Legislators from both chambers of the Pennsylvania General Assembly face tough negotiations into December as they try to reconcile the differences between their two Marcellus Shale regulatory reform bills, which include an impact fee on oil and natural gas drilling.

“There’s an enormous amount of work to do if we’re going to finish this before we recess at the end of the year,” Drew Crompton, chief of staff and legal counsel to state Senate President Pro Tempore Joe Scarnati (R-Warren), told NGI on Friday. “I believe it’s achievable, but it’s going to take an immense amount of compromise on all sides.”

Crompton said another “side” to the discussion was Gov. Tom Corbett, whose proposals are closer to those contained in House Bill 1950, which the House passed Thursday by a 107-76 vote. HB1950 essentially calls for a 1% tax in the form of a $160,000 impact fee over the life of a well. Counties would levy the impact fee and with local governments would be the fee’s primary beneficiaries, raking in 75% of the revenues.

Meanwhile Senate Bill 1100, which passed last Wednesday by a 29-20 vote, essentially calls for a 3% tax rate on natural gas production (retroactive to 2010) with an impact fee of $360,000 over the life of the well. Under SB1100, an additional fee would be implemented if natural gas prices exceed $5/Mcf, and 55% of the revenue collected from the fees would go to county and local governments that host drilling. Scarnati was the primary sponsor of SB1100.

“There are significant differences between the House bill and the Senate plan,” Crompton said. “There is also a fair amount of overlap, or similarities. [But] we haven’t necessarily gotten full direction from what the governor’s priorities are.”

Crompton said the General Assembly was currently scheduled to be in session on Dec. 5, 6 and 7, and again on Dec. 12, 13 and 14.

“There has been some talk about possibly adding [session] days, but there has been no discussion of that seriously,” Crompton said. “I wouldn’t hold out hope that we’ll be in past the 14th of December.”

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