Shale drilling fee again off table in budget talks
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HARRISBURG -- Expectations of an afternoon state House debate over a shale drilling fee faded away after several hours of speculation and a sharp statement from the governor that he would veto such a fee if it reached him.
Democratic supporters have pushed for a drilling fee, but were critical of the surprise agenda change to now consider a fee proposal. They said the measure that GOP lawmakers intended to offer would raise too little revenue.
With the late-afternoon scuttling of considering that fee, the debate over how to raise money for impacts from natural-gas drilling likely will be pushed back until fall.
That timeline will allow the state's Marcellus Shale Advisory Commission to issue its July 22 report before a final shale fee is crafted, which Gov. Tom Corbett has been pushing for during the past few months. Shortly after the afternoon floor debate was announced, he warned lawmakers to carefully consider their actions.
"I believe when we go through a process like this, it follows the idea of 'ready, aim, fire,'" Mr. Corbett said. "What I see going on here right now is 'ready, fire, aim.'"
"I have sent the message back: If something gets to my desk, it will be vetoed."
The effort to put a shale fee into the budget process came after increasing pressure from Democrats to approve a tax or fee on Marcellus Shale drilling as they vote on the state budget measures this week.
During that debate, Rep. Dave Reed, R-Indiana, planned to offer a proposal that would charge drillers an initial $50,000 fee, which would decrease annually over the first three years that a well produces gas. From years four through 10, drillers would pay $10,000 per well.
In the plan, if a well is "re-fracked," to release additional natural gas, a $10,000 fee would go into effect for another five years. And if the well is drilled to extract gas from another shale formation as well, like the Utica formation, the fee would re-start at $25,000.
The money collected would have gone to counties and municipalities with drilling, with a portion dedicated to emergency services. Another portion would go to county conservation districts.
First Published June 28, 2011 11:34 am
