Marcellus panel turning focus to local impacts

http://citizensvoice.com/news/drilling/marcellus-panel-turning-focus-to-local-impacts-1.1149959#axzz1MzQ9BcoU

By Robert Swift (Harrisburg Bureau Chief)
Published: May 21, 2011

HARRISBURG – At the halfway point of its work, a state commission looking at development of the Marcellus Shale gas reserves will shift more of its focus to the impact of drilling operations on local communities, Lt. Gov. Jim Cawley said Friday.

Cawley, the chairman of the Marcellus Shale Advisory Commission, said the members will hear presentations from local government officials at its next meeting on June 17.

The introduction of a local impact fee bill this week by Senate Republican leader Joseph Scarnati, R-Jefferson County, is focusing attention on where that issue stands on the commission’s agenda.

Gov. Tom Corbett has said he wants to hear what the commission has to say about impact fees before taking a position. Cawley said the commission intends to stick to its six-month timetable of making comprehensive recommendations concerning Marcellus issues to Corbett by July 22.

“We are looking at impact fees as a possible recommendation to the governor,” Cawley said. “If this commission determines there are unmet impacts that need resources, we will recommend that.”

Cawley reiterated that the commission won’t be recommending a state severance tax on natural gas production since Corbett strongly opposes one. Scarnati’s impact fee bill would levy a base $10 fee annually on each Marcellus well. The base fee would be adjusted for increases in the volume of natural gas produced and price of gas on the market.

Under Scarnati’s bill, up to 60 percent of the fee revenue would go to municipalities and counties with producing wells. The remaining 40 percent would go to environmental and infrastructure projects overseen by the Commonwealth Financing Authority and to county conservation districts.

rswift@timesshamrock.com