Issue: Marcellus Shale
When new legislation passes, PSBA is seen as the leader in analyzing it and helping members make sense of it.
Advocacy Resources and News
- PSBA Survey Shows Career and Technical Centers Modifying Programs for Marcellus Shale Impact (Aug. 31, 2011)
- Testimony: Marcellus Shale Industry, Impact of Natural Gas Drilling on Pa. Schools (Sept. 13)
House Finance Committee, Industry Informational Meeting, PSBA written testimony - Pennsylvania Department of Environmental Protection Marcellus Shale Information
- Governor’s Marcellus Shale Advisory Commission
What is the Marcellus Shale?
The Marcellus Shale is a rock formation that underlies approximately two-thirds of Pennsylvania and is believed to hold trillions of cubic feet of natural gas. Recent advances in drilling technology and rising natural gas prices have attracted much interest in this previously untapped formation. The geology of the Marcellus formation suggests that areas in the southwest, northcentral and northeastern regions of Pennsylvania may be especially productive.
The Impact of Marcellus Shale on School Districts
PSBA believes local school districts should benefit from any tax revenues generated as a result of Marcellus Shale drilling to help mitigate the impact of population shifts as jobs are created.
Studies indicate that in other states with natural gas production, counties with increases in their production levels also experience population growth, in part due to new workers and their families being attracted to the area. Where there are additional families, there is also a greater demand for schools, meaning that districts in the area of natural gas wells will face growth of student populations, increasing demands on the local school systems, and thus costs. All of the states with greater natural gas production than Pennsylvania recognize this reality and provide a mechanism for production activities to aid local schools. PSBA strongly encourages the General Assembly to do the same for school districts in the area of natural gas well drilling by dedicating a portion of any severance tax to assist those districts in meeting new financial burdens.
Legislative/Administrative Action
During the 2009-10 session of the General Assembly, there was considerable debate on whether to enact a severance tax on natural gas extractions from the Marcellus Shale areas. Although various plans emerged and discussions took place regarding the creation of a severance tax, there was no agreement on any specific plan and no legislation was enacted. At the end of October 2010, Rendell signed an executive order that placed a moratorium on further leasing of state forest land for natural gas drilling.
In February 2011, newly elected Gov. Tom Corbett rescinded the order and the moratorium was lifted. In March, Corbett announced the creation of a Marcellus Shale Advisory Commission that will make its report and recommendations in July regarding the impact of natural gas development on local communities.
In this 2011-12 session of the General Assembly, various bills to create an extraction tax or an impact fee per well have been introduced in the Senate and House of Representatives. The debate continues on whether to tax, how to tax, how much to tax and where to send the money. PSBA will use this page to report on any progress with this issue and provide resources to school officials to assist in their advocacy work.
Related PSBA Research
Currently no research data is available.