Marcellus Shale News In Brief

Rendell Administration Leases Land to Natural Gas Companies in No-Bid Contracts

The cash-strapped Rendell administration has leased nearly 150,000 acres of public forests and game lands to gas companies that paid $400 million to drill for natural gas.

Some critics say Pennsylvania taxpayers lost out on more money when administration officials privately negotiated two of the deals, worth $122.3 million, instead of seeking bids. (Trib, 9/2/10)

The Rendell Administration’s conduct in signing no-bid contracts for gas exploration in thousands of acres of state lands cost taxpayers hundreds of thousands of dollars. Rendell’s inability to secure competitive rates for Pennsylvania lands reveals not only his personal incompetence but also the underlying flaw in giving the Governor – any governor — the power to sign no-bid contracts impacting economic issues he or she knows nothing about.

Unions Seek Tax Policy That Pressures Natural Gas Drillers to Hire Union Workers

“Labor leaders want Marcellus Shale to be a reliable job provider, to the point that one union leader thinks the state should give tax rebates to companies willing to hire local workers so the energy industry will be more likely to choose local unionized contractors for drilling wells, laying pipe, welding steel and building access roads.” (PG, 8/29/10)

The Commonwealth’s responsibility is not to help unions win contracts but to provide basic services to the people of Pennsylvania. Natural gas companies should do what any responsible private sector company does: hire the most qualified workers for the lowest price. Taxpayer dollars shouldn’t be spent providing tax breaks that tilt the scales in favor of unionized workers and against nonunionized Pennsylvanians.

Murrysville Pursues Illegal Regulation of Marcellus Shale

A committee geared toward protecting Murrysville from potential dangers caused by Marcellus Shale drilling is about to finish what it started.

Over three-plus months, the ad hoc committee consisting of council members, administrators and residents met to exchange ideas, conduct research and work to create an ordinance that will protect Murrysville should gas companies set up shop and drill deep into the earth. (PG, 9/2/10)

Local attempts to regulate or ban natural gas drilling are popping up in various areas of the state (including Pittsburgh) and what they all have in common is that they violate state law. Under the Oil and Gas Act, Chapter 6, Section 601.602, only the Commonwealth has the right to regulate the operations of oil and gas wells. Local governments that attempt to deprive residents of the freedom to dispose of their mineral rights are also in violation of the Pennsylvania Constitution which guarantees private property rights.