Pennsylvania Court strikes down Act 13

Scott Alderfer writes a great piece on his blog “stream hugger” overviewing the recent 4-3 decision by the PA commonwealth court overturning the controversial law. Scott also gives his take on the politics that led up to Act 13’s creation. Scott is the chair of LMT’s Environmental Advisory Council and a founding member of the Little Lehigh Watershed Association.

Every other gas producing state has what is called a severance tax that the state charges gas companies based on the value of gas produced.  A severance tax is imposed by the state and is separate from lease fees and royalties paid to the landowners.  Instituting a severance tax was debated right up through the 2010 PA gubernatorial election.  However, the winner of that election, Republican Tom Corbett, made a No Tax pledge as part of his campaign.  It seems that Gov. Corbett’s No Tax pledge was not just for PA residents.  When asked during his campaign about a gas severance tax, Corbett stated that his No Tax pledge would also apply to a severance tax for gas companies.  Not coincidentally, Corbett received nearly $1 million in campaign contributions from gas companies and their lobbyists.