

Background
Introduction
Pennsylvania sits atop one of the largest deposits of natural gas in the world — the Marcellus shale formation. New drilling technology means that drillers are just now starting to tap into this resource. The PA Department of Environmental Protection issued a record 7,792 drilling permits in 2008 (up from roughly 2,000 in 1999).
Most states with natural gas resources tax the extraction of the gas. Governor Rendell has proposed a tax on the extraction of natural gas identical to the one that has been in place in West Virginia since 1987. This tax is projected to initially raise more than $100 million a year, rising to more than $630 million annually by 2014.
Impact on Communities and Environment
Natural gas extraction imposes heavy costs on our communities and environment – pipelines, drilling pads and wastewater storage pits altering our landscapes and fragmenting wildlife habitat, heavy rigs damaging our roads, billions of gallons of water taken from our streams and operational errors contaminating our land and drinking water.
Use of a impact fee
Some of the money raised from a natural gas extraction tax could be used to offset these costs and invest in watershed restoration and protection, habitat conservation, public access to outdoor recreation, and conservation of open space and farmland. This can be accomplished by directing a portion of the tax to the Environmental Stewardship Fund (Growing Greener) as well as to Pennsylvania’s natural resource commissions for habitat improvement and public access purposes. Read our Gas Drilling Impact Fact Sheet.
Public Forestland Issues
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| Marcellus drill site, Tioga State Forest, 10/01/09 photo courtesy of Dick Martin |
Since 1955, lease payments and royalties from drilling in our publicly owned state forests have been deposited in the Oil & Gas Lease Fund to be used strictly for conservation and recreation. Now, after 54 years, Harrisburg proposes to change the law to redirect the money to other uses. Read our Freeze Drilling on State Lands Fact Sheet.