A proposed severance tax on natural gas extraction and a now-scrapped moratorium on drilling on state lands have helped to line the pockets of some Pennsylvania politicians with gas industry dollars, liberal watchdog group Common Cause said in a report on campaign contributions and lobbying by the industry.

“Spending in both categories has spiked since 2008 as new drilling techniques have enabled the industry to more fully exploit the Marcellus Shale,” the report by the group’s Pennsylvania chapter said. “This spike also comes as the industry is seeking to defeat a proposed severance tax on natural gas extraction, defeat a moratorium on drilling in state-owned lands, defeat or delay tougher environmental regulations and keep information about exactly what mixtures of chemicals are used in natural gas extraction secret.”

Last week a bill that would have placed a three-year moratorium on leasing of state forest lands in Pennsylvania’s Marcellus Shale was referred to a Senate committee, which effectively killed the legislation for the time being (see Daily GPI, May 7).

Pennsylvania Gov. Ed Rendell, a Democrat, has supported a severance tax on gas extraction (see Daily GPI, Feb. 10). However, this week he said the state’s Department of Conservation and Natural Resources had finalized a natural gas lease agreement with Anadarko Petroleum Corp., which would allow the state to meet its need for revenue from drilling next year while protecting natural resources (see Daily GPI, May 13).

According to the Common Cause study, drillers favored Republican gubernatorial candidate Tom Corbett with $361,207 in contributions, 93% of that amount given since January 2008. Among Democratic candidates, Dan Onorato was the most favored, garnering $59,300 in contributions.

Indiana, PA-based S.W. Jack Drilling Co. has given the most, with $1 million in contributions, according to the study. The amount accounts for more than one-third of $2.85 million in industry contributions given over the last 10 years. Of the company’s contributions, $990,000 came from CEO Christine Toretti.

Toretti announced on May 1 that S.W. Jack Drilling would liquidate its operating assets and invest the proceeds in “endeavors within the energy industry and other innovative realms.” As for Toretti, she will “increase her focus” on Republican politics.

“Under a changing oil and gas landscape, and the financial burden of high-tech investment demands, we believe that we can make a bigger impact by turning our focus in other directions,” Toretti said. “America needs stronger leaders and is crying out against wasteful spending, poor policy and the ever looming creep of socialism in our government. I’m looking to jump in and lend my support to what Americans truly want. We’ll see where that road takes me as it continues to unfold.”

While Republican Toretti accounted for a large chunk of contributions, Republican politicians and committees received the lion’s share of industry giving, about 84% ($2.28 million), compared with about 16% ($428,000) received by Democrats.

“The industry’s annual lobbying expenditures have roughly tripled in the last three years, from $579,000 in 2007 to $1,685,000 in 2009,” the report said. “And from the last quarter of 2009 to the first quarter of 2010, lobbying expenditures rose from $421,000 to $716,000.”

©Copyright 2010Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.