Steptoe & Johnson: West Virginia House of Delegates Passes Legislation to Lure an Ethane Cracker Facility

Steptoe & Johnson: West Virginia House of Delegates Passes Legislation to Lure an Ethane Cracker Facility

By L. Gil White

In ongoing attempts to best position the state to attract an ethane cracker facility to the state, the West Virginia House of Delegates passed House Bill 4086 yesterday which grants substantial tax incentives for large investments of capitol in West Virginia aimed at growing manufacturing.

Competition between the various Appalachian states is fierce as it is anticipated that one and possibly two cracker facilities will be located in the region to take advantage of the wet gas byproducts being produced in the Marcellus and Utica shale plays.  Each cracker facility will require substantial investments for construction and development of the facility in excess of one billion dollars and upon completion attract manufacturing businesses which are dependent on the chemical products produced by the cracker. 

The measure is now awaiting action by the state Senate.  An announcement regarding the siting of an initial ethane cracker facility is anticipated in the coming weeks.

L. Gil White is a former 14-year elected member of the West Virginia State Legislature as well as a former political liaison to Gov. Manchin.