Pennsylvania's Shale Gas Counties Thrive with Impact Fee
Washington and Greene Counties in Pennsylvania, significant contributors to the state's shale gas production, have benefited from the Impact Fee. Introduced in 2012, the fee has provided substantial revenue for local governments, including Washington County, which had a budget of about $29 million in FY 2017 and generated approximately $6 million in revenue from the Impact Fee in 2015.
The Impact Fee, a flat charge per shale well, has been praised by local officials for its benefits. They have used the revenue to purchase equipment and make upgrades, highlighting its positive impact on their operations. The fee's structure, sharing a substantial portion of revenues with local governments, has been particularly helpful for rural areas like Greene County, which faces unique challenges managing impacts from the oil and gas industry.
Every township visited in both counties had agreements with operators to repair roads damaged by construction, drilling, and hydraulic fracturing. However, local officials in both counties expressed concern that gas gathering line infrastructure may hinder future residential or commercial growth. Despite these challenges, the growth in shale gas production has been significant, making Pennsylvania the second-largest natural gas producer in the United States, behind only Texas, thanks to the Marcellus shale.
The Impact Fee has proven beneficial for Washington and Greene Counties, supporting their budgets and aiding in managing the impacts of the oil and gas industry. As the industry continues to grow, local officials remain vigilant about potential constraints on future development.
