Pa Environment Digest Oct. 10, 2011

8/3/2019 Pa Environment Digest Oct. 10, 2011

1/61

PA Environment DigestAn Update On Environmental Issues In PAEdited By: David E. Hess, Crisci Associates

Winner 2009 PAEE Business Partner Of The Year Award

Harrisburg, Pa October 10, 2011

Governor Unveils County Drilling Fee, Other Marcellus Shale Proposals

Gov. Tom Corbett Monday said he agrees with 94 of the 96 recommendations made by his

Marcellus Shale Advisory Commission and will be recommending legislation authorizing

counties to adopt a drilling fee whose revenue would be split between the state (25 percent) and

local governments (75 percent) to offset costs imposed by natural gas development.

The recommendations not adopted by the Governor include: forced pooling, re-writingthe authority of local governments to regulate drilling linked to a drilling fee and adding natural

gas to Tier II of the Alternative Energy Portfolio Standards.

The Governor's Office did not release legislative language or mention which

recommendations would be adopted by legislation, regulation or policy. However, he said about

one-third require legislative changes; more than 50 are policy-oriented and can be accomplished

within the state agencies.

The legislative priorities outlined this week will be submitted to the legislative leadership

in the near future. The governor has instructed the relevant Cabinet Secretaries to create

implementation plans for the policy-oriented recommendations and to submit them to his office

within 30 days.

This natural resource will fuel our generating plants, heat our homes and power our

states economic engine for generations to come, Corbett said. This growing industry will also

provide new career opportunities that will give our children a reason to stay here in

Pennsylvania. We are going to do this safely and were going to do it right, because energy

equals jobs.

County Drilling Fee

Under the Governor's drilling fee proposal, each of the 39 counties with Marcellus or

Utica natural gas shales are authorized to adopt a per well drilling fee of up to $40,000 per well

the first year, decreasing to at most $10,000 per well in four years.

A county may provide for a fee credit of up to 30 percent if the driller makes approved

investments in natural gas infrastructure, which include setting up natural gas fueling stations ornatural gas public transit vehicles.

Estimates show that this impact fee will bring in about $120 million in the first year,

climbing to nearly $200 million within six years, Corbett said. As the number of wells grows,

so will the revenue. Almost all of the money it brings in will go to benefit the places

experiencing the impact.

A quarter of the fee revenues would be sent to state government for several specific uses:
http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=11953http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19729http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19729http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=11953


2/61

-- 4.5 percent-- up to $2 million-- to the PA Emergency Management Agency for emergency

response planning, training and coordination;

-- 3.75 percent-- up to $2 million-- to the Office of State Fire Commissioner to develop and

support first responder activities;

-- 3.75 percent-- up to $2 million-- to the Department of Health for collecting and disseminating

information and supporting outreach activities for investigating health complaints related to shalegas development;

-- 7.5 percent-- up to $2 million-- to the Public Utility Commission for inspection and

enforcement of pipelines;

-- 10.5 percent-- up to $10 million-- to plug abandoned oil and gas wells and provide for the

enforcement of oil and gas programs requirements; and

-- 70 percent and an balance remaining to PennDOT for road and bridge maintenance and repair

and transportation infrastructure improvements in counties hosting shale gas development.

Seventy-five percent of the revenues would be retained at the local level and allocated to

counties (36 percent), host municipalities (37 percent) and 27 percent to municipalities in shale

counties distributed by population and highway miles.

Local governments could use the funding for road and bridge repair, water, stormwaterand drinking water systems, reclaiming surface and subsurface water supplies, GIS and other

information technology, project to increase the availability of housing to low income residents,

delivery of social services including domestic relations, drug and alcohol treatment, job training

and counseling, court system costs and conservation districts inspection and oversight of natural

gas development.

There are 39 counties with Marcellus Shale include: Allegheny*, Armstrong*, Beaver,

Bedford*, Blair, Bradford, Butler*, Cambria, Cameron, Carbon, Centre*, Clarion*, Clearfield*,

Clinton, Crawford*, Elk*, Erie*, Fayette*, Forest*, Greene*, Indiana*, Jefferson, Lawrence,

Luzerne, Lycoming*, McKean*, Mercer*, Pike, Potter*, Somerset, Sullivan*, Susquehanna*,

Tioga*, Venango*, Warren*, Washington*, Wayne, Westmoreland*, Wyoming*. (*currentdrilling activity)

Other Recommendations

As a part of this proposal, Corbett announced a series of standards related to

unconventional drilling, including:

-- Increasing the well setback distance from private water wells from the current 200 feet to 500

feet, and to 1,000 feet from public water systems;

-- Increasing the setback distance for wells near streams, rivers, ponds and other bodies of water

from 100 feet to 300 feet;

-- Increasing well bonding from $2,000 up to $10,000;

-- Increasing blanket well bonds from $25,000 up to $250,000;

-- Expanding an unconventional gas operators presumed liability for impairing water qualityfrom 1,000 feet to 2,500 feet from a gas well, and extending the duration of presumed liability

from 6 months after well completion to 12 months;

-- Enabling DEP to take quicker action to revoke or withhold permits for operators who

consistently violate rules;

-- Doubling penalties for civil violations from $25,000 to $50,000; and

-- Doubling daily penalties from $1,000 a day to $2,000 a day.
http://www.dep.state.pa.us/dep/deputate/minres/oilgas/DiscovererReports/Permits%20By%20County%20SEPTEMBER%202011.htmhttp://www.dep.state.pa.us/dep/deputate/minres/oilgas/DiscovererReports/Permits%20By%20County%20SEPTEMBER%202011.htmhttp://www.dep.state.pa.us/dep/deputate/minres/oilgas/DiscovererReports/Permits%20By%20County%20SEPTEMBER%202011.htmhttp://www.dep.state.pa.us/dep/deputate/minres/oilgas/DiscovererReports/Permits%20By%20County%20SEPTEMBER%202011.htm


3/61

Corbetts proposal also seeks to help secure energy independence and reduce reliance on

foreign oil by developing Green Corridors for natural gas vehicles with refueling stations at

least every 50 miles and within two miles of key highways; by amending the PA Clean Vehicles

Program to include bi-fuel vehicles (diesel and natural gas); by helping schools and mass

transit systems to convert fleets to natural gas vehicles; by stabilizing electric prices by using

natural gas for generating electricity; and by encouraging the development of markets for naturalgas and natural gas byproducts, such as within the plastics and petrochemical industries.

A summary of the Governor's proposal is available online. Visit the Marcellus Shale

Advisory Commission webpage for a complete copy of the July report.

Related Stories

Counties Express Strong Reservations With Corbett's Plan To Have Them Levy Drilling Fee

Renew Growing Greener Coalition: Governor's Impact Fee Proposal Falls Short

PEC On Corbett's Marcellus Announcement: Good Start, Waiting For The Details

CBF: Corbett's Marcellus Shale Plan Missing Environment, Community Components

Environmental Groups Respond To Gov. Corbett's Marcellus Recommendations

Senate Republican Leadership Responds To Gov. Corbett's Shale ProposalsSenate Democrats Respond To Governor's Marcellus Shale Proposals

Rep. George: Corbett Marcellus Plan Is A Flawed Sweetheart Deal

Marcellus Industry: Governor's Proposal Builds On Drilling Momentum

Analysis: Will We Get A Chevy Or A Pinto Out Of The Coming Marcellus Shale Debate?

NewsClips:

A Primer On Corbett's Drilling Fee Proposal

Corbett: Marcellus First, School Reform Second

Counties Like Corbett's Drilling Fee Plan, Not Their Role

County Commissioners Disagree With Corbett On Fee PlanCounty Leaders Favor Corbett's Drilling Fee, Not Process

Counties Wary Of Corbett's Drilling Plan

Corbett's Gas Fee Probably A No-Go In Luzerne County

Lackawanna, Luzerne Would Get Little From Corbett Fee

Fitzgerald Wold Impose Shale Tax In Allegheny County

Criticism Of Corbett Fee Plan Focuses On One Provision

Drilling Fee Would Be Among Lowest In The Nation

Why Lawmakers Will Likely Change Corbett's Fee Plan

Debate On Shale Levy Continues

Reactions Mixed To Corbett's Marcellus Shale Plan

Latest On Corbett's Proposed Impact FeeSome Say Proposed Drilling Impact Fee Too Limited

