Presentation - Marcellus Shale Coalition

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Transcript Presentation - Marcellus Shale Coalition

Pennsylvania’s Severance Tax:
The Impact Fee
MARCELLUSCOALITION.ORG | @MARCELLUSGAS
PA Oil & Gas Act
What is Act 13 of 2012?
•
First comprehensive re-write of Pennsylvania oil and gas act in nearly 30
years
•
Three major components:
1. Enhanced environmental standards
Setbacks, permitting standards, bonding, chemical disclosure, water
protection, public notice, penalties
2. Uniformity of local ordinances
3. Imposition and distribution of impact fee
MARCELLUSCOALITION.ORG | @MARCELLUSGAS
Paying Their Fair Share
Other Taxes and Fees Imposed on Industry:
• Corporate Net or Personal Income Taxes
• Sales and Use Tax
• Liquid Fuels Tax
• More than $2.1 billion since 2007 (not including impact fee)
• $5,000 per drilling permit ($10 million in 2015)
• Other fees:
•
$200/permit for orphan well plugging
•
$50/permit for abandoned well plugging
•
$50/well to PA PUC for administration
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MARCELLUSCOALITION.ORG | @MARCELLUSGAS
Effective Severance Tax Rate
PA Impact Fee: Effective Severance Tax Rate
Assumes 15% average royalty for landowner (landowner does not pay impact fee)
Does not factor in gathering costs that must be paid by producer $0.77/MCF IFO Estimate)
No capital recovery for operator
MARCELLUSCOALITION.ORG | @MARCELLUSGAS
Paying Their Fair Share
Impact Fee Revenues to Date
Year Distributed
Amount
2012
$204.2 m
2013
$202.5 m
2014
$225.8 m
2015
$223.5 m
2016
$187.7 m
TOTAL:
$1.043 B
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MARCELLUSCOALITION.ORG | @MARCELLUSGAS
Benefiting PA Communities
Where does the money go?
• 60% - Host counties and municipalities
Based upon drilling activity as determined by DEP
• 40% - Statewide programs
Marcellus Legacy Fund
• 25% to all counties for at-risk bridges
• 25% Water & Sewer projects (H2O and Pennvest)
• 20% CFA for competitive environmental grants
• 15% to all counties for recreation & greenways
• 10% to Growing Greener
• 5% to HSCA
MARCELLUSCOALITION.ORG | @MARCELLUSGAS
Impact Fee Distributions
MARCELLUSCOALITION.ORG | @MARCELLUSGAS