Help pass the Marcellus Shale natural gas severance tax!

Posted on August 31, 2010. Filed under: Events, News | Tags: , |

Time to take action for PA residents!  Pennsylvania House Democrats and Senate Republicans promised to pass a Marcellus Shale natural gas severance tax by October 1, but now, the gas industry is trying to avoid paying its fair share. Industry lobbyists want loopholes big enough to drive a drilling rig through, seeking to exempt the first three years of production from taxes on each deep gas well. This is precisely the time when the output of the wells, and the revenue for programs such as environmental initiatives, would be the greatest.

Pennsylvania sits atop one of the largest deposits of natural gas in the world — the Marcellus shale formation. Relatively new drilling technology makes it lucrative for drillers to tap into this resource. The PA Department of Environmental Protection (DEP) issued a record 7,792 drilling permits in 2008 (total) — up from roughly 2,000 in 1999. And the applications keep coming.  Most states with natural gas resources tax the extraction of the gas in the form of a severance tax or impact fee. In 2009 Gov. Rendell proposed a tax identical to the one that has been in place in West Virginia since 1987. This type of tax could initially raise more than $100 million a year and increase to more than $630 million annually by 2014.

Now is the time to reach out to area representatives and urge them to pass the Marcellus Shale severance tax WITHOUT any loopholes.  Make the gas industry pay for their heavy costs on our communities and use the money to offset the costs.  Contact your area representative today!  To write a letter to your area rep about the Marcellus Shale tax, visit PennFuture.

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