English Dutch French German Portuguese Spanish
Menu

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

Within the next decade, Pennsylvania is poised to enjoy a natural gas development boom. Long-term projections of rising natural gas prices and the advent of advanced drilling techniques have made it economically feasible to extract natural gas from the Marcellus Shale, a deep geologic formation that underlies 54 of the 67 counties of Pennsylvania.

Natural gas development will likely bring jobs, investment, and money into Pennsylvania, but it will also impose additional costs on state and local governments and their taxpayers. These costs include environmental permitting, monitoring, and cleanup, as well as worker and public safety in and around wells, emergency response, road maintenance, and demand for specialized water treatment facilities.

 Evidence also suggests that the civic response to natural gas and other mineral booms is to overestimate the benefits and underestimate the impacts — on the environment, rural communities, and the public coffers.

Every state with significant mineral wealth, with the exception of Pennsylvania, has adopted a severance tax on the resource extraction industry. A severance tax is a well-tested mechanism for ―internalizing‖ the external costs of drilling that are not currently paid by natural gas producers. Without a severance tax, these costs will be shifted to other state and local taxpayers.

 

Download and read the summary in PDF format in the attachment section below

 

 

Download attachments:
You are here: HomeResearchSocio-economic Impact StudiesTaxesResponsible Growth: Protecting Public Interest with a Natural Gas Severance Tax
  • ASMAA - Algarve Surf and Marine Activities Association
    NIPC: 510 381 952
    Tel: 00 351 282 182 103
    This email address is being protected from spambots. You need JavaScript enabled to view it.
    asmaa-algarve.org
    Rua Dr. Alberto Iria
    Lote 12, R/C Esq
    Porto de Môs
    Lagos 8600-580
    Portugal
Go to top