State Senate approves Marcellus Shale impact fee
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HARRISBURG -- After hours of drilling-related debate filled the state Capitol rotunda from both chambers, the Senate this evening approved a Marcellus Shale impact fee and regulatory measure in a mostly party-lines vote.
That bill is the first comprehensive legislation on natural gas drilling to be approved in the Senate since the Marcellus Shale boom began.
It heads to the state House of Representatives after a vote of 29-20.
Democratic senators, who voiced concerns about the fee proposal that was advanced on Monday, were unsuccessful in tweaking that proposal to rearrange how that fee is assessed and its revenues distributed, increase bonding requirements, and prevent state involvement in local drilling rules.
The measure would assess a decreasing fee of $50,000 per well annually, strengthen environmental regulations, and allow for the attorney general's office to review local zoning rules related to natural gas extraction.
The bulk of that fee, which would be assessed over the first 20 years that a well produces natural gas, would be split between the state and local levels, with 55 percent going to counties and municipalities in the Marcellus Shale region and 45 percent to statewide infrastructure projects, environmental programs and other projects related to natural gas production.
"The fee provides the needed revenues for the needed issues associated with impacts," replied Senate President Pro Tem Joe Scarnati, who sponsored the measure, to a push from Democratic lawmakers to hike it higher.
He later added: "We can balance the environment with these jobs, and that's what this bill does."
The state House, which also was embroiled in debate over a drilling oversight measure throughout the afternoon and evening, could approve a measure as soon as Wednesday.
House lawmakers approved an amendment on a vote of 110-85 that would incorporate the zoning standardization approach contained in the Senate bill.
Their shale measure currently mirrors much of what the Corbett administration has proposed for a shale oversight bill, including pre-emption of local rules for gas drilling.
Asked about the Senate zoning approach following a Tuesday afternoon rally, the governor indicated that he still favors complete state control of drilling regulations.
"I'm happy to see that they're moving along," Mr. Corbett told reporters prior to that Senate vote. "I have concerns with [the zoning portion] - I've expressed my concerns."
The governor, however, was generally optimistic about the prospect of both chambers voting on drilling oversight measures: "What it has to do is get everyone sitting down at the table to talk -- but we're finally moving."
First Published November 15, 2011 8:36 pm
