Energy / Hydraulic Fracturing

Kasich blasts GOP for pulling tax cut

Governor John Kasich

Republicans in House reject plan on oil, gas drilling

COLUMBUS — “Kasich complained that House Speaker William G. Batchelder, R-Medina, called his chief of staff, Beth Hansen, just four minutes before Amstutz’s news release went out. Kasich said he suspected that special interests for the oil and gas industry had gotten to lawmakers.

‘I think the fact is that some special interests were able to get their point of view out there maybe before we got a chance to get our point of view out there,’ Kasich said.

The governor said he thinks Ohioans will support his plan and push lawmakers ultimately to pass it.

‘Somebody’s going to benefit from low taxes,’ Kasich said. ‘It’s either going to be the people of the state of Ohio and the small-business community, or it’s going to be the investors in these energy companies.’

The frack-tax revenue proposed by Kasich would be used to offset the cost of an income-tax cut. Based on conservative estimates about how much Ohio could collect in shale revenue, the tax cut could begin at 1.6 percent in 2014 and grow to about 5 percent — worth $500 million — by 2017.

Kasich wants to take advantage of Ohio’s shale boom by taxing crude oil and natural-gas liquids from fracked wells at 1.5 percent of gross receipts, eventually increasing to 4 percent. The rise would depend on when each company has recovered its start-up drilling costs. Dry gas from fracked wells would be taxed at 1 percent.”

— Joe Hallett, Columbus Dispatch

Read the whole story: http://www.dispatch.com/content/stories/local/2012/03/17/kasich-blasts-gop-for-pulling-tax-cut.html

Ohio’s gas producers embattled by anti-drilling sentiments and proposed tax increases

— John Funk, Cleveland Plain Dealer

— Mark Niquette, Bloomberg News

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