State Rep. Camille "Bud" George
D-74 of Clearfield County





Rep. George: Energy panel OKs severance tax bill  


HARRISBURG, June 23 – State Rep. Camille "Bud" George, D-74 of Clearfield County, said the House Environmental and Resources Committee today approved his legislation that would enable Pennsylvania to receive a fair return for its valuable natural gas supplies.


"House Bill 1489 would ensure that Pennsylvania joins almost every gas-rich state in seeking a fair return for its taxpayers for the removal of a natural resource owned by the Commonwealth and requiring use of taxpayer-paid infrastructure to extract," said Rep. George, committee chair. "The Natural Resource Severance Tax Act creates a fair contract with the gas industry for its profitable ventures in Pennsylvania’s Marcellus Shale gas deposit."


HB 1489, approved on a 15-11 committee vote, calls for a 5 percent tax on the gross value of gas extracted and 4.7-cents for every thousand cubic feet of gas produced. The tax would not apply to smaller "stripper" wells producing 60,000 standard cubic feet a day or less.


An amendment offered by Rep. George, detailing how severance tax revenues would be shared, was approved on a 20-6 vote by the panel. The tax is projected to generate roughly $600 million annually for state coffers by 2013-14.


The revenues would be distributed as follows:

● 60 percent to the General Fund;

● 3 percent for the Low Income Home Energy Assistance Program, LIHEAP;

● 15 percent to the Environmental Stewardship Fund;

● 4 percent to the Hazardous Sites Cleanup Fund;

● 5 percent to the Liquid Fuels Tax Fund;

● 4.5 percent to municipalities where natural gas is extracted;

● 4.5 percent to counties where natural gas is extracted;

● 2 percent each to the state Game and Fish and Boat commissions.


The legislation now faces consideration before the full House.




CONTACT: Matthew Maciorkoski
Phone: 717 787-7082
Fax: 717 783-8236