The 2014-2015 budget proposed Tuesday by Gov. Tom Corbett factors in $75 million in drilling revenue to be accrued via the lifting of a moratorium on further leasing of state park and forest lands for gas development.
"This will place more and more of the budget burden on the backs of public lands," said Cindy Dunn, president and chief executive officer of PennFuture. "In announcing that he seeks to lift a three-year-old moratorium to expand leasing of public lands for gas development, the governor reveals the short-sighted nature of his stewardship of our natural resources by trading more long-term harm to our state parks and forests in return for short-term economic gain."
"We are increasingly concerned that absent a healthy economy and responsible drilling tax on natural gas development, Gov. Corbett is making the general fund reliant on the rapid exploitation of resources that he should, instead, be conserving for this and future generations," continued Dunn.
Also of concern is the diversion of $117.5 million from the state's Oil and Gas Lease Fund (OGLF) as operational budget monies for the Department of Conservation and Natural Resources (DCNR), the largest replacement of general funds with oil and gas lease funds in the DCNR budget to date. The OGLF was originally designated for conservation, recreation and flood control programs in state parks and forests.
"The paradox of funding the state's flagship conservation agency with funds from non-renewable resources is inescapable," said Dunn.
The Governor’s Budget Secretary Charles Zogby said additional leasing would be near existing drilling sites and gas companies would not be allowed to construct new well pads.
Secretary Zogby also said Gov. Corbett would be issuing a new Executive Order to replace the Executive Order Gov. Rendell issued in 2010 a few days before the gubernatorial election imposing a moratorium on leasing State Forest land. The Rendell Administration leased 137,000 acres of State Forest land for Marcellus Shale natural gas drilling.
