The bill is expected to make it through Pennsylvania’s House on Wednesday but continues to divide opinion on its ability to reap revenues from Marcellus shale gas exploration and production for the state.

The bill, led by Republican Governor Tom Corbett, was passed in the Senate by 31 votes to 19 with Republicans claiming it could bring in $1 billion in taxes in the first five years.

Republicans also claim it amounts to an effective tax rate of 3% with Democrats arguing the figure is more like 1%.

The tax would be tied both to gas prices and inflation with companies also charged according to when they begin drilling on the Marcellus shale play.

Opponents of the bill claim it will lessen the influence some municipalities have in reaping financial reward from shale gas production, with others pointing to the fact the bill was formed at a time of very low US gas prices.

“We have been sold out to the gas industry, plain and simple,” the New York Times quoted Todd Miller, a town commissioner in South Fayette Township, as saying in opposition to the bill.

Associated Press quoted Senator John Yudichak as saying: "We could have built a little more certainty in this bill. I think Pennsylvanians deserve better than, 'maybe they'll have clean water, maybe they'll have clean air’.”

Although led by a Republican, the bill had some support from Democrats, the New York Times quoting Senator John Wozniak as saying: “There is no sin in the word profit. This state has tremendous resources. We should be using them.”

The US and Canada in particular have vast amounts of shale gas and other unconventional hydrocarbon plays which are attracting huge interest in global oil giants.

Published: 08 February 2012 13:15 GMT | Last updated: 08 February 2012 13:15 GMT