Aug 13, 2014 2 min read

State Rep. Jesse White, D-Cecil, this week introduced legislation that would preserve the Marcellus Shale municipal impact fee if a severance tax on natural gas production is enacted.

The impact fee, which was enacted in 2012 as part of the state’s natural gas drilling law, Act 13, brought in an estimated $225.7 million in 2013. The lion’s share of the impact fee goes to municipalities and counties most heavily impacted by drilling to mitigate road and infrastructure damage, and other effects from natural gas development.

White said that, however, according to current law, if a severance tax is enacted the impact fee will go away by operation of law.

White’s legislation, House Bill 2403, would repeal that section of law to ensure any severance tax enacted would not eliminate the local impact fee.

“Like with any industrial operation, local communities and residents feel the impact of natural-gas development, whether it is damage to roads or increased demands placed on emergency-service providers and other resources,” said White.

White said that with increased discussion and support from both Republicans and Democrats for a severance tax on natural gas drilling, the only way to be certain the impact fee remains in place is by amending or repealing the language within current law.