ABC27 WHTM Pa. House approves impact fee on natural gas drillers

Pa. House approves impact fee on natural gas drillers

Pennsylvania was the largest natural gas producing state that did not impose an impact fee on drillers, but the state Legislature on Wednesday - after four years of talking about it - finally got it done.

It took some arm twisting, and even after it passed there's still debate about whether it's a fee or a tax.

The debate was controversial and contentious and it took House Republicans several hours over two days to finally secure the votes.

Cumberland County's Stephen Bloom was pressured by GOP leaders to vote 'yes,' but chose not to go along with the majority of his party.

"It's obvious that this is important to them, but this is a case where I'm gonna have to buck leadership," Bloom told abc27 News.

Bloom said it's not a fee but a tax, and he's pledged not to raise taxes. Gov. Tom Corbett took the same pledge and he's on board.

"The governor doesn't have to look my kids in the eye at night when I go home," Bloom said. "I believe it would be a tax and I'm not gonna vote for a tax."

Local governments would decide whether to impose the fee on their wells. The state Public Utility Commission would collect the money and distribute 55 percent to local communities and 45 percent to environmental funds.

Rep. Ron Miller, R-York, is in favor.

"There will be more money for the environmental stewardship fund and other environmental programs where we can address many of our storm water issues," Miller said.

Environmentalists say the fee is too low, much lower than other states, and is a sweetheart deal for gas drillers.

"Most of the critics who say it's not enough frankly want to get the drilling companies out of Pennsylvania," said Rep. Rob Kauffman, R-Franklin/Cumberland. "They want to stop all drilling."

It was an surprisingly tough sell for Republicans, who have a huge majority in the House. Ultimately, the measure passed by a vote of 101-90.

"All the stakeholders have something they're not happy about. If a lot of people aren't happy, it's probably a good bill," Rep. Seth Grove, R-York, said.

Pennsylvania will collect fees from drillers retroactively and is expected to receive an estimated $30 million for 2010 and $94 million for 2011.