Pennsylvania’s Impact Fee Legislation

Pennsylvania's House of Representatives and Senate finally reached an agreement on drilling impact fee legislation by passing an amendment to the Oil and Gas Act, 58 P. S. § 601.101, et seq. As stated in the Committee Report to H.B. 1950, the Amendment is designed to provide for enhanced environmental protection, to authorize an impact fee on unconventional natural gas resources and to provide for municipal ordinances and zoning standards related to oil and gas development. For example, besides the enactment of an impact fee, the bill imposes chemical disclosure requirements and establishes limits on the ability of municipalities to pass ordinances that regulate drilling activities. This bill is described in more detail below.