Scarnati: Environmentalists Should be
Supportive of Impact Fee Proposal
By ANNE HOLLIDAY
WESB/WBRR News Director
Senator Joe Scarnati introduced his plan for a Marcellus Shale drillers impact fee this morning, and one of the components of the plan addresses environmental concerns.
"Those that have been clamoring for this – for a severance tax or an impact fee on the issue of the environment should be very supportive (because) of the fact that we are putting dollars into real cleanup programs,” he said.
A portion of the fee would go toward cleanup projects distributed through the Commonwealth Financing Authority; water and sewer infrastructure; impacted state highway improvements; and hazardous site cleanup.
The proposal would assess a base fee of $10,000 per well. That figure would rise based on production and natural gas prices. The Public Utility Commission would collect the revenue and, besides the statewide environmental and infrastructure projects, it would go to local governments and conservation districts.
Scarnati said municipalities near drilling sites are feeling a huge impact.
"It's a true impact to not only the township, the municipality where this drilling is taking place but also those that are impacted in the contiguous municipalities," he said.
"There's a lot of different variations or scenarios you could put together for the City of Bradford," he told WESB and The HERO Thursday afternoon.
Scarnati said he spoke with members of the County Commissioners Association of Pennsylvania and Pennsylvania State Association of Township Supervisors before formulating the plan.
“I spent a lot of time especially talking with the commissioners in Tioga County, where it’s almost like Ground Zero for drilling, and received a lot of good input from them,” he told WESB and The HERO. “But we worked close with the statewide associations to get, what I like to say is, an even view of everything.”
The Pennsylvania Environmental Council commended Scarnati’s efforts.
“It is time for Pennsylvania to adopt a reasonable severance tax or impact fee on the natural gas industry. It does not matter what you call it, but we need new revenues from the industry to pay for the prevention and mitigation of impacts created by drilling,” said council president Paul King.
The president of the Marcellus Shale Coalition said in a news release that drillers are open to an impact fee that provides money for municipalities as long as it’s "clear, straightforward and competitive.”
Kathryn Klaber added, "Our industry understands that, while there are tremendous financial opportunities in Marcellus Shale development, there also can be impacts felt by our host communities.”
When asked if Governor Tom Corbett has approved his proposal Scarnati said, "I have a caution light. … I don't have a red light; I don't have a green light."
Corbett opposes a severance tax, but has said he will consider an impact fee.
Scarnati said he hopes to introduce the bill soon and, hopes it will be passed into law by June.
"I have a lot of work in front of to me get this brought home," he said, "but it's my intent to get this to the governor's desk and fashion it so that he can sign it."
You can see specifics of the plan here. (PDF)
WESB/WBRR News Director
Senator Joe Scarnati introduced his plan for a Marcellus Shale drillers impact fee this morning, and one of the components of the plan addresses environmental concerns.
"Those that have been clamoring for this – for a severance tax or an impact fee on the issue of the environment should be very supportive (because) of the fact that we are putting dollars into real cleanup programs,” he said.
A portion of the fee would go toward cleanup projects distributed through the Commonwealth Financing Authority; water and sewer infrastructure; impacted state highway improvements; and hazardous site cleanup.
The proposal would assess a base fee of $10,000 per well. That figure would rise based on production and natural gas prices. The Public Utility Commission would collect the revenue and, besides the statewide environmental and infrastructure projects, it would go to local governments and conservation districts.
Scarnati said municipalities near drilling sites are feeling a huge impact.
"It's a true impact to not only the township, the municipality where this drilling is taking place but also those that are impacted in the contiguous municipalities," he said.
"There's a lot of different variations or scenarios you could put together for the City of Bradford," he told WESB and The HERO Thursday afternoon.
Scarnati said he spoke with members of the County Commissioners Association of Pennsylvania and Pennsylvania State Association of Township Supervisors before formulating the plan.
“I spent a lot of time especially talking with the commissioners in Tioga County, where it’s almost like Ground Zero for drilling, and received a lot of good input from them,” he told WESB and The HERO. “But we worked close with the statewide associations to get, what I like to say is, an even view of everything.”
The Pennsylvania Environmental Council commended Scarnati’s efforts.
“It is time for Pennsylvania to adopt a reasonable severance tax or impact fee on the natural gas industry. It does not matter what you call it, but we need new revenues from the industry to pay for the prevention and mitigation of impacts created by drilling,” said council president Paul King.
The president of the Marcellus Shale Coalition said in a news release that drillers are open to an impact fee that provides money for municipalities as long as it’s "clear, straightforward and competitive.”
Kathryn Klaber added, "Our industry understands that, while there are tremendous financial opportunities in Marcellus Shale development, there also can be impacts felt by our host communities.”
When asked if Governor Tom Corbett has approved his proposal Scarnati said, "I have a caution light. … I don't have a red light; I don't have a green light."
Corbett opposes a severance tax, but has said he will consider an impact fee.
Scarnati said he hopes to introduce the bill soon and, hopes it will be passed into law by June.
"I have a lot of work in front of to me get this brought home," he said, "but it's my intent to get this to the governor's desk and fashion it so that he can sign it."
You can see specifics of the plan here. (PDF)
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