We urgently request that you take action and support Amendment 3916 (the Levdansky amendment) to House Bill 1489 (George-D-Clearfield), and vote in favor of a severance tax on production of natural gas.

Left out of the budget deal was the critical environmental and economic protection afforded by a nominal tax on the production of natural gas that would be levied, not on local Pennsylvanians struggling to make ends, but primarily on big out-of-state energy companies who are descending upon our state in order to make billions off of our natural resources.

Please consider the following:

-- These companies can pay the tax.

-- A nominal tax on production will not slow this gas rush down.

-- A nominal severance tax--of the same amount that neighboring West Virginia already imposes--will not drive out these companies.

-- Failing to transfer the environmental and economic burden of drilling to out-of-state energy companies who stand to make billions off of our natural resources would be a lost opportunity and a travesty to all Pennsylvanians.

These companies can pay the tax. Just this week, it was reported that Oklahoma-based Chesapeake Energy announced a $300-$400 million annual increase in its exploration and production budgets for 2009 and 2010. Among the "Big 4" targets for the company's ramped up drilling activity is, of course, the Marcellus Shale play in Pennsylvania. Chesapeake Energy plans to increase operating rigs from the current count of 83 to 101 in 2010. The company predicts $2.1 billion in excess cash flow for next year.

Last week, Cabot Oil and Gas Corp. was ordered to cease drilling operations because of repeated problems with spills of drilling chemicals that polluted streams and wetlands and caused at least one reported fish kill in Susquehanna County. Yet by Monday, September 28, stocks had rebounded. Cabot said the recent order will not disrupt existing production. Its production from Marcellus Shale in Pennsylvania reached record levels the end of last week, and it expects third-quarter production levels to be above current forecasts.

A nominal tax on production will not slow this gas rush down. The energy companies are already making money hand over fist by extracting our natural resource. Most of these companies, as limited liability corporations (LLC) do not pay corporate income tax. By failing to enact a severance tax, we are bypassing an easy revenue generating opportunity when we most desperately need one. And, it is one that will grow substantially in future years as gas production increases.

A nominal severance tax--of the same amount that neighboring West Virginia already imposes--will not drive out these companies. The Marcellus Shale is not going anywhere any time soon, and the gas companies seeking to make millions off of it will not be going anywhere, either.

These companies are making huge investments in Pennsylvania and they are here to stay.

This budget deal puts too much on groups who are the backbones of local Pennsylvania communities, struggling already during difficult economic times. Again, failing to transfer that burden to out-of-state energy companies who stand to make billions off of our natural resources would be a lost opportunity and a travesty to all Pennsylvanians.

Please vote for House Bill 1489 as amended by A 3916 in order to make this budget fairer to all Pennsylvanians and the Commonwealth's natural resources.

NOTE: The vehicle for the natural gas severance tax was later changed to House Bill 1531 also sponsored by Rep. George (D-Clearfield).