Corbett unveils shale proposal
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By ROBERT SWIFT (Harrisburg Bureau Chief)
Published: October 4, 2011
HARRISBURG – Gov. Tom Corbett threw a curveball into the Marcellus Shale impact fee debate Monday by proposing that individual counties take the responsibility for adopting an impact fee.
The governor suggested a two-step process in which the state would approve enabling legislation setting the fee amount and uses for fee revenue. Then counties with operating wells would have the choice of adopting or not adopting the per-well fee.
Corbett’s proposal differs from other major impact fee bills before the Legislature that call for state collection of impact fee revenue and disbursement of revenue to eligible counties. He also endorsed recommendations made by his Marcellus Shale Advisory Commission to keep wells at a greater distance from water sources, increase well bonding requirements for drillers and double penalties for violations. Offered one month before the Nov. 8 general election, the governor’s emphasis on county adoption of an impact fee could become an issue in county commissioner races.
Corbett proposed that each Marcellus well pay an impact fee of $40,000 the first year of operation, $30,000 the second year; $20,000 the third year and $10,000 in the fourth through sixth years in counties that adopt an impact fee.
Under the proposal, a county could provide a fee credit up to 30 percent if a driller invests in natural gas fueling stations or public transit.
Corbett outlined a list of mainly local uses for fee revenue with a smaller 25 percent share going to several state agencies that respond to drilling-related issues. Legal uses for revenue would range from road and bridge repairs, human services and courts and records management and geographic information systems.
“Whatever the fee brings in, it’s going to the places that are feeling the impact,” Corbett said.
The governor predicted that fee revenue from his proposal could generate $120 million in the first year and reach nearly $200 million in six years. This is an amount below the $200 million first-year revenue yield that Senate President Pro Tempore Joseph Scarnati, R-25, Jefferson County, called for last week.
“I think it would be very difficult to get a single Democrat in support of a county impact fee,” said Sen. John Yudichak, D-14, Nanticoke, who has offered his own impact fee bill. “All the governor’s proposal is doing is authorizing counties.”
Yudichak’s proposal would set a $17,000 base impact fee per Marcellus well and splits revenue between local communities and state environmental programs such as Growing Greener.
“We’re clearly open to the governor’s proposal,” said House Majority Leader Mike Turzai, R-28, Pittsburgh, emphasizing that nothing is set on the county fee adoption provision.
There are pros and cons to requiring that counties adopt a fee, said Douglas Hill, executive director of the County Commissioners Association of Pennsylvania. “It (revenue) comes straight to us, and we don’t have to wait,” he added. “It does raise some risk of a competition between the counties (with or without impact fees).”
The governor’s plan doesn’t account for the statewide impacts of natural gas drilling, said Bill Patton, spokesman for House Minority Leader Frank Dermody, D-33, Pittsburgh.
rswift@timesshamrock.com