Spilman News Alert: Pa. Gov.Corbett Signs New Oil & Gas Legislation


On February 13, 2012, Pennsylvania Governor Tom Corbett signed House Bill No. 1950 into law, approving major changes to the Pennsylvania Oil and Gas Act, most notably an impact fee on unconventional drilling operations. Along with the impact fee, the receipts of which will be distributed among local governments, state agencies and several new programs, the new legislation also increases the administrative powers of the Public Utility Commission ("PUC") and the Department of Environmental Protection ("DEP"). The following sets forth highlights of the new legislation.

Unconventional Gas Well Fee

While the legislation does not contain a severance tax sought by some groups, it does contain an impact fee on unconventional wells drilled in the Commonwealth. The legislation does not provide for a fee for conventional or shallow wells. The impact fee delegates numerous responsibilities to the county where the well is located, including whether or not that county will impose an impact fee. The governing body of a county containing spud unconventional gas wells may elect whether to impose a fee on each unconventional gas well spud in that county. A county electing to impose the fee must pass an ordinance within 60 days after the legislation becomes law. If the county does not pass an ordinance imposing the fee, it cannot share in the funds collected by the state. If the county elects not to impose the fee, the fee may still apply in that county if at least half of the municipalities within that county, or municipalities representing at least 50% of the population of the county, vote to impose the fee, and the fee will then be imposed on a county-wide level.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Spilman Thomas & Battle, PLLC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.