Pennsylvania Governor Tom Corbett and legislative Republicans appear to have finally come to an agreement on Marcellus Shale natural gas extraction fees. The result is a fee of $240,000-$355,000 per well, depending on the price of gas natural gas and the rate of inflation. The proposal could be voted on this week. Read this article for more details.
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Tentative deal on Pennsylvania shale-gas fee
THE PHILADELPHIA ENQUIRER
By Andrea Couloumbis
Monday, February 6, 2012
HARRISBURG – After months of wrangling behind closed doors, Gov. Corbett and Republicans who hold the majority in both legislative chambers have reached a tentative agreement to impose a fee on the extraction of natural gas from the Marcellus Shale.
The so-called “local impact fee,” which could be voted on as early as this week, would fluctuate depending on the price of natural gas and, starting in 2013, on the rate of inflation, according to a summary circulated to Republican senators during the weekend.
For instance, if the price of natural gas is between $3 and $5, the fee would be $310,000 per well over 15 years. That fee would be lower if the price of gas falls below $3, and would increase if the price of gas rises above $5. The price now is less than $2.50, according to the U.S. Department of Energy.
“Staff have been working throughout the weekend and will be working [Sunday] in order to have a proposal that we can consider as early as this week,” House Speaker Sam Smith (R., Jefferson) and House Majority Leader Mike Turzai (R., Allegheny) wrote in a letter to members Saturday.
