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

November 15, 2011

"We are disappointed by the Senate’s passage of an impact fee that gives drillers an even-better deal than they asked for," Sharon Ward said.

November 15, 2011

Governor Corbett’s proposal would assess the equivalent of 1% over the life of an average Marcellus Shale well and Senator Scarnati's revised SB 1100 would assess the equivalent of a 2.2% rate. A comparable well in Texas would raise five times more than either plan.

November 11, 2011

The Pennsylvania House may vote next week on a drilling fee plan that asks Marcellus Shale drillers to pay significantly less than they pay in major energy-producing states like Texas and Arkansas.

November 2, 2011

The Pennsylvania House Finance Committee approved a bill today (HB 1950) that would enact a tiny 1% gas drilling impact fee in exchange for an end to municipal involvement in the siting of gas facilities. Pennsylvania Budget and Policy Center Director Sharon Ward issued a statement.

October 31, 2011

Just in time for Halloween, Pennsylvania House Republican Leadership has cooked up one scary deal on a natural gas drilling fee.

October 25, 2011

Pennsylvanians believe that gas drilling in the Marcellus Shale has moved too quickly and that public officials need to do a better job protecting their communities and the environment, according to the final report of the Citizens Marcellus Shale Commission.

October 24, 2011

Pennsylvanians believe that gas drilling in the Marcellus Shale has moved too quickly and that public officials need to do a better job protecting their communities and the environment, according to the final report of the Citizens Marcellus Shale Commission.

October 4, 2011

Legislation sponsored by state Representatives Tom Murt and Gene DiGirolamo would enact a natural gas drilling tax that supports shared statewide priorities like education and human services, as well as local impacts and environmental protection. Listen to remarks from Sharon Ward at a recent press conference.

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