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Local municipalities receive over $10M in impact fees

Lycoming County and local municipalities will receive over $10 million from Marcellus Shale Impact Fees according to an announcement from Sen. Gene Yaw, R-Loyalsock Township.

Statewide approximately $234 million was distributed in the most recent round of funding based on natural gas production in 2021. Of that, over $48 million will be sent back to Bradford, Lycoming, Sullivan, Susquehanna and Union Counties and municipal governments, information from Yaw’s office stated.

The impact fee is assessed on natural gas companies in addition to regular business taxes paid by corporations in the state. The disbursement of funds is based on a formula established in Act 13 of 2012 which ensures communities that are affected by natural gas drilling receive their fair share of the funding for projects such as road and bridge repairs, housing and other infrastructure projects. Since 2011, Lycoming County has received nearly $43 million and municipalities in the county almost $65 million, from the impact fees.

“The Impact Fee not only funds critical projects locally, but also a wide variety of important environmental projects in communities throughout the state,” said Yaw, who serves as Chair of the Senate Environmental Resources and Energy Committee.

“The natural gas industry has been a great partner in creating new jobs and opportunities in our communities, and today’s announcement is another reminder of the importance of this industry in Pennsylvania,” he said.

In Lycoming County, the monies have helped to fund the MuncyCreek Streambank Restoration and Protection Project and the Basin Street/Susquehanna Riverwalk Connection, the news release stated.

Disbursements announced by the Public Utility Commission Friday include:

• Lycoming-County Distribution: $3,988,256.26, up from $2,336,241.94 in 2020; $42,867,781 received by the County since 2011.

• Municipal Distribution: $6,210,203.8; $64,899,809 received by Lycoming County municipalities since 2011.

• Bradford-County Distribution: $5,872,470.61, up from $3,396,291.30 in 2020; $63,823,945 received by the County since 2011.

• Municipal Distribution: $10,283,449.07, $108,829,387 received by Bradford County municipalities since 2011.

• Sullivan-County Distribution: $638,293.52, up from $348,917.26 in 2020; $5,646,390 received by the County since 2011.

• Municipal Distribution: $1,090,299.32, $9,549,135 received by Sullivan County municipalities since 2011.

• Susquehanna-County Distribution: $7,241,245.26, up from $4,048,393.43 in 2020; $60,023,730 received by the County since 2011.

• Municipal Distribution: $12,700,058.56, $99,222,148 received by Susquehanna County municipalities since 2011.

• Union-County Distribution: $44,423.85, up from $26,321.86 in 2020; $427,117.85 received by the County since 2011. There is no municipal share for Union County.

Pennsylvania is the nation’s second largest natural gas producer behind Texas. Since 2011, the impact fee has generated more than $2.3 billion in tax revenue to support county and local governments, including over $450 million in Yaw’s district.

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