Haynesville Shale’s major lease holder pays Police Jury more than $1 million in taxes
Chesapeake Energy Corporation will present the Bossier Parish Police Jury today with $1,029,716.21 in property tax payments due to natural gas and oil development.
“Natural gas development means more jobs, and Chesapeake is proud to contribute to Louisiana's economy through tax payments that provide funds for schools, hospitals and road and other government services that yield value for so many citizens in our state while also producing a carbon-light fuel that cleans our air and builds our nation's energy security,” said Katie McCullin, manager of media relations and corporate development for Chesapeake.
The company will have made a total of nearly $14 million in payments to local parishes in the shale. The tax payments will be divided according to current millage for parish schools, law enforcement, police juries and other taxing authorities in each parish.
Another positive for the parish, shale, and industry is a whole, is this year's payment is an increase over last year.
“(A rise in production) is coming — last years check was over $600,000, so this is an increase of $400,000, which is a pretty good increase over last year,” said Bossier Parish Administrator Bill Altimus.
The total paid in property taxes to Bossier Parish from Chesapeake beginning in 2005 is $5,166,669.
The Haynesville Shale has undoubtedly been a massive economic engine for investment, job creation and state and local tax payments over the last several years.
According to a parish-specific economic impact study by the LSUS Center for Business and Economic Research, the Haynesville Shale has had a very strong impact on area businesses, with more than half the businesses surveyed expanding operations since development of the play began in 2007.
The same report noted that from 2007 to 2010, the parish has seen a 62 percent increase in average employment in the mining sector and a 39 percent increase in average employment in the lodging/food service sector, two industry categories tied closely with shale development. While total personal income increased 20.5 percent from 2007 to 2010, a growth directly related to employment opportunities and royalty income offered by Haynesville Shale development.
“It is evident the Haynesville Shale has, and will, bode well for local economies and Louisiana as it continues to sustain jobs, stimulate sales for state businesses and contribute to household earnings and local and state taxes,” said McCullin.
With natural gas at decade-low prices, McCullin pointed out that Louisiana is experiencing a “renaissance in new commercial and industrial construction activity,” particularly in the synthetic fuel and chemical industries where the Louisiana Department of Economic Development is forecasting the location of seven to 15 projects over the next few years.
The projects are expected to attract investments of $500 million to $5 billion each and create thousands of construction and permanent jobs.
“It is evident the Haynesville Shale has and will bode well for local economies and Louisiana as it continues to sustain jobs, stimulate sales for state businesses and contribute to household earnings and local and state taxes,” said McCullin.
Following the money
A breakdown of where the taxes go
Police Jury General Fund = $26,866.32
Tax Assessment = $33,613.02
Law Enforcement Detention Facility Operations = $136,741.14
Police Jury Health Unit = $8,312.90
Library = $75,659.41
Roads & Bridges = $20,119.62
Red River Waterway Capltal Outlay = $15,180.07
Red River Waterway Operation and Maintenance = $7,739.35
School Board Constitutional Tax = $33,131.11
School Board Maintenance and Operatlon = $75,418.46
School Baird Salilrles = $75,418.46
School Board Sinking Fund = $27,468.70
School Board Salaries = $207,942.91
Fire District = $122,645.35
Police Jury Correctional Facility = $29,998.72
Caddo Bossier Port Acquisitions and Maintenance = $25,059.17
School Board Bond = $107,947.19