Gas well impact fees drop in 2019; Westmoreland County gets $1.16 million, Allegheny County $1.8 million - TribLIVE

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Derry Township is sitting on a gold mine of natural gas trapped in the Marcellus shale, which drillers have tapped to the great benefit of the municipality — to the tune of $2.4 million in gas well impact fees since 2012.

The township will get almost $232,000 from the 2019 gas well impact fees under Act 13 — the most of any municipality in Westmoreland County, according to data released Wednesday by the Pennsylvania Public Utilities Commission, which collects the money natural gas producers must pay in impact fees.

Pennsylvania will give about $127 million to county and local governments and state agencies in early July, which is more than half of the $200.3 million in impact fees it will distribute. The Marcellus Legacy Fund will get $72.1 million to pay for environmental, highway, water and sewer projects, rehabbing of greenways and other projects throughout the state. State agencies will get $18.3 million.

Derry Township intends to use some of its gas well impact fee to build a retention pond and do road work, but it also will keep some “as a reserve for future expenses” because of earned income tax revenue lost when businesses shut down as part of the coronavirus pandemic response, said David Slifka, township supervisor.

The total allocation statewide is about $51 million less than 2018 because of the drop in the average price of natural gas prices last year, the PUC said. The federal Energy Information Administration is not projecting an increase in the price of natural gas until 2021.

Slifka said the township was expecting to get less this year and budgeted accordingly. Prices may not recover until the Mariner East pipeline project, stretching from Western Pennsylvania to refineries in Philadelphia, is completed and transporting gas across the state, Slifka said.

Sewickley Township will use the $196,000 it will receive to help pay for winter road salt and anti-skid materials as well as road work, said Mark Petros, chairman of the township supervisors.

Among other municipalities in the county, Washington Township will receive $200,000, and South Huntingdon will get nearly $160,000. Allegheny Township will get nearly $23,000 and Upper Burrell is set to receive about $17,000.

Westmoreland County as a whole will receive $1.16 million in impact fees, the PUC said. Commissioner Sean Kertes, board chairman, said the money is restricted to use for open spaces and bridges. The county has used the money on projects with the Westmoreland Conservation District, Westmoreland Cleanways and the Westmoreland Land Trust, Kertes said.

Allegheny County will receive $1.58 million, with Forward Township receiving the highest municipal allocation at close to $242,000 . Frazerwill receive about $107,000 ; Fawn, more than $73,000; and Plum will get about $18,500 .

Armstrong County will receive more than $520,000. Among the municipalities receiving money were: Kiski Township, about $21,000 ; Gilpin, more than $11,000 ; and Parks Township, nearly $11,000 .

Washington County received more impact fee funds than any other county in the state — $6.51 million. Greene County received the fourth highest allotment at $4.67 million.

Including this year’s distribution, the PUC said that over the past nine years it has distributed nearly $2 billion to communities across the state.

Joe Napsha is a Tribune-Review staff writer. You can contact Joe at 724-836-5252, jnapsha@triblive.com or via Twitter .

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Gas well impact fees drop in 2019; Westmoreland County gets $1.16 million, Allegheny County $1.8 million - TribLIVE

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