"Washington County is set to receive $16.22 million from Marcellus Shale production this year, but that reinvestment doesn't matter to millionaire Secretary Tom Wolf unless it's coming to Harrisburg's coffers where he could use it to placate his liberal, big government allies. Tax-and-spend is a bad habit Tom Wolf can't kick, and he's licking his chops at the thought of millions of more dollars in tax increases to spend on growing government, while taking valuable resources away from counties where drilling occurs." -- Campaign Manager Mike Barley

--IN CASE YOU MISSED IT--

Energy companies pay more in gas well impact fees in 2013

A rebound in the price of natural gas and surging Marcellus shale well development boosted the money that local governments receive from state impact fees energy companies must pay.

The state collected $225.75 million on drilling activity in 2013, up about 11.4 percent from $202.4 million in the prior year, and will distribute nearly $44 million to county and municipal governments in Western Pennsylvania, the Public Utility Commission reported on Monday.

Checks should begin arriving July 1.

“We'll take it; $100,000 is not too shabby,” said Lori Ziencik, manager of Frazer, which will get the most fee money in Allegheny County and intends to spend it to repair roads.

PUC spokeswoman Jennifer Kocher said an increase in the average price of natural gas caused energy companies to pay $5,000 more per new horizontal well drilled than a year ago. Companies drilled 1,187 horizontal wells in 2013, each requiring an annual $50,000 payment. Older wells require a payment based on a sliding scale determined by their age. A smaller fee is applied to vertical wells.

Act 13, the state's natural gas drilling law that established fees in 2012, limits how municipalities can spend the money. The 13 categories include road maintenance, water and sewer line improvements, environmental programs and tax reductions.

Forward, where drilling activity accelerated last year, will get the biggest increase in Allegheny County. The township's fee revenue jumped from $978 last year to $54,621 this year. Township officials did not return calls for comment.

Washington County, where drilling activity in the region is concentrated, and its municipalities will receive the most this year: a combined $16.22 million. Amwell is set to receive $609,545, the second-highest municipal total in the state.

Butler County municipalities will receive more than $1 million more than last year. Clinton is set to get $90,188, a more than threefold increase from last year's $28,581.

“Without that fee, we would only have the money to throw Band-Aids on our roads,” said Jim Halstead, roadmaster and township supervisor.

Diane Sipe, head of Marcellus Outreach Butler, which has objected to recent drilling developments, said the impact fees do not cover the true cost of shale development. She worries that drilling irreparably damages the environment.

“Money isn't everything,” Sipe said. “Getting some money does not trump that the air is being potentially polluted.”

The fees are meant to offset potential costs caused by the natural gas industry. For example, heavy trucks laden with hydrofracturing fluid travel to and from drilling sites, wearing down municipal roads. Police and fire departments, on occasion, must respond to drill sites for emergencies.

“At least this is some kind of payment for the residents who have endured these gas drilling projects,” said Washington Township Supervisor Rich Gardner. The municipality will get $310,372, the highest in the Alle-Kiski Valley and a 17 percent bump over last year.

Sewickley Township in Westmoreland County used some fee money to buy defibrillators — a $35,000 bill — but plans to spend part of this year's $255,788 allotment on roads damaged by the harsh winter.

“We haven't come up with a firm commitment on how to spend it yet, but we have some ideas,” said Vice Chair Wanda Layman.

Read the article online HERE.

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