New York is one of the only places on planet Earth where you can drill a shale gas well and pay nothing to the state (or country) off the top in the form of a production (or “severance”) tax. Which means that the State of New York derives no direct benefit from shale gas production. Zero.
Well, almost zero.
You see, the State does charge a permit application fee for shale gas wells. You can calculate how much the fee would be on their website, here:
So what would the State of New York get for a 6,000 foot gas well ? $2380.
Not fracking much. But all the State of New York gets from permitting the fracking well. Which would not be enough to cover the DEC’S costs for doing a good job on the well permit application.
Which mean that the cost of shale gas industrialization to the state – the repair of state roads, etc. is not born by the gas industry at all but by you – the taxpayers. This of couse, is not unintentional. After all, it is cheaper to pay a politician than to pay a tax. . .