraid to ask.
Q: What's going on now?
The majority-Republican Senate and Democrat Gov. Ed and the Democrat-majority state House each has its own competing budget proposals.
The Senate drew first blood May 6 as it voted along party lines to approve a $27.3 billion, no tax-increase budget that makes deep cuts across state government. The Senate GOP plan is nearly $1 billion less than the current approved spending of about $28 billion.
Rendell and the majority-Democrat House are pursuing a $28.9 billion budget plan.
Rendell's budget plan also calls for spending cuts that would include shuttering the state library in Harrisburg and eliminating funding for public television.
Though deep, Rendell's cuts, as proposed, are less biting than those put forward by the Senate GOP.
But he's got adjustments to make because revenues have fallen since he unveiled his plan.
Democrats say the state needs to bolster services like education and job training as Rendell proposes in his budget. GOP leaders make the counter-claim that the state has no choice but to tighten its belt during an economic downturn.
''Passing a budget that focuses on the core needs of government is the right direction to go,'' said House Minority Leader Sam Smith, R-Jefferson.
The House Appropriations Committee is set to hold hearings this week on the Senate GOP budget plan. The Democratic version is also currently before the committee.
The divergence between the camps reflects the fundamentally different ways in which each side views the world.
Rendell and the Democrats say the state needs to spend more money if it expects to spark an economic turnaround. Republicans are urging fiscal caution, and say the state shouldn't spend more money than it has.
Q: So there's a deficit, right?
This is one of those things that both sides agree on. Courtesy of the cratering national economy, state revenues all over the country have taken it on the chin this year.
Through the end of April, the Pennsylvania Department of Revenue said it had collected $21.7 billion in taxes. That's $2.6 billion, or 10.5 percent, less than state officials had projected.
That total includes, among other things, corporate taxes, personal income taxes, sales taxes and the realty-transfer tax that's imposed when someone sells a house.
The overall state budget deficit has been something of a moving target. When Rendell rolled out his budget in early February, administration officials were anticipating a $2.3 billion gap.
That grew to $2.6 billion. And current projections by the House and Senate now show that the state will finish the year $3 billion in the red.
''That's $700 million more than the governor accounted for in his proposal and $400 million more than the four caucuses calculated in March,'' said Johnna Pro, a spokeswoman for House Appropriations Committee Chairman Dwight Evans, D-Philadelphia.
Rendell's spokesman, Chuck Ardo, said the administration is ''not arguing about the potential for a larger deficit than we had originally anticipated.''
Q: Does the budget have to be balanced?
Unlike their colleagues on Capitol Hill, where deficit spending is as natural as breathing, the Pennsylvania Constitution expressly forbids lawmakers from going into the red and staying there. Here's the applicable chapter and verse from Article VIII, Section 13(a): ''Operating budget appropriations made by the General Assembly shall not exceed the actual and estimated revenues and surpluses available in the same fiscal year.''
That artful, but brief, bit of verbiage was intended to encourage fiscal discipline on the part of policymakers, said Matthew Brouillette, the president of the Commonwealth Foundation, a free market-favoring think-tank in Harrisburg.
''Basically, it's because the state can't print money,'' he said. ''We can borrow money. But we already have $110 billion in state and local debt. That's $9,000 for every man, woman and child.''
Q: If there's a $3 billion hole, how will they fill it?
The budget plans proffered by Rendell and Senate Republicans each rely on $2.6 billion to $2.7 billion in federal stimulus money to help close the budget gap.
But that's where the commonality stops.
Republicans aren't interested in any new tax hikes, arguing the state shouldn't be making things harder for workers and businesses during economic tough times.
''This is an appropriate plan that matches the revenues we have this year and the challenges we can expect next year,'' Senate Majority Leader Dominic Pileggi, R-Delaware, said in a recent interview.
Rendell has also proposed tapping the state's $750 million Rainy Day Fund savings account for $250 million in 2008-2009, and then $375 million in 2009-2010.
He's also proposed a $100 million ''severance'' tax on the natural gas extracted from the Marcellus Shale deposits in northeastern Pennsylvania.
Republicans have balked at the severance tax, arguing that it will strangle a fledgling industry that could pump untold billions into the state's economy if it's given the proper incentives. But Rendell has said the state would be making a major mistake if it didn't capitalize on a rich, new stream of revenue.
The Democratic governor also wants to impose new levies on cigars and smokeless tobacco and a 10-cent increase to the state's cigarette tax, raising a total of $100 million.
Q: What if there's no deal by June 30?
That one's pretty simple. The state loses the authorization to spend money. Unlike Congress, state lawmakers can't pass ''continuing resolutions'' to keep the cash flowing, Brouillette said.
This week, Rendell sent an e-mail to 80,000 state workers, telling them they'll go without pay in the event of a budget impasse, but should continue to go to work.
No budget has been passed on time in the nearly seven years Rendell has been in office. The state went through its longest impasse under Rendell in 2003 when lawmakers and the administration did not come to agreement on the budget's final components until just before Christmas that year.
And despite what you may have heard, there is no "constitutional" deadline to approve a new budget by June 30.
The language is actually etched in statute, which lawmakers are free to change if they want to, Brouillette observed.
Subscribe to:
Posts (Atom)