Pennsylvania Grange Natural Gas Benefits Agriculture, Economy

Pennsylvania's agriculture industry is a vital part of the state's economy, and it relies on reliable and affordable energy to operate. The Pennsylvania Grange supports the development of the Marcellus Shale and the use of natural gas in agriculture because it helps to keep energy prices lower and bring energy reliability and stability to the commonwealth.

The impact tax is a unique tax structure specific to Pennsylvania that ensures that local communities across the state are positively affected by the natural gas industry. Each year, drillers are assessed a fee, and these revenues are then split into county and local municipality distributions and to environmental programs. Local governments have used the revenues to improve their communities by way of road and bridge improvements, infrastructure projects, grants to fire departments and emergency responders, and enhancements to parks and recreation centers.

The impact tax is an appropriate assessment of the natural gas industry and it continues to bring in significant revenues annually. This year alone, the impact tax brought in a record-breaking $279 million. Since it was enacted more than a decade ago, it has brought in more than $2.5 billion. This tax is in addition to other business and income taxes contributed by the natural gas industry.

Placing additional taxes on the natural gas industry would risk slowing the progress and growth that Pennsylvania has experienced over the past decade. It would be to the detriment of the state's agriculture industry, which depends on reliable and affordable energy.

Politicians need to prioritize the state's potential and promote policies that will continue to capitalize on Pennsylvania's rich natural gas reserves. A thriving natural gas industry is mutually beneficial to so many other businesses across the state — including the agricultural industry.

The impact tax is a fair and equitable way to generate revenue from the Marcellus Shale industry while also benefiting local communities and the environment. It is a model for how other states can develop their own natural gas resources in a responsible and sustainable way.

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