PA Urban, Rural Interests Fight Over Proposed Shale Gas Revenues

Corbett Sticking By County-Level Impact Fee

Hanna: Corbett Fee Plan Shows Lack Of Leadership

Doubts Raised In Alle-Kiski Valley About Corbett Fee Proposal

Proposed Marcellus Drilling Fee A Bargain Next To PA
http://goo.gl/mZMWchttp://www.portal.state.pa.us/portal/server.pt/community/marcellus_shale_advisory_commission/20074http://www.portal.state.pa.us/portal/server.pt/community/marcellus_shale_advisory_commission/20074http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20346http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20347http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20348http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20349http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20350http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20351http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20352http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20353http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20354http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20355http://stateimpact.npr.org/pennsylvania/2011/10/07/governor-corbetts-plan-to-impose-an-impact-fee-on-pennsylvania-drillers-a-primer/http://www.pennlive.com/midstate/index.ssf/2011/10/gov_tom_corbett_signals_fall_p.htmlhttp://www.pennlive.com/midstate/index.ssf/2011/10/pennsylvania_counties_like_gov.htmlhttp://stateimpact.npr.org/pennsylvania/2011/10/06/county-commissioners-disagree-with-corbett-on-fee-plan/http://www.post-gazette.com/pg/11280/1180306-454.stmhttp://www.pittsburghlive.com/x/pittsburghtrib/news/regional/s_760264.htmlhttp://www.timesleader.com/news/Gas_fee_probably_no-go_in_county_10-04-2011.htmlhttp://thetimes-tribune.com/news/lackawanna-and-luzerne-would-get-little-from-corbett-drilling-fee-1.1213510http://paenvironmentdaily.blogspot.com/Fitzgerald%20Wold%20Impose%20Tax%20On%20Shale%20In%20Allegheny%20Countyhttp://www.witf.org/regional-state-news/criticism-of-corbett-impact-fee-proposal-focuses-on-one-provisionhttp://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_760208.htmlhttp://stateimpact.npr.org/pennsylvania/2011/10/04/why-the-legislature-will-likely-change-corbetts-impact-fee/http://www.post-gazette.com/pg/11278/1179793-503.stmhttp://chartiersvalley.patch.com/articles/mixed-reactions-to-corbetts-marcellus-shale-planhttp://stateimpact.npr.org/pennsylvania/2011/10/05/the-latest-on-corbetts-proposed-impact-fee/http://standardspeaker.com/news/some-say-proposed-drilling-impact-fee-too-limited-1.1214395#axzz1a79m13HOhttp://wallaby.telicon.com/PA/library/2011/2011100794.HTMhttp://stateimpact.npr.org/pennsylvania/2011/10/05/corbett-sticking-by-county-level-impact-fee/http://www.lockhaven.com/page/content.detail/id/534354.html#license-534354http://www.pittsburghlive.com/x/valleynewsdispatch/s_760501.htmlhttp://www.dailymail.com/Business/GeorgeHohmann/201110053410http://www.dailymail.com/Business/GeorgeHohmann/201110053410http://www.pittsburghlive.com/x/valleynewsdispatch/s_760501.htmlhttp://www.lockhaven.com/page/content.detail/id/534354.html#license-534354http://stateimpact.npr.org/pennsylvania/2011/10/05/corbett-sticking-by-county-level-impact-fee/http://wallaby.telicon.com/PA/library/2011/2011100794.HTMhttp://standardspeaker.com/news/some-say-proposed-drilling-impact-fee-too-limited-1.1214395#axzz1a79m13HOhttp://stateimpact.npr.org/pennsylvania/2011/10/05/the-latest-on-corbetts-proposed-impact-fee/http://chartiersvalley.patch.com/articles/mixed-reactions-to-corbetts-marcellus-shale-planhttp://www.post-gazette.com/pg/11278/1179793-503.stmhttp://stateimpact.npr.org/pennsylvania/2011/10/04/why-the-legislature-will-likely-change-corbetts-impact-fee/http://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_760208.htmlhttp://www.witf.org/regional-state-news/criticism-of-corbett-impact-fee-proposal-focuses-on-one-provisionhttp://paenvironmentdaily.blogspot.com/Fitzgerald%20Wold%20Impose%20Tax%20On%20Shale%20In%20Allegheny%20Countyhttp://thetimes-tribune.com/news/lackawanna-and-luzerne-would-get-little-from-corbett-drilling-fee-1.1213510http://www.timesleader.com/news/Gas_fee_probably_no-go_in_county_10-04-2011.htmlhttp://www.pittsburghlive.com/x/pittsburghtrib/news/regional/s_760264.htmlhttp://www.post-gazette.com/pg/11280/1180306-454.stmhttp://stateimpact.npr.org/pennsylvania/2011/10/06/county-commissioners-disagree-with-corbett-on-fee-plan/http://www.pennlive.com/midstate/index.ssf/2011/10/pennsylvania_counties_like_gov.htmlhttp://www.pennlive.com/midstate/index.ssf/2011/10/gov_tom_corbett_signals_fall_p.htmlhttp://stateimpact.npr.org/pennsylvania/2011/10/07/governor-corbetts-plan-to-impose-an-impact-fee-on-pennsylvania-drillers-a-primer/http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20355http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20354http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20353http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20352http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20351http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20350http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20349http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20348http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20347http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20346http://www.portal.state.pa.us/portal/server.pt/community/marcellus_shale_advisory_commission/20074http://www.portal.state.pa.us/portal/server.pt/community/marcellus_shale_advisory_commission/20074http://goo.gl/mZMWc


4/61

API Welcomes Marcellus Shale Moves By Corbett

Corbett's Marcellus Shale Impact Fee: Day Two

Reaction Pours In On Corbett's Impact Fee Plan

Corbett's Drilling Fee Becomes Tax If Levied Statewide

Governor Proposes Letting Counties Assess Gas Well Impact Fee

County-Driven Impact Fee Raises Concerns Over Border WarsCorbett Unveils Shale Proposal

Corbett Releases Marcellus Shale Oversight, Fee Plan

Some Lawmakers Question Governor's Shale Plan

Environmentalists Say Marcellus Shale Plan Falls Short

Corbett Would Let Counties Impose Marcellus Shale Fee

Corbett Unveils Marcellus Shale Fee Proposal

Corbett To Let Counties Set Marcellus Shale Fees

Corbett Announces $40,000/Well Marcellus Shale Impact Fee

Drilling Fee Proposed For Pennsylvania

What Happens Next On Corbett's Impact Fee?

Column: Corbett Washes Hands Of State-Imposed Drilling FeeOp-Ed: Principles Must Lead Shale Fee Proposal

Editorial: Legislature Must Adopt Better Gas Tax Plan

Editorial: Reality-Free Drilling Impact Fee

Editorial: Corbett's Impact Fee Is Lacking

Editorial: Corbett's Marcellus Plan: One Caveat

Editorial: Corbett Punts On Drilling Fees

Editorial: Corbett Proposal On Shale Gas Inadequate

Counties Express Strong Reservations With Corbett's Plan To Have Them Levy Drilling

Fee

The County Commissioners Association of Pennsylvania Thursday announced its support for the

direction taken by Gov. Corbett in his plan to implement numerous recommendations of the

Marcellus Shale Advisory Commission, while expressing strong reservations with its provision

vesting the levying and administration of the local impact fee with county government.

The Associations strong reservations with county levy and administration of the impact

fee are based on concerns that it creates inconsistency and uncertainty in its levy and creates

duplicative administrative processes.

The Association believes that the interests of local government and of the industry are

both better addressed by a uniform statewide levy and state administration. The point is further

emphasized by the proposals dedication of 25 percent of the proceeds to state agencies.Under the proposal, counties with shale gas would be authorized to levy an impact fee on

active wells, at a maximum rate of $40,000 per well for its first year of production ($30,000 in

the second year, $20,000 in the third, and $10,000 per year through the tenth year).

