Development within the Marcellus Shale formation has allowed Pennsylvania to become the second-largest producer of natural gas in the United States. While natural gas companies utilize our state’s land and other natural resources for their drilling operations, we do not currently charge a tax on production, making Pennsylvania the only major gas-producing state in the country where this is the case.
 
In the near future, I will be introducing legislation to establish a per-volume severance tax on unconventional natural gas operations, similar to the tax imposed in Louisiana, Ohio, and Texas. The implementation of a fair and competitive severance tax would provide Pennsylvania with an opportunity to join these states and the many others that collect revenue aimed at benefiting state residents.
 
Although Texas and Pennsylvania lead the nation in natural gas production, respectively, there is a sharp contrast in the amount of revenue the two states generate from such production. While Texas collects billions of dollars each year in severance tax revenue ($2.13 billion in 2024 alone), Pennsylvania only averages about $200 million in revenue each year from its per-well Impact Fee.
 
Under this legislation, the current Impact Fee would be maintained, allowing counties and municipalities directly impacted by natural gas drilling operations to continue to receive the revenue they deserve. The legislation would also provide natural gas producers that pay the Fee in a timely manner with credits against the severance tax, helping to avoid any “double taxation” concerns they may have.
 
The Marcellus Shale is our natural resource. As such, we should not only suffer its impacts but share in its benefits with a Severance Shale tax for the success of our schools, our seniors, our streets and for the service and support that each and every Pennsylvanian truly deserves. Please join me in support of this important legislation aimed at ensuring that all Pennsylvania residents benefit from the access we provide to our land and other natural resources.