Feb. 13, 2015

HARRISBURG – Rep. Tedd Nesbit (R-Mercer/Butler) today offered his thoughts on the governor’s proposal to implement a high severance tax on the Marcellus Shale reserves in Pennsylvania:

“For the better part of a decade, drilling within the Marcellus and Utica shales has been welcome news to our rural communities, providing jobs and stabilizing local tax bases. The impact fee enacted in 2013 has allowed our communities to address environmental and transportation needs, and has put in place strict safety standards.

“Natural gas drilling is leading to further development in other sectors of the economy, as the lower prices are allowing businesses to invest their energy savings into larger operations or hiring more workers. That is the type of positive economic activity that we want to see here in northwestern Pennsylvania and that will allow our communities to thrive.

“This severance tax plan not only charges a tax at the wellhead but also on the amount of gas produced – essentially a double tax. Also, we need to consider that the natural gas industry has been paying taxes for years, whether through the impact fee, various business taxes and income taxes. With this excessively high tax rate being proposed, I have serious concerns that placing yet another burden on this industry will effectively drive jobs out of Pennsylvania.”

To view Nesbit’s video comments, click here.

Representative Tedd Nesbit
8th Legislative District
Pennsylvania House of Representatives

Media Contact: Jennifer Keaton
(717) 705-2094
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