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DCNR: Natural Gas Industry Should Pay Their Fair Share For Conservation, Recreation
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Secretary John Quigley

A proposed severance tax on the natural gas industry could help to continue Pennsylvania's investments in important conservation and recreation projects well into the future, Department of Conservation and Natural Resources Secretary John Quigley said this week while addressing citizens and local officials committed to protecting the state's natural resources.

           "Since 2003, DCNR provided nearly 2,700 grants to protected nearly 74,000 acres of open space, helped communities establish and improve community parks, as well as recreational and natural areas that serve as places for our citizens to relieve stress and get fit. These areas are also assets that increase adjacent property values and attract visitors," Secretary Quigley said. "With the sources of these grant funds now dwindling, a severance tax on natural gas production will help us continue to support communities doing this important work."
            Secretary Quigley noted the natural gas industry is up and running strong in Pennsylvania and has many of the world's largest energy companies backing it.
            "The drilling industry must pay its fair share. It does so in every other major natural gas-producing state in which it operates, and it's time for it to do so here, too," Secretary Quigley said.
            A robust severance tax on natural gas extraction could replenish funds used to finance environmental improvement and conservation projects across the state.
            "The DCNR grant program is always oversubscribed, with demand being much higher than the dollars available," Secretary Quigley said. "Shrinking funding due to the economic downturn and the end of the Growing Greener 2 programs will make this occurrence even more pronounced, and a severance tax on natural gas production can help us meet the demand.
            "Every one dollar in DCNR grants is matched by three dollars from other sources, resulting in a significant investment helping local communities capitalize on their natural assets."
            Secretary Quigley said that Pennsylvania is the only major natural gas-producing state without a severance tax. Even large producing states such Alaska and Texas have enacted such a levy.
He also pointed to a recent poll that found eight out of 10 Pennsylvanians support a severance tax on natural gas extraction.
            To learn more, visit DCNR's Community Conservation Partnerships Grant Program webpage.


9/20/2010

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