PRINTER'S NO. 2624

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1743

Session of

2015

INTRODUCED BY SANTORA AND DAVIDSON, DECEMBER 6, 2015

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,

DECEMBER 6, 2015

hereby enacts as follows:

Section 1. Section 2318 of Title 58 of the Pennsylvania

Consolidated Statutes is repealed:

[§ 2318. Expiration.

(a) Notice.--The Secretary of the Commonwealth shall, upon

the imposition of a severance tax on unconventional gas wells in

this Commonwealth, submit for publication in the Pennsylvania

Bulletin notice of the imposition.

(b) Date.--This chapter shall expire on the date of the

publication of the notice under subsection (a).]

NATURAL GAS SEVERENCE TAX

Sec.

5101. Definitions.

5102. Imposition of tax.

5103. Return and payment.

§ 5101. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department." The Department of Revenue of the Commonwealth.

"Natural gas." A fossil fuel consisting of a mixture of

coal bed methane.

"Producer." A person who engages or continues within this

Commonwealth in the business of severing natural gas for sale,

profit or commercial use. The term does not include a person who

severs natural gas from a storage field.

"Producing site." A point of severance capable of producing

natural gas in paying quantities.

"Reporting period." A calendar month in which natural gas is

severed.

"Secretary." The Secretary of Revenue of the Commonwealth.

from the soil or water of this Commonwealth.

"Severing." Extracting or otherwise removing natural gas

from the soil or water of this Commonwealth.

"Unit." A thousand cubic feet of natural gas measured at the

wellhead at a temperature of 60 degrees Fahrenheit and an

absolute pressure of 14.73 pounds per square inch in accordance

with American Gas Association standards and according to Boyle's

Law for the measurement of gas under varying pressures with

deviations as follows:

(1) The average absolute atmospheric pressure shall be

assumed to be 14.4 pounds to the square inch, regardless of

temperature recorded each 24-hour day shall be used in

computing gas volumes. If a recording thermometer is not

installed, or is installed and not operating properly, an

average flowing temperature of 60 degrees Fahrenheit shall be

used in computing gas volume.

(3) The specific gravity of the gas shall be determined

annually by tests made by the use of an Edwards or Acme

gravity balance or at intervals as found necessary in

practice. Specific gravity determinations shall be used in

computing gas volumes.

method used in making the test shall be in accordance with

the Report No. 3 of the Gas Measurement Committee of the

American Gas Association or recommendations of the National

Bureau of Standards or amendments to the report or

recommendations. The results of the tests shall be used in

computing the volume of gas delivered.

§ 5102. Imposition of tax.

(a) Establishment.--Beginning July 1, 2015, a natural gas

severance tax shall be levied on every producer.

(b) Rate.--The tax shall be imposed at the rate of 4% of the

gross value of the units severed at the wellhead during a

producer for the reporting period.

(2) The number of producing sites used by the producer

for the severance of natural gas in each county and

municipality.

(3) The amount of tax due under section 5102 (relating

to imposition of tax).

(b) Filing.--The return required under subsection (a) shall

be filed with the department within 15 days following the end of

a reporting period. The first return shall be due August 15,

2015.

date.

(d) Deposit into Severance Tax for Education Fund.--The tax

collected under section 5102 shall be deposited into the

Severance Tax for Education Fund, which is established in the

State Treasury.