March 13, 2009

During last Thursday’s Senate hearing with the Department of Community and Economic Development Appropriations Chair Jake Corman (Centre), asked if the Rendell administration sought the department’s input in supporting job growth in the emerging natural gas industry.

“The process will require balancing protecting the environment with clearing the way for as much job growth as possible,” Corman said. Secretary Cornelius responded that the price of gas is the largest short-term obstacle to development.

Corman then asked “Would this be an inappropriate time to put a tax on the industry?”

Cornelius responded “I personally don’t think it’s an inappropriate time because I think we should always pay a tax on extracting a mineral. I don’t think any tax is going to be onerous, nor do I think any tax is going to be determinative on whether you drill or not. I think by far and away, the largest factor, quite frankly, is the price of gas.”

Corman commented that before the Legislature levies a tax, they want to make sure the industry “has a playing field where they can grow,” and that having someone who understands business growth at the table could be beneficial.

“I will be at the table, because it’s the biggest economic driver, quite frankly, in the state in the next 50 years probably,” Cornelius said.