Saturday, February 15, 2025, 7:01PM |  40°
MENU
Advertisement
A drilling rig at EQT Corp's Fetchen well pad, Tuesday, Feb. 27, 2018, in Forward Township, Allegheny County.
3
MORE

Gov. Wolf again pitches plan for taxing Marcellus gas drillers

Rebecca Droke/Post-Gazette

Gov. Wolf again pitches plan for taxing Marcellus gas drillers

HARRISBURG — Gov. Tom Wolf on Thursday announced plans to once again seek a severance tax on Marcellus Shale natural gas drilling, promising to use the money for disaster recovery, infrastructure and the expansion of broadband internet, among other projects.

The Democratic governor plans to approach state lawmakers with a proposal to borrow $4.5 billion over four years by selling bonds. The money would be paid back over 20 years using revenue from a severance tax, which would vary depending on the price of gas and the amount of it extracted.

“It is far past time that Pennsylvanians stop allowing our commonwealth to be the only state losing out on the opportunity to reinvest in our communities,” Mr. Wolf said. “And as long as that is allowed to continue, my vision of a restored Pennsylvania that is ready to compete in the 21st century economy will never become reality.”

Advertisement

The proposal drew a swift backlash from key Republican legislative leaders, who have successfully blocked past efforts to impose a severance tax. Hours after the governor unveiled his plan, GOP leaders who control the calendar in the House issued a statement saying it was riddled with bad economic ideas.

Gov. Tom Wolf will be delivering his budget address on Tuesday.
Liz Navratil and Angela Couloumbis
Gov. Wolf set to unveil budget plan with focus on severance tax for gas drillers

“While improving Pennsylvania’s aging infrastructure is a shared goal, it cannot come at the expense of the Commonwealth’s economy and taxpayers," the Republican leaders wrote.

“Unfortunately, the governor has not included the General Assembly in the development of this proposal. If he had, he would know that there are not enough votes to enact a new energy tax, borrow billions of dollars and spend monies on more government programs.”

This is not the first time Mr. Wolf and the legislature have fought over a shale tax. The governor has repeatedly included a severance tax as part of his annual budget, with proceeds designated to the general fund to help pay for public education.

Advertisement

Each time, the GOP-led legislature has blocked the effort, often expressing fears that a tax would weaken the industry in Pennsylvania — claims that mirror those raised by some drillers.

Pennsylvania currently imposes an impact fee on shale gas wells but does not tax the amount extracted.

Natural gas drillers and their industry groups spent at least $61 million on lobbying and campaign contributions to state lawmakers between 2010 and 2017, according to an analysis by the Philadelphia Inquirer/Daily News and Pittsburgh Post-Gazette.

On Thursday, one leading industry group, the Marcellus Shale Coalition, also quickly criticized the governor's proposal, claiming it would "cost consumers, hurt local jobs....and negatively impact investment."

Democratic Gov. Tom Wolf delivers his budget address for the 2019-20 fiscal year to a joint session of the Pennsylvania House and Senate in Harrisburg on Tuesday, Feb. 5, 2019. House Speaker Mike Turzai, R-Marshall, and Lt. Gov. John Fetterman, the former mayor of Braddock, is at right.
Liz Navratil and Angela Couloumbis
Gov. Wolf budget has more money for schools, minimum wage bid

The fight over a severance tax on shale drillers has in some years contributed to protracted budget impasses.

Unlike in previous years, Mr. Wolf is not planning to incorporate the tax into his annual budget — details of which will be unveiled during an address next week — but rather is seeking to fund it separately from the main books.

“I’m not looking to make ends meet with this,” he said.

Mr. Wolf could borrow the money for the projects without the legislature’s approval but would need lawmakers to sign off on a severance tax itself. The administration said the governor would only borrow the money if the legislature approves the tax.

Asked whether there would be other ways to fund the same projects if the legislature rejects his request for a severance tax, the governor said, simply, "No."

Pittsburgh Post-Gazette Staff Writer Laura Legere contributed to this report.

First Published: January 31, 2019, 4:54 p.m.

RELATED
The Gaut well pad, owned by CNX Resources Corp., near the Beaver Run Reservoir, in February 2019.
Laura Legere
Shale gas impact fees raise $252 million, breaking record
SHOW COMMENTS (0)  
Join the Conversation
Commenting policy | How to Report Abuse
If you would like your comment to be considered for a published letter to the editor, please send it to letters@post-gazette.com. Letters must be under 250 words and may be edited for length and clarity.
Partners
Advertisement
In Fayette County, voters express renewed hope under the Trump administration, praising his early actions like spending cuts and immigration crackdowns, and grading his first few weeks an "A." Many in the county, where Trump secured 68.4% of the vote, support his executive orders on immigration and federal spending, believing he is fulfilling campaign promises and taking decisive action.
1
news
As Trump's executive orders sow confusion and chaos for some, Western Pa. supporters who voted for him approve
The North Shore offices of the Post-Gazette
2
business
Federal judge denies NLRB's injunction attempt against the Post-Gazette
Pittsburgh Steelers defensive tackle Cameron Heyward (97) looks on with head coach Mike Tomlin, left, prior to the NFL football game against the Philadelphia Eagles, Sunday, Dec. 15, 2024, in Philadelphia.
3
sports
Steelers position analysis: Defensive line the most glaring need heading into NFL draft
Mark Sevco has been named president of Allegheny Health Network
4
business
Former UPMC executive joins Allegheny Health Network
Recent Duquesne law graduate Von Wooding started an AI company called Counsel Stack. Photo at the Duquesne Law School Thursday, Jan. 23, 2025.
5
business
AI Trial: A Duquesne alum built an artificial intelligence platform for law firms. Clients aren't always told it’s being used.
A drilling rig at EQT Corp's Fetchen well pad, Tuesday, Feb. 27, 2018, in Forward Township, Allegheny County.  (Rebecca Droke/Post-Gazette)
Anti-fracking protesters chant outside the inauguration ceremony for Gov. Tom Wolf at the Pennsylvania Capitol in Harrisburg, Pa. on Tuesday, Jan. 20, 2015.  (Michael Henninger/Post-Gazette)
Anti-fracking protesters press their message against the windows to try to get Gov. Tom Wolf's attention as he visits Tech Shop, April 8, 2015, in East Liberty.  (Larry Roberts/Post-Gazette)
Rebecca Droke/Post-Gazette
Advertisement
LATEST news
Advertisement
TOP
Email a Story