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PUC Seeks Comment On Implementation Of Drilling Impact Fee Provisions
The Public Utility Commission Thursday issued for comment a Tentative Order on various aspects of the implementation of Act 13 of 2012, which authorizes the state’s counties to adopt an impact fee related to unconventional natural gas well drilling.
           “Today’s Order represents an important first step in implementing the Commission’s duties under the act,” said Commissioner Pamela Witmer. “I look forward to working with all of the stakeholders in a transparent manner to ensure that the implementation goes smoothly.”
            The Commission voted 5-0 to receive comments on key portions of the Act that the PUC is required to administer including the procedures the PUC will use to implement, collect and distribute the impact fee as directed by the law. The Order also seeks comments on the procedures the PUC will use to evaluate local government ordinances regulating gas and oil operations.
            The Tentative Implementation Order contains information on the: Implementation plans; Producer report; Advisory opinion request form; Request for review form; Municipal budget report; and Impact fee disbursement report.
            On February 14, 2012, Gov. Corbett signed into law Act 13 of 2012, the Unconventional Gas Well Impact Fee Act, which amended Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes.
            The PUC is responsible for implementing the provisions contained in Chapters 23 and 33 of the Act. Chapter 23 provides for the imposition, collection and distribution of an unconventional gas well fee (also called a drilling impact fee). Chapter 33 governs local ordinances that impose conditions, requirements or limitations on oil or gas operations. The PUC has created a page on its website for Act 13 information.
            Interested parties have 20 days from the entry of the Tentative Order to comment on these issues. Specific instructions on how to officially file comments with the PUC can be found in the Order. A Final Implementation Order will be based on these comments.

            So far, seven counties have filed their intent with the PUC to adopt a drilling fee: Butler (109 wells), Forest (6 wells), Lawrence (2 wells), Lycoming (473 wells), Perry (0 wells), Washington (560 wells) and Westmoreland (191 wells) counties.
            4,344 of the 4,982 producing Marcellus Shale wells in Pennsylvania are in just 11 counties: Bradford-1,008, Tioga-693, Washington-560, Lycoming- 473, Susquehanna-462, Greene-415, Westmoreland-191, Fayette-185, Clearfield-136, Armstrong-112 and Butler-109.

            For 2012, counties have until April 16 to adopt a drilling fee ordinance.
            For more information, visit the PUC's Act 13 Drilling Fee and Drilling Fee Public Documents webpages.

            NewsClips: Drillers Answer Impact Fee Questions In Bradford

                                Drilling Impact Fee Up For Consideration In Fayette
                                Butler County Intends To Collect Millions In Drilling Fees
                                Luzerne Eyes Public Input On Gas Impact Fee
                                Somerset To Seek Payment For Marcellus Wells
                                Most Natural Gas Drilling In 11 Counties
                                Union Calls For Funding From Taxes, Drilling
                                Agencies Outline Plans For Drilling Fee Revenue
                                Webinars March 22 To Examine Impact Fee
                                Zoning, Impact Fees Concern Fayette Residents
                                Corbett's Energy Executive Defends Impact Fee

3/19/2012

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