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State Rep. Garth Everett, R-Muncy, is among 26 House Republicans who are proposing leasing 390,000 acres of state forest to gas exploration companies over three years as an alternative to Gov. Ed Rendell's plan to place a severance tax on natural gas drilling operations.

The proposal is in addition to 75,000 acres already leased by the state Department of Conservation and Natural Resources Bureau of Forestry.

The plan - called "Energize PA" - will bring $50 million a year for state and local governments and county conservation districts and an additional $207 million a year for the state's general fund or for other state programs, said Everett, who is a member of the House Republican Energy Task Force and the House Environment and Energy Committee.

The plan calls for gas exploration companies to pay $2,000 an acre for the land and 16 percent royalties for gas, Everett said.

The plan is far better than Rendell's, which proposes to bring in an additional $107 million to the state's general fund, he said.

"Our plan not only brings in twice the amount of revenues for the state without a tax increase, it also provides funding for our local governments, which deal with drilling and its effects on a daily basis," Everett said. "Instead of taking away jobs from the Commonwealth as a severance tax would do, this plan will create an additional 7,300 jobs.

"Taxing an industry that is just starting to get on its feet in Pennsylvania is completely counterproductive and will cost Pennyslvania thousands of jobs in the next decade," he said. "In our current economic condition, we must look for ways to encourage these companies to invest in Pennsylvania, to bring new employers and not create barriers that drive them to surrounding states."

According to Everett, other major natural gas producing states have a severance tax. However, such states do not have a corporate net income or a capital stock and franchise tax as Pennsylvania does.

Everett said he fears the tax will drive gas companies to nearby states where drilling opportunities exist.

"These big companies have lots of opportunities in the United States and the world," he said. "If Pennsylvania becomes too expensive to do business in and they have some place else to go, they'll go some place else."

The plan not only will create revenue from lease payments, but also has the potential to produce hundreds of millions of dollars in royalty payments once the land is at its full production potential, Everett said.

Everett said he believed 390,000 acres to be "nothing compared to how many acres of state forest land we have."

Jan Jarrett, president and CEO of environmental advocacy group Citizens for Pennsylvania's Future, called the proposal "the height of fiscal and environmental irresponsibility."

Jarrett said the organization supports gas exploration, but only if it is done in a way that does not adversely impact the environment.

"Despite the legislators' reassurances, drilling for natural gas in the Marcellus Shale carries a real risk to the environment - both in the immediate area of the wells and beyond," Jarrett said. "With each Marcellus Shale operation using up to 6 million gallons of fresh water, our rivers and streams will be at risk. Local waters could be contaminated by the chemicals used in the drilling process. If the drillers are unable to to find fresh water close to the drilling, they will truck it in, subjecting our forests and rural communities to diesel fumes and damaging local roads and bridges."

Jarrett added that gas exploration in forest areas put a strain on wildlife the areas were meant to protect.

Everett argued that gas companies have a track record of restoring land disturbed by drilling operations. He added that access roads built by companies actually will open previously inaccessible forest areas to hunters and other outdoor enthusiasts.