Posts Tagged ‘Sen. Lisa Baker’

Area races seeing little gas money

That situation could shift, says co-author of study of political donations.

By Andrew M. Sederaseder@timesleader.com
Times Leader Staff Writer

While natural gas companies and their related political action committees have given millions of dollars to elected officials throughout Pennsylvania since 2001, the donations have not flowed as heavily into the coffers of politicians serving Luzerne County.

One of the authors of a report that looked at the correlation of campaign contributions and legislation related to the natural gas drilling industry predicted they soon will.

A study released this week by the non-profit organization Pennsylvania Common Cause, takes a look at the link between gas firms and political donations and finds that since 2001, the industry has contributed $2.8 million to political candidates in Pennsylvania.

The study, titled “Deep Drilling, Deep Pockets” also reports that since 2007 the industry has spent $4.2 million to lobby members of the state legislature and the Rendell administration.

“I think part of the industry’s success is cultivating people at the very top,” said James Browning, director of development for Pennsylvania Common Cause and one of two men who put the report together.

The report includes a list of the top 25 recipients of the funding from Jan. 1, 2001 through April of 2010. At the top of the list is state Attorney General Tom Corbett, a Republican candidate for governor. He received $361,207, according to the report. Two previous gubernatorial candidates also made the list – Mike Fisher, who lost his bid in 2002, accepted $98,386, and Lynn Swan, who lost his bid in 2006, took in $351,263. Both men are Republicans.

Gov. Ed Rendell is sixth on the list. The Democrat from Philadelphia has accepted $84,100 in campaign contributions over the past nine and a third years. Current Democratic candidates for governor Dan Onorato, $59,300 and Jack Wagner, $44,550, ranked seventh and 10th respectively.

Others on the list include current and former judges, a former lieutenant governor, a candidate this year for that same post, a former candidate for the state House and numerous current members of the General Assembly.

Not one of the seven state House members or four state senators who represent Luzerne County made the top 25 list. In fact, according to records on the Department of State website and those provided by Pennsylvania Common Cause, campaigns for four of the seven House members did not receive one dime from the gas companies. The four are: Jim Wansacz, D-Old Forge; Phyllis Mundy, D-Kingston; Eddie Day Pashinski, D-Wilkes-Barre; and Mike Carroll, D-Avoca.

Rep. Karen Boback, R-Harveys Lake, accepted $250 from Chesapeake Energy Corp. Fed PAC on Oct. 9, 2009. Boback said that money was accepted by mistake and returned two months later. She said it is her policy “not to solicit or accept contributions from oil or gas companies.”

Rep. John Yudichak, D-Plymouth Twp., accepted $250 on April 10, 2008, from the PAC affiliated with Dominion Energy. Rep. Todd A. Eachus, D-Butler Township, accepted $500 from EQT Corp. PAC on July 2, 2009; $500 from EXCO Resources PAC on Oct. 20, 2008; and $250 from Equitable Resources, Inc. PAC on Sept. 30, 2008.

Of the four senators who represent a portion of Luzerne County, Bob Mellow, D-Peckville, took in the most at $3,000. That encompasses eight total donations, four from the Equitable Resources, Inc. Political Involvement Committee totaling $1,750 and four from the NFG PA PAC, affiliated with Seneca Resources, totaling $1,250. He declined comment through a spokeswoman, saying that he had not yet seen the report.

Sen. John Gordner, R-Berwick, accepted three donations of $500 from Dominion PAC. One came in 2004, another in 2006 and the third in 2008. His term does not expire for another two years.

Sen. Ray Musto, D-Pittston Township, accepted $500 from the Marathon Oil Co. Employees PAC on Oct. 20, 2008. Earlier this year, the veteran lawmaker announced he was retiring and not seeking another term in Harrisburg.

Sen. Lisa Baker, R-Lehman Township, accepted three donations at $500 apiece. One came from Cabot Oil and Gas on April 22, 2009; another was from EXCO Resources PAC on Nov. 19, 2008; and on April, 22, 2009, she accepted one from NFG PA PAC.

