Price tag for Shell deal gets bigger with cleanup
The $1.65 billion tax deal the Corbett administration is negotiating with Shell Oil to locate an ethane processing plant in western Pennsylvania is shaping up to be the biggest such state investment Pennsylvania history. And now it appears, it's just getting bigger.
Price tag for Shell deal gets bigger with cleanup
The $1.65 billion tax deal the Corbett administration is negotiating with Shell Oil Co. to locate an ethane processing plant in western Pennsylvania is shaping up to be the biggest such state investment Pennsylvania history.
And now it appears, it's just getting bigger.
Under the deal, taxpayers would foot the bill for hazardous materials clean up at the western Pennsylvania site, a cost that could easily soar into the tens of millions, according to a report by CapitolWire news service.
Corbett officials told legislative staff that on top of the $1.65 billion in tax credits over 25 years starting in 2017, and other sweeteners that come with a tax-free Keystone Opportunity Zone, the state would be picking up the bill to clean up the waste from a zinc smelter site.
The Horsehead Corp. plant, which is still operating at its Beaver County facility, is a repeat violator of federal clean air and water laws, CapitolWire reports.
News of the deal surrounding the building of a so-called ethane cracker plant, that would convert byproduct of the natural gas industry to plastics, was first reported by CapitolWire on Monday. The plant is expected to create as many as 20,000 jobs, both at the plant and in related industries.
Sen. Vincent Hughes of Philadelphia, the ranking Democrat on the Appropriations Committee, wrote to Corbett asking for an explanation but so far have received none, he said.
Sen. Daylin Leach (D., Montgomery) wrote his own letter today seeking to find out more specific information such as how much each job would cost Pennsylvania taxpayers and whether there is language in the agreement that would prohibit Shell from demanding more money down the road.
"At a certainly point how much are we payuing for every job?" said Leach today. "If it's $300,000 per job why not just give people the money?"
George Jugovic, former western regional director of the DEP, now head of the environmental group PennFuture, told CapitolWire the site is a "wasteland."
“There are so many environmental issues on that site: groundwater issues, surface water issues, waste disposal issues, discharge into the water issues,," he said.
The state Hazardous Sites Cleanup Act requires that Horsehead pay first for the clean-up, Jugovic, adding that he thought legislation would be needed to change that mandate.
“I never heard of the state picking up the cost when there is a company that was still in business and left a site that needed clean-up,” Jugovic said.
“It just further points out the questionable nature of this deal. How could anyone put the public on the hook for undetermined cost for a clean-up of one of the dirtiest industries there is? Why make the taxpayers accountable, not the company who put the site in this condition?”
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- well written...Too bad facts have no merit in these posts.
— BusinessOwner1 - You expect kelprod to understand FACTS? How come all these righties who cry about stimulus money being spent want to give $1.7 billion of our tax dollars to one of the richest corporations in world. Shell wants all the moneyh and no responsibility. They create a mess, we have to pay to clean it up. Thanks, guv. I'm sure you can cut some more education and health funds to pay to your handlers. — mike l
- history lesson:
about every 20 years the US economy would have a "panic"--a stock market crash and depression. this is not flawless. these "corrections" became increasingly severe. the result was an increase in govt involvement in the economy.
kleprod, how many free market only people would be able to live with the poverty that existed in the 19th century? the poverty that inspired the progressive movement on the state and local level and finally on the national level?
how many free market only people want to return to the gilded age? the good old days wrest all that great— the lopez! - Recall,,,but really do it.— moretoit
- Dems give out welfare handouts, Republican's give out corporate handouts. Regular guy gets screwed again. I'm writing in my vote for Optimus Prime in November.— Vote for Dickie
- This deal is reflective of the deals offered by Banana Republic Governments around the world, of course those deals have kick backs included, here we call them "Political Donations". What Pennsylvania did, or intends to do, is/was take Education and Health Care financial resources that the $1.7 Billion generally pays to furnish for Pennsylvanians and bet it with Shell. Now you can see the reason for such budget cuts like $800 Million in education cuts and hundreds of Millions in Medicaid and Food Stamp cuts. Package that spending and spend it on Shell Oil's project.
Now the Governor is offering the money to Shell Oil with no expected return. In this manner he can claim to have produced jobs. This is the economic development model commonly used by the wastelands Southern States to attract foreign producers to open production shops in their States.
Depending on the site of the plant in Ohio or West Virginia it may be to the advantage to allow either State to take from their education budgets and cut off health care for the poor to fund an expansion of Shell Oil. People in Western Pennsylvania can commute across the state line to work in either State, as simple as it may be for someone in the Phila region to commute to New Jersey or Delaware for employment.
Some of these deals have further sweeteners such as allowing the company to keep State Tax Deduction from their employees for 25 years on top of the front page tax breaks, in this case $1.7 Billion over 25 years.
It's a great deal if you own a business and receive the same sweeteners but the little guy never receives these kinds of breaks. And it's the small business guy that produces the majority of the jobs in America and Pennsylvania.
— Dexter - Isn't there anything that holds the government accountable for showing exactly how they plan to recoup this money? That is the point, right? That the deal will bring in more taxes than it is giving away? Or is it up to journalists to investigate every last detail of every deal? If that's the case, then the game is set up so that the common person loses and big money---keeps big money.— th
Comment removed.- What does that have to do with tax credits? — phillycaster
- How is this proposal any different than Welfare? Shell Oil is a foreign company.
How is giving $1.7 Billion taken from American or Pennsylvania workers and giving it to a foreign corporation nothing other than welfare?— Dexter - Subsidizing Shell Oil! Who is the socialist now?— moved to Havertown
- Comment removed.
- This guy doesn't respect the public. Clearly. Sign the recall and vote him out. Getting in the car for a drive to Harrisburg may be futile since the Gov. literally lives in a protective bubble and does not talk to constituents, only lobbyist and rich campaign contributors. Corrupt as they come.— Yodude2
- Here we go again. The $1.7 billion is a tax credit. The state will not give Shell a single dollar. They will let them keep more of their profits. There is no money being redirected from schools or healthcare. As stated before, without the deal Shell goes to West Virginia, Ohio or Canada. They get the 20,000 jobs, they get the revenue generated by 20,000 people that will now be employed, they get tax revenue from income taxes from the 20K employees AND they still get corporate taxes from Shell, not just as much.— phillycaster
- I have commented on some the previous articles, blogs and posts. I am bothered by the veraciti of some of the posts and the lack of facts and slanderous comments by some of the anoymous posters. The articles themselves have become more informative and to some part, less biased.
I do know that Shell needs a certain size facility (500 Acres) and the site in Monaca, PA is well suited. However, George Jugovic brings up a strong point regarding the precedent for the State cleaning up the site that is currently in operation. This issue needs to be addressed. There may be a good reason for it,but at this point the article does not provide any clarity. Before, we condemn the project and the tax credit, we should get all the facts.
Remember, the Govenor has made a proposal, he has no authority to grant any of what is proposed. Stop throwing him under the bus...The legislature has to vote on this and he will need to defend his proposal. This could be a great opportunity for the state. let it play out and stay on the press to report all the FACTS before rushing to post rediculous staements that are baseless.— BusinessOwner1
