A new law signed by Pennsylvania's governor could make counties millions of dollars richer.
Oil and natural gas drillers are now being hit with a per-well impact fee, but the decision on whether to collect the money or pass is being left up to individual counties, which have 60 days to decide whether they want to impose the fee. Mercer County doesn't yet have any active wells, but is looking to benefit.
"We discussed it at our work session this morning, and we have a copy of the model ordinance that was provided to us by the state of Pennsylvania," said Mercer County Commissioner John Lechner.
Lechner said the language is being reviewed. He expects to pass an ordinance opting for the fees in late March.
Lawrence County Commissioners already introduced an ordinance opting for the money.
"There will be a lot of benefits in terms of economics for the county once the drilling starts here and for the people of the county," Lechner said.
The law establishes a fee range between $40,000 and $60,000 per well for the first year of production. The fees will last 15 years and are on a sliding scale based on the price of gasoline.
Counties opting for the money expect to bring in millions. The state gets 40 percent of the revenue, and the remaining 60 percent will be split between the county and local municipalities.
The money can be used for a variety of projects, including infrastructure, public safety and even affordable housing.
"We will look at where the greatest need is at the moment and make the distributions," Lechner said.
Some politicians criticized the law and said giving counties an option could create a bad business climate. There's also some criticism over municipalities losing impact fee revenue if they passed an ordinance banning drilling.
"There has to be a balance because we need energy, we need growth, we need jobs, but we need a safe environment to live in," Lechner said.
