Drilling Tax Delay Costs Pennsylvania

$302,424,166

Natural Gas Drilling Tax Will Protect Pennsylvania Taxpayers

Fall 2011 Legislative Resources

Marcellus Shale Fact Checks & Summaries

SB 1100: Out of Sync with Most Energy-Rich States

Giving Away the Store: A Fact Check on Marcellus Tax and Fee Plans

PA House Drilling Tax Bill to Fund State Priorities: Murt-DiGirolamo Plan

Critical Points on Marcellus Shale Tax and Fee Plans

Comparing Legislative Plans

Governor's Drilling Fee Plan Sells Pennsylvanians Short

Summary of Representative Reed's Marcellus Fee Plan

A Turn for the Worse: Sen. Scarnati's Amended Marcellus Shale Fee Plan

Comparing Rep. Quinn's Marcellus Drilling Fee to Other Plans

Comparison of Legislative Proposals for a Marcellus Shale Drilling Tax

Marcellus Shale Policy Briefs

Drilling Fee Bills Fail to Address Pressing State Needs

Drilling Deeper into Job Claims: The Actual Contribution of Marcellus Shale to PA Job Growth

A well-structured tax on natural gas drilling will provide Pennsylvania with a stable source of revenue for critical services, including education and health care, as well as for the environmental and local costs that come with increased drilling.

Across the country, 96% of natural gas is produced in states that have drilling, or severance, taxes. Pennsylvania, however, remains one of the only energy-producing states without one.

While some policymakers in Pennsylvania worry about the impact of a drilling tax, studies in Wyoming, Utah and other states have shown that tax rates have little effect on natural gas production. Rather, drilling decisions are made based on the location of reserves and the expected price of natural gas.

Drilling Tax Ticker

The Drilling Tax Ticker tracks in real time the cost to the Commonwealth of refusing to enact a drilling tax. The Ticker provides an estimate of the total revenue lost by the Commonwealth since October 1, 2009 by not having a drilling tax in place.

Read more about the Ticker.

View the methodology used to create the Ticker.

Citizens Marcellus Shale Commission

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.

The Commission heard from 116 testifiers at hearings held in August and September 2011 in Harrisburg, Philadelphia, Southwestern Pennsylvania, Towanda and Williamsport. More than 400 people from 48 counties attended the hearings, while another 110 concerned citizens submitted comments online. The Pennsylvania Budget and Policy Center is one of the Commission's sponsoring organizations. Learn More

PBPC Research and Reports on Natural Gas Drilling Tax

The Pennsylvania Budget and Policy Center has produced several reports on enacting a drilling tax on natural gas production in Pennsylvania.

In April 2009, PBPC released a comprehensive report on drilling taxes, titled, “Responsible Growth: Protecting the Public Interest with a Natural Gas Severance Tax.” It examined the potential costs of increased natural gas drilling on Pennsylvania taxpayers and the environment, how drilling taxes are structured in other states, and what lessons Pennsylvania can learn from them.

Since then, PBPC has produced a variety of research and policy papers on the drilling tax. You can access our reports and research below.

Gas Production and Drilling Tax Rates

Table Detailing Natural Gas Drilling Tax Rates in Other States, May 2011

Drilling Tax Reports & Resources

Gas Drilling Tax Impasse Costs Pa. $300 Million, January 2012

SB 1100: Out of Sync with Most Energy-Rich States, November 2011

Senate Drilling Fee Bill More Than Industry Asked For, November 2011

Giving Away the Store: A Fact Check on Marcellus Tax and Fee Plans, November 2011

Under PA House Leadership Bill, Gas Drillers Would Pay One-fifth of What They Pay in Texas, November 2011

A Mainstream Plan for Taxing Natural Gas Drilling: Sharon Ward's Remarks at Press Conference on Murt-DiGirolamo Drilling Tax Bill, October 2011

Statement: Governor's Drilling Fee Plan Sells Pennsylvanians Short, October 2011

New PA Drilling Tax Bill to Fund State Priorities, September 2011

New Commission to Gather Citizen Input on Marcellus Shale Drilling, August 2011

PBPC Responds to Marcellus Shale Advisory Commission Report, July 2011

Statement on Gas Industry-Financed Report on Marcellus Shale's Economic Impact, July 2011

$200 Million Lost to Legislative Inaction on Marcellus Drilling Tax, July 2011

Summary of Representative Reed's Marcellus Fee Plan, June 2011

Critical Points on Marcellus Shale Tax/Fee Plans, June 2011

Drilling Fee Bills Fail to Address Pressing State Needs, June 2011

A Turn for the Worse: Sen. Scarnati's Amended Marcellus Shale Fee Plan, June 2011

Comparing Rep. Quinn's Marcellus Drilling Fee to Other Plans, June 2011

Comparison of Legislative Proposals for a Marcellus Shale Drilling Tax, May 2011

Department of Revenue Analysis Goes Well Beyond Taxes Paid by Drillers, May 2011

Representation without Taxation: How Natural Gas Producers Escape Taxes in Pennsylvania, April 2011

Fact Check: West Virginia Led the Nation in New Gas Wells in 2010, April 2011

Plan Would Mark Significant Compromise on Severance Tax, October 2010

Comparison of House, Senate Severance Tax Plans, October 2010

Fact Check on Severance Taxes and Marcellus Shale, October 2010

How to Structure a Severance Tax that is Fair to Pennsylvanians, August 2010

Unintended Consequences: Proposed Tax Breaks for Natural Gas Industry Are Bad Deal for Pennsylvanians, June 2010

PBPC Responds to Gas Industry-Financed Report on Marcellus Shale's Economic Impact, May 2010

Reality Check: Natural Gas Industry Report Falsely Claims Sky Will Fall if Severance Tax Enacted, October 2009

 

Shared Costs, Shared Resources: State Distribution of Severance Tax Revenues, June 2009

Responsible Growth: Protecting the Public Interest with a Natural Gas Severance Tax

The Full Report, April 2009

Four-page Report Summary, April 2009

Press Release, April 2009

Video of Press Conference, April 2009

Marcellus Shale Forum

View video from a forum on natural gas drilling in the Marcellus Shale, January 2010

Public Testimony

Testimony of Michael Wood on Marcellus Shale Fee before the Marcellus Municipal Co-op, a bipartisan group of township and borough officials convened by Rep. Jesse White, August 24, 2011

Testimony of Michael Wood on Marcellus Shale Advisory Commission Report before the House Democratic Policy Committee, July 2011

Testimony of Michael Wood on Natural Gas Drilling Tax before the House Democratic Policy Committee, February 2011

Testimony of Michael Wood on Natural Gas Severance Tax before the House Appropriations Committee's Subcommittee on Fiscal Policy, April 2009