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Governor Corbett Proposes New Plans for Marcellus Shale Fees

On October 3rd, Governor Tom Corbett announced his plans to implement numerous recommendations of the Marcellus Shale Advisory Commission, including changes to enhance environmental standards, an impact fee, and a plan to help move Pennsylvania toward energy independence.  

This long-awaited plan will include an annual impact fee for each well drilled.   The impact fee will be administered by each county and the majority of the fee (75%) will be used at the local/county level to aid in response to issues that arise as a result of Marcellus Shale gas drilling.  The impact fee could be up to $40,000 per well 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 under this proposal.   After the tenth year, the impact fee would no longer be applicable under this proposal. 

"Estimates show that this impact fee will bring in about $120 million in the first year, climbing to nearly $200 million within six years," Corbett said.  "As the number of wells grows, so will the revenue.   Almost all of the money it brings in will go to benefit the places experiencing the impact."

Corbett is also proposing a series of prudent environmental standards related to increasing the well setback distance from private water wells and streams, rivers and other bodies of water, increasing blanket well bonds.  In addition, his plan includes doubling the civil penalties and daily penalties if these environmental standards are violated.  

Corbett's proposal seeks to help secure energy independence and reduce reliance on foreign oil by developing "Green Corridors" for natural gas vehicles with refueling stations every 50 files and within two miles of key highways.   It also includes helping schools and mass transit systems to convert fleets to natural gas vehicles and encourages the use of natural gas electricity.

The implementation plans for this proposal is expected to be developed within the next 30 days.  

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