Act 13/Impact Fee

Act 13 of 2012 (Impact Fee) was signed into law by Governor Corbett on Feb. 14, 2012. Act 13/Impact Fee amends Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes (Act 13 of 2012). Act 13/Impact Fee provides for the imposition of an unconventional gas well fee (also called an impact fee), and the distribution of those funds to local and state governments. Act 13/Impact Fee also contains provisions regarding how the impact fee may be spent. A significant portion of the funds collected will be distributed directly to local governments to cover the local impacts of drilling. 

Under Act 13/Impact Fee, the Pennsylvania Public Utility Commission (PUC) administers the collection and disbursement of the fee. Also, the PUC may review ordinances at the request of a municipality as well as complaints filed by a well owner/operator or a person residing within the municipality who is aggrieved by the enactment or enforcement of a local ordinance. Due to proceedings before the state courts, the Commission currently is not reviewing local ordinances.

Act 13/Impact Fee also defines 13 broad categories where funds received from the Unconventional Gas Well fees may be used. All of the funds must be placed in one or more of the defined categories. The funds do not need to be spent; they just need to be committed through any authorizing body as defined by your municipality. In accordance with Act 13/Impact Fee, below you will find the Unconventional Gas Well Fund Usage Reports submitted by North Fayette Township.