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Big oil and gas groups warn Pennsylvania on taxes

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HARRISBURG, Pa. (AP) - Pennsylvania's three biggest oil and gas associations, which represent multinational giants, are warning state lawmakers that raising taxes on the booming natural gas drilling industry could have economic repercussions.

The letter, obtained Friday by The Associated Press, was signed by the heads of the Associated Petroleum Industries of Pennsylvania, Marcellus Shale Coalition and Pennsylvania Independent Oil & Gas Association.

It was addressed to 11 top lawmakers in the Republican-controlled Legislature.

In it, the trio says the enactment of a severance tax, like other major gas-producing states impose, could make Pennsylvania less competitive and drive the companies to shift crews and rigs to other states.

Lawmakers are discussing a severance tax to ease a massive budget shortfall. Gov. Tom Corbett, an industry ally, says he dislikes the idea.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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