Pennsylvania Gov. Ed Rendell, in commenting on a serious budget shortfall in Pennsylvania, is proposing a new tax on gas production coming from wells tapping the Marcellus Shale formation.
The governor also said he will seek a “severance” tax, or extraction tax, on gas produced in the vast Marcellus Shale formation. Pennsylvania is the only gas-producing state without such a tax. The governor’s plan to establish one, at the level set by other states, would help to increase state revenue without adversely affecting gas exploration and extraction.
Scranton Times-Tribune: Grim, realistic across board.