Posted by: Amelia Ray | October 22, 2010

SENATE GOP RENIGS ON GAS TAX DEAL

Yesterday Gov. Rendell announced that General Assembly GOP leaders would not reach a compromise to enact a shale-gas extraction tax before the new legislative session begins next year.  Despite signing a pledge to Pennsylvania citizens to enact a natural gas severance tax, talks that extended through the summer and fall failed to fulfill that promise and Pennsylvania may remain the only underground shale-leaden state without such a tax, or a moratorium on drilling.

Environmentalist organizations had hoped proceeds from a gas extraction tax would protect the ecosystem from damage caused by the volatile gas drilling process.  Critics argue that the tax may have died because of gas drilling company campaign contributions; one report cited that gubernatorial candidate Tom Corbett received more than $700,000 in campaign donations from drillers, the highest amount by far given to a Pennsylvania politician.

Read “Gov. Rendell declares shale tax dead,” by Tom Barnes of the Pittsburgh Post-Gazette (10/22/10).

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