State Sen. Tim Solobay called the passage of new Marcellus Shale regulations on Tuesday “a rational compromise” that will deliver badly needed revenue to communities and state environmental projects.

“When you consider where we began, up against this administration and majorities at both ends of the Capitol, I think it’s remarkable that we were able to make sure that every Pennsylvanian will benefit from this growing economy,” he said. “Three years of hardball through two administrations wasted millions of dollars and left local officials confused and frustrated.”

Solobay said the three years of debate allowed for a full airing of opinions and close examination of industry practices.  

“It’s not surprising that the agreement does not satisfy everyone, but it represents a compromise that ensures job growth, protects the environment and gives local officials enough authority to satisfy the statewide township supervisor’s association,” Solobay said. “It’s a way to get revenue flowing while we monitor the industry at the same time.”

The bill includes the following provisions:

Local Impact Fee

The local impact fee will fluctuate with the price of natural gas and on the rate of inflation. Counties will decide whether to impose a fee.  If the county won’t levy a fee, a majority of municipalities would be able to impose it countywide.

Fee Disbursement

Sixty percent of the fee revenue will go to local communities impacted by drilling. The local share will be divided this way:

• 37 percent for host municipalities

• 36 percent to host counties

• 27 percent to other municipalities in host counties.

The money would be used for local services—from emergency preparedness to transportation infrastructure projects.

Fourty percent of the fee revenue will go toward statewide environmental projects, ranging from acid mine drainage remediation to recreation trails and highways.

Local Control

The legislation included what Solobay called standardized—but flexible—zoning standards which allow municipalities to retain some control over zoning, but at the same time encourages consistency in regulating the gas industry.

Environmental safeguards

The bill will provide for:

• higher well bonds

• tougher penalties for violations

• disclosure of chemicals used in hydraulic fracturing

• posting of inspection reports.

Setbacks

The bill requires shale wells to be 500 feet from occupied structures and water wells, and at least 1,000 feet from public drinking water sources. It also increases the setback distance from a shale gas well to a spring or body of water to 300 feet.

The bill is now in the House for deliberations, where in a floor speech state Rep. Jesse White, D-Cecil called a vote for it a "vote for corporate welfare."

Check back with Canon-McMillan Patch for more coverage as it happens.