Marcellus Shale companies and trade groups are resisting a proposal by Pennsylvania regulators to more than double the price of drilling permit applications, according to the Pittsburgh Post-Gazette.
The Pennsylvania Department of Environmental Protection claims it needs to increase permit fees from $5,000 to $12,500 per shale well to keep the state’s oil and gas oversight program from running out of money by next summer.
In response, shale companies and trade groups are arguing that the department hasn’t sufficiently justified its need for the increase. They believe other funding sources — including the impact fee on shale companies and the department’s share of the taxpayer-supported general fund — should be tapped first.
If the proposal is adopted, Pennsylvania would impose the highest well permit fee in the nation.