COLUMBUS, Ohio Ohio Gov. John Kasich will propose a new tax on a form of oil and gas drilling known as horizontal fracking and then use the fresh revenue to give a personal income tax cut to Ohioans, The Plain Dealer has learned.
The complicated plan also would make changes to various existing taxes petroleum companies pay for pumping out oil and natural gas from beneath Ohio. And it even contains a tax break for some smaller operators, according to documents obtained by The Plain Dealer and confirmed by the governor's office.
But the moneymaker in the deal is the new tax Kasich wants to apply to Ohio's most sought-after resource, the natural gas liquids trapped deep below in Marcellus and Utica shale formations reached through fracking, a process that shoots a water and chemical concoction down through a drilled hole to break up the shale. Big Oil is salivating at the opportunity to reach these gases -- butane, ethane and propane.
Over the next five years, based on today's market prices, Ohio could net between $666 million and $1 billion through the new oil and gas tax structure
http://www.cleveland.com/open/index.ssf/2012/03/gov_kasich_to_propose_new_tax.html
Almost good. The revenues should be re-invested into green energy subsidies and set aside for potential environmental clean-up hazards.