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Gas drilling impact fees dip

County officials: Drop in revenue expected

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

County Controller Ben Holland said the state Public Utility Commission gave him a preliminary figure of nearly $1.7 million for the pending disbursement of 2016 drilling.

The county received more than $1.9 million last year for 2015 drilling.

Holland said the second consecutive drop in revenue is no surprise.

“It was expected,” he said.

The county received $2.1 million in 2015 for 2014 drilling.

Holland said the county has 394 fee-paying wells, ones assessed the impact fee, out of a total 8,118 across the state.

He pointed out it was a drop from last year's 403 fee-paying wells out of the state's 7,878.

The county commissioners also were not taken aback by the decrease.

“I'm not surprised,” said Leslie Osche, board chairman.

Commissioner Kim Geyer said the revenue will lessen as the use of the wells declines.

“That descends over time,” Geyer said.

Commissioner Kevin Boozel agreed the revenue change was expected.

“It was an anticipated reduction,” Boozel said.

He said the number will fluctuate.

“It will go up again,” Boozel said.

Holland said the finite fee-generating life span of wells means the revenue should always be used for one-time expenses.

He said the revenue should never be used to bolster the general fund, as happened under a previous administration.

“You can't do that,” Holland said.

The commissioners last year set a policy to distribute the impact fee revenue.

Under state regulations, counties and municipalities may use the revenue in various ways, but typically it is allocated for infrastructure work and public safety/emergency preparedness.

The county policy allots 40 percent of the total revenue, or no less than $750,000, for the operations or service debt of county emergency services.

Another 15 percent, or no less than $250,000, funds technological or capital improvements.

The county infrastructure bank, which will allot grants and loans for municipal projects, receives 35 percent, or no less than $200,00, of the total.

Geyer stressed the county policy ensures the revenue is not spent haphazardly.

“We have a strategy set up,” she said.

The PUC typically releases official impact fee revenue numbers in June with disbursements the following month.

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