Is This Our Property Tax Relief Salvation?

By Dr. N. Charles Bolgiano

The new discovery of Pennsylvania's natural gas deposits is the most important event in the history of modern times in Pennsylvania. Called the Marcellus Shale Gas Deposit, it's the largest in the nation, has a volume of natural gas estimated to be 200-500 trillion cubic feet, with a projected worth of no less than one trillion dollars. The deposit extends under lower New York State, much of Pennsylvania, Eastern Ohio, West Virginia and into Kentucky. The second largest gas field is found in Texas (Barnett Gas) which has been pumping gas for decades.

While a bonanza of revenues from gas located under state-owned lands in Pennsylvania has not yet begun to flow into public coffers, thousands of gas wells have been installed on public and private lands, and many more are in the works. Many private landowners are, or soon will be, instant millionaires as they sign over their gas fortunes to drilling companies.

The state owns more than 3 million acres of land in Pennsylvania - more than 10 percent of the land. Control of this land is in the hands of the Pennsylvania Department of Conservation and Natural Resources (DCNR) and the Pennsylvania Game Commission (PGC). These two agencies control 62 percent and 38 percent of the land, respectively. Based on a gas royalty of 25-30 percent for gas pumped from public land over a 30-year period, the value of the gas from these lands might be as great as $200 billion or more - that's about $7 billion per year and dwarfs projected monies from slots. Gambling money is chump change compared to gas royalties.

Will this money ever filter down to residents to offset property taxes, repair bridges, provide medical care for the needy, etc.? The only way that will happen is if the State Legislature makes it happen. One must have a frightening dream to visualize that the legislature would allow DCNR and the PGC to ration the amount of gas revenue under their lands to only provide for their own needs for the next 100 years or more.

The intentions of DCNR and the PGC have already been exposed, as these two agencies have been exploiting gas revenues for years. Consider the following:
a) the PGC claims it has collected more than four times as much money in resource extraction in 2006-07 as it did nine years earlier - to $3.9 million from $868,166 in 1997-98;
b) DCNR, with 650 wells on 207,000 acres, increased gas revenue from $3 million in 2000 to $4.4 million in 2007.

During all this time when the Marcellus Shale gas deposit was known, the PGC cried, "POOR," cutting back on programs while still buying gas-rich lands. During this time, the PGC even asked the legislature for additional monies to finance programs and increase salaries. Same thing with DCNR being awarded nearly $500 million in Growing Greener monies to finance operations and also buy more land and mineral rights.

Don't think for a moment that DCNR and the PGC intend to voluntarily allow gas exploitation and extraction under all of their resource-rich lands. "Environmentally sensitive lands provide a true wilderness experience - nothing but woods, waters and wildlife," said Michael DiBerardinis, Secretary of DCNR. DCNR bought the mineral rights for 13,000 acres of wilderness area in Potter County, "to ensure that the wild nature of these lands remain protected."

While environmental activists, compliant scientists and opportunistic politicians are advocating radical economic and social regulation, the greatest threat to freedom, liberty and prosperity lies right under our soils. Concurrently, the environmental community and its allies oppose the marketing of new energy products based on doomsday scenarios. With gas and oil extraction regulations already established in Pennsylvania, the removal of gas from 7,000-10,000 feet below the surface would not affect a wilderness experience based on woods, waters and wildlife.

If private landowners have no problem leasing their lands to gas companies and collecting royalties, why does DCNR and the PGC seem to take a stand that all the lands under their control cannot be used for the benefit of the citizens of the Commonwealth?

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