Browning said that as pressure from the public is placed on officials to tax the industry and approve more regulations, the elected officials at all levels of government, even those in non-leadership positions, will begin to see the money.

“I will predict that as there are more votes and as drilling expands, the money will come,” Browning said.

It will not head to Baker anymore.

The senator, who is seeking her second term in office this year, said, “Because of the sensitivity of the issues revolving around gas drilling, I am not asking for contributions from the gas drilling interests, nor am I accepting them.”

Barry Kauffman, executive director for Pennsylvania Common Cause, said the report illustrates the “power of political money in the governing process.” He said that as discussions about securing access to state forest land for drilling and severance taxes on natural gas production have popped up the past two years, lobbyist and campaign contribution spending have increased. The results have been no taxes have been approved and the state leased state land for drillers.

Baker said that she votes in response to her constituents, not her contributors.

“My legislative decision-making takes into account a variety of factors, but campaign contributions are never one of them. If anyone who contributes believes they are gaining special access or assuring a result, they will be sorely disappointed. That no-connection principle applies irrespective of the size of the contribution,” Baker said.

Andrew M. Seder, a Times Leader staff writer, may be reached at 570-829-7269.

Coyright: Times Leader

Drilling questions to be answered

Senate hearing set for today at Misericordia, symposium Wednesday at Woodlands.

While landowners are imagining the gobs of cash they stand to make from natural-gas drilling in the Marcellus Shale rock layer underlying much of the region, Don Young hopes there’s room to imagine a few other images, such as gas pipelines crisscrossing once-pristine farmland, benzene contaminating groundwater supplies and an industrywide press to tap every inch of lucrative ground.

And that doesn’t include the Fort Worth, Texas, resident’s concerns about the psychological effects of celebrity-fronted publicity campaigns linking the drilling to patriotism and national security. “It’s Orwellian to see it happening here,” he said. “You’ve got American flags on each well.”

But the leader of Fort Worth Citizens Against Neighborhood Drilling Ordinance hopes the travails that now plague his home above the Barnett Shale are averted in the similar Marcellus Shale. “What you have here in Fort Worth on a grand scale is apathy. People felt, ‘We can’t stop it. It’s too big. It’s big oil,’ ” he explained. “The average busy person, they don’t have time to worry about gas drilling. … They have families, they have lives, they’re struggling, and if you have a few companies handing out money saying, ‘Here’s some money, just forget about it,’ ” they’ll do just that, he said.

Local regulators and educators are already taking steps to avoid those effects, and they’ll take a few more this week. This afternoon, the state Senate Republican’s Policy Committee will meet at Misericordia University to hear testimony from people familiar with dealings in the Barnett Shale on the potential effects awaiting Pennsylvania.

Several of the same speakers will be featured in discussions Wednesday morning at the Woodlands Inn & Resort in Plains Township, as the Joint Urban Studies Center holds a Marcellus Shale Symposium. The public is invited to either presentation, but the symposium has a registration fee.

“We are front and center to the development of this new industry,” said state Sen. Lisa Baker, R-Lehman Township, who requested the hearing. “I think having the hearing here demonstrates, in my judgment, that we’re doing all we can to ensure that our laws and regulations are appropriate and that if we need to make changes,” the legislature is ready to do so.

She said she hopes to get answers to questions she often hears from constituents, including potential downsides to drilling and whether current regulations are enough to curtail them.

According to several of the speakers, Pennsylvania might have a lot of ground to make up before it’s running even with the industry. “I just don’t understand the state’s set-up. Why wouldn’t that be a requirement to disclose how well the wells (are performing)?” asked John Baen, a University of North Texas professor and real-estate expert who has 250 wells on his property in the Barnett Shale. “If it’s all proprietary, then how do we know what the true wealth is?”

Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.

