Local
8:14 pm
Mon October 3, 2011

Corbett Announces $40,000-Per-Well Impact Fee

More than two months after his Marcellus Shale Advisory Commission laid out a road map for nat­ural gas reg­u­la­tion, Governor Corbett has unveiled a wide-ranging plan to, among other things, impose an impact fee on drillers.

The Cor­bett fee would be imposed and col­lected by coun­ties. It would place a $40,000 levy on wells dur­ing their first year of pro­duc­tion. That num­ber would drop to $30,000, and then $20,000, dur­ing the sec­ond and third years. From year four through ten, energy com­pa­nies would pay $10,000 per well.

Where does the money go? The bulk of it would stay at the local level. Cor­bett wants coun­ties to keep 75 per­cent of the rev­enue, which he says could approach $120 mil­lion statewide, dur­ing the first year of imple­men­ta­tion. The county itself would keep 36 per­cent of that haul, give 37 per­cent to munic­i­pal­i­ties host­ing wells, and dis­trib­ute its remain­ing 27 per­cent to its town­ships with­out nat­ural gas drilling. In terms of who gets what money, this is sim­i­lar to the plan Sen­ate Pres­i­dent Pro Tem Joe Scar­nati announced in May.

Continue reading at StateImpact Pennsylvania.