Seventy-five percent of the proceeds would stay with the impacted county and its

municipalities, and the remaining 25 percent would be forwarded to the commonwealth for

allocation among several shale gas-specific funds.
http://www.upi.com/Business_News/Energy-Resources/2011/10/05/API-welcomes-Marcellus-shale-moves/UPI-35791317816041/http://stateimpact.npr.org/pennsylvania/2011/10/04/corbetts-marcellus-shale-impact-fee-day-two/http://stateimpact.npr.org/pennsylvania/2011/10/03/reaction-pours-in-on-corbetts-impact-fee-plan/http://stateimpact.npr.org/pennsylvania/2011/10/04/norquist-says-corbetts-fee-becomes-a-tax-if-its-levied-statewide/http://www.pittsburghlive.com/x/pittsburghtrib/news/cityregion/s_759950.htmlhttp://www.pittsburghlive.com/x/pittsburghtrib/news/regional/s_760081.htmlhttp://thetimes-tribune.com/news/corbett-unveils-shale-proposal-1.1212838http://www.post-gazette.com/pg/11276/1179482-100-0.stmhttp://www.post-gazette.com/pg/11277/1179630-503.stmhttp://www.post-gazette.com/pg/11277/1179616-503.stmhttp://www.pennlive.com/midstate/index.ssf/2011/10/corbett_would_let_counties_imp.htmlhttp://www.witf.org/regional-state-news/corbett-unveils-plan-to-collect-impact-fee-on-marcellus-shale-drillinghttp://www.philly.com/philly/news/20111003_Corbett_to_let_counties_to_set_Marcellus_Shale_fees.html?cmpid=125219969http://stateimpact.npr.org/pennsylvania/2011/10/03/corbett-announces-40000-per-well-impact-fee/http://online.wsj.com/article/SB10001424052970203791904576609260573482914.html?mod=googlenews_wsjhttp://stateimpact.npr.org/pennsylvania/2011/10/03/what-happens-next-on-corbetts-impact-fee-thats-up-to-lawmakers/http://lancasteronline.com/article/local/474251_Corbett-plan-may-open-spigot-for-gas-drillers.htmlhttp://pottsmerc.com/articles/2011/10/07/opinion/srv0000014368119.txt?viewmode=fullstoryhttp://www.lehighvalleylive.com/opinion/index.ssf/2011/10/opinion_pa_legislature_must_st.htmlhttp://thetimes-tribune.com/opinion/reality-free-impact-fee-1.1213899http://www.pennlive.com/editorials/index.ssf/2011/10/gov_corbetts_marcellus_shale_i.htmlhttp://www.pittsburghlive.com/x/pittsburghtrib/opinion/s_760170.htmlhttp://www.post-gazette.com/pg/11278/1179701-192.stmhttp://www.philly.com/philly/opinion/20111005_Inquirer_Editorial__Corbett_proposal_on_shale_gas_inadequate.htmlhttp://www.pacounties.org/Pages/default.aspxhttp://www.pacounties.org/Pages/default.aspxhttp://www.philly.com/philly/opinion/20111005_Inquirer_Editorial__Corbett_proposal_on_shale_gas_inadequate.htmlhttp://www.post-gazette.com/pg/11278/1179701-192.stmhttp://www.pittsburghlive.com/x/pittsburghtrib/opinion/s_760170.htmlhttp://www.pennlive.com/editorials/index.ssf/2011/10/gov_corbetts_marcellus_shale_i.htmlhttp://thetimes-tribune.com/opinion/reality-free-impact-fee-1.1213899http://www.lehighvalleylive.com/opinion/index.ssf/2011/10/opinion_pa_legislature_must_st.htmlhttp://pottsmerc.com/articles/2011/10/07/opinion/srv0000014368119.txt?viewmode=fullstoryhttp://lancasteronline.com/article/local/474251_Corbett-plan-may-open-spigot-for-gas-drillers.htmlhttp://stateimpact.npr.org/pennsylvania/2011/10/03/what-happens-next-on-corbetts-impact-fee-thats-up-to-lawmakers/http://online.wsj.com/article/SB10001424052970203791904576609260573482914.html?mod=googlenews_wsjhttp://stateimpact.npr.org/pennsylvania/2011/10/03/corbett-announces-40000-per-well-impact-fee/http://www.philly.com/philly/news/20111003_Corbett_to_let_counties_to_set_Marcellus_Shale_fees.html?cmpid=125219969http://www.witf.org/regional-state-news/corbett-unveils-plan-to-collect-impact-fee-on-marcellus-shale-drillinghttp://www.pennlive.com/midstate/index.ssf/2011/10/corbett_would_let_counties_imp.htmlhttp://www.post-gazette.com/pg/11277/1179616-503.stmhttp://www.post-gazette.com/pg/11277/1179630-503.stmhttp://www.post-gazette.com/pg/11276/1179482-100-0.stmhttp://thetimes-tribune.com/news/corbett-unveils-shale-proposal-1.1212838http://www.pittsburghlive.com/x/pittsburghtrib/news/regional/s_760081.htmlhttp://www.pittsburghlive.com/x/pittsburghtrib/news/cityregion/s_759950.htmlhttp://stateimpact.npr.org/pennsylvania/2011/10/04/norquist-says-corbetts-fee-becomes-a-tax-if-its-levied-statewide/http://stateimpact.npr.org/pennsylvania/2011/10/03/reaction-pours-in-on-corbetts-impact-fee-plan/http://stateimpact.npr.org/pennsylvania/2011/10/04/corbetts-marcellus-shale-impact-fee-day-two/http://www.upi.com/Business_News/Energy-Resources/2011/10/05/API-welcomes-Marcellus-shale-moves/UPI-35791317816041/


5/61

The Association expressed strong support for the 75 percent allocation to impacted

communities, noting that counties and municipalities do not currently receive direct revenues

from Marcellus and other shale gas producers, as they do from other mineral operations, based

on a 2002 Pennsylvania Supreme Court decision that exempted oil and gas from local property

taxes.

Yet counties do provide services and incur costs based on gas development, includinghighway and bridge infrastructure, emergency management planning and response, human

services, record keeping and others.

The Governors proposal directs the impact fee proceeds to these types of services, and

CCAP notes that the list of allowable expenditures, and the formulas for distribution of the funds

among the municipalities in the county, mirror proposals offered to the Governors Commission

by it and the other local government groups.

CCAP also noted its memberships interest in other shale gas development issues,

expressing support for the Governors proposals to strengthen or address environmental, public

safety, and pipeline concerns among others.

The Association commented that the Governors proposal shares many of the elements

contained in legislation already introduced this session, signaling the beginning of a consensus tomove the issue forward. CCAP expressed its interest in continuing to work with the Governor

and the legislature to craft a comprehensive approach to shale gas development for enactment

this fall.

NewsClips: Counties Like Corbett's Drilling Fee Plan, Not Their Role

County Commissioners Disagree With Corbett On Fee Plan

County Leaders Favor Corbett's Drilling Fee, Not Process

Renew Growing Greener Coalition: Governor's Impact Fee Proposal Falls Short

The Renew Growing Greener Coalition issued the following statement from Executive DirectorAndrew Heath in response to Gov. Corbetts Marcellus Shale impact fee proposal.

The Coalition is pleased that the Governor has come to realize there should be an impact

fee on Marcellus Shale drilling and that he will strengthen certain regulations to protect

Pennsylvanias environment from the dangers of natural gas drilling.

Moreover, the Coalition is pleased that the Corbett administration is setting aside funds

for plugging abandoned wells, a function of the Growing Greener program, which has invested

$14.7 million in plugging more than 2,100 wells across the Commonwealth.

Unfortunately, however, the Governors proposal falls short of what is necessary to

offset the conservation, recreation and environmental impacts that drilling will have throughout

Pennsylvania. Though the Governor says all the revenue should be used for industry-related

impacts, he ignores the fact that these impacts extend far beyond local communities.Consider that Marcellus development threatens our water quality by causing erosion and

sedimentation of our wetlands, creeks and rivers. Moreover, pollution from spills, overflows or

illegal dumping could be felt in downstream communities all the way to the Chesapeake Bay and

other critical waterways.

Also consider that loss of access to hundreds of thousands of acres of state game lands,

forests and parks which are some of our most important areas for outdoor recreation including
http://www.pennlive.com/midstate/index.ssf/2011/10/pennsylvania_counties_like_gov.htmlhttp://stateimpact.npr.org/pennsylvania/2011/10/06/county-commissioners-disagree-with-corbett-on-fee-plan/http://www.post-gazette.com/pg/11280/1180306-454.stmhttp://www.renewgrowinggreener.org/http://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://www.renewgrowinggreener.org/http://www.post-gazette.com/pg/11280/1180306-454.stmhttp://stateimpact.npr.org/pennsylvania/2011/10/06/county-commissioners-disagree-with-corbett-on-fee-plan/http://www.pennlive.com/midstate/index.ssf/2011/10/pennsylvania_counties_like_gov.html


6/61

hunting, fishing, camping and hiking threatens our tourism industry as well as the quality of

life for all Pennsylvanians.

Now that the Governor has made his proposal public, the Coalition looks forward to

working with the House and the Senate to ensure funding be allocated to Growing Greener to

help offset the impacts of drilling and protect water quality, preserve open space and farmland,

and enhance parks, trails and other recreational opportunities.Growing Greener is a bipartisan program established in 1999 under Gov. Tom Ridge and

later expanded by Governors Schweiker and Rendell. Since its establishment, Growing Greener

has created a legacy of success, preserving more than 33,700 acres of Pennsylvanias family

farmland, conserving more than 42,300 acres of threatened open space, adding 26,000 acres to

state parks and forests, and restoring over 16,000 acres of abandoned mine lands.

Moreover, Growing Greener has contributed and leveraged billions of dollars to the

Pennsylvania economy by helping to boost tourism, create jobs and generate revenue.

