House committee approves severance tax legislation

House Bill 1489 (George, D-Clearfield) limits the tax to high-producing wells and would not apply to wells producing 60,000 standard cubic feet a day or less. The severance tax is expected to generate roughly $600 million annually for state coffers by 2013-14.

An amendment adopted by the Committee allocates the revenue as follows:

• 15 percent to the Environmental Stewardship Fund;
• 2 percent each to the Pennsylvania Fish & Boat Commission and the Pennsylvania Game Commission;
• 4 percent to the Hazardous Sites Cleanup Fund;
• 5 percent to the Liquids Fuel Tax Fund for maintenance and reconstruction of roads and bridges;
• 4.5 percent to municipalities where drilling is taking place;
• 4.5 percent to counties where drilling is taking place;
• 3 percent to the Department of Welfare for the Low Income Home Energy Assistance Program; and
• 60 percent to the General Fund.