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The New Impact Fee Law stirs up discourse in Pennsylvania

7/21/2012

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A few months ago in Pennsylvania,  legislators enacted Act 13, also known as "The New Impact Fee Law", revamping the state's established oil and gas drilling laws.    This new piece of legislation will add an impact fee to every well drilling for gas in the Marcellus Shale formation.  The fee is designed to change from year to year, based on natural gas prices and the consumer price index.   For 2012, drillers can expect pay around $50,000.00 per well.  The projected revenue from this fee is expected to be as high as $219 Million for 2012, with an additional estimated $190 Million in retroactive fees for 2011.  

The newly enacted legislation will also restrict municipal zoning of drilling operations.  In a year where government intrusion has been a bit of a sore spot for taxpayers, this restriction has not gone over well.  Legislators from both sides of the aisle have rallied forces to introduce several new bills that will change the law.  It will be interesting to see what changes lie ahead for this new law.


For more information, check out these sources:


State Impact -- NPR -- Don't Hold Your Breath On Act 13 Changes



Fracking Regulations, a legal battle in Pennsylvania

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" [T]he benefits of continued shale gas development are enormous and dramatically outweigh even worst-case scenario costs of pollution and clean-up."

6/26/2012

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In a recent article on Forbes.com, Houston-based author Christopher Helman explained recent studies by Yale University graduates which indicate that the economic benefit of shale gas development outweighs the potential environmental impact.  His article explains that the savings attributable to the increase in domestic production from 2008 to 2011 has added up to $103 billion per year in savings for the United States.  To read more, go to:

http://www.forbes.com/sites/christopherhelman/2012/06/22/the-arithmetic-of-shale-gas/?goback=%2Egde_66296_member_127773437
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    Author

    Ashley Hallene specializes in Oil and Gas Law, Title Examination, and Oil and Gas Leasing in Houston, Texas.  Ashley received her J. D. from University of Houston Law Center in 2009. She is the Editor of Technology and Product Reviews for the ABA GP|Solo eReport.  Ashley has published articles on legal technology in the TechnoLawyer Newsletter and GP|Solo Magazine. 

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