Yet despite the programs accomplishments, funding for Growing Greener projects and

grants fell from an average of approximately $150 million per year for the last six years to $27.3

million in the current budget. This is an 82 percent cut at a critical time when the natural gas

drilling boom poses significant threats statewide to our water, air and environment.To date, 230 organizations and groups have announced their support for renewing

Growing Greener. In addition, at least 90 Pennsylvania municipalities and 23 counties,

representing more than 5 million Pennsylvanians, have passed resolutions urging the Governor

and Legislature to renew Growing Greener funding.

The Renew Growing Greener Coalition is the Commonwealths largest coalition of

conservation, recreation and environmental organizations representing nearly 350 organizations

and government entities.

PEC On Corbett's Marcellus Announcement: Good Start, Waiting For The Details

Paul King, President of the PA Environmental Council, released this statement in response to

Gov. Corbett's announcement of Marcellus Shale initiatives:

"The Governors proposal is a good start. But the devil is in the details, which are critical

to passing a bill thats good for the environment and public health.

"We havent seen all of the details, so we intend to do everything we can to hold the

governors feet to the fire as this proposal moves through the General Assembly. And we intend

to push for a greater share of the impact fee revenue to be used for addressing cumulative

impacts and management of Marcellus Shale activity.

"The Pennsylvania Environmental Council has provided its own proposal for amending

the Oil and Gas Act to better manage unconventional shale gas development in Pennsylvania.

Many of those recommendations were incorporated into the governors Advisory Commissionreport, but more needs to be done.

"We have a duty to get this right. We commend Gov. Corbett on a good start, and expect

that he and the General Assembly will build on this plan and craft legislation that fully protects

the people and environment of Pennsylvania.

CBF: Corbett's Marcellus Shale Plan Missing Environment, Community Components
http://www.renewgrowinggreener.org/http://www.pecpa.org/http://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://www.pecpa.org/http://www.renewgrowinggreener.org/


7/61

Matthew J. Ehrhart, Pennsylvania Executive Director for the Chesapeake Bay Foundation issued

the following statement in response to Gov. Corbetts plan for the future of natural gas drilling in

the Commonwealth:

The Governors plan presents an opportunity for the Commonwealth to plan for the

significant environmental, economic, and community-related issues that drilling for natural gas

in Pennsylvania presents. CBF is encouraged that the Governor has incorporated almost all of therecommendations of the Marcellus Shale Advisory Commission into his plan, however, much

depends on the details and specific language that has yet to be released.

The Commissions recommendations, specifically those with environmental

implications, would fundamentally improve the way the gas industry is managed, and

significantly reduce the risks to human health and safety, as well as risks of environmental

contamination. Enforcing cradle to grave tracking and manifesting of wastewater, increased

setbacks from wells and homes, improved management of erosion and sediment control

implementation, and increased setbacks from floodplains will dramatically reduce risks.

Additionally, increased enforcement tools and fines will provide greater accountability.

However, much of todays focus was on the details of an impact fee.

Perhaps most problematic to our constituencies is the very visible lack of commitmentto providing for environmental funding. While the proposal allocates significant funding to

PennDOT programs, no funds are allocated to the Environmental Stewardship Fund. While

$25-$30 million would be the proverbial drop in the bucket for transportation funding, it would

be vital to the survival of environmental funding. We ask the Governor to reconsider this stance

and will continue to work with the Administration and the General Assembly on this issue.

We look forward to seeing the detailed language necessary to implement the

Commissions recommendations in legislation, regulation, and policy and remain committed to

securing the achieving health, safety, and environmental quality of our communities and natural

places for the citizens of the Commonwealth.

Some environmental issues remain to be addressed to our satisfaction, including afunding mechanism for environmental impacts, and addressing impacts to state forest lands.

CBF will continue to focus on these issues, as well as the need for a cumulative impact study to

better understand the long-term impacts drilling has on our natural resources.

CBF calls on the Pennsylvania General Assembly to move quickly to enact effective

legislation to safeguard our communities and our natural resources.

Environmental Groups Respond To Gov. Corbett's Marcellus Recommendations

The following statement was issued in response to Gov. Corbett's Marcellus Shale proposal from

the four environmental groups on his Marcellus Shale Commission: the Chesapeake Bay

Foundation, Pennsylvania Environmental Council, The Nature Conservancy: PennsylvaniaChapterand the Western Pennsylvania Conservancy.

"On Monday, Gov. Corbett announced his plans to implement recommendations from the

Marcellus Shale Advisory Commission. While much depends on details that have yet to be

released, the environmental organizations represented on the Marcellus Shale Advisory

Commission are encouraged that the Governor intends to move forward with many of the

recommendations in the Commissions final report that address environmental concerns. This
http://www.cbf.org/pahttp://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19729http://www.cbf.org/pahttp://www.cbf.org/pahttp://www.pecpa.org/http://www.nature.org/ourinitiatives/regions/northamerica/unitedstates/pennsylvania/index.htmhttp://www.nature.org/ourinitiatives/regions/northamerica/unitedstates/pennsylvania/index.htmhttp://www.paconserve.org/http://www.paconserve.org/http://www.nature.org/ourinitiatives/regions/northamerica/unitedstates/pennsylvania/index.htmhttp://www.nature.org/ourinitiatives/regions/northamerica/unitedstates/pennsylvania/index.htmhttp://www.pecpa.org/http://www.cbf.org/pahttp://www.cbf.org/pahttp://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19729http://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://www.cbf.org/pa


8/61

includes the tracking and recording of wastewater, increased setbacks from streams and water

supplies, improved management of erosion and sediment, stronger protection of floodplains, and

increased enforcement tools and fines.

"Significant concerns remain, however, regarding the proposed county impact fee, which

fails to adequately address the full range of impacts on Pennsylvanias lands, water, wildlife, and

outdoor recreational assetswithin and beyond the Marcellus region."We continue to believe that an appropriate mechanism already exists for investing in

community projects that can help offset these impacts: the successful Growing Greener Program.

We look forward to working with the General Assembly and Governor to ensure that sufficient

funding is provided for conservation and environmental protection as part of this package.

"It is imperative that the Commonwealth move quickly to improve its oversight and

management of Marcellus development. With limited time remaining in the fall session, we are

hopeful that detailed legislative language for the Governors proposal will be released for review

and discussion as soon as possible."

Senate Republican Leadership Responds To Gov. Corbett's Shale Proposals

Senate President Pro Tempore Joe Scarnati (R-Jefferson) said he was pleased to see Gov.

Tom Corbett included an impact fee on Marcellus Shale drilling in his recently announced

comprehensive proposal. However, Sen. Scarnati said he recognizes there are obstacles yet to be

overcome as negotiations continue on this highly significant plan.

"It was vital that the Governor weighed in on his recommendations for regulating and

overseeing the Marcellus Shale industry," Sen. Scarnati stated. "There seems to be general

agreement among all parties involved that there needs to be an impact fee that will not only assist

local communities affected by drilling activities, but fund important related statewide

environmental programs as well."

Sen. Scarnati expressed a strong willingness to negotiate the various proposals outlined inthe Governor's plan with the legislation he proposed six months ago. With that said, Sen.

Scarnati believes the final package must include a reasonable fee, increased environmental safety

measures and incentives to use natural gas. Also, there will be ongoing discussions with local

officials and industry representatives to ensure that there is a balanced approach to zoning so that

both sides do not continue to spend resources on legal costs.

"As we move toward ensuring that communities across the Commonwealth are protected

from the impacts of drilling, there will be discussion on the percentage that goes to local

jurisdictions and what environmental programs will be funded and at what level," Sen. Scarnati

added. "The most important thing is that we get some consistency, some confidence, and some

reliability that the Commonwealth is moving in a direction that will foster growth in the industry

while protecting our water, our neighborhoods, and our roads.""Negotiations between all parties will continue as we look to pass a final Marcellus Shale

measure out of the Senate by the end of October, Sen. Scarnati concluded. "I am confident that

the final package will be reflective of our understanding of the need to balance the economic

growth of this booming industry with the environmental health and well-being of the citizens of

the Commonwealth."
http://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.html


9/61

Senate Majority Leader Dominic Pileggi (R-Delaware) issued this statement in response to the

Governor's Marcellus Shale proposals:

"The proposal outlined today by Gov. Corbett represents a good starting point for the

ongoing discussions on how Pennsylvania should best address the many opportunities and

challenges presented by the Marcellus Shale gas formation. It is vital to strike the proper balancebetween protecting our environment and encouraging economic development. The Governor's

proposal touches on the most important issues and gives the General Assembly a clear

understanding of how he would prefer to see those issues addressed. Enactment of

comprehensive Marcellus Shale legislation this fall remains a top legislative priority for the

Senate Republican Caucus."

