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Pickett: Impact Fees Result in $32.6 Million for Local Counties
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10/16/2012 9:58:00 AM
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HARRISBURG – More than $32.6 million in impact fee revenue will be returning to Bradford, Sullivan and Susquehanna counties and municipalities from payments made by drilling companies within the Marcellus Shale formation, said Rep. Tina Pickett (R-Bradford/Sullivan/Susquehanna).
The total distributions to Pennsylvania counties and affected municipalities were publicly announced today by Gov. Tom Corbett at a Capitol press conference Pickett attended. So far, the Commonwealth has collected $197.6 million in impact fee revenue, and officials expect the amount to climb to $205 million by the end of the calendar year. The totals exceed the initial projections of $180 million. The fees are paid by drilling companies and are not charged back to landowner royalty payments.
“The revenue generated by this impact fee will give financial relief to the counties and municipalities within the Marcellus Shale region to deal directly with the effects of drilling in their areas,” Pickett said. “In our region, our roads and bridges have taken the heaviest toll, and although some of the drilling companies have made repairs to the roadways damaged by frequent truck traffic and heavy equipment, there is still more work to be done. This funding is specifically designed to deal directly with these impacts and to help address other community needs.”
The following impact fee revenue amounts were announced for the three counties and their eligible municipalities:
• Bradford -- $8.43 million to the county, and a total of $13.4 million for municipalities
• Sullivan -- $386,850 to the county, and a total of $643,280 for municipalities.
• Susquehanna -- $3.94 million to the county, and a total of $5.82 million for municipalities.
The breakdown of impact fee revenue by municipality in the 110th District can be viewed here.
The revenue stems from Act 13 of 2012, which authorized counties to impose a fee on each active well within the Marcellus Shale formation. That revenue, which is collected by the Pennsylvania Public Utility Commission (PUC), is being split between the communities hosting wells and the Commonwealth for a variety of infrastructure and environmental programs.
After state allocations are made, 60 percent of the remaining proceeds will be distributed to qualifying counties and municipalities for local roads and bridges, water and sewer system construction and/or repair, emergency response for training, equipment and/or recruitment, preservation of water supplies, projects aimed at increasing the availability of affordable housing, county conservation districts, delivery of social services, local planning, local tax reduction, and training for local workers to obtain jobs in the oil and gas industry.
Pickett noted that in an effort to help deal with significant housing shortages in Marcellus communities, half of the revenue directed to the Pennsylvania Housing Finance Agency must stay in fifth through eighth-class counties, including Bradford, Sullivan and Susquehanna counties.
At the state level, the impact fee revenue is directed to conservation districts; the Department of Environmental Protection (DEP) for administration of the act and enforcement of clean air and water statutes; the Pennsylvania Emergency Management Agency (PEMA) for emergency response planning, training and coordination related to natural gas production from unconventional wells; and to the Office of the State Fire Commissioner for the development, delivery and sustainment of training and grant programs for first responders.
“It is important that much of the impact fee at the state level be used to help enforce the strict environmental provisions included in the law and to continue protecting our valuable natural resources,” Pickett said. “Although this impact fee revenue is important, even more valuable to our Commonwealth are the thousands of family-sustaining-wage jobs that are employing our residents and bringing needed economic activity into our region.”
To help encourage the use of natural gas for environmental initiatives, a small portion of the fee will be used to help transition traditional fuel-powered vehicles to clean natural gas, thereby helping to reduce air emissions and help grow this innovative industry.
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