The Pennsylvania Independent Oil and Gas Association - made up of more than 800 businesses engaged in the development of indigenous energy - is opposed to the proposed severance tax on natural gas. Our members employ tens of thousands of people in the Commonwealth, with more being hired every day by companies drilling for natural gas in the Marcellus Shale.

Natural gas producers already pay hundreds of millions of dollars in state and local taxes each year - an estimated $785 million in 2010. A severance tax would have a significant negative impact on this important industry and the economic boost it is providing communities across the state. Take a minute to look over these facts, then Click HERE to contact your state representative and senator to join the fight against this job-crushing tax.

Good Jobs, Now and in the Future: Businesses are moving to Pennsylvania and hiring thousands of people in dozens of fields, paying excellent wages. A study by Penn State estimates that more than 110,000 jobs will be generated by the natural gas industry in 2011, on the way to more than 212,000 jobs over the next ten years. A tax will slow this important job growth just when it is starting to make a real difference in communities across the state.

No Government Hand-Outs: In a time when Pennsylvania provides millions of dollars in tax breaks and incentives to entice companies to expand or relocate operations, the natural gas industry is investing 100 percent private capital to develop energy from the Marcellus Shale and other formations.

Competition for Capital: There are at least nine shale formations, most in states with more predictable regulatory structures and ready-made infrastructure, all in competition for the investment that can continue to come into Pennsylvania. A tax would hurt the Commonwealth's effort to maintain that investment and the jobs that come with it.

Wiping Out Part of the Industry: A severance tax on Pennsylvania's traditional oil and gas industry, an economic mainstay in many parts of the state, would make the drilling of those wells economically infeasible. These natural gas producers develop shallow formations that are less productive than the Marcellus Shale and far less profitable. This portion of the industry could not sustain a tax, putting thousands of people out of work.

Comparisons with Other States: While other states impose severance taxes of varying levels, those states have taken the time to create severance tax structures that recognize the huge investment and risk in drilling for natural gas in unconventional formations by deferring taxes for several years or waiving those taxes altogether. Texas recently created a 10-year "tax holiday" to encourage the development of its newest shale formation. Developing this proposed tax to resolve a budget crisis is not good policy.

Permitting, Drilling and Infrastructure Realities: A lot of numbers are thrown around regarding drilling activity. It is important to remember that only one well is typically drilled for every three that are permitted, and that only one half of the Marcellus Shale wells that have been drilled to date in Pennsylvania are producing natural gas. The other half are awaiting needed infrastructure, such as gathering lines, to get that energy to market. A severance tax would be a drag on developing this infrastructure.

Double Taxing Landowners' Royalties: Thousands of property owners across the state have signed leases that have helped their families during tough economic times. In many cases, these rural landowners struggled for years to make ends meet. Now, a severance tax would have to be paid on the portion of royalty payments they receive - in addition to the personal income tax they must pay.

Now is not the time for a severance tax. Click HERE to let your legislator know you oppose this tax and support the continued economic investment being made by the natural gas industry in Pennsylvania.