Counties and municipalities across the region will receive hundreds to hundreds of thousands of dollars as part of fees paid by natural gas producers.
On Thursday, the Pennsylvania Public Utility Commission announced the distribution of $209,557,300 statewide. Broken down, Elk County has been earmarked to get $607,128.76; McKean County, $487,368.05; Potter County, $359,070.33; and Cameron County, $233,793.96.
Sixty percent of that amount goes toward the counties. A total of 40 percent is put into Marcellus Legacy Fund, which provides funding for environmental, highway, water and sewer projects, rehabilitation of greenways and other projects across Pennsylvania.
McKean County Commissioner Cliff Lane said the funding has benefitted general fund items, such as Children and Youth Services, Human Services and capital projects.
“This has helped us balance our budget,” he said.
In Potter County, Commissioner Paul Heimel said he is anticipating county officials will keep using a conservative distribution method.
“Ever since the impact fee structure was put in place, our board has been using the revenue to reduce the burden on local taxpayers when it comes to capital projects or unexpected expenditures that sometimes arise outside of the scope of our annual operating budget,” he said.
Meanwhile, municipalities across the region have been earmarked money, including $508,530.76 in Jones Township, Elk County; $49,686.97, Bradford, McKean County; $86,959.05, Sweden Township, Potter County; and $271,649.54, Shippen Township, Cameron County, according to the PUC.
Checks by state Department of Treasury are expected to be sent out in early July.
For the 2017 reporting year, county and municipal governments directly impacted by drilling will receive a total of $114,784,380
What’s more, $76,522,900 will be put into the Marcellus Legacy Fund, and $18.25 million will be distributed to state agencies.
State Rep. Clint Owlett, R-Wellsboro, whose jurisdiction includes a sliver of Potter County, said that Pennsylvania collected more than the drilling tax brought in by the states of West Virginia, Ohio, Arkansas and Colorado.
He said the natural gas industry has been a huge boon for the economy in the Northern Tier.
Marcellus Shale Coalition president David Spigelmyer also shared his thoughts on the impact fee distribution announcement.
“Pennsylvania’s impact fee — a special drilling tax that is paid on top of all other business taxes assessed in the Commonwealth — is working as designed by enabling local governments to direct how the revenues are utilized,” he said. “The tax revenues collected from the natural gas industry support local bridge, road and other critical infrastructure improvements, as well as community parks, first-responders, soil and water conservation districts, environmental projects and housing initiatives.”
