Pennsylvania governor renews call for lawmakers to pass severance tax

February 6, 2018

Pennsylvania Gov. Tom Wolf (D) renewed his request to the commonwealth’s legislators to enact a severance tax, arguing in his Feb. 6 budget address that it would be paid “by people mostly outside of Pennsylvania to use our natural resources” to support state programs and improve the economy.

Officials from both the Pennsylvania Independent Oil & Gas Association (PIOGA) and Associated Petroleum Industries of Pennsylvania (API-PA) immediately responded that the existing impact fee which producers pay serves the same purpose.

“Pennsylvania is blowing most other states out of the water when it comes to production. And by joining every other gas-producing state and passing a severance tax, we could also join them by bringing billions into our own coffers,” Wolf said. “Ask these oil and gas behemoths to pay their fair share for extracting Pennsylvania’s bountiful resources, and we can build a brighter future for Pennsylvania.”

PIOGA Pres. Daniel J. Weaver, at the association’s headquarters in Wexford, said, “Pennsylvania already has a severance tax. It is called an impact fee, and it translated to an equivalent of a 2.9% additional tax in 2017 when our state’s steep natural gas price discounts are taken into account and, despite this, is still projected to bring in $46.1 million more than in 2016.”

He said, “To propose another burden on our industry on the same day as an announcement by the state Department of Environmental Protection to increase well permitting fees by 250% is more evidence that the Wolf administration is seeking to punish Pennsylvania’s energy producers and job creators...

Read entire article on Oil & Gas Journal.

 

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