West Virginia Gov. Earl Ray Tomblin’s spokesman said on Friday that the governor would veto a budget passed by the legislature on Thursday that uses $183 million of Rainy Day reserve funds and $62 million of one-time funds from various state accounts to balance a deficit. The state has been without a 2016-2017 budget since March when lawmakers failed to pass it after they couldn’t agree on tax increases and spending cuts (see Shale Daily,March 15). Instead they relied on the reserve and one-time funds to plug a $270 million shortfall. Tomblin’s office said the budget doesn’t address a $380 million shortfall that’s projected for fiscal years 2018 and 2019 and said tax increases are going to have to be a part of the solution. The state has long relied on coal and natural gas severance taxes to balance its budget, but the commodities downturn has strained its finances. It has already cut state spending on the falling revenues (see Shale Daily,Oct. 6, 2015). The state has projected a significant decline in FY 2016 severance tax collections, reflecting coal’s sustained fall and stagnant gas prices. A special session has been scheduled for June 12. If lawmakers don’t pass a budget by July 1, state government would shut down.
West
Articles from West
FirstEnergy Progressing on WV Transmission Line to Support Shale Development
Crews have begun raising steel poles for a new FirstEnergy Corp. transmission line designed to serve the needs of unconventional shale development in West Virginia.
FirstEnergy Progressing on WV Transmission Line to Support Shale Development
Crews have begun raising steel poles for a new FirstEnergy Corp. transmission line designed to serve the needs of unconventional shale development in West Virginia.
Several Oil/Gas-Related Bills Headed For Defeat in West Virginia
With just days left in West Virginia’s annual legislative session, a suite of oil and natural gas-related bills that would benefit the industry appear headed for defeat.
West Virginia Senate Passes Bill to Eliminate Some NatGas Taxes
The West Virginia state Senate has unanimously passed a bill to eliminate volumetric fees that natural gas producers pay in addition to the state’s severance tax.
West Virginia Think Tank Floats Increased NatGas Liquids Tax
A recently released report by the West Virginia Center on Budget and Policy, a liberal think tank, recommends increasing the state’s severance tax on natural gas liquids (NGL) if they are not being used to develop more in-state industries such as chemical manufacturing.
FERC Authorizes Columbia Gulf’s Cameron Access Project
FERC on Thursday authorized Columbia Gulf Transmission LLC to construct a pair of pipeline segments totaling 34 miles and a new 12,260 hp compressor station in Jefferson Davis, Cameron, and Calcasieu parishes in Louisiana.
West Virginia Crash Unlikely to Prompt Fast Action on Federal Rail Regulations
It was still unclear Tuesday exactly how much oil had spilled from a 109-car CSX Corp. train that derailed in a fiery crash on Monday in southern West Virginia, state regulators said.
West Virginia Streamlines Drilling Permits Process For Acquisitions
West Virginia Gov. Earl Ray Tomblin has signed a bill into law that will allow the simple transfer of oil and natural gas drilling permits to any company acquiring acreage in the state in a move that is expected to help save both time and money.
After Historic Production, West Virginia Waiting For Curve to Flatten
Oil and natural gas production increased markedly in West Virginia between 2012 and 2013, the latest year for which data is available, with shale drillers not surprisingly accounting for an overwhelming majority of the gains, according to data compiled by state regulators.
