Latest Pennsylvania business

US-GAS-DRILLING-WELL-METHANE-PENNSYLVANIA

Methane reported in 2 northern Pa. water wells

CANTON, Pa. (AP) State environmental regulators say methane had to be vented from a pair of private drinking wells near a northern Pennsylvania natural gas drilling well.

The Department of Environmental Protection says gas bubbling has also been reported in wetlands near the homes in LeRoy Township, Bradford County.

The DEP says the source of the methane hasn't been determined but driller Chesapeake Energy Corporation is screening all private wells within 2,500 feet of its Morse drilling pad.

The complaint was first made to DEP on Saturday.

US-AIRPLANE-TAX-BREAK-PENNSYLVANIA

Pa. House OKs sales-tax exemption for airplanes

HARRISBURG, Pa. (AP) A bill to exempt the purchase and maintenance of airplanes from Pennsylvania's 6 percent sales tax won a strong vote of confidence in the state House.

The House gave its final approval to the measure yesterday by a vote of 179 to 19. It now goes to the Senate.

Critics say this is not time for the state to be handing out tax breaks for wealthy individuals and corporations that will deprive the state of millions of dollars of badly needed revenue. Proponents say the bill would match tax exemptions available in neighboring states and make up the lost revenue by creating good-paying jobs and drawing airplane owners to Pennsylvania maintenance centers.

Pennsylvania passed a similar tax break for helicopters in 2009.

ALLENTOWN ARENA

2nd township rejects settling arena lawsuit

ALLENTOWN, Pa. (AP) A second township has rejected the city of Allentown's latest offer to settle a lawsuit over construction of a downtown hockey arena.

Hanover Township officials joined their counterparts in Bethlehem township last night in saying that a 2009 state law that uses some municipal taxes to fund the arena must be changed.

The actions dim Allentown's hopes of completing the $220 million complex in time for minor league hockey play to begin in September of 2013, but the mayor and other officials say they are still optimistic about resolving the dispute

The arena and surrounding development was to be funded by a 130-acre special downtown tax zone using state and local taxes. The townships object to including earned income taxes from people who work in the zone but live elsewhere.

EARNS-TOLL BROTHERS

Toll Brothers returns to profit in 2nd quarter

HORSHAM, Pa. (AP) Toll Brothers returned to profitability in the second quarter as a growing confidence in the beleaguered housing market drove up home deliveries and the company reported a backlog.

The Horsham, Pa., homebuilder was also had lower write-downs and a tax benefit as well.

The Commerce Department is reporting new home sales today and economists expect to see further indications of a turnaround in the market. That would jibe with the numbers posted yesterday Toll Brothers, which has operations in 20 states, including Arizona, California and Florida, which were devastated by the housing downturn.

The homebuilder earned $16.9 million, or 10 cents per share, for the three months ended April 30. A year earlier it lost $20.8 million, or 12 cents per share.

It also beat the 3 cents per share in earnings that analysts surveyed by FactSet had expected.

QNB CEO

QNB Bank CEO announces retirement

QUAKERTOWN, Pa. (AP) The chief executive officer at Quakertown-based QNB Corporation says he's retiring at the end of the year.

The company's Board of Directors has selected current President and Chief Operating Officer David Freeman to succeed Thomas Bisko as CEO.

Bisko will remain on the Board of Directors.