Governor Tom Corbett’s Plan

Governor Tom Corbett’s Plan

On Monday, October 3, Pennsylvania Governor Tom Corbett called unveiled a plan regarding Marcellus Shale that could potentially have a big impact for the industry. The plan is designed to both regulate and encourage the booming Marcellus Shale in Pennsylvania. The details of the comprehensive plan are as follows:


• This would allow counties to impose impact fees for up to 10 years on each shale well, beginning with a maximum of $40,000 per well in the first year. The maximum amount would decline over time to $10,000 in the 10th (final) year.
• 75% of fee revenue would be sent to drilling counties and communities for road and bridge repair, social services, affordable housing projects, emergency response, public water projects.
• 25% of fee revenue would be sent to state agencies for gas pipeline inspection, road and bridge repair, health studies, emergency response and well drilling inspection.
• An estimated $120 million in the first year alone and up to an estimated $195 million in the sixth year is projected to be collected.


• Operators would be required to increase insurance on each well drilled from $2,000 to $10,000, or on an operatorʼs aggregate from $25,000 to $250,000.
• Spacing would be increased between drilling and water bodies from 100 feet to 300 feet.
• Spacing would be increased between drilling and private residential wells from 200 feet to 500 feet.
• Spacing would be increased between drilling and public drinking water systems from 200 feet to 1,000.
• An operatorʼs “presumed liability” would be expanded for polluting water from 1,000 feet around a well to 2,500 feet, and from 6 months after drilling completion to 12 months.


• Penalties would be doubled for civil violations from $25,000 to $50,000.
• Daily penalties for noncompliance would be doubled from $1,000 to $2,000.
• “Green Corridors” would be developed with natural gas vehicle fueling stations at least every 50 miles along key highways.
• School and mass transit agencies would be helped to convert to natural gas fuel.

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The upcoming construction of the new multi-billion dollar Shell ethane cracker plant in Beaver County, PA, means that there are unlimited opportunities for everyone who is involved in any aspect of regional business development. Marcellus Utica Connection is seeking strategic partners to launch marketing initiatives and connect the different industries that will most benefit during this time of unprecedented growth.