Marcellus Shale Fee Revenue Having Positive Impact on Pennsylvania Communities

Pittsburgh, Pa. – Marcellus Shale Coalition (MSC) CEO Kathryn Z. Klaber issued the following statement on the 2012 Marcellus Shale Impact fee allocations released today by the Pennsylvania Public Utility Commission (PUC), which totaled just over $202 million:

“To see how this new revenue stream, now totaling more than $406 million is being distributed to every corner of the commonwealth is a vivid illustration and reminder  of how safe, tightly regulated natural gas development is benefiting local communities, statewide programs and funding of government agencies. Our member companies are working each and every day to responsibly develop this clean-burning energy resource while also serving as good neighbors and community partners to ensure we get this historic opportunity right for all 12 million-plus Pennsylvanians.”

Impact fee revenues are allocated in accordance with Act 13, bi-partisan legislation enacted in February 2012 that further strengthened and modernized Pennsylvania’s Oil and Gas Act. Of the $202.4 million generated in 2012, $28 million was directed to state agencies, $102.7 million to local governments and $71.8 million to the Marcellus Legacy Fund.

Continued Klaber, “While the impact fee represents a new and substantial revenue stream for local and state government agencies, the natural gas industry has also generated more than $1.8 billion in tax revenues since 2006 and has invested more than $500 million in road and infrastructure improvements, while contributing hundreds of thousands of dollars for emergency response training and other community-based programing.”

To date, Marcellus Shale impact fee revenue has generated $406,682,000 for the commonwealth and local governments. Following is a breakdown of how these funds have been allocated over the past two years:

  • $216,409,200 — Local governments and municipalities
  • $144,272,800 – Marcellus Legacy Fund
    • The Marcellus Legacy Fund distributes funding to the state’s Highway and Bridge Improvement Account, Commonwealth Financing Agency for environmental clean-up projects, Environmental Stewardship Fund, Pennsylvania Infrastructure Investment Authority and the H2O PA program, among others. A complete list is available on the PUC’s Act 13 website.
  • $12,000,000 — Pennsylvania Department of Environmental Protection
  • $7,500,000 — County Conservation Districts and State Conservation Commission
  • $2,000,000 — Pennsylvania Fish and Boat Commission
  • $2,000,000 — Pennsylvania Public Utility Commission
  • $1,500,000 — Pennsylvania Emergency Management Agency
  • $2,000,000 — Pennsylvania Department of Transportation
  • $1,500,000 — Office of Pennsylvania Fire Commissioner

For additional information on Marcellus Shale impact fee allocations and revenue, visit the PUC’s Act 13 website.

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