McKean and Cameron counties are the only counties across the region to receive increases this year in impact fees collected from natural gas producers.
On Thursday, the Pennsylvania Public Utility Commission announced that, overall, $173,258,900 will be distributed to counties and municipalities throughout Pennsylvania. That’s about $14.5 million less than last year, thanks to the continued reduction in the price of natural gas and the increasing age of many wells, officials said.
“Pennsylvania’s unique tax on natural gas — called the impact fee — continues to be a policy solution that’s working as designed, directly benefitting communities in all 67 counties throughout the Commonwealth,” Marcellus Shale Coalition president David Spigelmyer said. “Since 2011, Pennsylvania’s impact fee — which currently equates to a 9.16 percent effective natural gas tax — has generated more than $1.2 billion in revenue supporting community programs, local infrastructure projects, as well as statewide environmental and conservation initiatives.”
For McKean County, the county government is expected to receive $409,144.42 and a separate amount, totalling $673,236.51, will be given to municipalities. The 2015 amount totalled $400,677.96 for the county and $652,705.44 for municipalities.
From 2011 to 2016, the county has received $2,381,469.15 and $4,195,975.69 for municipalities.
Potter County will see $251,436.64 for the county and $402,553.50 for municipalities, and for 2015, the distribution was $215,208.72 for the county and $338,148.20 for the municipalities.
In Elk County, the county will see $458,352.88 and municipalities, $770,404.85; last year that amount ended up being $462,922.40 for the county and $778,528.48 for the municipalities.
Meanwhile, for Cameron County, the county government will be the recipient of $220,204 and municipalities, $347,029.22. For the 2015’s distribution, the county received $263,866.76 and municipalities, $424,651.85.
All told, county and municipal governments directly impacted by drilling will receive a total of $93,128,340 for the 2016 disbursement year. In addition, $62,085,600 will be placed into the Marcellus Legacy Fund, which provides financial support for environmental, highway, water and sewer projects, rehabilitation of greenways and other projects throughout the state. Also, $18 million will be distributed to state agencies.
“This unique natural gas impact tax empowers county and municipal leaders by keeping revenues local for community projects,” Spigelmyer said.
During the past six years, the PUC has collected and distributed more than $1.2 billion. This year’s checks should be distributed in early July.
The PUC is tasked with implementing the imposition, collection and distribution of an unconventional gas well fee established by the Unconventional Gas Well Impact Fee Act, signed into law as Act 13 of 2012.
For more information on the impact fee, see https://www.act13-reporting.puc.pa.gov.
