Lawmakers representing Wayne and Pike counties continue to support a production tax on natural gas extracted in the state as a way to generate revenue for communities impacted by the industry, said state Rep. Michael Peifer and state Rep. John Siptroth on Friday.
Also known as a severance tax, the measure was almost used to bridge a $3.2 billion state budget deficit incurred this fiscal year. Although some lawmakers supported it for that purpose and to shift money to local governments, it did not garner enough political support to be included in the state budget that was passed in October.
Local lawmakers are still behind it, however.
“We do have to support that initiative,” said Siptroth, D-189, at a forum in Tafton, Pike County on Friday.
He said production tax revenue on natural gas should be diverted back to local governments - which have to contend with road repairs among other issues - and also to bolster the budget of the state Department of Environmental Protection (DEP).
“We have to make sure DEP has the funds to restore that land that will be disturbed,” he said.
DEP is the only statewide agency charged with environmental oversight of the industry.
Most states have some form of a production tax on mineral extraction, including Alaska, Texas, and West Virginia. When it was proposed earlier this year by Gov. Ed Rendell, natural gas industry representatives said it would impose an additional cost burden and possibly reduce the number of new wells drilled.
Peifer, whose district includes Wayne County, said he supports a production tax that would be structured to divert 25 percent of the revenue to municipal governments, 25 percent to county governments, and 25 percent to county conservation districts.
Otherwise, the revenue would just “go back to Harrisburg,” he said.
Tafton, Pa. —
