Overview: Counties
may implement a local impact fee on unconventional well drilling to be
collected and distributed at the county level.
Impact Fee Schedule (not to exceed)
Year 1: $40,000
Year 2: $30,000
Year 3: $20,000
Year 4: $10,000
Year
5: $10,000
Year 6: $10,000
Year 7: $10,000
Year 8: $10,000
Year 9: $10,000
Year 10: $10,000
Local Distribution
·
75% to host
counties and their municipalities.
·
25% to restricted
account in the General Fund.
·
Any money
remaining in the restricted account after the distribution of the fees shall be
distributed to the Department of Transportation.
·
Language
enumerates acceptable uses of the funds by counties and municipalities.
Environmental Funds
Source: Oil and Gas Lease Fund
The General Assembly created the Oil and Gas Lease Fund in 1955, taking the money from the sale of nonrenewable oil and gas resources owned by the state and reinvesting this money into public conservation assets benefiting all Pennsylvanians. Historically, this fund averaged $3 million to $5 million a year before the Marcellus drilling boom. However, the Marcellus Shale boom was not realized at the time of the creation of this fund. Revenue from the increase in the number of Marcellus Shale leases is up and conservatively estimated to generate $250-$500 million in royalties annually in the coming years.
Proposal:
Dedicate a portion of the Oil and Gas Lease Fund to environmental programs.
July 1, 2013 and Each
Fiscal Year Thereafter
·
$15 million to conservation districts.
· 25% of total received funds of the prior fiscal year to the Environmental Stewardship Fund.
· 5% up to $5 million for payment in lieu of taxes (communities w/ State Forest land).
July 1, 2014 and Each Fiscal Year Thereafter
· $40 million to the Hazardous Site Clean Up Fund. This transfer will be updated annually based on the CPI (inflation rate).
o The HSCF currently receives $40 Million annually from the Capital Stock and Franchise Tax. The tax is set to expire January 2014.
Other Proposal
Provisions
·
Under this proposal, unconventional vertical
wells are assessed a fee of no more than 25% of the fee established by the
local ordinance.
·
Includes full pre-emption for all local
ordinances.
· Prohibits the well impact fee costs from being passed on to the property owner or leaseholder.
· Provides exemptions from the fee for: 1) Shallow wells above the Elk Sandstone (non-Marcellus wells); and 2) Wells that produce an average of less than 90,000 cubic feet of gas a day over a reporting period.
· The Auditor General may audit a county’s and municipality’s expenditures of the funds received from an imposed impact fee.
· Each county collecting an impact fee must submit a report detailing the expenditure of the funds collected to the House of Representatives and Senate.