Purpose:
To make remining and adoption of orphan wells more attractive by providing
financial
incentives for industry
Summary:
Neither the Commonwealth nor the federal government has the resources
available to accomplish the
massive reclamation effort required in Pennsylvania. In order to accomplish
this task, it is imperative
that government enlists the assistance of the mining and oil and gas
industries. Industry has the
equipment, the manpower and the expertise to remediate environmental
problems more quickly and at
a lower cost than any governmental agency.
Therefore, it is necessary to offer financial incentives to the coal
industry to reclaim lands previously affected by mining and to the oil
and gas industry to remediate problem oil and gas wells. Without financial
incentives, these problems would not likely be addressed, and the Commonwealth
would ultimately be responsible for the cost of reclamation or remediation.
Incentives being evaluated for development as proposed legislation:
- Per acre state income tax credit for abandoned mine reclamation
through remining; and
- Per well income tax credit for sealing abandoned oil and gas wells.
Stakeholders:
Mining and Reclamation Advisory Board, watershed and environmental groups,
Office of Surface Mining (OSM),
coal and oil and gas industry, Pennsylvania Coal Association and other
industry groups, property owners and the
Western and Eastern Pennsylvania Coalitions for Abandoned Mine Reclamation.
Benefit:
Reclamation and remediation by private industry and
others will increase. The benefits vary by proposal.
Cost:
Costs vary by proposal. However, in each case the benefit
of reduced remediation costs to the Commonwealth exceeds the cost in reduced
tax revenue. Moderate staff resources are needed to further develop and
evaluate proposals.
Status:
Initial proposals have been identified and draft legislation is being
developed.
Contact:
Donald Barnes Bureau of District Mining Operations 814-472-1900
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