House Bill Would Enact 1 Percent Impact Fee

The Pennsylvania House Finance Committee approved a bill today that would enact a 1-percent impact fee on Marcellus Shale drilling in exchange for an end to municipal involvement.

Pennsylvania Budget and Policy Center Director Sharon Ward issued the following statement:

“Citizens and local officials are being steamrolled by lawmakers in Harrisburg who are giving in to industry demands for an end to local zoning authority over gas drilling in exchange for a tiny drilling fee.  

“House Bill 1950 strips authority from cities, boroughs and towns to regulate local gas drilling activity—a right protected by state law and upheld by the state Supreme Court. Property owners across the Commonwealth stand to be affected. Towns with active gas drilling will find their carefully considered zoning laws eviscerated, while property owners hundreds of miles from active drilling sites could find a pipeline running through their subdivision or a compressor station next to their playground, with no recourse.  

“This loss of local control comes at a bargain basement price—a 1-percent token impact fee on gas drilling. Drillers in Texas will pay five times as much in drilling taxes over the life of a comparable deep well as they will in the Marcellus Shale.

“Instead of bargaining hard on behalf of Pennsylvanians, House lawmakers are giving drillers a free pass at the expense of our environment, communities, children and families.”

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