Two new Marcellus Shale natural gas production severance tax proposals were introduced this week--

House Bill 2438 (D.Evans-D-Philadelphia) imposes a natural gas production severance tax depositing 90 percent in the General Fund through June 30, 2011 and 10 percent in a restricted account to be allocated as follows-- 50 percent distributed to municipalities in natural gas drilling areas, 50 percent to counties in natural gas drilling areas to be used for road and bridge repairs, parks and recreation, industrial and commercial development, improvement of municipal water and wastewater systems, preservation and reclamation of surface waters and other purposes relating to the consequences of natural gas development.  The bill was referred to the House Appropriations Committee where Rep. Evans is Majority Chair.

House Bill 2443 (Levdansky-D-Allegheny) imposes a natural gas production severance tax depositing 45 percent in the General Fund, 22 percent in the Environmental Stewardship (Growing Greener) Fund, 20 percent in a new Local Government Services Fund for counties and municipalities in the drilling areas, 2 percent in the Hazardous Sites Cleanup Fund, 3 percent in the Conservation Districts Fund, 2 percent to the Game Commission, 4 percent to the Fish and Boat Commission and 2 percent to the Low-Income Home Energy Assistance Program.   The bill was referred to the House Finance Committee where Rep. Levdansky is Majority Chair.

These bills are in addition to the other bills now pending to authorize a natural gas production severance tax--  House Bill 1489 (George-D-Clearfield) back in the House Environmental Resources and Energy Committee; and in the Senate--  Senate Bill 905 (Musto-D-Luzerne), Senate Bill 997 (Dinniman-D-Chester) using the severance tax to balance the budget and fund some environmental programs,  Senate Bill 1254 (Dinniman-D-Chester) using the severance tax to provide additional property tax relief.

4/26/2010