Saturday, August 28, 2010

Tioga County, PA - Marcellus Shale Tax Update

By Andrea:

Gov. Rendell visited Tioga County, PA in the heart of the Marcellus shale on Friday, August 27 to "repeat his call for the state Legislature to enact a gas severance tax by Oct. 1." Mr. Rendell's plan is to implement a 5% levy on the value of natural gas plus an additional 4.7 cents for each 1,000 cubic feet of gas produced, very similar to the current tax in West Virginia. Marcellus gas producers in the area are not happy with the tax plan, claiming that it is too high, but Mr. Rendell states, "Pennsylvania is the 15th largest production state for natural gas, but is the only major fossil fuel producer that does not levy a tax on natural gas extraction. That's just not fair."

Mr. Rendell estimates $70 million could be generated for the state by the Marcellus Shale tax this fiscal year to help erase a $282 million deficit in the budget.

For more shale updates, visit:

For more stock updates, visit: