Kasich: Proposed frack tax ‘a complete and total ripoff’

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Doug Buchanan

Gov. John Kasich is not happy with a proposed severance tax on oil and gas drillers.

Tom Knox

Reporter- Columbus Business First

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Ohio Gov. John Kasich had strong words for the oil and gas industry in a Tuesday candidate forum.

The state legislature has feuded over how much the raise the state's oil and gas severance tax during the last two years. The House of Representatives passed H.B. 375 in May, but it stalled in the Senate as Kasich rebuked it as being too lenient.

At 2.5 percent, the proposed tax is lower than Ohio's shale-boom peer states.

"You know what John Paul Jones said? ' I have not yet begun to fight,' " Kasich said at the Columbus Metropolitan Club, Cleveland.com reports. "They're paying 20 cents on a $100 barrel of oil. It's a complete and total ripoff."

Ohio Oil and Gas Association executive vice president Tom Stewart told me this month that the proposed 2.5 percent is enough of a tax. He wouldn't say what an acceptable higher compromise might be.

Kasich said he believes and supports the oil and gas industry, the Cleveland.com report said, "But you know what? There's a proper way to operate. It has to be regulated and (drillers) should have to pay their fair share as they deplete the natural resources of our state."