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API-PA criticises severance tax

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Hydrocarbon Engineering,

The Executive Director of the API-PA (a division of the American Petroleum Institute, which represents all segments of the US’s oil and natural gas industry), Stephanie Catarino Wissman, has criticised Governor Tom Wolf’s third attempt to implement a severance tax on Pennsylvania’s natural gas industry.

Wissman said: “Here we go again […] Governor Wolf should look at ways to assist projects that expand Pennsylvania energy leadership rather than place a punitive tax on the industry that would harm consumers and tens of thousands of jobs in Pennsylvania. Rather than calling for another severance tax, we can work together help provide affordable and reliable energy needed to run households and businesses all over the commonwealth.”

Pennsylvania is the only state that requires an additional impact tax that is collected from every shale well drilled in the state. Since the enactment of Act 13 of 2012, the impact tax has distributed more than US$1 billion, the bulk of which goes directly to local communities.

Wissman continued: “Investing in pipeline projects throughout Pennsylvania would bolster the impact tax, allowing currently shut-in gas to get to market, thereby increasing tax collections […] This way, all Pennsylvanians benefit by increased impact tax investments and the environmental benefits of increased natural gas usage.”

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