Energy Industry Pumps Legislators
Money flows to local campaigns in effort to avert tax on gas
Pittsburgh Post-Gazette
12 May 2010
By Tom Barnes, Harrisburg Bureau
HARRISBURG -- For several years, energy companies that drill for
natural gas in Pennsylvania have been speaking out against Gov. Ed
Rendell's plan to slap an "extraction tax" on the gas they will pump
from deep underground.
These major firms, which include Dominion, Consol, Chesapeake Energy,
Range Resources and others, are also putting their money where their
mouths are -- pumping sizeable contributions into the campaign coffers
of state politicians in an effort to avert the new tax, citizen
watchdog and environmental groups said Tuesday.
"The natural gas industry made $2.85 million in campaign contributions
to Pennsylvania candidates (and) political action committees between
Jan. 1, 2001, and March 29, 2010," said Common Cause/Pennsylvania
Director Barry Kauffman, who was joined by officials from the League of
Women Voters, Penn Future and the Pennsylvania Budget and Policy
Center, a liberal group.
Most of the big recipients of the gas industry largesse were
politicians from Western Pennsylvania. Topping the list was Attorney
General Tom Corbett of Shaler, the leading Republican candidate for
governor in Tuesday's primary, at $361,000, with 93 percent of that
money coming since January 2008.
Other large recipients included Lt. Gov. Joe Scarnati of Jefferson,
who's also the top GOP state senator, $105,000; Gov. Ed Rendell,
$84,000; Allegheny County Executive Dan Onorato, a Democratic candidate
for governor, $59,000; state Rep. Dave Reed, R-Indiana, $57,000; state
Sen. Don White, R-Indiana, almost $50,000; Auditor General Jack Wagner,
also a Democratic candidate for governor, $44,500; Sen. Jake Corman,
R-Centre, $33,800; state Rep. Bill DeWeese, D-Waynesburg, $29,000;
House GOP Whip Mike Turzai of Bradford Woods, almost $26,000; Sen. Jane
Orie, R-McCandless, $24,000; state Sen. John Pippy, R-Moon, $21,000.
Mr. Kauffman said he fears the large contributions will buy the energy
companies influence with the Legislature, especially in efforts to
block creation of an extraction tax, on natural gas pumped from areas
of Marcellus shale. Mr. Kauffman said he's also concerned about the
companies' attempt to stop legislative efforts to protect the
environment and underground drinking water from drilling-related damage
and efforts to help municipalities pay to fix roads damaged by drilling
equipment.
Mr. Rendell wants to raise $160 million a year from a severance tax as
one step in erasing the state's current $1 billion budget deficit.
Democratic gubernatorial candidate Joe Hoeffel wants an even higher
tax, to generate $300 million a year. He hasn't gotten any gas industry
donations since a one-time amount of $2,000 in 2004.
Republicans who control the state Senate have opposed such a tax on gas
extraction, and say Mr. Rendell should reduce state spending rather
than enact new taxes.
A conservative group, the Commonwealth Foundation, said that big labor
unions, whose officials sit on the board of the Pennsylvania Budget and
Policy Center's parent group, gave $27 million to state politicians in
the 2007-08 election cycle alone, which the foundation said is far more
than what energy companies donated.
Foundation President Matthew Brouillette said sarcastically that he was
"shocked, shocked to learn that an industry would start getting
involved in political activity when politicians threaten to tax and
regulate them."
In a related matter, Mr. Rendell said Tuesday that the state can
generate the $180 million it needs to balance the fiscal 2010-11 budget
without getting revenue from leasing additional acres of state
forestland for gas drilling.
The state will lease, to Anadarko Petroleum Group, almost 33,000 acres
in state forests, for a lease payment of $120 million. This money,
combined with a $60 million surplus from forest leasing revenue from
fiscal 2009-10, would eliminate the need to open to leasing any more
state forest land in the next year. The state already has 700,000 acres
open for drilling, about one-third of the total 2.1 million acres of
forestland.
The state House last week approved a three-year moratorium on the
leasing of any additional state forestland for drilling, in order to
protect the forests. Mr. Rendell said he supports the moratorium, but
the chances of getting the bill through the Senate are doubtful. Some
senators say the state could erase some of the budget deficit through
additional lease revenue.
Bureau Chief Tom Barnes: tbarnes@post-gazette.com or 717-787-4254.