Local Pa. governments use gas impact fee revenue frivolously
Monday, December 19, 2016
According to the state Auditor General, Pennsylvania counties and municipalities mishandled million of dollars intended to offset the negative effects of the Marcellus Shale boom.
The impact fee money is collected annually from oil and gas companies and given to local governments to mitigate disruptions from shale drilling. Some examples include wear-and-tear on roadways, increases in crime and housing shortages.
Local governments are only supposed to use the money 13 different ways, including things like public infrastructure improvements, emergency preparedness, affordable housing, judicial services, and environmental programs. However, the broad categories and weak system for financial reporting allowed misuse of the funds.
For example, North Strabane Township, Washington County, spent $32,602 on recreational events and parties, which included $7,500 for fireworks and $1,200 for singer Adam Brock and $4,250 to rent inflatable attractions, according to StateImpact.
Learn more: StateImpact > Audit criticizes local governments’ use of gas impact fee revenue
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.