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Ohio Utica Shale

Hagan pushing higher Ohio severance tax l

By Bob Downing Published: June 20, 2013

From State Rep. Robert F. Hagan, D-Youngstown, on Thursday:

COLUMBUS– State Representative Robert F. Hagan (D-Youngstown) today announced his plan to capitalize on the boom in horizontal shale drilling by using an updated severance tax model to invest in communities through resources for public education, infrastructure and community services.

 House Bill 212, introduced this week, would enact a 7.5% severance tax on oil, natural gas and condensate extracted from horizontal drilling. The bulk of the revenue raised from the tax would be reinvested in Ohio’s communities, with an emphasis placed on counties most impacted by drilling activity.

 “Ohio’s severance tax is a pittance compared to other states with major shale drilling activity,” said Rep. Hagan. “We need to update the severance tax rate on horizontal drilling to ensure that our precious natural resources are not extracted without appropriate compensation.”

 Other major shale states, including Oklahoma, Texas, and North Dakota, have severance tax rates that range from 7% to 11.5%, and collect anywhere from hundreds of millions to billions of dollars in revenue each year. Preliminary estimates from the Legislative Service Commission fiscal staff show that under the rate proposed in House Bill 212, Ohio would collect almost $400 million in 2014, and rising to almost $1 billion dollars in five years’ time.

 In addition to restoring the cuts made to local governments over the past several budget cycles, a portion of the severance tax revenue would be diverted to conservation and environmental priorities related to fracking, and 1 percent would be designated for investment in a Severance Tax Trust Fund. Natural resource permanent funds have been established in a handful of resource rich states to ensure long term economic stability.

 “We must plan for the long-term health of our state and work to avoid the ‘resource curse’ of overdependence on the oil and gas industry,” Rep. Hagan said. “By designating a small percentage of severance tax revenue for a permanent trust fund, Ohio can create an economic legacy from our natural resources and provide funds critical to the survival of our state’s economy long after our non-renewable resources are depleted.”





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Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.