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| INFORMATION ALERT |
| State Rep. Rick Mirabito |
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Marcellus Shale bill is unbalanced and unfair
Feb. 10 – This week, I voted against a plan for a local impact fee on Marcellus Shale gas drilling because House Bill 1950 is bad public policy.
Listen to my floor statement.
There are some provisions of the bill I could support, including funding for projects relating to liquid natural gas. Unfortunately, the bad in this legislation outweighed the good.
H. B. 1950 will impose a drilling impact fee based on gas prices and give municipal governments limited authority to regulate gas drilling within their borders.
Under the bill, only counties with active drilling wells would benefit from revenue collected from the fee. My constituents tell me H.B. 1950 treats them like second-class citizens; that the impact fees do not last long enough to cover the life of the wells; that the amount of the fee is too low – between 1% and 2% - lower than the 7.5% imposed by Texas, 7% imposed by Oklahoma, and 6.1% imposed by West Virginia.
Since H.B. 1950 does not impose a fee on the traditional volume-based royalty structure used by other states, it is estimated that Pennsylvania will lose $24 billion in revenues over the next 20 years. If gas prices double during the same period, Pennsylvania’s loss could reach over $48 billion.
The bill also allows for a variance to be granted by the Pennsylvania Department of Environmental Protection for drilling to occur within 1,000 feet of drinking water sources.
I am particularly concerned about potential damage from drilling and the fact that there's no plan to provide water for the communities who may face contamination under this legislation.
I am concerned that H.B. 1950 fails to protect the public's right to control the quality of life in our communities with weak zoning protections.
I believe that Pennsylvania needs a plan that will take into account current and potential future impacts of drilling in local communities, as well as those served in common watersheds throughout the state.
Despite my no vote, H.B. 1950 ultimately passed the House and is now headed to the governor to be signed into law.