Copyright: Times Leader

Pa. considers adding natural gas to the tax rolls

By MARC LEVY Associated Press Writer

HARRISBURG, Pa. (AP) _ The land agents, geologists and drilling crews rushing after the Marcellus Shale are raising something besides the natural gas they’re seeking: Talk of a natural gas tax.

Thanks to a state Supreme Court decision six years ago, Pennsylvania is now one of the biggest natural-gas producing states — if not the biggest — that does not tax the methane sucked from beneath its ground.

But momentum is gathering to impose such a tax. The Marcellus Shale — a layer of black rock that holds a vast reservoir of gas — is luring some of the country’s largest gas producers to Pennsylvania, and state government revenues are being waylaid by a worldwide economic malaise.

A spokesman for Gov. Ed Rendell says the administration is looking at the idea of a tax on natural gas, but a decision has not been made. Typically, Rendell does not reveal any tax or revenue proposals until his official budget plan is introduced each February.

Senate Republicans are planning a November hearing at Misericordia University in northeastern Pennsylvania to look at what effect can be expected on local governments if Marcellus Shale production lives up to its potential.

Local officials worry about damage to local roads ill-suited for heavy truck traffic and equipment. School districts could be strained by families of gas company employees moving into town. And some residents are concerned about gas wells disrupting or polluting the water tables from which they draw drinking water.

Legislators must find the fairest way for companies to share those costs, whether by levying a tax or through some other means, said Sen. Jake Corman, R-Centre, the GOP’s policy chairman.

“I do think there is an understanding that some sort of compensation for municipalities is warranted,” Corman said. “We just have to figure out the best way to do that.”

So far, drilling activity is under way on the Marcellus Shale in at least 18 counties, primarily in the northern tier and southwest where the shale is thickest, according to the state Department of Environmental Protection.

Land agents are trooping in and out of county courthouses to research the below-ground mineral rights. At least several million acres above the Marcellus Shale have been leased by companies in West Virginia, New York and Pennsylvania.

Just this week, Range Resources Corp. and a Denver-based gas processor said they have started up Pennsylvania’s first large-scale gas processing plant, about 20 miles south of Pittsburgh.

And CNX Gas Corp. announced that a $6 million horizontal well it drilled in southwest Pennsylvania is producing a respectable 1.2 million cubic feet a day — a rate it expects to improve in coming weeks.

In the opposite corner of Pennsylvania, drilling pads are now visible on Susquehanna County’s farmland, and hotel rooms are booked with land agents and drilling crews.

“It is the talk at the coffee shops, at the local grocery store, the gas station — everybody,” said state Sen. Lisa Baker, R-Luzerne.

Activity is still in the early stages, as exploration companies work to confirm their basic assumptions about the potential of the Marcellus Shale reservoir, and probe for the spots with the greatest promise, analysts say.

Industry representatives say they oppose a tax, and Stephen W. Rhoads, the president of the Pennsylvania Oil and Gas Association, questioned the wisdom of imposing a tax on gas production that is still speculative.

In some natural-gas states, a tax is collected based on a company’s gas production by volume.

But in Pennsylvania, the Supreme Court ruled in 2002 that state law did not allow counties, schools and municipalities to impose a real estate tax based on the value of the subsurface oil and gas rights held by exploration companies.

An appraiser’s study presented last year during a House Finance Committee hearing estimated that the court’s decision had cost Greene, Fayette and Washington counties up to $30 million in county, school and municipal tax revenue.

The state’s county commissioners and school boards support the resumption of some type of taxing authority — although that could mean landowners would get smaller royalty checks.

Regardless, Doug Hill, the executive director of the County Commissioners Association of Pennsylvania, said the matter is one of basic fairness since coal, gravel and limestone are assessed.

“The bottom line is it isn’t a windfall issue,” Hill said. “It’s a tax equity issue.”

___

Marc Levy covers state government for The Associated Press in Harrisburg. He can be reached at mlevy(at)ap.org.

Copyright 2008 The Associated Press.