Op-Ed: Corbett's Impact Fee Lacks Needed Money, Protections For Environment

By Paul King, President, PA Environmental Council

Gov. Corbett’s proposal to regulate the development of the Marcellus Shale is a good start. It contains nearly all of the recommendations contained in the Marcellus Shale Advisory Commission report this summer, many of which were conceived and proposed by the Pennsylvania Environmental Council. And if passed into law intact, this plan would offer far greater protection of the environment and public health of Pennsylvania’s citizens than the Oil and Gas Act provides.
But the governor’s plan is broad and lacking in specifics, and it’s the details of this plan that are now of greatest concern. As with most things, the devil is in the details, which will be critical to passing a bill that’s good for Pennsylvania.
The big news in the governor’s plan is, of course, an impact fee on gas revenues that would be split between counties where drilling takes place and the state for a variety of Marcellus-related purposes. This assessment would expire in 10 years, and the governor’s estimates project that it would produce $120 million for the state’s coffers provided that all of the 34 counties with Marcellus Shale activity adopt the entire fee.
This might prove to be the fatal flaw in the Corbett plan, because the revenues the Department of Environmental Protection needs to fund the oil and gas regulatory program will only materialize if all 34 counties opt in to the program. But the fiscal requirements needed to protect the state’s environment far exceed anything envisioned by Corbett’s proposal.
Until recently, the Growing Greener program provided as much as $150 million per year for locally driven initiatives aimed at protecting and restoring our state’s land, air and water resources. That program has been slashed in recent years because of budget diversions and lack of revenue.
What’s more, DEP regulators are already understaffed and lack the manpower and resources to properly inspect and control Marcellus drilling operations and thousands of abandoned gas wells. DEP requires an increase in funding to keep up with the growth of this industry.
Marcellus Shale activity demands more than added site inspectors — it requires additional capacity air, water and waste disposal permitting as well.
Consequently, we believe that a greater share of the impact fee revenue should be used for addressing cumulative impacts and the management of Marcellus Shale activity.
Another example is the provision for setbacks from gas wells. Under the governor’s plan, the regulations would triple the well setback distance from the well bore from 100 to 300 feet for streams, lakes, ponds and rivers. That might sound fine in theory, but in practice a 300-foot setback from the bore would not even get you off the drilling pad in many instances. So under the governor’s plan, Marcellus Shale drilling could take place on the shores of these bodies of water, which is a recipe for disaster.
There are several other opportunities to improve what the governor has proposed, but legislators now have a reasonable foundation from which to begin debate. We all have a duty to get this right. But at the same time, it’s important to remember that perfect is the enemy of good, especially in politics. The time and effort already expended in the study, debate and analysis of this issue have been more than sufficient to allow lawmakers and the governor to get something done now.
The gas industry acknowledges it and has stepped up to meet the challenge. The people of Pennsylvania are entitled to it. And the environment of this commonwealth needs it, now and for future generations.
All the details will be worked out, so we intend to do everything we can to hold the governor and the General Assembly’s feet to the fire as this proposal moves through the General Assembly.
We commend Gov. Corbett on a good start, and expect that he and the General Assembly will build on this plan and craft legislation that fully protects the people and environment of the state.

Paul King is president of the Pennsylvania Environmental Council, a statewide environmental organization.