The Public Utility Commission Thursday issued for comment a proposed rulemaking on the collection and disbursement of the impact fee for unconventional natural gas well drilling.

The Commission voted 4-0 to receive comments on the proposed rulemaking, which codifies the procedures the PUC has been using to implement, collect and distribute the impact fee as directed by Chapter 23 of Act 13.

Commissioner Pamela A. Witmer abstained from voting. The Commission issued its Implementation Order on May 10, 2012. Interested parties will have 30 days to comment on the proposed regulations. Instructions on how to file comments are contained in the Commission’s Order.

The proposed rulemaking addresses: The imposition of an unconventional gas well fee; Wells subject to the fee; Producer reporting; Calculation of the fee; and Fee collection and distribution.

Due to uncertainty surrounding pending litigation, the Commission did not address the provisions of Chapter 33, which governs local ordinances that impose conditions, requirements or limitations on oil or gas operations.

In February 2012, Gov. Corbett signed into law Act 13 of 2012, the Unconventional Gas Well Impact Fee Act, which amended Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes.  The PUC is responsible for implementing the provisions contained in Chapters 23 and 33 of the Act.

Chapter 23 provides for the imposition, collection and distribution of an unconventional gas well fee (also called an impact fee). Chapter 33 governs local ordinances that impose conditions, requirements or limitations on oil or gas operations.

For more information, visit the PUC’s Act 13 Drilling Impact Fee webpage.

10/21/2013