Friday, March 02, 2012
Study: Natural gas could mean big bucks for state
Evaluation of potential health impact still on table
by Margie Hyslop, Staff Writer
Maryland would reap about $441 million over 30 years in severance taxes if natural gas is extracted from the Marcellus shale formation under the state’s two westernmost counties, according to a study released Thursday by the Maryland Petroleum Council.
“It should be noted that our estimates are pretty conservative,” said Anirban Basu, an economist whose Sage Policy Group conducted the study.
That estimate — which includes about $214 million in revenue for the state, $162 million for Garrett County and $65 million for Allegany County — assumes that Maryland approves drilling and that the industry decides it is worth tapping about 710.1 billion cubic feet of reserves estimated to be available thousands of feet below the two counties.
Depending on whether low or high production is allowed, the state and two counties stand to gain $242.1 million to $642 million from severance taxes. The taxes are based on a 2 percent state levy and a 5.5 percent local levy.
More here.
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