Oct 26, 2012 3 min read

A Commonwealth Court judge has ruled that the Pennsylvania Public Utility Commission has no right to withhold nearly $1 million in impact fees from local townships challenging the legality of Act 13, the state’s new law governing gas well drilling. Senior Judge Keith Quigley ordered the PUC to cease and desist from acting upon requests to review municipal ordinances for compliance, noting the July 26 order already prevented the state from enforcing portions of the act dealing with local zoning provisions. Brian Coppola, chairman of the board of supervisors in Robinson Township, one of four local municipalities that had challenged Act 13, said he was pleased with the latest ruling. “Hopefully it will prevent any more malicious behavior on part of the industry and a couple of individuals in the township,” he said. Robinson was to receive $225,737 in impact fees, but that payment had been withheld because a resident asked the PUC to review the township’s ordinance to make sure it was in compliance with the state law. Act 13 was designed to provide statewide standards for oil and gas development in the state and was signed into law in February by Gov. Tom Corbett. But municipalities challenged it and the court ruled in July that portions taking away local zoning were unconstitutional. The state Supreme Court last Wednesday heard oral arguments of the Act 13 challenge. A final ruling is expected in the coming months. Since it was signed into law, more and more townships and boroughs are siding with zoning remaining under local control, said Coppola. The state Association of Township Supervisors, the Association of Boroughs, the cities of Philadelphia and Pittsburgh and others have filed amicus briefs. Robinson has never denied a drilling permit. “This is another win in what’s becoming a long string of victories for the side of local communities as related to Act 13,” Rep. Jesse White, D-Cecil, said. He called on the natural gas drilling industry and the Corbett administration to work with local governments where natural gas drilling is taking place. “There is no legal basis whatsoever for any bureaucrats at the PUC to review municipal ordinances and/or to withhold impact fees to municipalities,” added Deron Gabriel, president of the South Fayette Township commissioners. South Fayette is a plaintiff in the lawsuit.  Attorney John M. Smith, who represents Robinson and Cecil townships, said the PUC should immediately release the impact fees to the communitiies. The impact fees are to be used for road and infrastructure improvements, police and fire protection, and other measures. Cecil Township is scheduled to receive $246,098, and South Fayette $2,731. Mt. Pleasant Township, which also is a party in the lawsuit, will receive $500,000 after a request to the PUC for review of its ordinance was rescinded this week. In a related matter ,the PUC announced Friday it had miscalculated what some municipalities will receive in impact fees. Press secretary Jennifer Kocher said all the impact fees are under review so it is not known if any local communities will have their fees recalculated. However, the PUC is still planning to distribute the funds by the Dec. 1 deadline.