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Pennsylvania Counties to Receive Drilling Revenues

BY: | Pennsylvania | June 7, 2012



Impact fees on Marcellus Shale drilling in Pennsylvania are expected to be contributed to state, county and municipal governments by the end of this year, according to the Pittsburg Post-Gazette.

Money from the drilling is coming during a financially turbulent time in Pennsylvania, with Gov. Tom Corbett proposing to instate a 20 percent budget cut in human services to counties. Many county officials are saying that the impact fee is no longer as big a deal as it seemed a year ago in the discussion stages, but with counties scrambling to compensate for the budget cuts in human services, it could be a significant amount of money, according to the paper.

Although the counties have not yet received the money, some officials are trying to decide whether to use it for shale-related projects or to partially remedy the cuts to funding for services such as mental health/retardation, children and youth, senior transportation, and drug and alcohol rehabilitation programs. The fees will continue to be paid on a descending scale for 10 years and are based on the price of natural gas and the number of shale wells drilled. This year, the fees are projected to be $50,000 for each of the 4,095 horizontal wells and $10,000 for the 206 vertical wells according to the Gazette.


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