Pennsylvania governor asks for natural gas severance tax
Thursday, February 11, 2016
In his budget, Pennsylvania Gov. Tom Wolf is proposing a 6.5 percent severance tax on oil and gas drillers in the state’s Marcellus shale. Wolf estimates that this tax would generate $217.8 million for the 2016-2017 fiscal year.
StateImpact Pennsylvania reports that House Majority Leader Dave Reed, R-Indiana, argues that the severance tax revenue won’t generate enough money to balance the budget because of low natural gas prices, which have caused production to drop.
Last year, Wolf’s proposed severance tax was defeated. According to the source, Pennsylvania is the only state that doesn’t have a natural gas severance tax.
Via: StateImpact Pennsylvania > Wolf proposes 6.5 percent tax on Marcellus shale
More about the severance tax:
- According to poll, majority of Pennsylvanians want severance tax Nov. 9, 2015
- Natural gas severance tax still receiving opposition from shale industry Oct. 27, 2015
- Pennsylvania Gov. Wolf’s tax plan, including severance tax for drillers, defeated Oct. 11, 2015
- Pennsylvania business owners sound off on proposed oil and gas severance tax May 20, 2015
- Proposed severance tax worries Pennsylvania officials April 1, 2015
- Pennsylvania Gov. Wolf’s severance tax meets opposition March 29, 2015
- Pa. oil and gas conference: Severance tax and legislation are big topics May 20, 2014
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.