Report says natural gas industry gives big to Pa. politics

5/13/2010 3:33 AM

The growing presence of the gas drilling industry in Pennsylvania's Marcellus Shale gas reserve is reflected in increased contributions by that industry to political campaigns and lobbyists in the state.

According to a Common Cause report "Deep Drilling, Deep Pockets," by Alex Kaplan and James Browning, released Tuesday, the natural gas industry donated $2.8 million to political candidates in the state from 2001 to 2010 and spent $4.2 million on lobbying since 2007. Contributions include those from 23 gas drilling companies with more than 2,400 well permits, two pipeline companies and the Pennsylvania Independent Oil and Gas Association.

Contributions to the top 25 recipients included $29,500 to Rep. Bill DeWeese, D-Waynesburg, and $12,650 to Sen. J. Barry Stout, D-Bentleyville.

The top 10 donors are S.W. Jack Drilling, $1 million; East Resources, $427,500; Dominion, $323,800; CNX Gas, $270,800; Seneca Resources, $201,800; EQT, $192,700; Snyder Bros., $144,700; Independent Oil and Gas Association of Pennsylvania, $77,800; Chesapeake Energy, $58,400; and Range Resources, $52,300.

Range was second with $492,974 in lobbying expenditures from 2007-09, while Chesapeake was fourth with $377,319.

Chesapeake had the highest number of well permits at 519; Range was second with 405; and East Resources was third at 283. S.W. Jack Drilling had no well permits.

Other campaign committees receiving lesser contributions were Reps. Tim Solobay, D-Canonsburg; David Levdansky, D-Elizabeth; John Maher, R-Peters Township; Jesse White, D-Cecil; and Peter Daley, D-California; Sens. John Pippy, R-Moon Township, and Richard Kasunic, D-Dunbar; Committee to Retain Judge Paul Pozonsky; and Washington County Commissioner Diana Irey. Former candidates Paul Snatchko and Greg Hopkins also had received contributions.

Other findings in the report include:

n Republican Tom Corbett, running for Pennsylvania governor, has received $361,207 from the industry with more than 90 percent of those contributions since January 2008. Democratic candidate Dan Onorato has received $59,300.

n Gov. Ed Rendell is No. 6 on the list of top recipients, receiving $84,100.

n The industry's lobbying effort has tripled in the last three years.

The report notes that Pennsylvania is one of 11 states that does not limit campaign contributions. It recommends contribution limits; a better system of disclosure; and more frequent disclosure. It also calls for a better online database of contributions.

The Marcellus Shale deposit is the largest natural gas deposit in North America with enough estimated reserves to serve the United States for the next decade. It is located under Pennsylvania, New York, West Virginia and Ohio.

Pennsylvania and New York are the only states that do not levy a severance tax on extracted gas. Other states use the tax to repair infrastructure, protect the environment and regulate drilling.

If a 6.2 percent tax were to be levied in Pennsylvania, it would generate $107 million. However, the report notes that the industry suggests such a tax could deprive the state of jobs and revenue at a time the country is emerging from a severe economic downturn.

The full report can be downloaded online at www.commoncause.org/pa. Copyright Observer Publishing Co.