Gov. Corbett’s List of New Rule Changes for Shale Drilling

Gov Tom CorbettYesterday, Pennsylvania Gov. Tom Corbett unveiled his plans to implement many of the 96 recommendations made by his Marcellus Shale Advisory Commission (see this MDN story for the original list of recommendations). The list is impressive, tightening many loopholes and hiking fees and fines. The governor’s press release outlining all of his proposed plans is embedded below.

All eyes were on a potential “impact fee” to help local municipalities cover costs of road repairs, increased costs for emergency services and other costs that come with an increase in population. Corbett announced he is in favor of an impact fee assessed by the county where the well is drilled. Each well will be subject to a fee of up to $40,000 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, adding up to a potential total of $160,000 per well. The way that revenue is split is lengthy and complicated, but essentially 3/4 of the money stays at the local level.

About one-third of the recommendations by the Advisory Commission will require legislative action. The rest are policy-oriented and can be implemented by state agencies as directed by the governor’s office.

  • Anonymous

    Interesting approach to avoid new “Taxes”.  I hope that this develops into a more robust structure that assists PaDep in more efficinetly anylizing and issuing permits so they can spend more time monitoring and helping companies drill, construct, and operate in a safe and responsible manner.

  •  Chump change… The cost to repair roads alone will go into the millions…The Back Roads of NEPA were made for light Traffic and the few heavy trucks every now and again.. Nothing on the scale they are about to get.. The Bridges Can’t take the weight as it is and for less than 200,000 over 5 yrs per well… What if one Community doesn’t get any wells,but another further down the road does,Yet they pass thru to get to the other community..  Corbet Sold Us Out!!! For millions in donations and he can set the standards for the fines too.. Can you say slap on the wrist…
     Just tax them like every other state does and send the money to affected counties without dipping into it for other projects… Just leave the landowner out of the Tax mess.. They have enough to deal with in making sure they get what they deserve from gas companies.. You need 12 lawyers to make sure…