Who Does A Severance Tax Really Impact?

Severance Tax - desRosiers_headshotBill desRosiers
External Affairs Coordinator, Cabot Oil & Gas

Some politicians would us believe a severance tax is about sticking it to the man, but the men (and women) hurt most will be landowners and business owners. 

A lot of facts and figures are being thrown around regarding a proposed new severance tax on the oil and natural gas industry (or so they say, but it’s actually on consumers, landowners and small business owners). Balancing the impending budget deficit in Pennsylvania through a severance tax is a preposterous and frankly dangerous idea when you look at the businesses, especially the smaller ones, that will be impacted the most.

Recently the Marcellus Shale Coalition released these two videos interviewing the owners of two businesses built on serving the natural gas industry. If you watch these videos closely, you can tell each is sincerely nervous about the impact a severance tax will have not only on their families but the local communities as well.

Two Small Businesses with a lot to Lose because of a Severance Tax

Sugar Hollow Water Services LLC is located in Tunkhannock, PA, supplies the natural gas industry with water withdraw locations, trucking and erosion and sedimentation control services. Sugar Hollow is a family owned business that is growing with the industry. Any decline in industry activity in the area will directly impact this business. 

Ma Greenley’s BBQ is also located in Tunkhannock, PA. It serves some of the best BBQ in the country. Ma Greenley’s has established a reputation as the BBQ Company that will do whatever it takes to feed the natural gas industry in the region. If rigs move out of the Commonwealth or hydraulic fracturing crews slow down, Ma Greenley’s BBQ will too. 

Making a Difference

If your concerned about the possibility of a severance tax, do something about it. Here are five ways you can make a difference: 

  1. Take two minutes to email your state legislators through the United Shale Advocates website
  2. Share your story on social media using the hashtag #JobsNotTaxes. 
  3. Share with others that Pennsylvanians want more jobs, not new energy taxes using the infographic attached to this email.
  4. Show your support and join the conversation with thousands of shale advocates by using the hashtag #JobsNotTaxes.   
  5. Submit a letter to the editor of your local newspaper, explaining what shale means to you and your family.

severance tax - Sugar HollowShould small business like Sugar Hollow Water Services or Ma Greenley’s BBQ suffer because of poor management of the State’s finances? The answer is no! So, do something about it if you agree.

Also, check out this site with more background information and suggestions about how to make a difference.

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