House Democratic Policy Committee hears gas drilling testimony
WAYNESBURG — Greene County officials and residents called for more regulation and assessment of a tax on the Marcellus shale gas industry, while a gas company representative said the growing industry is already heavily regulated, but supports a fair impact fee.
Those comments came as testimony before the House Democratic Police Committee, which met in Waynesburg Central High School on Tuesday.
Rep. Bill DeWeese, D-Waynesburg, who hosted the meeting, said the committee would use the testimony in decision making.
The first person to testify, Gary Slagle of Consol Energy, said with the addition of two drilling rigs in October, the company will have six rigs.
Consol has drilled 40 Marcellus wells so far this year and plans to have a total of 115 wells drilled by the end of the year, he said.
He said construction standards for well heads and hydraulic fracturing water rules are among the many regulations drillers must follow.
A member of Gov. Tom Corbett’s Marcellus Shale Advisory Commission, Slagle said the commission recommended an impact fee that would go to municipalities where drilling takes place and the industry supports a fair fee.
Pam Snyder, chairman of Greene County commissioners, said she has neutral feelings about the industry. She said she recognizes its economic benefits, but is concerned about its impact on the environment and infrastructure.
The county’s unemployment rate is 7 percent, there are gas well job training programs in the county, the recorder of deeds office has never been busier recording property transfers and charities and businesses have benefited from the gas companies she said.
Gas companies rent entire hotels for well workers, Snyder said. In those cases, hotels are considered boarding houses and do not have to pay the county’s hotel tax, she said.
Traffic from heavy trucks serving the industry are damaging roads and bridges, and many residents believe well drilling contaminates water and compressor stations cause air and noise pollution, Snyder said, noting that she supports an impact fee.
Central Greene School District Superintendent Jerome Bartley said most states that tax gas drilling treat the tax revenue as regular income.
He said Pennsylvania should tax the gas industry and use the money to offset reductions in education subsidies.
Shirl Barnhart, a Morgan Township supervisor, said an impact fee is needed to compensate municipalities for the costs they incur in dealing with the industry.
Water trucks create ice when they drive on snow-covered roads late at night in the winter and the township provides water buffaloes for residents worried about their well water, he said.
Barnhart said the township spent $30,000 in employee wages, $15,000 on winter road materials, $5,000 on legal and administrative costs and other money to address issues caused by the industry last year.
Rep. Deberah Kula, D-North Union Township, said she has introduced a bill to assess gas like property and tax it.
Martin Niverth, the former manager of the county conservation district, said the state should impose a fee on drillers, but state regulation has not kept pace with the industry.
There were no rules for fracking or water withdrawal, not enough DEP inspectors and drillers were allowed to dump frack water into waterways when Marcellus drilling began in 2008, he said.
Carmichaels resident Pam Judy told the panel about the numerous health problems she and her family began experiencing after Marcellus compressor stations were built around her home in 2009.