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County to get less money from drill fee

Natural gas industry slump reduces revenue

HARRISBURG — Butler County will receive less money this year from the state natural gas drilling impact fee.

According to the state Public Utility Commission, the county’s disbursement for 2015 drilling is $1.9 million, down from last year’s $2.1 million.

Of that total, $1.78 million is from money remitted to counties where drilling occurs.

The remaining amount, more than $146,000, is from Marcellus Legacy Fund money.

County Commissioner Leslie Osche, board chairman, said this morning the money isn’t allotted yet.

“I don’t know we’re especially anxious to go on a spending spree,” Osche said.

She said it would not be prudent to immediately use it all while the county is in the process of securing more sound financial footing.

Osche said although revenue is down, the total is still significant.

Nils Hagen-Frederiksen, PUC press secretary, said the checks to all counties and municipalities should be sent by July.

“We expect all disbursements to be mailed before July 1,” he said.

The PUC, which collects and distributes the money, reported Wednesday that the statewide impact fee revenue from natural gas wells dropped by $36 million to about $188 million.

This year’s disbursement is the lowest annual payment in the five-year history of the impact fee and the second year of decline.

According to the PUC, a persistent slump in natural gas prices and the aging of Pennsylvania’s Marcellus Shale wells have reduced fee revenue.

Most of the statewide total, roughly $102 million, will go to county and municipal governments where the gas wells are drilled.

Roughly $68 million will be earmarked for environmental programs, road repairs, water and sewer infrastructure upgrades among other projects. The rest, about $18 million, goes to state agencies.

The biggest recipients among counties are Washington County at $5.7 million, down more than $800,000 from last year, Susquehanna County at $5.3 million and Bradford County at $4.9 million.

Under the impact fee regulations, counties and municipalities can use the money various ways.

In addition to rainy-day funds, the money is typically spent on infrastructure projects as well as public safety and emergency preparedness.

The Associated Press contributed to this report.

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