Adolph co-sponsors legislation to institute fee on natural-gas drillers

HARRISBURG – State Rep. Bill Adolph (R-Delaware) has signed on as a co-sponsor to House Bill 1700, which establishes a graduated impact fee on natural-gas drillers in Pennsylvania.

“It is clear that the natural-gas industry is here to stay in Pennsylvania. As this industry grows, creates jobs and boosts Pennsylvania’s economy, we cannot overlook the impact the industry has on our environment, infrastructure and local communities,” said Adolph.

House Bill 1700 proposes a graduated impact fee that starts at $50,000 per well in the first two years of production and trails off to $10,000 per year after 21 years and remains in place for the life of the well. This fee structure would generate about $1.1 billion over the next five years.

“House Bill 1700 is unique because the money generated from this impact fee goes directly to the areas that are most significantly impacted by this industry and is not sent to the General Fund. I am especially supportive of the funding directed to Growing Greener to help address a variety of environmental issues across the state,” said Adolph.

The legislation would distribute the funds generated from the fee by allocating 55 percent to local governments and Conservation Districts, 25 percent to environmental purposes including Growing Greener, and 20 percent to the Motor License Fund for road and infrastructure projects.

Adolph continued, “This impact fee on gas drillers is not a punitive fee, but rather it is a fair and sufficient fee to address the environmental and infrastructure issues created by this industry. Over the next five years this fee structure would designate $371 million for environmental causes.

“House Bill 1700 is a comprehensive bill that will generate significant funding to address issues caused by this activity in Pennsylvania. At the same time it will take pressure off the General Fund by helping local governments and allowing those dollars to be used for other worthy programs instead of addressing impact issues caused by the drilling industry,” said Adolph.

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