Gov. Tom Corbett Friday announced the Public Utility Commission expects to collect $224.5 million in Act 13 drilling impact fees in 2014 bringing the total impact fees collected since 2012 to more than $630 million.

“We are building a stronger Pennsylvania by harnessing our abundant resources to create jobs for working families, reinvest in our local communities, and protect our environment for generations to come,” Corbett said. “Through Act 13, we are protecting public health and safety, safeguarding our environment, and making sure our world-class energy industry grows in a responsible way.”

The PUC collected $406 million in 2012 and 2013.

The majority of Act 13 funds are directly distributed to counties and municipalities all across the Commonwealth for a variety of environmental, public safety, infrastructure, emergency response and other authorized uses.

Act 13 funds are also directed to Commonwealth agencies including DEP, PEMA, the Public Utility Commission, the Office of the State Fire Commissioner, and the Fish and Boat Commission to strengthen their oversight of drilling activities.  County conservation districts also receive significant new funding under Act 13.

Additionally, the impact fee helps fund other critical conservation programs such as Growing Greener and the Marcellus Legacy Fund.  Growing Greener, established in 1999, is receiving its first infusion of new funding from the impact fee in over a decade. 

Click Here for information on which programs are accepting applications now.

The Marcellus Legacy Fund is a newly created program administered by the Commonwealth Financing Authority that provides funding for a variety of uses, including watershed restoration, abandoned mine reclamation, open space, greenway, trail and recreation projects, flood control and other environmental purposes. 

Funds are also allocated for water and sewer infrastructure projects through both PennVEST and the H2O program.

Act 13 of 2012 was the single largest step in modernizing the state’s Oil and Gas Law in nearly three decades. It increased protections for public and private water supplies, empowered the Department of Environmental Protection through the adoption of over twenty specific enhancements to Pennsylvania’s environmental protection laws, including one of the most progressive hydraulic fracturing fluid disclosure laws in the nation.

Marcellus Shale Coalition president Dave Spigelmyer issued this statement following the release of the drilling fee information--

“This new stream of revenue is having a positive and real impact in communities with shale development as well as those without active Marcellus production. Whether these funds are invested in bridge and road projects, the purchase of new firefighting equipment, key environmental programs, or other major community priorities, these dollars are creating profoundly positive and shared benefits.

“It's also important to recognize that these fees are in addition to the Commonwealth's already substantial tax burden on job creators in the energy industry. According to Pennsylvania's revenue department, natural gas development has contributed more than $2.1 billion in recent years through tax payments to the state's general fund. In addition, shale companies have invested more than $1 billion in transportation and infrastructure improvement projects, as well as critical royalty payments to the Commonwealth and private landowners alike.

“Responsible shale development continues to create environment benefits, jobs, and opportunity for each and every Pennsylvanian. We need to ensure that we have the right policies in place to broaden these benefits, rather than unnecessarily making Pennsylvania a less attractive place to create jobs.”

Sharon Ward, Director of the Pennsylvania Budget and Policy Center, issued the following statement in response to the announcement of natural gas impact fee revenue collected by the state:

“Pennsylvania’s natural gas companies have something to celebrate today, a natural gas impact fee that is significantly lower than what they pay in other gas-producing states. For Pennsylvania residents, today’s announcement is just a reminder that we are shortchanged by the failure of our elected leaders to enact an adequate severance tax.

“Pennsylvania's General Fund tax revenue is once again falling behind official estimates, leaving desperately needed new funding for public schools, libraries, and health care programs in jeopardy. An adequate severance tax would support these program and prevent the state from having to open up new public lands to gas drilling, as Governor Corbett has proposed.

“Earlier this month we called on the Governors of Ohio, Pennsylvania, and West Virginia to adopt a common severance tax no lower than West Virginia’s 5 percent rate, and we reiterate that call today. This reasonable rate would take taxes out of the competitive equation, eliminate any distortion widely varying tax rates might cause, and help provide sustained funding for state priorities, all with little overall impact on the industry.”

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

NewsClips:

Well Impact Fee Raises Record $224.5 Million

Drilling Impact Fee Revenue Up 11 Percent This Year

Higher Natural Gas Prices Boost Drilling Fee Revenue

PA To Collect $224 Million In Gas Drilling Fees

Delaware County GOP Senate Candidate Supports Shale Tax

Democrats Critical Of PennDOT Fee Increaseses, Shale Should Pay

Editorial: On Gas, State Still Plays Catch-Up

Editorial: PA Has Room To Adjust Tax On Natural Gas Production

Editorial: PA Needs Drilling Tax

4/7/2014