Corbett Marcellus Announcement

8/4/2019 Corbett Marcellus Announcement

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Marcellus Shale Impact Fee Proposal

Office of the Governor

Authorizes counties to impose a Shale Impact Fee upon passage of an ordinance Fee limited to unconventional wells (Marcellus, Utica and other shale resources)

Highest fee shall be imposed in Year 1; reduced annual fees in subsequent years Fee per well shall not exceed:

Year 1 $40,000 Year 2 $30,000 Year 3 $20,000 Years 4-10$10,000

No fee shall be assessed if well production drops below 90 MCF/day Operators shall remit fee to county by March 1st of each year, to be retained in a

restricted account and allocated according to law 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 revenue shall be allocated as follows: 25% shall be remitted to the state and further allocated for the following purposes:

4.5% to PEMA for emergency response planning, training andcoordination and other emergency response activities associated with shaledevelopment. (Cap at $2 million)

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 mil)

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 associatedwith shale development. (Cap at $2 million) 7.5% to the Public Utility Commission for the enhancement, inspection

and enforcement of pipeline standards as required by law related to thesafe transport of gas and hazardous liquids. (Cap at $2 million)

10.5% to DEPs restricted account for plugging of abandoned andorphaned oil and gas legacy wells and administration and enforcement ofoil and gas program and other permits related to natural gas development(ie water impoundments, air permitting, etc.). (Cap at $10 million)

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) 75% shall be retained at the local level and further allocated for eligible uses:

36% retained by county 37% distributed to host municipalities 27% (no more than) distributed to all municipalities within a

host county, utilizing a formula based on population and highway miles


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Eligible uses by counties and municipalities related to impacts from natural gasdevelopment include:

Construction, repair and maintenance of roads, bridges and other publicinfrastructure;

Water, storm water and sewer system construction and repair; Emergency response preparedness, training, equipment, responder recruitment; Preservation and reclamation of surface and subsurface water supplies; Records management, geographic information systems and information

technology Projects which increase the availability of affordable housing to low-income

residents; Delivery of social services, including domestic relations, drug and alcohol

treatment, job training and counseling; Offsetting increased judicial system costs, including training and processing; Assistance to county conservation districts for inspection, oversight and

enforcement of natural gas development; County or municipal planning. Counties and municipalities shall publish annual reports on the amount expended,

purpose and relationship to natural gas drilling conducted in the prior year and post the

reports online.


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Next Steps in the Environmentally Safe and Economically Efficient

Development of the Marcellus Shale

JOBS FOR PENNSYLVANIANS

Partner with academic institutions and industry to develop and disseminatecurriculum and training needed for present and future job opportunities and betteralign unemployed residents with existing job opportunities

Expand relationships with regional economic development partners to help suppliersadapt and market their products and meet industry standards

Highlight and encourage job opportunities for returning Armed Forces veterans, suchas Hiring Our Heroes and Troops to Roughnecks

SECURING OUR ENERGY INDEPENDENCE

Develop Green Corridors in PA for natural gas-fueled vehicles with refuelingstations at least every 50 miles and within 2 miles of key highways

Amend the PA Clean Vehicles Program to include bi-fuel vehicles (diesel andnatural gas)

Assist schools and mass transit systems convert fleets to natural gas vehicles Promote the end-use of natural gas through combined heat and power, ethylene

cracker plants, transportation, base and peak load power generation and other usesWORLD CLASS STANDARDS FOR DRILLING

Increase well bonding from $2,000 up to $10,000 Increase blanket bonds from $25,000 up to $250,000 Triple well setback distance from 100 feet to 300 feet for streams, rivers, ponds and

other water bodies Increase well setback distance from private water wells from 200 feet to 500 feet and

to 1,000 feet for public drinking water systems Expand a gas operators presumed liability for impairing water quality from 1,000

feet to 2,500 feet from a gas well, and extend the duration of presumed liability from6 months after well completion to 12 months

Enable DEP to take action against bad actors in a more efficient manner Uniform and consistent statewide standards

ENHANCING & PROTECTING OUR NATURAL RESOURCES

Utilize non-freshwater sources for well development Condition a well permit based on its impact on public resources like parks, wildlife

areas, natural landmarks, special plant and species habitat and other resources Limit drilling activities within floodplains; and prohibit where appropriate


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Utilize state of the art management practices for well site construction and operation. Prevent spread of invasive plant species

PROTECTING PUBLIC HEALTH & SAFETY

Double penalties for civil violations from $25,000 to $50,000 Double daily penalties from $1,000/day to $2,000/day Authorize DEP, rather than Environmental Hearing Board, to assess civil penalties Provide education to health care providers and public on potential health impacts

associated with drilling activity Provide for the timely and thorough investigation of public health complaints from

citizens and health care providers Assign 911 addresses and GPS coordinates to well sites and facilities. Create regional safety task forces Establish specialized team of emergency responders

Provide comprehensive training for local responders Expand Public Utility Commission oversight of pipeline safety standards and

inspectionsMITIGATING COMMUNITY IMPACTS

Enhance citizen, local government and water supplier notification of permit and

drilling activities Foster better communication with local residents through agency outreach Authorize counties to adopt a reasonable impact fee for use by counties,

municipalities and state agencies affected by natural gas development Develop an equitable formula to distribute proceeds among local governments

which host or are near well sites Ensure revenue is used to address real impacts associated with wells Address legacy impacts of abandoned oil and gas wells

Documents

Corbett Marcellus Announcement