ABC27 WHTM Corbett allows impact fee on natural gas drillers

Corbett allows impact fee on natural gas drillers

Gov. Tom Corbett said he plans to implement key recommendations of the Marcellus Shale Advisory Commission, including a proposal that would allow counties to impose an impact fee on natural gas drillers.

Each well would be subject to a fee of up to $40,000 in the first year, $30,000 in the second year, $20,000 in the third year and $10,000 in the fourth through tenth years.

Corbett said the fee could add up to a potential total of $160,000 per well, generating an estimated $120 million in the first year and climbing to nearly $200 million within six years as the number of wells grows.

Revenue would be split, with 75 percent going to drilling communities for expenses that include construction, repair and maintenance of roads, bridges and other public infrastructure. The remainder would be divided among various state agencies including PennDOT, PEMA, and the departments of Health and Environmental Protection.

Other recommendations of the commission include stricter environmental standards. Drilling would have to occur 500 feet from private water wells, 300 feet from rivers, ponds and other bodies of water, and 1,000 feet from public water systems. Penalties for civil violations would be doubled from $25,000 to $50,000, and daily penalties would go from $1,000 to $2,000 a day.

To reduce dependence on foreign oil, Corbett wants to develop "Green Corridors" for natural gas vehicles with refueling stations at least every 50 miles and within two miles of key highways.

The governor also wants to help schools and mass transit systems convert their fleets to natural gas vehicles, and stabilize electric prices by using natural gas for generating electricity.

Some of the recommendations require legislative changes and will be submitted to the General Assembly in the near future.