Drilling impact fee plan draws concern
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HARRISBURG -- Those anxious to see which drilling impact fee could draw a consensus of state House Republican support may get their answer next week, when a proposal will be introduced that nearly mirrors the fee proposed by Gov. Tom Corbett.
Environmental advocates were quick to voice concerns with one key way in which that new plan differs from the Corbett administration's proposal. The legislation aims to use royalty dollars coming in from gas wells on state-owned land to continue to fund Growing Greener and several other environmental initiatives.
While those advocates are urging careful consideration before spending any royalty dollars, the measure, from Rep. Brian Ellis, R-Butler, appears to be on the fast track for a committee vote as soon as Wednesday.
"I anticipated that there will be swift action," Mr. Ellis said in an interview.
Quick approval of a House-drafted impact fee would set up a battle between the two legislative chambers over whose Marcellus Shale legislation should move to the governor's desk, with the Senate also poised to approve a drilling fee next week.
The House GOP bill sticks to the proposed rate from the governor's plan: a $40,000 initial per-well payment, which would decrease annually to $10,000 in years four through 10 that a well is in production. It also would be county-assessed, with a distribution formula that is similar to the administration's plan.
The Senate bill previously would have cost drillers that same annual price. However, a bipartisan group of senators is expected to work through the weekend on a revised rate, to be amended into their measure on Monday.
Two changes in the House bill would take the dollars that the governor earmarked for the Department of Health to investigate complaints and do health-care outreach, and instead boost the share for the Department of Environmental Protection. Local governments also would be able to use their share to decrease local tax rates.
Also unlike Mr. Corbett's proposal, the Ellis plan would use royalty dollars coming into the state's Oil and Gas Lease Fund to assist county conservation districts, continue to fund the Growing Greener environmental initiative, as well as provide dollars to communities within the state forests, where there are wells on state-owned land.
The Hazardous Sites Cleanup Fund also would receive a portion of those dollars in 2014.
First Published October 29, 2011 12:00 am
