3 June 2012 0 Comments

Liberty Index Part 13: Key Vote – Act 13 of 2012 – Marcellus Shale

Act 13      Feb 14 2011     HB 1950 Oil and Gas (58 Pa.C.S )  Tier 3 Against Liberty This was a near UNANIMOUS VOTE and there appears to be valid reasons for both “YEA” or “NAY” vote. ALL MEMBERS  50 Points deducted from Grade 


Although as Sen. Folmer says, this might have been best political compromise, it was not the best economic decision. The “Impact Fee” is, in reality, a tax, that is, the money generated was not intended to be used to address “ externalities ”, impacts on people and property external to the actual drilling location, but to raise revenues.

Mike’s Memo  February 13th 2012: Marcellus Shale Bill Sent to Governor

 Shale law Act 13 means new money, more regulations April 15, 2012 By Laura Olson /

Pipeline: Your source for Marcellus Shale coverage and  Act 13 facts    Laura Olson  Post-Gazette Harrisburg Bureau

For more, see Commonwealth Foundation (January 18, 2012)  Impact Fee: Compromise on Details, Not Principles

Marcellus Shale Impact Fee HOUSE FISCAL NOTE $107 million first year and $168 million dollars second year and so on.

After more than three years of discussion, the Senate (31 – 19) and House (101-90) passed and sent to the governor House Bill 1950, legislation that would impose an impact fee on gas drillers, strengthen environmental safeguards, and regulate the Marcellus Shale industry in Pennsylvania. I supported this measure because I believed it was the best compromise for addressing the many issues surrounding drilling.

The Chesapeake Bay Foundation, the County Commissioners Association, and the Pennsylvania State Association of Township Supervisors were among the many diverse groups supporting this measure. Failure to act on the bill would have continued the gridlock on this important issue, which few wanted


Since all counties with Marcellus wells have taken advantage of Act 13, all wells in the state will be charged the $50,000 fee.  However, because of provisions in the statute, the counties will not get back all of the fees collected from wells within their borders.  The revenues, once collected, will be placed into the “Unconventional Gas Well Fund” where it will be distributed according to a formula established by the Act. Before the counties see any money the Act calls for the state to take a share off the top.


The impact fee will be imposed on wells with output beyond 90,000 cubic feet per day and will be graduated based on the average annual price of natural gas. The Act defines this as “the arithmetic mean of the New York Mercantile Exchange (NYMEX) settled price for the near-month contract, as reported by the Wall Street Journal for the last trading day of each month of a calendar year for the 12-month period ending December 31.” In 2011 the mean was $4.08. Based on the fee schedule below, each qualified well would have an impact fee of $50,000 for 2011 (payable by September 2012.)

EPA New Regulations – Track the Compounds and Emissions – Video 19 April 2012




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