News

Big oil and gas groups warn Pennsylvania on taxes

Written by The Associated Press | Jun 20, 2014 12:31 PM
marcellus shale

(Harrisburg) -- Pennsylvania's three biggest oil and gas associations, which represent multinational giants, are warning state lawmakers that raising taxes on the booming natural gas drilling industry could have economic repercussions.

The letter, obtained today by The Associated Press, was signed by the heads of the Associated Petroleum Industries of Pennsylvania, Marcellus Shale Coalition and Pennsylvania Independent Oil & Gas Association.

It was addressed to 11 top lawmakers in the Republican-controlled Legislature.

In it, the trio says the enactment of a severance tax, like other major gas-producing states impose, could make Pennsylvania less competitive and drive the companies to shift crews and rigs to other states.

Lawmakers are discussing a severance tax to ease a massive budget shortfall. Governor Corbett, an industry ally, says he dislikes the idea.

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Comments: 3

  • Larry img 2014-06-21 19:20

    Yes, Pennsylvanians have felt the warning of low taxes for oil and gas.

    We are unable to fund the education for our children.

    We have placed higher fees on individuals to repair and maintain our roads and bridges.

    Understand this, Pennsylvania owns its oil and gas. At some time the industry will want it. At that time the price will be higher and the terms not as favorable to the industry.

    We own the oil and gas, it is our ball game, and the oil and gas industry can take their ball and bat to find a cheaper date.

    Low taxes and deregulation only lessen investment in infrastructure, education and job training, and quality of life.

    Pennsylvanians want a high standard and quality of life.

    We want a better civilization, and low taxes and deregulation will not get us there.

    • kaya img 2014-06-24 07:26

      Well said, Larry. I couldn't put it better myself.
      I think the industry powerhouses mentioned above are trying to use scare tactics to avoid paying for what they're extracting from our state. The way I see it, funding for education cannot get much worse. Our roadways and bridges cannot get much worse. Our inability to create and uphold a balanced state budget (with no shortfalls) cannot get much worse. Scare tactics schmare tactics. I'll believe the gas crews are willing to vacate our state and withdrawal from further extraction due to taxation when I see it.

    • kaya img 2014-06-24 07:30

      Well said, Larry. I couldn't put it better myself.
      I think the industry powerhouses mentioned above are trying to use scare tactics to avoid paying for what they're extracting from our state. The way I see it, funding for education cannot get much worse. Our roadways and bridges cannot get much worse. Our inability to create and uphold a balanced state budget (with no shortfalls) cannot get much worse. Scare tactics schmare tactics. I'll believe the gas crews are willing to vacate our state and withdrawal from further extraction due to taxation when I see it.

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