PA. House Committee Votes to Ban Municipal Regulation of Gas Extraction

[JPZenger]

http://pennbpc.org/media-statement-house-bill-ends-local-zoning-authority-over-gas-drilling-exchange-tiny-drilling-fee

http://www.pennlive.com/midstate/index.ssf/2011/11/pa_house_bill_would_allow_gas.html

On a straight party line vote, the PA. House Finance Committee passed a natural gas fee bill. It now moves forward to a vote by the full House after the election next week.

The law would prohibit regulation of gas drilling by local municipalities. Under current court decisions, those municipalities have the option through zoning of prohibiting gas wells and related facilities in dense residential areas, as long as they allow them in other portions of the municipality.

A few months ago, Corbett told municipal officials that he was opposed to preempting municipal zoning regulations on gas drilling. He lied. According to news articles, the language in the bill was circulated by Corbett administration officials before the bill was put together. The industry has been lobbying heavily to become exempted from zoning regulations.

As noted in the Pennlive article, it is estimated that the impact fee would be about 1% of revenues over the life of a well, which is lower than many other states.

[JPZenger]

1. Incredibly Broad Prohibition on Local Regulation

This bill would include an incredibly broad prohibition on local regulations OR AGREEMENTS involving gas operations. The prohibition on regulations even includes the transportation of gas. Therefore, if a municipality has an agreement for a drilling company to repair road damage from incredibly heavy trucks, that would be invalidated.

The ONLY thing that a municipality would be able to regulate would be to keep gas wells out of the most flood-prone areas.

The law was very clearly written by gas industry lawyers.

[JPZenger]

2. Minutes of yesterday's meeting

Excerpts of minutes of the committee meeting on this bill:

Mundy said that the bill had the "lowest tax rate- one percent - of any bill we've seen." She explained that the revenue from the average well would be over 16 million over the life of the well, while the revenue obtained from the state would be $160,000 to pay for the impact fees. Mundy criticized the lack of a statewide fee in the bill and the fact that it imposed administrative duties on the local counties and municipalities in order to collect the impact fee.

Mundy said that "the bill strips from local governments, what little power they do have to control the siting of the wells," and added that "this is a key problem for local governments who want to keep drill pads out of residential areas or protect areas that should be off limits to drilling." Chairman Mundy called the measure the "drill, baby, drill" bill and told Chairman Benninghoff that "true to your party platform, you have managed to benefit the industry while providing the least possible benefit to Pennsylvania citizens to protect their land, their water, their air, and their property values."

Chairman Mundy opined the legislation grants "extraordinary powers" to the secretary of DCNR, and asked for clarification on the language used specifically the section granting the secretary the authority "to determine, in the secretary's discretion, the need for, and the location of, any project authorized by this chapter; to acquire in the name of the commonwealth, by purchase, condemnation, or otherwise, such lands as may be needed." Chairman Mundy questioned whether this could be construed in such a way to include eminent domain or forced pooling. Rep. Ellis responded that the language in the bill was already current law and the portion that the Chairman had read beginning "to acquire in the name of the commonwealth," applied only in regards to the oil and gas companies, which is also currently in law.

Chairman Evankovich commented that the oil and gas lease currently in law was rewritten into House Bill 1950. Chairman Mundy next wanted to know if the bill gave the power of eminent domain or forced pooling to any secretary, company or industry. Rep. Ellis responded, "absolutely not."

Mundy then questioned the preemption of local ordinances found within the legislation. Rep. Ellis responded that there are statewide safety standards put in place by the legislation and the goal is to "create an environment that provided protection for the municipalities to be able to operate." Mundy commented that the bill "appears to take away what little control the municipalities have over ordinances," and questioned how this would confer more power or standards to local municipalities. Chairman Benninghoff commented that the legislation would create standards but require that the Department of Environmental Protection consider municipal comments in the process.

Mundy returned to the issue of preemption of local ordinances, reading from the bill; "all local rules, regulations, codes, agreements resolutions, ordinances and other local enactments that regulate oil and gas operations are hereby superseded."

[JPZenger]

3. Public Radio Story on this issue from today (audio)

http://www.witf.org/regional-state-news/a-closer-look-at-pa-house-plan-to-strip-municipalities-of-zoning-authority-for-natural-gas-drilling

Range Resources, one of the biggest drilling companies in PA, said today they are donig the municipalities a big favor by taking away their ability to regulate the industry. That is because the municipalities won't have to spend any money writing regulations.

[blue neen]

4. Range Resources is a doing us a favor? Oh, that's rich.

Unbelievable. Did I mention today that Tom Corbett is the Worst...Governor...Ever?

[Divernan]

5. A 1% fee? Has any GOP legislature ever sold out in a more blatant, brazen, rapacious manner?

This is far more egregious and venal in scope and actual cost to the Commonwealth and it's citizens than the infamous late night legislative pay raise, and I predict it will similarly come back to bite in their over-padded, bought-and-paid-for asses, every state legislator who supports this raping of the state and its citizens.

By overturning local zoning regulations, this fast-track legislation makes it easier to build a compressor station next to a school playground than to add a garage onto your house on your own property.

Our often clueless citizenry may never understand how underpaid it is, compared to GOP states like Texas and Alaska, in regard to the fees, but in one or two or maybe even three years, nearly every legislative district will see, smell and/or hear the foul and poisonous results of losing local zoning control over their communities.

Evidently the promised pay off/"campaign contribution" per legislator was large enough that they don't have to worry about getting re-elected. Wonder where they all plan on relocating to when their constituents are ready to tar and feather them.

[JPZenger]

6. The GOP also delayed the fee for three full years ... and counting

About 3 years ago, the Republicans in the legislature made a budget agreement with Governor Rendell to approve a gas extraction fee in the next few months. They have managed to delay the institution of that fee for 3 years, and possibly longer, costing PA. hundreds of millions of dollars in lost revenue. Meanwhile, PA. has lost thousands of public school teachers due to state budget cuts. Remember that EVERY other state that has a natural gas industry charges an extraction fee or similar tax.

Then when they finally start to move forward on the fee, they choose the lowest fee in the country.