Some Democrats representing the heavy gas drilling region in the southwest part of the state voted against the bill, but the majority of Democrats pushed the bill through with the help of 12 Republicans. Most of the 12 Republicans come from the southeast part of the state, including Philadelphia suburbs, where there is virtually no gas drilling. (A small part of Bucks County is considered in the shale region.)
House Democratic leaders called their bill a starting point and said they recognized it will be changed in the Senate, but they were optimistic the two sides could reach a deal.
Gov. Rendell said he, too, would be willing to negotiate to reach a deal before the session ends, which given the current schedules, means roughly three weeks.
The bill would impose a tax of 39 cents per thousand cubic feet, or roughly 10 percent.
Many Republicans assailed the tax rate as the highest in the nation, a figure disputed by some analysts.
Hours before the legislation cleared the House, Senate President Pro Tempore Joe Scarnati (R., Jefferson) called the tax rate on drillers "absolutely ridiculous."
"We are not going to entertain a tax rate here in the Senate that is punitive to this industry," Scarnati said. "I think we need to have some leaders and statesmen step up to the plate here and make sure this industry isn't chased out of the state."
Pennsylvania is the only state among 30 gas-producing states with active drilling that does not have a so-called severance tax.
Scarnati favors a "phased-in" tax, endorsed by the industry, that would set the severance tax at 5 percent, but cut the rate to 1.5 percent during the first five years of production, to allow operators to recover their investments more quickly.
