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How impact fees are distributed in state

Impact fees for unconventional gas wells in Pennsylvania have generated more than $406 million that has been distributed at the state, county and local municipality levels.

The first collection, retroactively covering 2007 to 2011, generated $204 million. The amount collected for 2012 was $202 million.

Here is the breakdown for how revenue is scheduled to be distributed annually.

Off the topThe first distributions are made from the total amount collected and go to state agencies that help regulate the oil and gas industry. Some of the money also funds state initiatives.✓County conservation districts: $2.5 million for 2011, $5 million for 2012 and then $7.5 million for 2013, with cost of living adjustments made on that amount for 2014 and after. Half is distributed equally among conservation districts, and the other half is distributed according to the Conservation District Fund Allocation Program.✓ The state Fish and Boat Commission, which reviews permits to drill unconventional gas wells: $1 million✓ The Public Utility Commission, which administers the law, including fees and local ordinance enforcement: $1 million✓The Department of Environmental Protection, for administration of the act and enforcement of clean air and water acts: $6 million✓ The Pennsylvania Emergency Management Agency, for response planning, training and coordination: $750,000✓ The State Fire Commissioner, for training and grant programs for first responders: $750,000✓ The Department of Transportation, for rail freight assistance: $1 million✓ The Marcellus Legacy Fund for Natural Gas Energy Development Program: $10 million for 2011, $7.5 million for 2012 and $2.5 million for 2013✓ The Housing Affordability and Rehabilitation Enhancement Fund, which supports construction projects or rental assistance in underprivileged gas drilling host counties: $2.5 million for 2011 and $5 million annually starting in 2012

Local governmentsAnother disbursement sends 60 percent of the remaining funds to county and municipal governments. Here is the breakdown.✓ Host counties receive 36 percent, which is distributed based on the number of spud wells (wells in which the initial hole has been drilled) in the county relative to the number of spud wells statewide.✓ Host municipalities receive 37 percent, which is distributed based on the number of spud wells in the municipality relative to the number of spud wells statewide.✓ The remaining 27 percent is distributed among all municipalities in a host county.Marcellus Legacy FundThe remaining 40 percent goes to the Marcellus Legacy Fund and then allocated to these agencies or funds to improve environmental conditions or other infrastructure.✓ The Commonwealth Financing Authority✓ The Environmental Stewardship Fund✓ The Highway Bridge Improvement Restricted Account✓ Water and sewage projects✓ Greenways, recreation, open space and comparable projects✓ Refining or processing facilitiesSOURCE: County Commissioners Association of Pennsylvania

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