The 174-page bill that awaits his pen directs a majority of the fee's proceeds to the upstate areas most affected by the drilling, as Corbett insisted. But it also spreads money around to the Philadelphia region and other parts of the state.
The compromise was months in the making and for several hours yesterday appeared headed towards defeat as Republicans who control the House hustled to garner votes.
In the end, they mustered a slim majority, showcasing again the difficulties of reaching consensus on how best to deal with a burgeoning industry. Pennsylvania is the only major gas-producing state that does not tax natural gas production.
Corbett steadfastly refused to impose a "severance tax" on drillers, arguing that it would chase away an industry that is creating jobs and generating revenue in a lackluster economy.
Thus, the "impact fee" concept was born, despite loud complaints from Democrats that it amounted to a break for a deep-pocketed industry.
"This is the largest corporate giveaway in Pennsylvania history," House Minority Leader Frank Dermody (D., Allegheny) said Wednesday.
The compromise, reached last weekend between Corbett and Republicans who control both legislative chambers, calls for a fee that would fluctuate with the price of natural gas and, starting in 2013, the rate of inflation.
If the price of natural gas is between $3 and $5, the fee would be $310,000 per well over 15 years. That fee would be lower if the price falls below $3, and would increase if the price rises above $5.
In the first year alone, Republicans say, the levy would raise $180 million from 3,850 wells. On Wednesday, House Majority Leader Mike Turzai (R., Allegheny) predicted it could garner as much as $3 billion over 10 years.
A major sticking point has been how proceeds from the fee would be distributed.
