Drill fees boost roads, bridges
Road, bridge and drainage work apparently is where municipalities in Butler County will spend most of the money they will get from the state natural gas drilling impact fee.
The state Public Utility Commission has announced what each municipality will receive this year from this fee.
Some will get less than a year ago while others will get more.
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.
Here’s what officials say about how they’ll use the money.
Butler’s impact fee funds are down to $72,975 this year from $80,624 in 2015.
City clerk Mindy Gall said the city had budgeted for $80,000.
“It will affect us somewhat but hopefully at the end of the year we’ll be OK,” she said.
The revenue will go to road and bridge work such as the West New Castle Street Bridge project and storm sewer repairs.
Center Township’s funding increased by nearly $20,000 to $111,344, up from $91,975.
Township treasurer Anthony Amendolea said the increase likely is due to two new wells: the Renick well on Renick’s Tree Farm and the Fleeger well on Jamisonville Road.
“They just went online this year so that’s probably what the increase is for,” Amendolea said.
The money goes into a reserve capitol fund. If the township spends the money, it will go for road and bridge maintenance.
Ed Kirkwood, Butler Township manager, said that last year the municipality received $267,844 — about $54,000 more than the $213,755 it will get now.
Kirkwood said the township had budgeted for $249,000 from the impact fee, which is used for road and stormwater system repairs. The township is in the middle of a multiyear stormwater system upgrade that officials hope will be done by the end of this construction season.
“It’s not necessarily equal,” Kirkwood said of how the township uses the money each year. “It’s based on the particular need for that particular year.”
He said the decrease was anticipated, but it has turned out to be larger than expected.
“I expected a drop. Obviously I didn’t anticipate as dramatic of a drop,” Kirkwood said. “It’s one of those things we have no control over. It is what it is.”
Cranberry Township will get $168,161, a slight decrease from the $178,838 last year, said township manager Jerry Andree.
He said that figure is still a pleasant surprise since Cranberry had anticipated getting $120,000.
The money will be used for road maintenance. The public works department is doing $1.6 million in road projects this summer.
Clinton Township receives $158,523.
Township Supervisor Jim Halstead is pleased with that amount, which is up from $142,309.
“That’s great news,” Halstead said.
He attributed the increase to more wells.
Halstead said the supervisors have yet to discuss what to do with this year’s allotment.
Last year, the township used the revenue for such projects as drainage work on roads.
“We put it into infrastructure,” Halstead said.
Middlesex Township manager Travis Cavanaugh said the $93,560 the township will get will go into a separate Marcellus Shale Impact Fee account.
He said that is a savings account to be used for unforeseen expenses. It currently has $196,302.
“It’s going to be helpful down the road because we have money set aside to put toward a future project,” Cavanaugh said.
Adams Township Supervisor Linda Lees said no decision on how to use the $87,634 impact fee will be made until the check is received.
Jackson Township will use its $166,226 for road paving and repairs.
Township manager Chris Rearick said the amount received was budgeted.
“$166,000-plus dollars out of a multimillion dollar budget isn’t a tremendous boon to the township, but it certainly does help to enhance our roads program,” Rearick said.
The county will receive less this year.
According to the state PUC, the county’s disbursement for 2015 drilling is $1.9 million, down from last year’s $2.1 million.
The PUC, which collects and distributes the money, reported Wednesday that the statewide impact fee revenue dropped by $36 million to about $188 million.
This year’s state 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.
Eagle staff writers Aaron McKrell, Phil Rau, Tom Victoria, Joe Genco, Amerigo Allegretto and Paula Grubbs and The Associated Press contributed to this report.
