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Shale Impact Fee
Governor Corbett’s Marcellus Shale proposal authorizes counties to adopt a reasonable shale impact fee for use by counties, municipalities and state agencies affected by natural gas development.
Fee Amount
The counties may impose a Shale Impact Fee upon passage of an ordinance. This fee is limited to unconventional wells (Marcellus, Utica and other shale resources), and Highest fee shall be imposed in Year 1; reduced annual fees in subsequent years. See table below.
| Year Fee Imposed |
Amount of Fee Per Well |
| Year 1 |
$40,000 |
| Year 2 |
$30,000 |
| Year 3 |
$20,000 |
| Year 4-10 |
$10,000 |
No fee shall be assessed if well production drops below 90 MCF/day. The operators shall remit fee to county by March 1 st of each year, to be retained in a restricted account and allocated according to law. A county may provide for a fee credit of up to 30% for approved investments in natural gas use infrastructure (i.e. natural gas fueling infrastructure or public transit vehicles)
Fee Allocation
Twenty five percent of the revenue will be given to the state and seventy five percent shall be retained at the local level.
State Revenue Breakdown
The Commonwealth of Pennsylvania will distribute the revenue from the pact fee as follows:
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4.5% to PEMA for emergency response planning, training and coordination and other emergency response activities associated with shale development. (Cap at $2 million)
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3.75% to Office of State Fire Commissioner for development, delivery and sustainment of training programs for first responders and acquisition of specialized equipment necessary for emergency response. (Cap at $2 million)
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3.75% to Dept. of Health for collecting and disseminating information, preparing and conducting health care and citizen provider outreach and education, investigating health complaints and other activities associated with shale development. (Cap at $2 million)
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7.5% to the Public Utility Commission for the enhancement, inspection and enforcement of pipeline standards as required by law related to the safe transport of gas and hazardous liquids. (Cap at $2 million)
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10.5% to DEP’s restricted account for plugging of abandoned and orphaned oil and gas legacy wells and administration and enforcement of oil and gas program and other permits related to natural gas development (ie water impoundments, air permitting, etc.). (Cap at $10 million)
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70% to PENNDOT for road and bridge maintenance and repair, rail and other transportation infrastructure improvements within counties hosting unconventional natural gas development. (Balance of funds)
Local Revenue Breakdown
The counties in Pennsylvania will distribute the revenue from the impact fee as follows: 36 percent will be retained by the County; 37 percent will be distributed to host municipalities, and 27 percent will be distributed to all municipalities within the host county. Return to Marcellus Shale Proposal
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