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http://www.scribd.com/doc/63145368/NY-Property-TaxOn-Gas-Wells
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Looking For Gas In All The Wrong Places. At All The Wrong Prices The problem with these test wells, and with the ad valorem prospects for the Town of Worcester, is that they were drilled in the wrong place at the wrong time. Meaning the geology in this area is not a conducive to productive gas wells as that further south on the Pennsylvania border 2 or at current and projected http://www.scribd.com/doc/72140110/VoodooFrackonomics
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prices for methane. 3 Heres a simple test if the well is driled by a company from Texas or Oklahoma when gas prices are above $5 mcf it might have potential. If it is drilled by a company from Quebec where fracking is banned, or Norway, where onshore shale gas exploration is illegal its more likely to be a dry hole. If below $4 mcf, precious few of these horizontal dry gas shale wells make any economic sense anywhere. End of geology and economics lesson. Ad Valorem and Severance Taxes An ad valorem local property tax on an oil or gas well is not incompatible with a state production or severance tax at the wellhead. In fact, they always go together except in New York which has no state tax on gas and the woebegone Pennsylvania which has neither a state or local tax on gas. (Pennsylvania is a veritable tax haven for frackers - who have managed to buy off both the legislature and the governor. ) The lack of a severance tax is pronounced in New York leaving the state bereft of a revenue source for regulating the industry or repairing the road damage caused by shale gas industrialization. 4 Since most New Yorkers are not familiar with the taxation of oil and gas wells, it is easy for fracking shils to hoodwink them into thinking that they have to make a choice between an ad valorem property tax and a state production tax. When the answer everywhere else is both. Absent a state tax at the wellhead, New York will simply be exploited by out of state producers. 5
http://www.scribd.com/doc/71446252/VoodooFrackonomics-3-0
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http://www.scribd.com/doc/63145742/NY-Severance-Tax http://www.youtube.com/watch?v=oU2rUHUclqU