Hancock Gas Lease

Last month we reported that Governor Paterson has proposed a 3% tax on royalties from gas. Now we learn what he plans to do with that money. He’s planning to add 35 jobs to the State payrolls, apparently to ensure the safety of our health and environment from drilling operations. As reported in The Press & Sun Bulletin:

New York is budgeting for 35 new positions in the next fiscal year to help oversee production of the Marcellus Shale, if and when it gets there.

While political and regulatory uncertainty clouds the fate of Marcellus production north of Pennsylvania, the staffing proposals are a sign that Gov. David Paterson’s office is preparing.

“If drilling moves forward, we have the infrastructure in place to do it in a safe and responsible way,” said Morgan Hook, a spokesman for the governor.

The staffing initiative would add 29 workers to the Department of Environmental Conservation, four to the Department of Health, and two to the Public Service Commission.

One company moving to the area will mean 28 full-time jobs. Back in June we reported that the gas drilling could mean more to our economy than just bonus payouts and royalties, by way of new jobs created by the industry. Now a PressConnects article tells of the beginnings of this effect:

Superior Well Services, a company that provides technical help developing natural gas wells, will open an office in Owego, according to the Tioga County Department of Economic Development and Planning.

The expansion is expected to add 28 full-time jobs to the region over five years. The company should begin hiring within the next few weeks, according to a report from economic developers.

The company will lease 22,000 square feet of building space adjacent to the Owego & Harford rail yard. The rail company will also construct a 1,000-foot rail siding to accommodate the business, according to the report.

A group of Researchers at Penn State are estimating that the Marcellus Shale could bring into Pennsylvania as much as 8,000 jobs and a great boost to that state’s gross state product.

The forecast, released by Penn State’s Workforce Education and Development Initiative, states that for every $1 billion in royalty income by state residents annually from 2008 to 2011:

• Almost 8,000 jobs will be created annually;

• Disposable personal income will hover around $1 billion annually; and

• The population will increase by thousands, each year through 2011.

“The ripple effect on the rest of the state economy might be equally impressive,” said Rose Baker, program manager for the Workforce Assessment Center, which, with the College of Education’s Institute for Research in Training and Development, collaborated on the report.

(from the Centre Daily Times)

One would imagine that our area will see similar benefits, both from our own activity as well as spill-over from PA.

Sure, the construction workers (are gas drillers called roughnecks, like oil drillers?) are obviously jobs in the area. But with more money in resident’s pockets, they’ll be better able to support other businesses in the community as well.