Associated Petroleum Industries of Pennsylvania reacts to proposed severance tax on natural gas drilling

The Associated Petroleum Industries of Pennsylvania (API-PA), a division of the American Petroleum Institute (API) reacted Tuesday to a proposal from Gov. Tom Wolf to enact a severance tax on natural gas drillers.

“Because it is being requested for the fifth time in five years, questions continue to be asked about good reasons for the continued targeting of Pennsylvania’s natural gas industry through a counterproductive and anti-consumer severance tax,” API-PA Executive Director Stephanie Catarino Wissman said in a statement. “In the end, if enacted, this additional tax will discourage investments and risk the loss of revenues that have helped bolster communities and infrastructure in all 67 counties. This initiative doesn’t restore Pennsylvania; it jeopardizes Pennsylvania’s economic strength in a world economy.”

The governor has included a severance tax in previous state budget proposal with proceeds going to to the general fund to help fund public education. Republicans have repeatedly blocked the proposal.

This year, Wolf has proposed a plan to borrow $4.5 billion over four years through selling bonds to be paid back with revenue from a severance tax. The funding would go toward disaster recovery, infrastructure, broadband internet expansion, and other projects.

“We look forward to working with the legislature and the administration on policies that build on Pennsylvania’s successes, rather than the same tired ideas that will only pull us in the wrong direction,” Wissman said.”