Marcellus Shale Coalition Hires Ridge as Adviser
Pittsburgh Post-Gazette
31 July 2010
By Tom Barnes, Harrisburg Bureau
HARRISBURG -- Stung by a gas well blowout in Clearfield County and the
likelihood of legislators slapping a new tax on underground natural
gas, Marcellus Shale drillers have added a heavy hitter to their lineup
-- former Gov. Tom Ridge.
The Marcellus Shale Coalition, which includes most of the natural gas
drilling companies in the state, announced Friday that Mr. Ridge will
become a "strategic adviser" working for their interests.
His duties and compensation weren't given, but Kathryn Klaber,
coalition president, said the ex-governor will stress "our industry's
commitment to environmental and work-force safety [and] the positive
and overwhelming economic benefits that responsible shale gas
development continues to generate across the region."
Mr. Ridge, who resigned as governor in 2001 to become U.S. homeland
security director, said the thousands of deep underground wells being
drilled in areas of Marcellus Shale will produce much energy and many
jobs, bringing "environmental and economic benefit" and "forever
strengthening our homeland security."
Mr. Ridge joins a parade of former state officials who are working for
the natural gas industry. Three members of Gov. Ed Rendell's
administration have left in recent months: K. Scott Roy, the executive
deputy chief of staff for the governor; Barbara Sexton, a deputy
secretary in the Department of Environmental Protection; and Sarah
Battisti, another deputy chief of staff.
Mr. Roy is working for Range Resources Corp., based in Texas; Ms.
Sexton for Chesapeake Energy Corp. of Oklahoma; and Ms. Battisti for BG
Group, a British gas company. The gas industry has also contributed
generously to many legislative leaders in the General Assembly, which
helps guarantee an ear for their concerns.
As for Mr. Ridge, it isn't known if part of his job will be improving
the drillers' image, which took a hit when a well blowout in Clearfield
County in early June spewed 35,000 gallons of chemical-laden "fracking
fluid" into the air for 16 hours. The DEP fined two companies $400,000
for careless work practices for that incident.
Mr. Ridge could also be involved in September, when legislators return
here and work resumes on details of a new tax on the natural gas pumped
from the underground shale.
Rep. David Levdansky, D-Forward, wants a tax of 35 cents per thousand
cubic feet of gas pumped out, which he said would raise $250 million a
year. Under his plan, half of that would go to the state general fund
(to cushion the loss of federal stimulus funds next year) and the other
half split among environmental groups, municipalities, the state Fish
and Boat Commission and others.
There are other tax plans that aren't so onerous to the industry.
Drillers said that if the tax is too high, it could cause firms to go
to other states and cost jobs in Pennsylvania.
"I view the hiring of Gov. Ridge as a recognition by the drilling
industry that there is a serious, bipartisan effort to get this tax
enacted in the fall," Mr. Levdansky said. "They want someone to build
relationships between the different stakeholders involved."
Franklin & Marshall pollster G. Terry Madonna said hiring Mr. Ridge
"isn't a game changer" that will make everything go the industry's way.
"Big players give you access [to the legislative process] and Ridge
brings stature and prestige," Mr. Madonna said. But with environmental
groups and citizens concerned about water pollution and damage to
forests, and municipal and state officials needing additional revenue,
"There will be a natural gas tax at some point," he said. "The question
is, when and how much of a tax?"
Bureau Chief Tom Barnes: tbarnes@post-gazette.com or 1-717-787-4254.