Providing for natural gas severance tax; and repealing expiration provision relating to unconventional gas well fees.
Summary
SB 910 would amend Pennsylvania’s Tax Reform Code to create a new Article X-A imposing a natural gas severance tax. Beginning January 1, 2026, every natural gas producer in the Commonwealth would owe a tax equal to 6.5% of the gross value of units severed at the wellhead during each monthly reporting period. The bill defines key terms such as natural gas, producer, severance, producing site, reporting period, and unit, and it specifies measurement standards for calculating gas volume at the wellhead.
The bill also establishes filing and payment requirements. Producers would have to file monthly returns with the Department of Revenue within 15 days after the end of each reporting period, reporting the volume severed, the number of producing sites by county and municipality, and the tax due. The tax would be due when the return is due, and all revenues would be deposited into the General Fund. In addition, SB 910 repeals 58 Pa.C.S. § 2318, which relates to the expiration provision for unconventional gas well fees, to make the new severance tax structure effective.
Impact
SB 910 would materially change Pennsylvania’s tax treatment of natural gas extraction by adding a statewide severance tax on producers, layered on top of existing regulatory and fee structures. It would shift administration to the Department of Revenue, create new monthly reporting obligations, and generate General Fund revenue from the industry. The repeal of the unconventional gas well fee expiration provision suggests the bill is intended to replace or supersede part of the current fee framework for unconventional wells.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, amendments, or formal support/opposition in the available record. Based on the bill’s sponsor list and subject matter, the measure appears to be a policy proposal aimed at taxing natural gas production rather than a consensus administrative change. The absence of voting history means overall sentiment cannot be measured from the provided materials.
Contention
The likely point of contention is the imposition of a 6.5% severance tax on natural gas producers, which would be opposed by the industry and supporters of lower energy taxes, and supported by lawmakers seeking new state revenue or a broader extraction tax. Another likely issue is the repeal of the unconventional gas well fee expiration provision, which may be viewed either as a necessary cleanup to align the tax code or as a significant change to the existing Marcellus shale fee regime. No specific objections or arguments are documented in the provided transcripts.