Marcellus Shale Tax Policy

Issue Spotlight: Pennsylvania's Natural Gas Impact Fee

The Effective Rates of Natural Gas Severance Taxes in Texas and West Virginia Clearly Outperform PA's Impact FeeIn 2012, Pennsylvania enacted an “impact fee” on natural gas wells drilled into Pennsylvania’s Marcellus Shale that generates a relatively small amount of revenue from the expanding gas industry. PBPC estimates that, using a “moderate” production scenario, Pennsylvania's impact fee will bring in less revenue than a severance tax comparable to that of Texas or West Virginia. As production increases over time, the gap grows larger between the revenue generated at the West Virginia or Texas tax rates and from Pennsylvania’s impact fee.

Latest Report: Gas Production Booms, Drillers’ Corporate Tax Payments Plummet

Act 13 Impact Fee: Falling Short of Severance Tax

Shale Case Studies: A Look at Shale Drilling’s Mixed Legacy

Shale Impact: Learn More About Marcellus Shale and its Impact on the Economy and Services

Responsible Growth: How a Severance Tax can Help Protect Pennsylvania

Browse Marcellus Shale Tax Publications Below

April 17, 2013

These bills ask senior citizens in York and working families in Pottstown to subsidize Chevron, Hess and Royal Dutch Shell.

September 11, 2012

Pennsylvania collected about $200 million in local impact fees on Marcellus Shale wells drilled through 2011, about half of what the commonwealth could have collected had a more robust natural gas drilling tax been in effect.

Updated: September 11, 2012

In new data from the Department of Environmental Protection, we can now see how much the state has really given away by refusing to put a robust gas extraction tax in place — and the sum is staggering.

June 8, 2012

Governor Tom Corbett’s administration has proposed giving $1.65 billion in state tax credits over 25 years to companies that build and operate an ethylene cracker plant in Pennsylvania. It would be a windfall for Shell Oil, which is evaluating a site for a cracker plant in Beaver County.

April 13, 2012

With the decision of the Bradford County Commissioners this week, all 27 counties with producing shale wells have agreed to assess a local impact fee. Another 16 counties with no Marcellus Shale wells have also adopted the fee. View a map of the counties adopting fees.

February 10, 2012

The state Legislature approved a Marcellus Shale package that will give Pennsylvania one of the lowest drilling tax or fee rates in the nation.

January 31, 2012

Legislative inaction on a natural gas drilling tax has cost Pennsylvania $300 million in lost revenue, according to the Pennsylvania Budget and Policy Center's Drilling Tax Ticker.

November 18, 2011

Legislation approved this week by the state Senate would assess an impact fee on Marcellus Shale drilling in Pennsylvania that is well below what gas drillers pay in extraction taxes in many other energy-rich states, such as Texas, Wyoming and Arkansas. 

Monthly archive