PA Environment Digest

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Wolf Urges Action On Severance Tax Now, His Has No $$$ For Environmental Restoration

Democratic candidate for Governor Tom Wolf Tuesday urged members of the General Assembly and Gov. Corbett to enact a five percent natural gas severance tax to help address the state’s budget deficit this year.

Unfortunately, the severance tax proposal Tom Wolf has made would not invest any of the revenue in environmental restoration and protection programs and projects.

The text of Wolf’s letters to the Governor and General Assembly follows--

Dear Members of the Pennsylvania General Assembly,

As budget negotiations continue in Harrisburg, the passage of a severance tax on natural gas at the effective rate of 5 percent is essential and should contain no exemptions. I have been publicly calling for this to occur for more than 5 years. This issue has to be about more than politics - the people of Pennsylvania deserve to get their fair share and they should be partners with the gas industry because the Marcellus Shale is an important economic catalyst for our Commonwealth.

Right now Pennsylvania is facing an estimated $1.4 billion budget deficit and the threat of a credit downgrade. We have fallen to the bottom in job creation, and too often our leaders advocate for the same old tired policies that do little to solve our problems. We cannot keep placing greater financial burden at the feet of struggling families while oil and gas companies are not asked to pay up.

As a former business owner, I believe the natural gas industry is vital to our state's economic future. Pennsylvania should not be the only major gas-producing state without a severance tax – this is unacceptable and deprives our Commonwealth of the necessary resources needed to make investments in areas like education and infrastructure, as well as make sure that the proper environmental oversight is in place and that we are building a bridge to a renewable and sustainable energy future.

Pennsylvania is home to an abundance of natural gas, and our geographic location provides direct access to the biggest markets in the world, but right now we are missing out on an opportunity to truly share in the benefits of this industry. It cannot be understated that with the revenue generated from a severance tax, our economy will reap great benefits that could lead to the development of good-paying energy jobs; a safe and secure environment; and the ability to make critical investments in education and infrastructure.

Once again, I urge you to put politics aside and stand with the people of Pennsylvania and pass a 5 percent severance tax, which will put Pennsylvania in line with all major gas-producing states in the country.

Now is the time to get to work and craft a plan that lays out how to best share in the benefits of the Marcellus Shale to enhance our economy. With the revenue generated from a 5 percent severance tax, we can build a 21st century economic infrastructure in Pennsylvania by providing the Commonwealth with the incentive and revenue needed to grow.

Dear Governor Corbett,

The urgent challenge facing our state leaders, now and into the future, is how to manage our remarkable natural gas resource so that the citizens of Pennsylvania broadly share its benefits for many years to come. I believe it is incumbent upon our leaders to put politics aside and pass a severance tax at the effective rate of 5 percent. I urge you to join me in supporting this and agree to not veto such a measure if it is passed by the General Assembly.

There is support for a severance tax from Republicans and Democrats alike along with a majority of Pennsylvanians, and the revenue generated can be used to make critical investments in priorities like education and local infrastructure, and help provide greater environmental oversight as well as deliver the tools to build a renewable energy future.

I believe the natural gas industry is vital to our state’s economic future but right now Pennsylvania is the only major gas-producing state without a severance tax – this is unacceptable. Our state has an abundance of natural gas, and the development of this resource offers the Commonwealth the opportunity to expand prosperity across our entire economy.

If this is done right, individual citizens and businesses will benefit from the large reserves of natural gas trapped in the Marcellus Shale for many years, but not making gas companies pay their fair share while our schools are suffering and Pennsylvania families are struggling benefits no one.

Making sure we do it right, therefore, should be on the top of everyone's mind, and a severance tax -- in line with other states in the region -- is the way to accomplish this.

Once again, I urge you to stand with the people of Pennsylvania and enact a 5 percent severance tax.

NewsClips:

Wolf Lobbies Lawmakers To Pass Severance Tax

Wolf Lobbies Corbett, Lawmakers To Pass Severance Tax

Op-Ed: Now Is The Time To Approve Shale Tax, Tom Wolf

Energy Companies Pay More In Gas Well Impact Fees In 2013

Drilling Impact Fee Revenue Totals $225M For 2013

Drilling Impact Fee Distribution Figures Released

Northeast PA To Receive $36.8 Million In Impact Fees

Lancaster’s Share Of Impact Fee $500,000

DCNR Told Corbett Not To Lease More Forest Land For Drilling

Official Tells Court: No One At DCNR Recommended Gas Leasing