Impact Fee Act 13 Information
Act 13 (Impact Fee)
The Act Amending Title 59 (Oil and Gas) of the Pennsylvania Consolidated Statutes (Act 13 of 2012) was signed by Governor Corbett on Feb. 14, 2012 with some provisions going into effect upon signing and others will become effective on April 14, 2012.
The law provides for the imposition of an unconventional gas well fee (also called a drilling impact fee), and the expenditure of the funds generated by that impact fee to local and state purposes specifically outlined in the law. The law also contains a mechanism as to how the fees shall be distributed. A significant portion of the fees generated will be used to cover the local impacts of drilling while several of state agencies will also receive funding for a variety of other purposes.
The law specifically provides for the imposition of an unconventional well fee by county (or alternatively municipalities compelling the imposition of an unconventional well fee). A county may impose the fee if unconventional gas wells are located within its borders and it passes an ordinance within 60 days of the effective date of the act. A county that does not pass an ordinance imposing a fee shall be prohibited from receiving funds. This prohibition shall remain in effect until a county passes an ordinance imposing a fee.
Under the law, the Pennsylvania Public Utility Commission (PUC) administers the collection and disbursement of the fee. Also, the PUC may review ordinances at the request of a county or municipality as well as complaints filed by a well operator or other party aggrieved by a local ordinance.
Questions should be sent via email to the Commission’s resource account, ra-Act13@pa.gov, which has been established as a means of communicating with the Commission on informational matters. Interested parties may wish to provide an email and mailing address in which the PUC can use to provide you with information in the future.
Impact Fee Distributions
The PUC has begun the process of distributing money generated from the state’s Impact Fee as directed by the law to state agencies, county governments, local municipalities and the Marcellus Shale Fund. The following links provide information on how much Impact Fee money each of the state agencies, county governments, local municipalities and the Marcellus Shale Fund will receive. Question should be sent to ra-Act13@pa.gov.
After publishing the numbers, a few entities reached out to the PUC to verify their information and double-check their distribution. While reviewing the payments to these entities, the PUC came across an issue in how the five-linear-mile input was applied. As a result, the PUC conducted a wholesale review of the distribution amounts and made the necessary corrections. The new listing shows the original disbursement posted on Oct. 15, 2012; the final revised disbursement amounts after the recalculation of the five-linear-mile formula and some well location updates the PUC received from the DEP; and the difference between the two.
Overall Breakdown of Impact Fee Money - As of Nov. 7, 2012. Highlights overall money to be distributed and how it was broken down between affected state agencies, county governments, local municipalities and the Marcellus Shale Fund.
Local Government Impact Fee Distributions – As of Dec. 7, 2012. Highlights how the money is distributed to local governments who have wells that are subject to the fee. The law is specific about how the $106.2 million is to be distributed to local governments with 36 percent of that money designated county governments with wells subject to the fee; 37 percent designated for municipalities with wells subject to the fee; and 27 percent designated for all local governments in counties with wells.
Unconventional Gas Wells Subject to the Fee - As of Oct. 15, 2012. Provides the list of unconventional gas wells subject to the fee. Each horizontal well subject to the fee paid $50,000. Each vertical well subject to the fee paid $10,000. The amount of money being distributed is based on the amount of fees collected.
TUNKHANNOCK TOWNSHIP In June 2014 we are scheduled to receive the 2012 allocation. We are limited by law on what we can spend this money on.