Rich+pool+-+Now+more+than+ever,+tax+Marcellus+Shale

=//Published by the Pittsburgh Post-Gazette//= =//6/19/11//=

= = =While lawmakers in Harrisburg debate how much or how little of a state impact fee to impose on Marcellus Shale drillers, the numbers that describe this booming gas enterprise continue to come with lots of zeroes.= =Two weeks ago ExxonMobil closed on a deal to pay $1.69 billion for two local companies that are drilling in Pennsylvania. The oil giant, which appeared on a citizens advocacy group's recent list of large corporations that paid no federal taxes for at least one year in 2008-10, agreed to buy 317,000 acres from Phillips Resources of Warrendale and its sister company, TWP Inc. of Butler, at $5,300 per acre.= =The big ticket price is testament to the lucrative payoff that is likely for investors in Marcellus Shale drilling. ExxonMobil, which knows the cost, risk and difficulty of exploring for oil around the globe, has hit upon an energy resource in Pennsylvania that is more of a sure thing.= =That's why it paid $41 billion in 2009 for XTO Energy, which will oversee the two newly acquired companies from XTO's division in Warrendale. That's why Royal Dutch Shell PLC paid $4.7 billion a year ago for East Resources, based in Marshall. That's why Chevron paid $4.3 billion in February for Atlas Energy of Moon.= =This growing gas industry presence in Pennsylvania mirrors the activity by many companies in other states with deep drilling -- states that commonly impose a severance tax as a part of doing business. While Pennsylvania should have a similar tax through which the drillers can support the state, legislators are considering only an impact fee so as not to strangle this new economic generator in the crib.= =But after seeing the size of the investments being made here by Exxon, Shell and Chevron, anyone in Harrisburg who still calls this a fledgling industry is in serious denial.= =Read more: [] = = = =News= =home=