Marcellus Shale Tax Put on Hold

by Kenneth E. DuBose on June 28, 2011

The Pennsylvania Legislature canceled plans to vote on a Marcellus Shale tax that would implement a fee per well. The legislation will likely be back on the table after a commission reports its findings on Marcellus Shale drilling issues to Governor Tom Corbet next month.

“House Republicans on Tuesday abruptly canceled a vote on an impact fee to produce revenue from Pennsylvania’s Marcellus Shale natural gas extraction, only hours after they had announced it would be debated.”

“The main GOP proposal, by Rep. Dave Reed, R-Indiana, would assess a fee on Marcellus Shale wells of $50,000 in the first year, $25,000 in the second and third years, and $10,000 a year for the next seven years.”

“The money would be collected and distributed at the county level, with 37.5 percent going to the host counties, 25 percent to host municipalities, 17.5 percent to all municipalities within a host county and 10 percent to county conservation districts, which help manage various local environmental protection efforts. The final 10 percent would go to host counties strictly for use by first responders and emergency medical services.”

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