Senate Democrats Respond To Governor's Marcellus Shale Proposals

Senate Minority LeaderJay Costa (D-Allegheny), Senate Minority Appropriations Chairman,

Vincent Hughes (D-Philadelphia) and Sen. John Yudichak (D-Luzerne), Minority Chair of

the Senate Environmental Resources and Energy Committee, issued this statement on Gov.Corbett's Marcellus Shale proposals:

"The governor said we must move quickly in order to make sure Pennsylvania creates

jobs," Sen. Costa said. "Senate Democrats have been arguing for months that creating jobs for

Pennsylvanians must be the number one priority for this fall's session of the General Assembly.

We've also been waiting months for an energy policy from the administration. We'd be the first

to argue we must move. Let's do so responsibly."

"I am very concerned by the way money is being allocated for transportation. As I have

said repeatedly in the past, road repairs have been and should remain the responsibility of the

drilling companies. Imposing an impact fee shouldn't relieve them of this responsibility."

"The utter lack of funds going toward environmental protection is also a concern. Thismeager amount, layered on budget reductions which have already been imposed on the agency

tasked with protecting Pennsylvania while this industry grows at breakneck pace, is severely

lacking. We only get one shot at this and if we don't protect our water and our land, then we

have learned nothing from our history."

25 percent of fee revenue would be allocated statewide under the governor's plan. Of that,

the governor seeks to channel only 10.5 percent of that to the Department of Environmental

Protection. Corbett's proposal would direct the money to the restricted account for plugging of

abandoned and orphaned oil and gas legacy wells and administration of enforcement of oil and

gas program and other permits related to natural gas development.

"While I respect the governor for finally recognizing that job creation must be our top

priority and for bringing job training into the public discussion, we need to be clear on one thing:all Pennsylvanians must benefit," said Sen. Hughes. "That doesn't happen under the governor's

proposed plan. There was entirely too much focus on the industry, and what the industry needs to

create jobs. The governor said today that Pennsylvania is sitting on the second largest energy

reserve in the country. The gas companies aren't going anywhere."

"We also need to look closely at this plan as it pertains to transportation. We can't let

these multi-million dollar companies fore-go their obligation to repair the wear-and-tear on roads
http://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.html


10/61

and infrastructure just because an impact fee has been imposed, and PennDOT is getting some of

this money."

The governor's impact fee proposal would send 75 percent of fee revenue to local

municipalities where drilling occurs. It is expected to generate $120 million in the first year. If

so, Pennsylvania's Department of Transportation would get $21 million; DEP $3.15million; and

counties $32.4 million.Sen. Yudichak warned of the potential unintended consequences of allocating the

majority of revenue to counties to distribute to local host and surrounding municipalities.

"The governor's county-assessed fee approach will create a fragmented patch work of

'have and have-not' communities across Pennsylvania. It completely overlooks countless

communities across Pennsylvania that have road, water system, and other infrastructure demands

placed upon them." said Sen. Yudichak. "We do not apply this type of 'point of origin' revenue

standard to any other industry whether its gaming, landfills or our corporate tax structure. If the

governor truly believes in this industry's potential to create jobs and revitalize our economy, he

must realize we need a strong statewide job's policy not a limited county-by-county jobs

policy. How can you develop a secondary markets for natural gas in Pennsylvania like power

generation and natural gas vehicles if the bulk of the money only goes to those counties that hosta Marcellus Shale rig?"

Sen. Yudichak added that he was pleased that the governor singled out community

colleges and other state-related and state-system universities for their vital role in developing the

industry and preparing Pennsylvanian's workforce.

"I hope when all is said and done, we do indeed see a very active role from these

institutions. They took a big hit in this year's budget, but their importance to our economy is

greater than ever. As the natural gas industry grows, they should grow and benefit as well. They

have been and will continue to be willing partners."

Watch Sen. Yudichak's comments online.

"If there's one thing we must continue to support aggressively, it is education and job-training," said Sen. Hughes. "In the end, it comes down to creating a ready, willing, and able

workforce."

"The well-being of Pennsylvania workers, Pennsylvania unions, and our communities as

a whole is what's important. That is why I am pleased to see the governor putting jobs on the

front burner. Now we need to sit down and work together to make sure we reap the economic

rewards in a prudent way that protects our natural resources. We want our children and

grandchildren to be able to enjoy prosperity in Pennsylvania for years to come."

Rep. George: Corbett Marcellus Plan Is A Flawed Sweetheart Deal

Rep. Camille Bud George (D-Clearfield) said Gov. Tom Corbetts proposal for an impact feeon Marcellus wells comes up woefully inadequate in addressing the impacts or protecting the

waters of the Commonwealth or the people affected by industrial gas drilling.

The governor has made it perfectly clear that he is a friend to the gas industry, said

Rep. George, Minority Chair of the House Environmental Resources and Energy Committee. I

join the governor in wanting to create jobs. However my top priority and responsibility is clean

water and not coddling an industry.
http://www.youtube.com/watch?v=AIzzT6pXjlchttp://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://www.youtube.com/watch?v=AIzzT6pXjlc


11/61

Rep. George said the taxes and environmental regulations proposed by Gov. Corbett were

inadequate and inefficient at best compared to his House Bill 1800, the ProtectPA

legislation.

As I compare House Bill 1800 to the governors, I cant help but feel that mine is based

upon the desire to preserve our environment, and Gov. Corbetts is based upon rewarding an

industry that donated $1.6 million to his gubernatorial campaign.Rep. George pointed out glaring differences to his House Bill1800 and the governors

proposal:

-- Increased setbacks from private water wells: Corbett, 500 feet vs. House Bill 1800, 1,500 feet;

-- Increased setbacks from public water supplies: Corbett, 1,000 feet vs. House Bill 1800, 2,500

feet;

-- Increased bonding for wells: Corbett, maximum $10,000 vs. House Bill 1800, starting amount

$12,500;

-- Civil penalties for violations: Corbett, maximum $50,000 plus $2,000 daily fines vs. House

Bill 1800, maximum $100,000 plus $10,500 daily fines.

Rep. George said other problems with the Corbett proposal were not only what was in the

package, but what was omitted.My ProtectPA bill calls for a two-year moratorium on the additional leasing of state

forest lands for Marcellus drilling, Rep. George said. Former DCNR Secretary John Quigley

has said that any remaining unleased forest land is of a pristine nature that should not be

compromised, and I join Secretary Quigley in that assessment. Unfortunately, the governor fails

to do the same.

Rep. George also said that the governors county option impact fee would fail to

properly address the areas affected by industrial gas drilling.

His proposal leaves many environmental programs unfunded or underfunded, and takes

the wrong approach at repairing our deteriorating roads and bridges, Rep. George said.

Gov. Corbetts impact fee, based on a flat per-well assessment, would generate amaximum of $160,000 per well over 10 years. Rep. Georges severance tax is based on the

market value of the gas at the wellhead and would produce revenue as long as the well is

producing substantive quantities of gas.

A volume-based tax is the way to go, Rep. George said. The per-well fee with a 30

percent discount offered to drillers setting up natural gas fueling stations is the epitome of a

sweetheart deal and is yet another tax loophole for industrial gas drillers.

Under the governors projections, $120 million in revenue would be generated the first

year and $200 million within six years, and most would be sent to local governments by letting

the counties collect the fees. Rep. Georges proposal would generate $343 million the first year

and $483 million the year after and revenues would be distributed among the counties and

municipalities by the state.As many as 54 different counties could opt to collect the paltry fees sought by the

governor, Rep. George said. The gas industry already has filed lawsuits against at least two

counties. While the governor sees wisdom in offering concerted or coordinated safety-training

programs through PEMA, he wants an impact fee that could be collected by 54 different

entities.

Like Gov. Corbetts proposal, House Bill 1800 gives the largest allocation of revenue

generated to local governments, with no unrestricted revenue to the General Fund. Unlike the
http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&BN=1800http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&BN=1800


12/61

ProtectPA bill, Governor Corbett gives no money to important environmental programs, such as

Growing Greener.

Under my proposal, Growing Greener would receive over $50 million the first year and

more than $70 million after that, Rep. George said. Under the governor, the already

hemorrhaged Environmental Stewardship Fund Growing Greener would get nothing.

Rep. George noted that the Commonwealth must fund projects to fix the deterioratingroads and bridges across the state, but not through additional leasing of forest lands. House Bill

1800 provides money to PennDOT specifically for road repairs related to Marcellus gas drilling.

The impacts of industrial drilling are felt statewide, Rep. George said. If we dont

examine this issue at the macro level as much as the micro level, I fear we may fail to see the

forest for the trees.

