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Marcellus impact fee proposal in the works but Governor Corbett insists there will be no gas tax

March 31, 2011

“Republican senators will introduce legislation to impose a fee on Marcellus shale drillers in a few weeks, in an effort to offset costs municipalities experience dealing with the growing natural gas industry.”

This is the very least that should occur and it will be very interesting to see if the Senate introduces legislation prior to or waits for the Corbett appointed panel which has strong industry ties and which will soon release it’s recommendations.

“It’s not clear whether the full Senate would vote on a bill before the commission concludes its work.  Chief counsel to Senate President Pro Tempore Joe Scarnati, Andrew Crompton said senators do not want to usurp the commission, but Scarnati senses urgency among local government officials and doesn’t want to wait until fall to address it.”

“Lt. Gov. Jim Cawley said yesterday a shale advisory panel he chairs will report to Gov. Tom Corbett in 120 days and include a recommendation on assessing a local impact fee to help municipalities defray costs such as road repairs and first responder units.”

The Philadelphia Inquirer is reporting that “from July 2009 to December 2010, drillers reported, 1,247 Marcellus Shale wells produced 466 billion cubic feet of gas. At today’s prices, a 5 percent tax – akin to West Virginia’s – would have collected $93 million in that period.  On top of that, nearly 1,500 additional wells are not yet in production, and tens of thousands more are projected.”  Even so, Governor Corbett is maintaining his stance against a Marcellus tax in Pennsylvania.

Corbett maintains hard line on no Marcellus Shale tax


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