Pennsylvania Gas Extraction Tax Legislation Declared Dead for 2010

Energy & Resources

By Jack Stewart

Citing the refusal of Republican legislators to negotiate in good faith, Pennsylvania Governor Ed Rendell, in a statement released by the governor’s office last week, dismissed any chance of passing a Marcellus Shale extraction tax in 2010.

Even though Pennsylvania’s Democratic-controlled House passed a gas extraction bill in late September, the Republican-controlled Senate has refused to act on the bill, calling it flawed. Democrat and Republican leaders are still disputing the rate of tax to impose and how to spend the expected revenue.

Much of the inability of the two sides to reach an agreement likely stems from the uncertain outcome of Pennsylvania’s upcoming gubernatorial election and the candidates’ stated positions regarding the severance tax. Democrat Dan Onorato supports the imposition of the severance tax, while Republican Tom Corbett has said that he is against imposing any new tax taxes, including a gas severance tax. As such, it appears the issue will remain for the new administration to address in the next legislative session.



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