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.
http://www.timesleader.com/news/Pa_considers_adding_natural_gas_to_the_tax_rolls.html

Groups want paper ballots as backup in PA

Lawsuit claims machine breakdowns in spring make fallback essential in state.

By Maryclaire Dale | Of The Associated Press
October 24, 2008

Several voter rights groups filed suit Thursday seeking emergency paper ballots for Pennsylvania voters if electronic machines break down.

The groups want paper ballots to be available on Election Day if more than half of the voting machines at a given polling place malfunction. Otherwise, voters will be left to endure long lines, they said.

''People should be able to exercise their right to vote without waiting in line for hours or being told to go home and come back later,'' said John Bonifaz, legal director of Voter Action, a national advocacy group that is one of the plaintiffs.

The groups focused on Pennsylvania because of problems reported in the spring primary and a recent state directive that, according to the groups, says paper ballots should only be used if all machines in a polling place fail.

''We're quite concerned, in light of the confluence of high voter turnout and these voting machine breakdowns, that there will be even longer lines and more voter disenfranchisement,'' Bonifaz said Thursday.

The suit was filed in federal court in Philadelphia against Pennsylvania Secretary of State Pedro Cortes.

''The plaintiffs continue to seek solutions that are already in place,'' Cortes said. ''The Statewide Uniform Registry of Electors is already working properly, and county election officials remain committed to processing every valid application in a timely and efficient manner.''

Cortes said counties have been informed about identification requirements for first-time voters and have been advised to have sufficient provisional ballots on Election Day.

Other plaintiffs include the National Association for the Advancement of Colored People and the Public Interest Law Center of Philadelphia. The groups are seeking a preliminary injunction to address the situation before the election.

''Thousands of members have faced serious delays in voting when machines have broken down in the past, and this problem will be much more severe this year when unprecedented numbers of voters will be coming to the polls,'' said J. Whyatt Mondesire, the president of the

NAACP State Conference of Pennsylvania.

http://www.mcall.com/news/nationworld/state/all-a3_voting.6643554oct24,0,5867348.story

A thought on the Fed. from a former supporter

Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote:
I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. -Woodrow Wilson

No suprise, the PG picks a Dem. over Jim Barr

In the 20th District Mr. Walko, 55, of Observatory Hill is seeking his eighth term. The district includes the city neighborhoods of Spring Hill, Brighton Heights, Observatory Hill, Troy Hill, Lawrenceville and the Strip District, plus the borough of West View and parts of Ross and Reserve.

The incumbent has worked on bills to reduce blight, support public transit and reform prison sentencing. In the last term he was particularly proud of having pushed for the governor's energy package and having served on the House speaker's reform commission. He believes more reforms should be considered in a well-defined constitutional convention. He was an advocate of a tough statewide smoking ban and was disappointed that the law was not as strong as the initial House proposal; he'd like Allegheny County to get approval to go further in restricting indoor smoking.

His challenger, Constitution Party candidate Jim Barr, 55, should be familiar to fellow residents in West View. He has run unsuccessfully for council every two years since 1993, and he challenged Mr. Walko for the House seat two years ago. Mr. Barr, who works in a group home for mentally retarded adults, said he is running because he believes every candidate should face a challenger. He favors a part-time legislature and prefers reliance on use taxes -- sales, gas and the county's drink tax -- rather than an income tax.

With his activity on multiple fronts, Don Walko is the prudent choice.
http://www.post-gazette.com/pg/08289/919900-35.stm

House rivals for 33rd seat differ on reducing size of Legislature, tout fostering jobs

By Karen Zapf
TRIBUNE-REVIEW
Thursday, October 16, 2008

Democratic state Rep. Frank Dermody says his experience and record makes him the best choice to continue in the General Assembly representing the 33rd Legislative District.

His Republican challenger, Jason Davidek, said he would bring a fresh perspective that is needed in Harrisburg.

The district in northeast Allegheny County includes all or part of East Deer, Fawn, Frazer, Harmar, Harrison, Indiana, Springdale and West Deer townships and the boroughs of Brackenridge, Cheswick, Oakmont, Plum, Springdale and Tarentum.

Dermody said he is seeking a 10th two-year term because "there's much more to be done."

The lawmaker points to accomplishments in areas such as energy, education and health care. In particular, Dermody said he has proposed legislation that would provide health care coverage to 200,000 additional Pennsylvanians, but the Senate has not voted on it.

Dermody also said he has worked to keep jobs in the Alle-Kiski Valley and create new ones.

Dermody touts the decision by Allegheny Technologies Inc. to build a $1 billion hot strip mill at Allegheny Ludlum's Brackenridge Works. Dermody said he worked on legislation that made the area attractive for the company to build a plant in the Alle-Kiski Valley.

