LOCK HAVEN - The cost of drilling is high - and is getting higher for the taxpayers of Clinton County.
According to a report released Thursday, the government's expense accompanying the drilling company surge in this region is doubling each year with no end in sight.
It's estimated government services to drillers and related expenses will cost the county's taxpayers $334,000 this year.
A large majority of the Clinton County commissioners' meeting Thursday was dominated by a topic over which the commissioners have little or no control - the increased interest in drilling in this region as a result of the vast reserves of natural gas contained beneath our feet.
One thing is certain - The board now has some data to provide when they talk about how expensive it's going to be for them.
For months now, the commissioners, state officials, local officials, township officials, agencies, organizations and governments have been talking endlessly about the potential for both problems and revenue accompanying the gas industry's surge in interest in Pennsylvania.
While the talk has been interesting, some questions have remained unanswered, particularly when it comes to the cost and benefit to local communities.
Regarding cost, the commissioners, particularly Tom Bossert, took it upon themselves to gather some numbers after being challenged by state Sen. Jake Corman, R-Bellefonte, to justify their desired legislation establishing a severance tax on drilling operations, with the county receiving a share of that revenue.
On Thursday, Bossert arrived bright and early, and distributed the report from department heads to all in attendance.
The report offered estimates the "gas play" costs to local government that illustrate a stark spike in the expense over the past four years, including estimates for 2010:
n 2007 - $7,270
n 2008 - $73,884
n 2009 - $153,582
n 2010 - $334,000 (est.)
Most of the departments' additional costs were relatively minor, with the exception of the Geographic Information Systems, assessment and corrections departments.
According to the commissioners:
n The GIS department, which provides data and analytical service for parcels and owners, will likely devote some 40 percent of its time this year in connection with Marcellus Shale-related requests for information, amounting to $48,744.
n The Clinton County Correctional Institution will lose employees to the gas companies, forcing additional costs in training and increased salaries to maintain trained staff, according to estimates from that department, which set the cost at $180,000.
n The assessment office helps gas and oil companies identify land parcels of interest, expending 30 percent of staff time for that effort in 2009 and 2010, for an estimated expense of $96,000 in 2010.
n Estimates of 2010 costs from other departments:
n Commissioners, $4,906, staff time increases, mileage
n Register and recorder, $2,000, rebinding of reference materials
n Children and Youth, no cost listed, but as demand for housing increases, demands will increase with displaced families
n Emergency Management, no specific costs, but additional training for emergency management will be considered
n Conservation District, technical assistance with environmental regulation, permitting and erosion control, $7,000 to $9,000
n Technology, $750, more frequent replacement of computers and related equipment
n Planning office, $1,500, additional meetings, mileage and site visits to advise local zoning officials.
In a letter forwarded to Corman, Bossert noted the county has a population of 37,914 with 23,005 parcels and a government budget of $23.4 million.
Approximately 60 percent of the county is owned by the state, and most of the gas play is being conducted on state-owned land, which limits the potential for assessments, because the state pays no local taxes.
"It appears most of the cost increases will not be covered by increases of basic fee schedules within each county department," Bossert wrote. "The trend of cost increases of approximately 100 percent a year will have a devastating affect upon future county budgets unless some remedy is created with legislation to enable financial recovery by the government."
The emphasis on the percentage increase each year was not an error - Bossert and the other commissioners said they wanted to reflect that the jumps are going to occur rather than allow legislators leeway to use a set figure to justify a set allocation, and require counties to cover the ever increasing expenses into the foreseeable future.
Bossert also said it is hoped the county document won't be a stand-alone effort, but will spark similar initiatives in counties where the drilling is occurring or will occur. He noted copies of the report will be sent to Centre and Lycoming counties, state legislators and other interested parties.
"It's time the state addressed some of these problems," Bossert said.
Mitzi Gallagher, legislative aide to state Rep. Mike Hanna, D-Lock Haven, told the board Hanna was a sponsor of a recent legislative effort to place a moratorium on new drilling permits on state land, is supporting a severance tax and is strongly supportive of environmental safeguards.
"I'd hope that this study is not used as a (sole) justification for state policy on costs and allocations," Commissioner Adam Coleman said. "There are more costs than anybody knows at this point. We don't want this to box us in a corner sometime in the future. The costs could be $1.5 million next year."
Bossert said the trend of 100 percent increased costs each year was "alarming."
What's alarming to Pat and Rose Reeder of Swissdale was another, but related, matter.
Mrs. Reeder said truck traffic accompanying drilling industry activity has increased at an alarming rate on the Coudersport Pike and the drivers are increasing the danger to the general public by rushing to their destinations and cutting across center line on the winding road with blind corners.
The Reeders shared some of their concerns for the environment and suggested if people wait until the industry fully blooms, they might see significant damage to the region's treasured forests.
Coleman replied, however, he believes the drilling companies are taking the right steps in protecting the local environment and the state Department of Environmental Protection has added manpower just to accomplish that goal.
Local resident Richard Morris said some of the regulations already in place don't make much sense. Morris said as DEP has established things, the price of a permit goes up the deeper the well descends - but the department caps the number of $2,500 security bonds to 10 wells, meaning the 11th and subsequent wells drilled by a company get off free?
