HARRISBURG, Pa. - Pennsylvania House Republicans on Wednesday voted a measure out of committee that would impose a local impact fee on natural gas drilling and establish new state regulations on the growing industry.
The 127-page bill, approved in the Finance Committee along party lines, was patterned closely on an approach favored by Republican Gov. Tom Corbett. It also would fund environmental programs.
Committee Chairman Kerry Benninghoff, (R., Centre), said the bill was "a collection of what can be passed in both chambers," as the Senate is considering a separate bill. Benninghoff said he expected a vote by the full House before Christmas.
The proposed impact fee language would allow counties to impose and collect 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 years four through 10. The bill would establish regulations that pre-empt local zoning rules.
Rep. Phyllis Mundy of Luzerne County, the committee's ranking Democrat, called the bill "extremely weak" and said the fee would translate to about 1 percent over the 50-year life of a well, or about $160,000 for a well that produces some $16 million.
"We're calling this the Drill Baby, Drill Bill," Mundy said.
Corbett issued a statement expressing his pleasure at the legislative action.
"This bill contains many of the provisions contained in our proposal, and I am pleased to see the Legislature working toward a final bill," he said.
A quarter of the revenue would go to the state, split among the Pennsylvania Emergency Management Agency, the Office of State Fire Commissioner, the Health Department, the Department of Environmental Protection and the Transportation Department.
The other 75 percent would be retained locally: 37 percent to host municipalities, 36 percent to the county and 27 percent to all municipalities in the county under a formula that takes into account population and highway miles.
