Lower Shale Gas Payments Hit Local Govt. Budgets
Lower payments from the Pa. Act 13 shale gas-drilling “impact fee” have many county and local governments facing financial crunches as they enter the second half of the budget/calendar year. Payments from the tax are based on 2023 gas drilling and production reports. Potter County’s allotment is $210,000, down from last year’s $364,000.
Township/borough payments are also lower. With 2023 figures in paratheses, the leading recipients will be: Sweden $52,300 ($90,000); Ulysses Twp. $49,200 (84,000); West Branch $36,500 ($63,000); Summit $27,900 ($48,000); Eulalia $24,300 ($42,000); Clara $13,800 ($29,000); Coudersport $13,700 ($24,000); Wharton $13,400 ($23,000); Pleasant Valley $13,300 ($23,000) and Keating $13,250 ($23,000).
While all counties receive a percentage of the annual impact fee revenues, distribution is weighted toward the counties and local governments that host development. Totals fluctuate annually, as the amount is based on factors including number of wells drilled, age of each well and prices.
County and local governments can use the money for preservation and reclamation of water supplies; improvements to roads and bridges; construction and repair of water and sewer systems; delivery of social services; local tax reduction; housing; conservation districts; emergency preparedness and flood plain management.