Marcellus Shale Impact Fees Announced

Monday October 22, 2012

State Rep. Matt Baker (R-Bradford/Tioga), one of the prime debaters and supporters of the new law generating revenue from natural gas extraction from the Marcellus and Utica shales, today stood with Gov. Tom Corbett for the official announcement of money coming back to local governments as a result of the fees established by Act 13 of 2012.

"Tioga and Bradford counties are among the top counties to host natural gas wells and are, therefore, impacted greatly by the industry. By supporting the industry with an eye toward responsible growth and management, we have been able to benefit from gaining additional revenue for our local and county governments, increase the number and quality of jobs in the area and lower energy rates,” said Baker.

“The great news is that the state has certified the impact fee revenue numbers early and will be sending checks to local governments and counties within the next 10 days,” continued Baker. “The original deadline for receipt of payments was Dec. 1.”

A total of $204 million in impact revenue was collected from 58 drilling companies operating in Pennsylvania. This is more than $20 million more than original estimates for collection in the first year of the newly implemented law.

Under the impact fee distribution formula, 60 percent the money collected will go to counties and municipalities impacted by drilling and 40 percent will go back to the Commonwealth.

According to the figures provided Bradford County will receive a total of $8,428,631.63 and Tioga County will receive $4,792,620.24. Bradford County municipalities in the 68th District will receive a total of $4,674,267 and Tioga County municipalities will receive a total of $7,346,265

Counties and municipalities have the option to use funds to address a variety of drilling impacts, including preservation and reclamation of water supplies; improvements to local roads and bridges; construction and repair of water and sewer systems; delivery of social services including domestic relations and drug and alcohol treatment; local tax reduction; local affordable housing needs; and assistance for county conservation districts.

“Thanks to the establishment and growth of the natural gas industry, areas I represent in the Northern Tier have gone from economically depressed to booming, job-rich regions that are helping to stimulate the economy on a statewide level,” said Baker. “However, through passage of Act 13, we have also been able to manage the growing natural gas industry more responsibly with strong oversight and regulations.”

The Commonwealth’s share will be used for emergency response planning, training and other activities; water, storm water, and sewer system construction and repair; infrastructure maintenance and repair; as well as statewide environmental initiatives.

Under the law, impact fees are imposed on the extraction of natural gas and fluctuate depending on the price of natural gas and the rate of inflation.

The following is the amount of impact fee revenue coming back to municipalities in this area:
Alba Borough - $9,556.06
Armenia Township - $500,000
Canton Borough - $111,839.56
Canton Township - $454,730.15
Columbia Township - $500,000
Granville Township - $400,442.61
LeRoy Township - $168,616.22
Ridgebury Twp: - $321,045.55
Smithfield Twp. - $456,772.18
South Creek Twp. - $139,503.82
Springfield Twp. - $411,216.85
Sylvania Borough - $12,753.04
Troy Borough - $79,922.34
Troy Township - $500,000
Wells Township - $500,000
W. Burlington Twp. - $276,486.10
Tioga County
Union Township - $441,954.50
Ward Township - $500,000
Lycoming County
McIntyre Twp. - $118,741.69
McNett Township - $76,665.24

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