HARRISBURG —
Pennsylvania, the only major gas-producing state that does not tax the taking of natural gas from its soil, moved closer Tuesday to imposing a fee on the drilling in the vast Marcellus Shale reserves that have transformed the state in recent years.
The state Senate voted 31-19 in favor of fees that could raise $180 million from the industry in the first year, while expanding regulations for the booming industry, but debate in the House got under way late in the evening and lawmakers adjourned without taking a vote after running up against a nightly curfew.
The measure, which could return to the House floor on Wednesday, includes a requirement for online disclosure of chemicals used in hydraulic fracturing, or fracking, and would fund road work and environmental efforts. It also would allow local governments to decide whether to impose the fees on wells in their territory.
“The truth is, it’s better than having nothing at all,” said supporter Rep. Mario Scavello, R-Monroe. “It’s generating plenty of money. It’s made some improvements over what’s in place, and we’ll continue to monitor it.”
Opponents called the bill a giveaway to energy companies and said its environmental provisions were too weak.
House Democratic Whip Mike Hanna, D-Clinton, said the approach put profits of multinational corporations ahead of the health and safety of state residents, and raised the specter of environmental damage from Pennsylvania’s coal and timber industries.
“We have to learn from those past mistakes, and we should not repeat them,” Hanna said.
But Senate President Pro Tempore Joe Scarnati said the new regulations included a toughest-in-the-nation well bonding requirement, “more penalties for misbehaving producers,” stream setback rules, a one-call system before drilling starts and the fracking chemical disclosure.
“These wells have impacted our environment, and people’s lives in the region and beyond,” Scarnati said.
Since 2008, Pennsylvania has been mobbed by energy companies eager to reap the reserve’s riches, drilling at least 4,000 wells in an arc that spans the state, from southwest to northeast.
Several supporters spoke of a desire to regulate the activity without hampering a growing industry that has brought employment and investment to areas that need both.
“This bill is good for Pennsylvania, it’s good for jobs, it’s good for the environment and it’s going to help us maintain a dedicated revenue source for so many valuable programs,” said House Appropriations Chairman Bill Adolph, R-Delaware.
The gold rush has brought wealth to landowners but not without impact and controversy.
Some residents claim their drinking water supplies have been fouled, perhaps contaminated forever, by the fracking process that blasts millions of gallons of water, chemicals and sand deep into the earth to free natural gas from the dense shale rock, or by leaking methane gas. The Environmental Protection Agency is investigating reports of contaminated water in the Dimock area.
In addition, the trucks that haul thousands of gallons of water to the drilling sites and the fracking wastewater away from those wells have aggravated neighbors with the constant traffic, battered roads and occasional spills.
Some local governments have moved to regulate aspects of the drilling, including passage of zoning restrictions that have been challenged in court. The legislation under consideration would require municipalities to require drilling in all zones, including residential, but would allow them to impose rules on it equal to those that other industrial activity is subject to.
Republican Gov. Tom Corbett, viewed as an ally of the industry, has opposed a severance tax on grounds it might make Pennsylvania less attractive to the industry, but he was an active participant in the talks that produced the current bill, with its impact fee language.
The industry itself has been split on whether to support a levy, and the current bill would not link the fee amount to how much a well produces, as is the case in some other gas-producing states.
The fee could be applied to all Marcellus Shale wells, and Republicans said it could bring in more than $1 billion in the first five years. The levy would be tied to the price of natural gas and inflation.
Republicans said it would amount to an effective tax rate of about 3 percent, while Democrats said it was more like 1 percent, a sign of how polarized the debate has been.
“This is a tax,” said Sen. Mike Stack, D-Philadelphia, who voted no. “And it’s a cute way of passing a tax that’s a bad tax.”
Sen. Jim Ferlo, D-Allegheny, said the bill would restrict local control over drilling rules.
“Don’t try to give us a bunch of baloney about maintaining local control on zoning,” Ferlo said. “Nothing could be further from the truth.”
Counties would be allowed to decide on whether to impose the fee, but if a county does not, and enough of its municipalities want it, they would be able to override the county.
Proceeds would help fund drilling regulation, fix bridges and water and sewer plants, buy fleet vehicles powered with natural gas and possibly help develop a petrochemical refinery in southwestern Pennsylvania and reuse three Philadelphia-area oil refineries that are shutting down.
Latest News
Pa. gas drilling fee bill debate ends without vote
- Latest News
-
-
Widow of Flight 93 pilot dies
The wife of the pilot of the United Airlines flight that crashed into a Pennsylvania field after being taken over by terrorists on 9/11 has died of what her charity said was natural causes.
-
Report: Miami officer shoots, kills naked attacker
A Miami police officer on Saturday fatally shot a naked man who was chewing on the face of another man on a downtown causeway off-ramp, police and witnesses said.
-
Final PIAA track update - No gold for local athletes
Richland senior Paige Lumley broke the state triple jump record twice in the PIAA Class AA Track and Field Championships today, but it wasn't enough to earn a gold medal.
-
PIAA track update - Central Cambria's Brandis earns medal
Central Cambria's Alyssa Brandis claimed the first local medal of this morning's action at the PIAA Track and Field Championshps.
-
Former coach’s charity to close
The charity for troubled youths started by Jerry Sandusky more than three decades ago – and through which the retired Penn State assistant football coach met the boys he is charged with sexually abusing – said Friday it is seeking court approval to shut down and transfer its programs to a Texas-based youth ministry that serves abused and neglected children.
-
Voyage of discovery: Geology prof charts new waters in floating classroom
Bill Brice set sail on a sea of learning and serving during his final semester of teaching.
-
Ex-Penn State president sues, eyes Sandusky emails
Former Penn State University president Graham Spanier has filed a civil lawsuit to force the school to release emails related to its investigation of the Jerry Sandusky child sex abuse scandal.
-
PIAA track update - Chestnut Ridge, Forest Hills, United, Somerset athletes earn medals
United's Stefan Moreau earned a spot on the podium at the PIAA Class AA Track and Field Championships today, then moved up another spot later in the afternoon.
-
Former president George W. Bush golfs at Bedford Springs
Former president George W. Bush was spotted playing a round of golf at a southwestern Pennsylvania resort, where he chatted briefly with neighbors and posed for a few pictures with resort guests.
-
Fired university president gets more time to clear office
A judge has canceled a hearing to determine whether California University of Pennsylvania President Angelo Armenti can remove his personal property from his former office, because state officials have given him more time to do so.
- More Latest News Headlines
-
Widow of Flight 93 pilot dies




