H0131R1402A01563 MAB:EJH 06/28/23 #90 A01563
AMENDMENTS TO HOUSE RESOLUTION NO. 131
Sponsor: REPRESENTATIVE STEELE
Printer's No. 1402
Amend Resolution, page 1, lines 1 through 4, by striking out
all of said lines and inserting
Directing the Legislative Budget and Finance Committee to
conduct a study to compare impact fees and severance taxes in
the largest natural gas producing states and examine the
competitive business climate for the industry in those
states.
Amend Resolution, page 1, lines 13 through 15, by striking
out all of said lines
Amend Resolution, page 2, lines 2 through 5, by striking out
all of said lines and inserting
WHEREAS, Impact fees are collected from oil and gas drilling
companies based on the total number of new wells a producer
owns, the age of the well and the average price of natural gas
for the preceding year, as calculated by the Pennsylvania Public
Utility Commission utilizing the settled natural gas price of
the New York Mercantile Exchange (NYMEX), whereas severance
taxes are based on the price of natural gas and the amount of
natural gas produced from wells; and
Amend Resolution, page 2, lines 8 and 9, by striking out
"does not impose a severance tax on new or current
unconventional gas wells" and inserting
imposes an impact fee on producers
Amend Resolution, page 2, lines 18 and 19, by striking out
"to the State did not" in line 18 and all of line 19 and
inserting
remained relatively stable, fluctuating between $146 million
and $279 million; therefore be it
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Amend Resolution, page 2, lines 20 through 30; page 3, lines
1 through 13; by striking out all of said lines on said pages
and inserting
RESOLVED, That the House of Representatives direct the
Legislative Budget and Finance Committee to conduct a study to
examine tax structures that exist as of June 30, 2023, within
the top five natural gas producing states in the United States
and submit a report with its findings to the General Assembly
within one year of the adoption of this resolution; and be it
further
RESOLVED, That, at a minimum, the report include all of the
following information:
(1) The structure of any severance tax or impact fee
imposed within each of the top five states.
(2) The factors that impact the calculation of the tax
or fee in each state under paragraph (1), including any
reduced introductory tax rate, capital investment recovery or
offsets of the tax or fee against other taxes or costs borne
by the producer.
(3) Other taxes imposed by each state under paragraph
(1) upon natural gas producers and how they are shared with
royalty owners;
and be it further
RESOLVED, That the report also examine and seek to identify
unique factors within each of the top five states that impact
the competitive business climate within each state, including,
but not limited to, the following factors:
(1) Permitting requirements, timelines and associated
costs in preparing and obtaining necessary operating permits.
(2) Geological conditions, including depth, thickness,
irregularities in formation and other factors that may impact
access to the resource.
(3) Geographic conditions that impact operational costs,
including terrain, miles of waterways and the amount of
Federal and state lands excluded from development.
(4) Climate conditions that impact operations, including
seasonal temperature factors, other weather conditions and
related regulatory operational restrictions.
(5) Availability and access to sufficient gathering,
processing and transportation infrastructure within the state
to access markets.
(6) Historical natural gas market price differences
within the states and how each state's prices have compared
to the New York Mercantile Exchange (NYMEX) index price for
natural gas over the last decade.
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