The legislation would prohibit municipalities from receiving Act 13 drilling impact fees if they set protective standards on the development of natural gas that “imposes a standard or condition on well development that conflicts with or exceeds those contained” in state law.
Distribution of these fees would also be prohibited when any party initiates a legal challenge against a municipality with a local ordinance that “unreasonably limits or prohibits future development of unconventional natural gas wells.”
No revenue would be distributed to the municipality until the “conclusion of the litigation,” according to the bill.
The sponsors of the legislation include Senators Camera Bartolotta (R-Washington), Gene Yaw (R-Lycoming), Wayne Langerholc, Jr. (R-Cambria), Kristin Phillips-Hill (R-York) and Cris Dush (R-Clearfield).
The legislation was introduced in response to action taken by Cecil Township, Washington County Supervisors on November 4 to adopt an ordinance establishing setbacks from shale gas well pads of 2,500 feet from homes and businesses as “protected structures” and 5,000 feet from schools and hospitals. Read more here.
The setback established in state law now is 500 feet from a shale gas well bore (not the shale gas well pad).
Cecil Township is in Sen. Bartolotta’s district.
Republican History Of Preventing Local Regulation Of Oil/Gas
The original announcement of this legislation references Act 13 of 2012 which originally contained a provision preempting any local regulation of drilling operations included at the insistence of Republicans.
That provision was declared unconstitutional by the PA Supreme Court in a landmark ruling in December 2013 based on the Environmental Rights Amendment in Pennsylvania’s Constitution. Read more here.
In October 2022, Sen. Yaw introduced legislation-- Senate Bill 1331-- denying counties Act 13 drilling impact fees if they restrict the leasing of land for drilling that was reported out of his Committee, but saw no further action.
Allegheny County adopted an ordinance restricting drilling for gas on county-owned lands which represented less than 1% of the land area of the county leaving 99%+ available for leasing. Read more here.
In October 2023, Sen. Yaw said in a written press statement House legislation which increased safety zone setbacks around natural gas infrastructure was “stupid” after a House Committee hearing on House Bill 170 (Otten-D-Chester). Read more here.
In May 2024, Sen. Yaw announced the introduction of legislation prohibiting the distribution of Act 13 impact fees to any county “that is actively suing over fossil fuel use.” Read more here.
Although not yet introduced, Sen. Yaw was attempting to prevent actions like Bucks County took to join a lawsuit charging oil companies intentionally deceived the public about the role fossil fuels play in worsening climate change. Read more here.
Communities Can Expect Much Less Support From Shale Gas Industry
In June, the Independent Fiscal Office issued a report on the latest projections of revenue from the Act 13 Shale Gas Drilling Impact Fee showing another drop in calendar 2024 revenue to from $165 million to $170 million-- a nearly $114 million decrease from 2022. Read more here.
The IFO reported calendar 2023 revenue was $179.1 million, down over $100 million from the record revenue in 2022 of $278.9 million.
This $200 million+ drop in revenues is the result of lower natural gas prices set by international markets and the fact the gas industry is drilling fewer new wells in an attempt to get the price of natural gas to increase.
The least revenue collected from this fee was $146.3 million for calendar 2020.
The drilling impact fee is a per well fee and not a fee on production like all other oil and gas states have.
On September 19, the Pittsburgh-based Allegheny Institute for Public Policy published a policy brief on the steep decline in revenues from the drilling impact fees saying counties and municipalities need to “begin lowering their expectations” on the support from the shale gas industry drilling impact fee. Read more here.
(Photos: top- Range Resources Augustine Drill Pad in Cecil Township; Augustine Drill Pad showing scale of operation; bottom- Map of Shale gas wells (red dots), conventional oil and gas wells (blue/green dots) in Cecil Township (DEP Oil & Gas Program); 523 feet from nearest house; Well pad gas flare from bedroom window near Augustine well pad (WTAE). Other photos Courtesy of The Energy Age Blog.)
Resource Links - Cecil Township:
-- Cecil Township Supervisors In Washington County Adopt 2,500 Setback From Shale Gas Well Pads From Homes, Businesses, 5,000 Foot Setback From Hospitals, Schools [PaEN]
-- Cecil Township Supervisors Direct Solicitor To Prepare Ordinance Increasing Setbacks From Shale Gas Well Pads By At Least 2,500 Feet; Another Hearing, Vote Expected Nov. 4 [PaEN]
Resource Links - Increasing Gas Infrastructure Safety Zones:
Resource Links - Washington County Gas Development:
-- Click Here to search for Washington County articles in PA Environment Digest. These are just a few--
Resource Links: Gas Health, Safety Impacts Washington County:
-- Shale Gas & Public Health Conference: When It Started, It Was Kind Of Nice, But What Happened Afterwards Really Kind Of Devastated Our Community [Marianna Boro, Washington County] [PaEN]
-- Inside Climate News: Q/A With Eliza Griswold Pulitzer Winning Author Of Deep Dive Into Fracking In PA, How Extractive Industries ‘Gut’ Communities [Including Washington County] [PaEN]
-- Observer-Reporter: Explosion, Fire At Energy Transfer’s Revolution Natural Gas Cryogenic -- Plant Burned For Nearly 11 Hours On Christmas Day In Smith Twp., Washington County [PaEN]
-- DEP Fines Range Resources $198,920 For Air Quality Violations In Washington County [PaEN]
-- Range Resources Shale Gas Water Pipeline Suffers Blowout In Washington County [PaEN]
Penalties + Criminal Charges - Washington County:
Gas vs. Coal Development Impacts - Washington County
-- Center for Coalfield Justice Blog: Update On Underground Longwall Coal Mining In Greene, Washington Counties; Next DEP Report On Longwall Impacts Due… Soon [PaEN]
More Articles:
Note: Click Here to search for Washington County articles in PA Environment Digest.