Marcellus Industry: Governor's Proposal Builds On Drilling Momentum

Responding to Gov. Tom Corbetts Marcellus Shalepolicy recommendations released Monday

at an event in Pittsburgh, Marcellus Shale Coalitionpresident and executive director Kathryn Z.

Klaber issued the followed statement:Pennsylvanians are realizing the countless benefits more affordable energy costs,

environmental advantages of increased natural gas use, economic revival of so many

communities tied to responsible natural gas development, and Gov. Corbetts plan announced

today should build upon this momentum, in all corners of the Commonwealth, for years to come.

The northeastern United States, and specifically Pennsylvania, is poised to lead the nation in

natural gas production because we have responsibly embraced this historic opportunity. The

challenge now is to build upon the positive progress weve made.

The governors plan and its foundation that energy equals jobs reminds us that the

most significant and long-term benefits of clean-burning natural gas will be achieved only

through competitive policies that allow the industry to flourish in the Commonwealth andrelentlessly protect our shared environment. We look forward to reviewing the details of this

proposal and remaining engaged with policymakers and other key stakeholders in the weeks and

months ahead.

Analysis

Will We Get A Chevy Or A Pinto Out Of The Upcoming Marcellus Shale Debate?

With the announcement ofGov. Corbett's proposals this week to set tougher environmental

standards for Marcellus Shale drilling operations and a county-adopted well drilling fee, the

debate is now fully joined with all sides saying they want final legislation on the Governor's deskby the time the House and Senate adjourns on December 14.

The Governor said he agreed with his Marcellus Shale Advisory Commission that

fundamental changes were needed to better protect the environment from drilling. Among them-

-

-- Increasing the well setback distance from private water wells from the current 200 feet to 500

feet, and to 1,000 feet from public water systems;
http://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://marcelluscoalition.org/http://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19729http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19729http://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.htmlhttp://marcelluscoalition.org/http://paenvironmentdaily.blogspot.com/2011/10/governor-unveils-county-drilling-fee.html


13/61

-- Increasing the setback distance for wells near streams, rivers, ponds and other bodies of water

from 100 feet to 300 feet;

-- Increasing well bonding from $2,000 up to $10,000;

-- Increasing blanket well bonds from $25,000 up to $250,000;

-- Expanding an unconventional gas operators presumed liability for impairing water quality

from 1,000 feet to 2,500 feet from a gas well, and extending the duration of presumed liabilityfrom 6 months after well completion to 12 months;

-- Enabling DEP to take quicker action to revoke or withhold permits for operators who

consistently violate rules;

-- Doubling penalties for civil violations from $25,000 to $50,000; and

-- Doubling daily penalties from $1,000 a day to $2,000 a day.

These are changes members of the House and Senate have been proposing and discussing

for the last three or four years, so the debate here will probably not be quite as contentious as the

debate over the drilling fee.

Drilling Fees

The Governor's drilling fee proposal would have county commissioners in each of the 39

counties with Marcellus and Utica natural gas shales determine whether or not to adopt a fee, theamount of the fee (up to $40,000 per well the first year) and how 75 percent of the fee revenues

will be spent.

The proposal raises a lot of questions that hopefully will be answered when the actual

legislative language becomes available and the debate starts in the General Assembly.

1. Should There Be a Single, Simple Uniform Drilling Fee in Pennsylvania?

Industry, Gov. Corbett and many others in other contexts have argued the Marcellus

Shale industry needs uniform enforcement of regulations and standards across the state to

prevent a patchwork of rules, conflicting interpretations and convoluted actions.

Every one of the dozen or so other drilling fee or tax proposals sponsored by Republicansand Democrats over the last three years have all established a single, uniform tax or fee. This

proposal does not.

There is absolutely no doubt the Governor's proposal will lead to a patchwork of a dozen-

- or 39-- different levels of fees, exclusions and spending plans. Many counties in-fact may

decline to adopt any fees at all, including potentially the counties with the most drilling activity.

The County Commissioners Association of PA Thursday expressed "strong reservations"

about the counties adopting the fee because of the inconsistencies it would create and the

duplication of fee administration among the 39 counties involved.

Lobbying by industry in each of the 39 counties where they provide significant job

opportunities and economic benefits and having townships and boroughs dependent on county

commissioners for funding sets up an interesting political dynamic for the three countycommissioners serving each of these counties.

2. Should a Marcellus Shale Drilling Fee Generate a Predictable Stream of Revenue?

Leaving the decision on whether or not to adopt a fee and in what amounts to each of the

39 Marcellus Shale counties means there is no way to reliably estimate the revenue this proposal

would generate, if any, for counties or the state agencies that would depend on this funding.
http://paenvironmentdaily.blogspot.com/2011/10/counties-express-strong-reservations.htmlhttp://paenvironmentdaily.blogspot.com/2011/10/counties-express-strong-reservations.html


14/61

It could be zero or it could be $195 million as the Governor estimates in six years, but

there will be no way to tell for some time as counties consider a fee over 6 or 12 or 18 months or

never after this proposal is signed into law.

3. Should DEP's Oil and Gas Regulatory Program Depend on County-Adopted Fees?

Part of the proposal would give the Department of Environmental Protection 10.5percent-- up to or $10 million-- of the county-adopted fees to fund its Oil and Gas Regulatory

Program and to plug abandoned oil and gas wells.

Right now DEP's regulatory program-- permit reviews, inspections and enforcement-- is

funded bypermit application fees which were raised significantly to expand the program to meet

the demands of Marcellus well drilling.

To fund an expansion of the program, and every indication is it will have to be expanded

soon, DEP would have to hope a sufficient number of counties adopt a well fee in a significant

amount so they have the funds to regulate the industry if they rely on the county fees for the

expansion.

No other state environmental programs, or any other state programs period, rely on the

uncertainty of whether counties or local governments will adopt fees and send them in to supportthem.

4. Should a Drilling Fee Support Statewide Environmental Restoration Programs?

The proposal would allocate no funding for the award-winning, community-

based Growing Greener Program or any other statewide environmental restoration programs.

The proposal would allow counties, if they adopt the fee, to spend monies on wastewater,

stormwater and drinking water systems and reclaiming surface and subsurface water supplies.

Although the proposal would also help fund state abandoned oil and gas wells plugging

efforts, the proposal does nothing to address the most significant threats to water quality in

Pennsylvania-- reclaiming abandoned mines and helping farmers reduce nutrientrunoff, according to DEP.

A Quinnipiac University poll in May found an overwhelming 87 percent of those

surveyed supported dedicating a significant portion of a Marcellus tax to conservation programs

to protect land, water and wildlife. This is an unheard of level of public support.

5. Should a Drilling Fee Support County Conservation Districts?

The proposal would allow counties, if they adopt the fee in a significant enough amount,

to provide funding to conservation districts for inspection and oversight of natural gas

development.

The only problem is DEP, during the Rendell Administration, took away the authority for

conservation districts to inspect, provide oversight and review permits related to natural gasdevelopment. Counties have consistently opposed this actionby DEP.

One recommendation in the Marcellus Commission report does hint at possible changes,

but only "under DEP guidance and consistent with applicable permit conditions." Nothing was

mentioned in the outline of Gov. Corbett's proposal so far would make any changes in the role of

the conservation districts.

Here's the language from the report:
http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=13902http://www.renewgrowinggreener.org/http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19837http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=18686http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=11902http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=12100http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=12100http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=11902http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=18686http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19837http://www.renewgrowinggreener.org/http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=13902


15/61

9.1.17: Develop and provide planning tools and educational opportunities relating to

unconventional natural gas development to counties; require proper notice of permit applications

with an opportunity to comment (similar to notice for host and adjoining municipalities); and,

under DEP guidance and consistent with applicable permit conditions, allow for County

Conservation Districts to engage in inspections of erosion and sedimentation controls at

unconventional well sites, if they choose to do so. (page 105)

6. Does Anyone Care if a Fee Or Tax is Imposed on Marcellus Drilling?

Gov. Corbett made a pledge during his campaign not to raise taxes. The arbitrator he

uses to determine whether he meets that pledge is Grover Norquist, an un-elected, anti-

government, Washington D.C.-based lobbyist.

Norquist was quoted this weekas saying the Governor's county fee proposal meets his no

tax increase pledge because counties would impose the fee and it would not be implemented

statewide.

The question is, does anyone else care?

Capitolwire.com quoted Sen. Joe Scarnati (R-Jefferson), who has sponsored his own

drilling fee proposal as saying, "he does not work for Norquist or his policy guidelines: I workfor the taxpayers of the 25th District....that was my understanding after the last election. I will

continue to work to represent them in Harrisburg."

