severance tax

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POLICY MATTERS OHIO

Natural gas closed at a 17-year price low today. And low prices have raised reservations from lawmakers about the strength of Ohio’s oil and gas industry. But one group is still calling for an increase to the drilling tax.

A struggling market for natural gas has led top Republican and Democratic leaders to hold back on increasing the so-called fracking tax. But the liberal-leaning think tank, Policy Matters Ohio, says data shows companies pumped more natural gas from the state’s shale last year than the year before.

fracking well
TIM RUDELL / WKSU

The issue of oil and gas drilling has been one that usually divides state lawmakers along party lines.

But Statehouse correspondent Andy Chow reports, there is one aspect that seems to have consensus among Republican and Democratic leaders. 

The majority and minority leaders of the Ohio House and Senate agree that they shouldn’t raise the so-called severance tax on oil and gas drilling because the market conditions are too tough -- especially with the dropping price of gas.