Related Articles This Week:
-- Cecil Township Supervisors In Washington County Adopt 2,500 Setback From Shale Gas Well Pads From Homes, Businesses, 5,000 Foot Setback From Hospitals, Schools [PaEN]
-- PA Republican Senators Introduce Bill To Punish Local Elected Officials Who Want To Protect Their Constituents From The Documented Adverse Health, Environmental Impacts Of Shale Gas Development [PaEN]
-- The Allegheny Front - Kara Holsopple: Longtime Environmental Official On PA Election Results: People Will Need To Be ‘As Tenacious As The Industry’
-- Protect PT, Three Rivers Waterkeeper Appeal DEP Permits For CNX Slickville Natural Gas, Shale Gas Wastewater Pipelines Project In Westmoreland County [PaEN]
-- 66 Water Withdrawals Now Restricted In Susquehanna River Basin Due To Low-Flow Water Conditions, Most Shale Gas-related [PaEN]
-- Penn State Extension Hosts Nov. 25 Webinar On Private Water Supply Testing, Education; Helpful To Those In Oil & Gas Drilling Areas Which May Impact Water Wells [PaEN]
-- Center For Coalfield Justice Hosts Dec. 12 Learn How To Effectively Advocate For Change Workshop In Washington County [PaEN]
NewsClips:
-- Observer-Reporter: Cecil Township Supervisors Approve Ordinance Increasing Setbacks For New Shale Gas Well Pads [PDF of Article]
-- Marcellus Drilling News: Cecil Township Supervisors Pull The Trigger On Frack ‘Ban’ Via Setbacks [PDF of Article]
-- Marcellus Drilling News: Marcellus Shale Gas Coalition Pushes Back Against Cecil Township’s 2,500 Foot Setback From Well Pads [PDF of Article]
-- Marcellus Drilling News: MarkWest/MPLX To Add Natural Gas Liquids Processing Plant At Harmon Creek Facility In Smith Twp., Washington County [PDF of Article]
-- Post-Gazette - Anya Litvak: As Fracking Turns 20 In Pennsylvania, Towns Consider New Regulations For Distance Between Homes And Well Pads [Cecil Twp., Washington County] [PDF of Article]
-- Observer-Reporter Guest Essay: Celebrating 20 Years Of Marcellus Shale Natural Gas Development - By Dave Callahan, Marcellus Shale Gas Coalition & Jeff Kotula, Washington County Chamber of Commerce [PDF of Article]
-- Marcellus Drilling News: Coterra Energy Expands Curtailment Of Marcellus Drilling, Fracking; No Rigs In Marcellus Due To Low Prices [PDF of Article]
-- Marcellus Drilling News: CEO Of PA Fracking Services Company Says Shale Gas Drillers Are Idle, Hitting Rock Bottom Due To Low Natural Gas Prices [PDF of Article]
-- Marcellus Drilling News: Federal Court Agrees The Environmental Hearing Board Can Hear Appeals Of Transco’s Regional Energy Access Expansion Natural Gas Pipeline Project [PDF of Article]
-- Post-Gazette: Beaver County Styrene Plastics Plant To Shut Down In January Citing Aging Plant
-- TribLive: Pennsylvanians See Utility Bills Climb Despite Living In One Of America’s Most Productive Natural Gas States
-- Marcellus Drilling News: EQT CEO Says Shale Gas Needs To Get Back To Building Pipelines To Export Gas, For AI Boom [PDF of Article]
-- Pittsburgh Business Times: Appalachian Natural Gas Execs Say Demand Likely To Grow In Next Decade Thanks To Rise In LNG Gas Exports, Demand For Data Center Power
-- Pittsburgh Business Times: Deep Well Services Company In Southwest PA To Be Bought By United Arab Emirates Company
-- Utility Dive: FERC Rejects Interconnection Pact For Amazon Data Center At Talen Nuclear Power Plant In Luzerne County
-- Utility Dive: FERC’s Amazon, Talen Energy Ruling ‘Not The Final Word’ On Nuclear, Data Center Colocation: Constellation CEO
-- Reuters: FERC OKs Introduction Of Natural Gas To New LNG Gas Export Facility In Louisiana
[Posted: November 8, 2024] PA Environment Digest
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