Sen. Scarnati tangled with Norquist in May when his own proposal-- Senate Bill 1100--

was introduced. He said Norquist was spreading inaccurate information about his drilling fee.

But what does the public say?

Just last week a Quinnipiac University poll found 64 percent of voters supported a

Marcellus Shale drilling fee. In September a Franklin & Marshall Poll found 65 percent of

adults in Pennsylvania support a tax/fee on Marcellus Shale drilling. In August a Quinnipiac

University poll found 63 percent of voters support a drilling tax. In May a Quinnipiac University

poll found 69 percent supported a drilling tax. In March a Franklin & Marshall Poll found 62percent of voters support a Marcellus Shale tax. In March a Susquehanna Polling survey found

70 percent of those polled supported a drilling tax. In January a Susquehanna Polling survey

found 63 percent support a tax on natural gas drilling.

In March 2010, a Quinnipiac University poll found 49 percent of those surveyed said

they support a Marcellus Shale drilling tax.

You get the idea.

The public overwhelmingly supports a tax or fee and that support has been increasing in

numbers that are only rarely, if ever, is seen in opinion polls.

Apparently, the public-- voters-- don't care. They want it. Even the Counties'

Association says they have "strong reservations" about the proposal.

Unfortunately, Grover Norquist doesn't.

The answers to these and other questions will determine whether we get a Marcellus

Shale drilling fee program that is a Pinto or a Chevy (no one is expecting a Cadillac).

Will fees on the trillion dollar Marcellus Shale natural gas industry give real support to

communities and state and local environmental restoration programs or not?
http://files.dep.state.pa.us/PublicParticipation/MarcellusShaleAdvisoryCommission/MarcellusShaleAdvisoryPortalFiles/MSAC_Final_Report.pdfhttp://stateimpact.npr.org/pennsylvania/2011/10/04/norquist-says-corbetts-fee-becomes-a-tax-if-its-levied-statewide/http://www.capitolwire.com/http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19227http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19156http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20279http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20039http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19836http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=18949http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=18457http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=18457http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=18538http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=17741http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=15043http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=15043http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=17741http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=18538http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=18457http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=18457http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=18949http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19836http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20039http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20279http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19156http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=19227http://www.capitolwire.com/http://stateimpact.npr.org/pennsylvania/2011/10/04/norquist-says-corbetts-fee-becomes-a-tax-if-its-levied-statewide/http://files.dep.state.pa.us/PublicParticipation/MarcellusShaleAdvisoryCommission/MarcellusShaleAdvisoryPortalFiles/MSAC_Final_Report.pdf


16/61

Whatever is decided by the General Assembly and the Governor before December 14, we

will likely be stuck with for years, maybe decades, because no one will want to tackle the fee

issue again anytime soon.

After all, it's onlybeen eight years since the first Marcellus Shale well was drilled in

Pennsylvania and our "modern" Oil and Gas Act was passed in 1984.

Everyone keeps saying we need to do things right with Marcellus Shale.It's even more true with a drilling fee.

Did You Know You Can Search 7 Years Of Digests On Any Topic?

Did you know you can search 7 years of back issues of the PA Environment Digest on dozens of

topics, by county and on any key word you choose. Just click on the search page.

Also take advantage of these related services from Crisci Associates--

Twitter Instant Updates: On Twitter, sign up to receive instant updates from : PAEnviroDigest.

PA Environment Daily: provides daily environmental NewsClips and significant stories and

announcements on environmental topics in Pennsylvania of immediate value. Sign up and

receive as they are posted updates through your favorite RSS reader. You can also sign up for a

once daily email alerting you to new items posted on this blog.

PA Environment Digest Video Blog: showcases original and published videos from

environmental groups and agencies around the state. Sign up to receive as they are posted

updates through your favorite RSS read. You can also sign up for a once daily email alerting

you to new items posted on this blog.

PA Capitol Digest Blog to get updates every day on Pennsylvania State Government, including

NewsClips, coverage of key press conferences and more. Sign up and receive as they are posted

updates through your favorite RSS reader. You can also sign up for a once daily email alerting

you to new items posted on this blog.

Senate/House Agenda/Session Schedule/Bills Introduced

Here are the Senate and House Calendars and Committee meetings showing bills of interest as

well as a list of new environmental bills introduced--

Session Schedule

Here is the latest voting session schedule for the Senate and House--

Senate

October 17, 18, 19, 24, 25, 26, 31

November 1, 14, 15, 16

December 5, 6, 7, 12, 13, 14
http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20041http://www.paenvironmentdigest.com/newsletter/search.asphttp://www.crisciassociates.com/http://www.twitter.com/http://paenvironmentdaily.blogspot.com/http://paenvirodigestvideo.blogspot.com/http://pacapitoldigestcrisci.blogspot.com/http://pacapitoldigestcrisci.blogspot.com/http://paenvirodigestvideo.blogspot.com/http://paenvironmentdaily.blogspot.com/http://www.twitter.com/http://www.crisciassociates.com/http://www.paenvironmentdigest.com/newsletter/search.asphttp://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20041


17/61

House

October 17, 18, 19, 24, 25, 26, 31

November 1, 2, 14, 15, 16, 21, 22, 23

December 5, 6, 7, 12, 13, 14

Bill Calendars

House (October 17): Senate Bill 303 (MJ White-R-Venango) providing for the disposition of

fines under the Hazardous Sites Cleanup Act; Senate Bill 304 (MJ White-R-Venango) requiring

the posting of the state air quality implementation plan on the Internet; House Resolution

70 (Harhart-R-Lehigh) requesting the Department of Transportation to study the potential use of

quarry and other mining waste in highway and civil engineering projects. Click Here for full

House Bill Calendar.

Senate (October 17): Senate Bill 367 (D.White-R-Indiana) providing for the leasing of mineral

rights on other state lands and those owned by the State System of Higher Education; House Bill1054 (Mustio-R-Allegheny) further providing for the licensing of engineers, land surveyors and

geologists. Click Here for full Senate Bill Calendar.

Committees

House: the House Democratic Policy Committee holds a hearing on Marcellus Shale air quality

issues at Delaware County Community College. Click Here for full House Committee

Schedule.

Senate: Click Here for full Senate Committee Schedule.

Other: the Forestry Task Force, Joint Legislative Air and Water Pollution Control and

Conservation Committee in State College.

Bills Introduced

The following bills of interest were introduced this week--

Local Regulation Of Drilling: House Bill 13 (Hutchinson-R-Venango) amending the Oil and

Gas Act providing for the state to supercede local regulation of drilling in the Allegheny

National Forest.

Fracking Fluids: House Bill 24 (Everett-R-Lycoming) require full public disclosure of the

chemical composition of the fluid used to hydro-fracture the shale in the production of Marcellus

natural gas.

Well Pad Standards: House Bill 29 (F.Keller-R-Snyder) requiring the Environmental Quality

Board to set gas well pad construction standards.
http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&BN=0303http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&BN=0304http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=R&bn=70http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=R&bn=70http://www.legis.state.pa.us/WU01/LI/SC/HC/0/RC/SCHC.HTMhttp://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sInd=0&body=S&type=B&bn=367http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&bn=1054http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&bn=1054http://www.legis.state.pa.us/WU01/LI/SC/SC/0/RC/CAL.HTMhttp://www.legis.state.pa.us/WU01/LI/CO/HM/COHM.HTMhttp://www.legis.state.pa.us/WU01/LI/CO/SM/COSM.HTMhttp://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&BN=0013http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&BN=0024http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&BN=0029http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&BN=0029http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&BN=0024http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&BN=0013http://www.legis.state.pa.us/WU01/LI/CO/SM/COSM.HTMhttp://www.legis.state.pa.us/WU01/LI/CO/HM/COHM.HTMhttp://www.legis.state.pa.us/WU01/LI/SC/SC/0/RC/CAL.HTMhttp://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&bn=1054http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&bn=1054http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sInd=0&body=S&type=B&bn=367http://www.legis.state.pa.us/WU01/LI/SC/HC/0/RC/SCHC.HTMhttp://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=R&bn=70http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=R&bn=70http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&BN=0304http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&BN=0303


18/61

Gas Well Drilling Standards: House Bill 1887 (Baker-R-Tioga) setting additional

environmental and location standards for Marcellus Shale wells, increasing penalties, authorizing

an alternative to bonding and requiring the posting of certain well information.

Flood-Damaged Highway Capital Budget: Senate Bill 1268 (Gordner-R-Columbia) providingfor the itemization of flood-damaged highways Capital Budget, Senate Bill 1269 (Yaw-R-

Bradford) providing for adoption of capital projects for flood damaged highways and flood

mitigation projects

Regulatory Impacts: Senate Bill 1273 (McIlhinney-R-Bucks) requiring the review of

regulations for their impact on small businesses and granting pre-enforcement review of

regulations by small businesses aggrieved parties (companion to House Bill 1349 which just

passed the House).

