EnergizePA proposal to lease state lands for natural gas extraction brings in double anticipated revenues

The bids are in, and five companies offered to pay $128 million to drill and extract natural gas from the Marcellus Shale field lying underneath Pennsylvania, House Republican Leader Sam Smith (R-Jefferson County) said today.

“New or increased taxes were not, and ARE not, the answer to Pennsylvania’s budget problems,” Smith said. “The Marcellus Shale resource is an unprecedented opportunity for Pennsylvania government, residents and businesses to reap benefits of needed revenues, jobs and growth.”

The Department of Conservation and Natural Resources (DCNR), which manages state forests, unsealed the bids on Tuesday to award drilling rights on nearly 32,000 acres in northcentral Pennsylvania. The winners will have the right to drill for natural gas in the Marcellus Shale formation.

This year’s state budget relies on $60 million in revenue from gas drilling in state forests. The budget-makers are anticipating $180 for next year’s budget from gas drilling revenue.

The tracts are located in the Elk, Moshannon, Sproul, Susquehannock and Tioga state forests. 

“The marketplace has spoken. The energy job creators want to come to Pennsylvania, and their presence helps fill state coffers without new taxes,” Smith said. “Still, House Republicans believe the current state budget spends more than the taxpayers can afford, and we will continue to fight to control state spending, ensure value for each tax dollar and find innovative ways to stretch our resources.”

Representative Sam Smith

Republican Leader

Pennsylvania House of Representatives

Contact:  Stephen Miskin (717) 787-3845

E-Mail:  smiskin@pahousegop.com

Internet:  www.samsmithpahouse.com