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The Tompkins County Council of Governments (TCCOG) by unanimous vote today urged the Governor and State Legislature to develop a blend of revenue streams and taxation of natural gas extraction, and to establish "an accurate, transparent, and verifiable method of measuring and reporting shale gas production."

The resolution, already passed by several of the County's municipalities, notes that many revenue-related questions have yet to be answered as the State prepares for permitting for gas extraction from the Marcellus Shale, while local governments are already incurring related expenses.

It notes the ad valorem tax on production is the only revenue source for local governments to offset the cost of incorporating the gas extraction industry into the community, but that such a tax would involve inequities among municipalities that could be affected, with the process for levying such a tax on production having a built-in delay of at least three years. Also, the measure notes that the Unit Production Value (UPV) to determine assessment of natural gas in the State is not yet determined for such shale deposits, making essential planning impossible, with value based on self-reporting by the energy industry to determine value and no independent oversight of gas meters to verify accuracy.

TCCOG strongly urges the Governor and the New York State Legislature to develop such diverse revenue streams and to provide funds for state and local governments when expenses are incurred. It also calls upon the Governor to direct the Office of Taxation and Finance to establish, through an open and transparent process, the Unit Production Value for assessment of shale natural gas like Marcellus, and urges that an accurate, transparent, and verifiable method be established for measuring and reporting shale gas production.

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