Shale-drilling tax compromise sought

The Associated Press

HARRISBURG — Gov. says he’ll meet today with top Senate Republicans as he tries to broker a compromise on legislation to impose a new tax on drilling in the gas-rich Marcellus Shale formation below Pennsylvania.

The outgoing Democratic governor met Monday in the Capitol with a handful of House legislators and representatives of four companies that are exploring the Marcellus Shale.

The companies include three Texas-based firms: Range Resources, Southwest Energy and Chief Oil & Gas; as well as Oklahoma City-based Chesapeake Energy.

Rendell’s spokesman, Gary Tuma, says the governor reported significant progress, but didn’t reach agreement without Senate Republicans present.

Senate Republicans say a bill passed last month by the Democratic-controlled House would impose a tax that’s far too high. The Senate’s election-shortened fall session is scheduled to end Thursday.