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The gas impact fee: Flawed formula, but correct approach

September 14, 2012
Williamsport Sun-Gazette

In all, $200 million.

That's how much has been raised by Pennsylvania's new impact fee on gas drillers.

That sounds like a lot of money.

But let's break it down.

The state gets $25 million off the top. Then 37 counties get to split 60 percent of the $175 million left over, with state agencies getting the rest to deal with drilling impacts.

As we said when the legislation was first passed, the counties should be getting a higher percentage.

But there's nothing that can be done about that, so we are left with the formula that's in place.

Under that formula, Bradford County, the most heavily drilled county in Pennsylvania, expects to receive between $6 million and $9 million from the fee.

So Lycoming County, another county among the most heavily drilled, will likely receive something less than that to divide among municipalties, probably around Dec. 1.

The money can be used to fix roads, bridges and other infrastructure, provide affordable housing, preserve open space and buy equipment for first responders, among other expenses.

Every penny the county receives needs to be well-spent.

The Lycoming County Commissioners have received two studies on the impact of drilling in the county's municipalities.

The studies, which may be the first of their kind in the state, focus on housing, water and sewer infrastructure.

Importantly, the studies define conditions as they were prior to the development of Marcellus Shale.

The formula for dividing the gas impact fee revenues may not be the best, in our view. And the dollars coming back to the communities may not be as much as they need

But the county's approach at least seems correct.

 
 

 

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