The Register-Herald, Beckley, West Virginia

Local News

February 13, 2008

Coalbed methane legislation amended

Funds would be pumped into producer counties

Mannix Porterfield

CHARLESTON — Southern counties are in line to get a bigger slice of the pie in taxes generated by the coalbed methane industry in a Senate panel’s revision of Gov. Joe Manchin’s proposal to end a tax credit.

What’s more, Sen. Mike Green, D-Raleigh, amended the bill further Wednesday in the Senate Energy, Industry and Mining Committee so that the industry gets a little more time to enjoy the tax credit.

A committee substitute assures that 75 percent of money collected from the industry is returned to the county of production.

“One of the big issues I was concerned with was where that up to $4 million went to the Infrastructure Council, there was no guarantee of what part of the state that was going to go to,” Green said.

With the change, however, Green pointed out, three-fourths of all taxes will stay in counties where coalbed methane is produced.

“Right now, Wyoming County and Raleigh County are the two biggest producing counties in the state in coalbed methane,” the senator said.

“It was imperative to me that we assured that those revenues were put back into our communities to where that money coming out of the Infrastructure Council is used for continuing to give sewer and water to the people of our area.”

Manchin had proposed an end to the five-year exemption in taxes paid by the industry, with the cutoff set for last New Year’s Day.

But under the Green amendment, the tax break wouldn’t be shut off until the end of the current fiscal year, June 30.

“Now, there’s a six-month window to where if the methane industry goes in and gets a permit approved before June this year, they get the five-year exemption,” the senator said.

Green said he saw his amendment as a “fairness” issue, noting the industry had no presence in the state in 2001.

Since then, however, it has come a long way, Green said, and the senator credited former Senate Judiciary Chairman Bill Wooton, D-Raleigh, for promoting it.

“It was a successful piece of legislation and it worked,” Green said.

“This industry has come in and literally invested close to $700 million in southern West Virginia. I just think changing the rules halfway through the game in my mind is just not right.”

Even in the revised version, Green acknowledged, the game plan has been altered, “but it’s a compromise between the proposed bill and where we’re at now.”

The bill now heads to the Senate Finance Committee.

— E-mail:

mannix@register-herald.com

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