HARRISBURG, PA — Several Republican members of the legislature have issued statements in opposition to Gov. Tom Wolf’s proposed 5% severance tax on gas released from the Marcellus Shale.

Rep. Donna Oberlander, chair of the House Gas and Oil Caucus, issued a statement saying, “The proposal put forth by the new governor this week raises several red flags, in that the administration is not only looking to tax unconventional drilling, but also shallow wells that are located throughout western Pennsylvania. Taxing an industry at this high of a rate—a total of 7.5%, another tax on each 1,000 cubic feet on top of an exceptionally high corporate income tax—clearly sends a signal to these job creators that they are not welcome in our Commonwealth.”

Rep. Tedd Nesbit said, “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.”

Pennsylvania is the only large gas-producing state that has no severance tax, and such a tax is favored by 61% of state residents, according to a January Mercyhurst University poll.