The lawmaker wrote legislation that allows companies to negotiate electric power contracts that save on operating costs. Dermody also worked on legislation that extended the Keystone Opportunity Zones, which provide major tax incentives for developers.

Dermody also is pushing for the Allegheny Valley commuter rail project. The proposed rail line would go from New Kensington to Pittsburgh.

Davidek wants to be part of a reform movement in Harrisburg to "end corruption."

Davidek points to the failed 2005 legislative pay raise and the current scandal in Harrisburg over allegations that bonuses were given to legislative staffers for campaign work. Dermody is not named in the bonus scandal.

"To me, public service is not padding your pocketbook," Davidek said.

Davidek said that as a Fawn supervisor, he has provided "transparency in government" and worked to help his community recover from flooding by getting $200,000 for a road reconstruction project.

He wants to bring jobs back to the Allegheny Valley by helping businesses grow.

Davidek supports reducing the size of the Legislature and a 20 percent cost cut in both chambers.

Under a bill proposed by Rep. T. Mark Mustio, R-Moon, the House would be reduced from 201 to 161 members and the Senate from 50 to 40. The bill mandates a 20 percent cut in the $300 million-plus budget of the Legislature, the largest full-time legislature in the nation.

"It's time to put an end to wasteful spending and taxpayer-funded corruption," Davidek said.

Dermody supports the 20 percent cost cut. But he wants to be cautious when looking at cutting the Legislature and recommends a constitutional convention to study the issue.

Davidek has placed on himself a term limit of eight years, or four terms.

"I'm not in this to be a career politician," Davidek said.

Karen Zapf can be reached at kzapf@tribweb.com or 412-380-8522.
http://www.pittsburghlive.com/x/pittsburghtrib/search/s_593413.html

Political Monopoly Power

Thursday, October 16, 2008
By Walter E. Williams


The Federalist Papers, written by James Madison, John Jay and Alexander Hamilton, is the document most frequently referred to when trying to get a feel for the original intent of the framers of the Constitution. One such intention is found in Federalist 56 where Madison says, “...it seems to give the fullest assurance, that a representative for every thirty thousand inhabitants will render the (House of Representatives) both a safe and competent guardian of the interests which will be confided to it.”

Excellent research, found at thirty-thousand.org, shows that in 1804 each representative represented about 40,000 people. Today, each representative represents close to 700,000. If we lived up to the vision of our founders, given today’s population, we would have about 7,500 congressmen in the House of Representatives. It turns out that in 1929 Congress passed a bill fixing the number of representatives at 435. Prior to that, the number of congressional districts was increased every 10 years, from 1790 to 1910, except one, after a population census was taken.

We might ask what’s so sacrosanct about 435 representatives? Why not 600, or 1,000, or 7,500? Here’s part of the answer and, by the way, I never cease to be amazed by the insight and wisdom of our founders: James Madison, the acknowledged father of the Constitution, argued that the smaller the House of Representatives relative to the nation’s population, the greater is the risk of unethical collusion. He said, “Numerous bodies ... are less subject to venality and corruption. “ In a word, he saw competition in the political arena as the best means for protecting our liberties. If Madison were around today to see today’s venal and corrupt Congress, he’d probably say, “See, I told you so!”

In addition to venality and corruption, restricting the number of representatives confers significant monopoly power that goes a long way toward explaining the stranglehold the two parties have and the high incumbent success rates. It might also explain the power of vested interest groups to influence congressional decisions. They only have to bribe, cajole or threaten a relatively small number of representatives. Imagine the challenge to a lobbyist, if there were 7,500 representatives, trying to get a majority of 3,813 to vote for this or that special privilege versus having to get only a 218 majority in today’s Congress.

Another problem of a small number of congressmen, with large districts, has to do with representing their constituents. How in the world is one congressman to represent the diverse interests and values of 700,000 people? The practical answer is they don’t and attempt to be all things to all people. Thus, a congressman who takes a principled stand against the federal government exceeding its constitutional authority—whether it be government involvement in education, business welfare and bailouts and $2 trillion dollars worth of other handouts—is not likely to win office.

Appealing for the votes in a district of 700,000 is a more difficult challenge than appealing for the votes in a district of 40,000 or 60,000 people. Larger sums must be raised requiring a congressman to be wealthy or raise money from vested interest groups. Who is going to give a congressman money and not expect something special in return?

One should not be optimistic about increasing the size of Congress to make it more representative of the American people. There are powerful forces that benefit from the status quo. Fannie Mae and Freddie Mac lobbyists get Congress to look the other way. Hundreds of other lobbyists get Congress to rig the market, or confer special privileges, to benefit one class of Americans at the expense of another class. I guarantee you that the vested interest groups, who now have a strong grip on Washington, at the detriment of the nation’s well-being, wouldn’t as easily get their way if they had to scrounge for 3,813 votes as opposed to 218.

http://www.cnsnews.com/public/content/article.aspx?RsrcID=37632