Alternative Energy Portfolio: Senate Bill 1283 (Argall-R-Schuylkill) further providing for

energy credit contracts under the Alternative Energy Portfolio Standards Act.

Senate/House Bills Moving

The following bills of interest saw action this week in the House and Senate--

House

DSIC Infrastructure Charge: House Bill 1294 (Godshall-R-Montgomery) providing for a

distribution system improvement charge (DSIC) for natural gas, wastewater and other utility

distribution line repairs was the subject of extensive debate and amendment activity on theHouse Floor on Second Consideration, was referred into and out of the House Appropriations

Committee and passed by the House. The bill now goes to the Senate for consideration.

Regulatory Impacts: House Bill 1349 (Pickett-R-Susquehanna) requiring the review of

regulations for their impact on small businesses and granting pre-enforcement review of

regulations by small businesses aggrieved parties was referred into and out of the House

Appropriations Committee and passed by the House. The bill now goes to the Senate for

consideration.

News From The Capitol

Groups Laud Reps. DiGirolamo-Murt Drilling Tax Proposal

Organizations representing environmental issues, labor unions, the drug and alcohol treatment

community, domestic violence prevention, Christian advocacy, fair housing efforts, adults with

special needs and good government came together Tuesday at a Capitol press conference to urge

action on legislation to enact a drilling tax in the Marcellus Shale natural gas formation.
http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&bn=1887http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&bn=1268http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&bn=1269http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&bn=1273http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&bn=1283http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&bn=1294http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sInd=0&body=H&type=B&bn=1349http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sInd=0&body=H&type=B&bn=1349http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&bn=1294http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&bn=1283http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&bn=1273http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&bn=1269http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=S&type=B&bn=1268http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2011&sind=0&body=H&type=B&bn=1887


19/61

The legislation is being sponsored by Reps. Gene DiGirolamo (R-Bucks) and Tom Murt

(R-Montgomery) as a fair way to ensure natural gas drilling companies are paying their fair

share, compared to other industries in Pennsylvania, and provide financial support to areas in the

state budget that have taken drastic funding reductions in recent years.

Among the organizations speaking at Tuesdays press conference included: Citizens for

Pennsylvanias Future, United Methodist Advocacy in Pennsylvania, Drug and Alcohol ServiceProviders Organization of Pennsylvania, Pennsylvania Coalition Against Domestic Violence,

Pennsylvania Housing Alliance, the Coalition for Labor Engagement, Accountable Revenues

(CLEAR Coalition), Education Voters of Pennsylvania, Pennsylvania Budget and Policy Center,

and the Waiting List Campaign, a group that advocates for adults with special needs.

The coalition that is forming behind our drilling tax plan represents a diverse spectrum

of groups the one common thread of these organization is their mission to help Pennsylvanians

in need or to get our economy back on track. They all have a critical stake in this issue, Rep.

DiGirolamo said. When developing this legislation, we knew that the plan we put together had

to reflect a compromise with both the industry and to win over our colleagues with its

commonsense structure. I thank these organizations for speaking out about this legislation, and I

think that with their backing and encouragement, this is a drilling tax proposal that can advanceinto law.

I believe that the bill I have co-sponsored with Representative DiGirolamo will bring

fairness to a system that has been operating without contributing to the real needs of our state,

Rep. Murt said.

The lawmakers and representatives of the various stakeholder groups present at todays

press conference emphasized that Pennsylvania is the only major natural gas-producing state in

the nation that does not have a tax or fee levied on natural gas extraction.

Most Pennsylvanians support a tax, which would represent a very small fraction of the

profits the natural gas drilling companies are reaping. In addition, every Pennsylvanian is

impacted by natural gas drilling, and therefore, the entire Commonwealth should benefit fromthe tax.

The tax -- to be set at 4.9 percent -- is estimated to generate $362 million during the

2012-13 fiscal year and rise to $562 million annually within five years. This rate is lower than

neighboring West Virginia, where the industry is also thriving. The tax revenue would be broken

down into three areas: 28 percent to local governments; 28 percent to environmental programs;

and 44 percent to state government.

Those programs that would be targeted to receive revenue would include statewide

environmental programs, hazardous site cleanup programs, local municipalities (those that both

host drilling sites and others), affordable housing, conservation districts, education, job training,

transportation infrastructure and human services.

The lawmakers also noted their proposal meets the following criteria: its fair andreasonable to the industry; it will sustain the growth of the industry and be comparable to rates in

other states; it assists host communities and helps with job creation, social and environmental

costs and impacts; it makes long-term investments in natural resources and environmental

programs, along with the economy and human capital; it strengthens the Commonwealths safety

net for times of need; and it makes sure every citizen can benefit from development in the

Marcellus Shale.

The lawmakers are currently in the process of seeking co-sponsors for the bill.
http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20222http://www.paenvironmentdigest.com/newsletter/default.asp?NewsletterArticleID=20222


20/61

NewsClip: Two GOP Legislators Make Push For Natural Gas Tax

Senate Committee Hearing On Housing Needs, Affordability Due To Marcellus Industry

The Senate Urban Affairs and Housing Committee Tuesday heard testimony on the lack of

affordable housing stock in Lycoming County due primarily by the influx of workers caused bythe Marcellus Shale drilling industry, according to Majority Committee Chair, Sen. Gene Yaw

(R-Lycoming).

The Committee heard from county housing officials and other participants on the need

for more safe, affordable housing options in the County.

"As companies locate here, the growth is creating a huge demand for housing that we

need to address, particularly in the area of rental housing," said Sen. Yaw. "This issue has been

further compounded by the recent flooding that has forced existing renters and homeowners out

of their homes."

According to Lycoming County United Way Executive Director Scott Lowery, "the

growing negative housing impact being felt in Lycoming County can be gleaned from the results

of our past two Community Needs Assessment surveys. The 2005 survey ranked concernsregarding homelessness 22nd among 36 identified needs. In 2009, homelessness ranked 9th, the

single biggest jump of all areas calculated."

"Although the average rent in Lycoming County changed very little, there were

significant changes in the number of rental units at different price ranges," said Barry Denk,

Director of the Center for Rural Pennsylvania, a bipartisan bicameral legislative research

agency based in Harrisburg. "In 2005, 40 percent of the rental units had a monthly gross rent of

less than $500. By 2010, less than 22 percent of the rental units were available at this range,"

Denk added.

Early next year, the Center will begin a longitudinal research study to document the

economic and community impacts, including housing, of the Marcellus Shale development inLycoming, Bradford, Greene and Washington counties.

The Committee also heard testimony from Colby Fuser, Operations Manager for

Halliburton, a Muncy-based company.

"Halliburton promotes a work-life balance for its people, and we know that a happy home

is always beneficial to our employees. That's why we take great concern in making sure that the

process our employees go through when they are purchasing a home is a good one. Making sure

employees can find a quality home that is reasonably priced, rather than overinflated due to the

growth of the industry, is important to the long-term sustainability of Halliburton and the

community at large in Lycoming County."

The hearing is one in a series on housing held throughout the Northern Tier by the Senate

Urban Affairs and Housing Committee.Copies of comments presented and a video of the hearing are available on the

Committee's webpage.

Sen. James Brewster (D-Allegheny) serves as Minority Chair of the Committee.

Rep. Everett: Bill Will Address Frack Fluid Disclosure Concerns
http://www.post-gazette.com/pg/11277/1179678-100.stmhttp://www.senatorgeneyaw.com/urban-affairs.htmhttp://www.senatorgeneyaw.com/urban-affairs.htmhttp://www.senatorgeneyaw.com/urban-affairs.htmhttp://www.senatorgeneyaw.com/urban-affairs.htmhttp://www.post-gazette.com/pg/11277/1179678-100.stm


21/61

In response to concerns voiced by many Commonwealth residents about the chemical makeup of

fracking fluids used by well drillers, Rep. Garth Everett (R-Lycoming) Wednesday

introduced House Bill 24 to require full public disclosure of the chemical composition of the

fluid used to hydro-fracture the shale in the production of Marcellus natural gas.

"The use of water-based fracturing during the natural gas drilling process has caused

concerns among many, not only in Pennsylvania, but also in other states where this process takesplace," said Rep. Everett. "This legislation will give the public detailed knowledge of the

chemicals being used and the density or percentage so that everyone can be better educated on

the contents of the water used to "frack" these Marcellus wells. This, to me, is an obvious part of

having the openness and transparency necessary to help all Pennsylvanians and our

Documents

Pa Environment Digest Oct. 10, 2011