DCNR to use drilling cash for repairs
HARRISBURG - State conservation officials plan to tap more revenue from oil and gas drilling royalties and timber sales to start to tackle a backlog of $1 billion in infrastructure repairs in the state-owned parks and forests.
Calling his agency's budget proposal for fiscal 2013-14 "fundamentally lean," Richard Allan, secretary of the Department of Conservation and Natural Resources, told the Senate Appropriations Committee on Monday about plans to draw additional money from the separate Oil and Gas Fund to undertake larger-scale repair projects as well as pay for increased personnel costs.
Mr. Allan, a Luzerne County native, said the agency will give top priority to infrastructure projects that impact public health and safety. Falling in that category are dams, roads and wastewater treatment plants. Gov. Tom Corbett's proposed budget calls for DCNR to use about $77 million next year from the oil and gas fund, compared to $69 million this year, said agency spokeswoman Chris Novak.
The oil and gas fund collects rents and royalties paid by oil and gas firms drilling on state forest land as well as timber sales. The fund has been tapped for decades to support a wide range of conservation and recreation projects. Since 2009, a significant chunk of fund revenue has gone to support DCNR's operations, including some infrastructure needs.
DCNR would receive $53 million from the taxpayer-supported General Fund under the governor's budget proposal. Mr. Allan told senators that a moratorium on additional leasing of state forest land for drilling put in effect by former Gov. Ed Rendell remains in place.
"The moratorium is still in effect," he said. "There is no discussion on changing the moratorium."
At this stage, a total of 307 wells are producing gas in the state forests, said Mr. Allan.
About half of the 1.5 million acres of state forest land in the Marcellus Shale formation has been leased to drillers.
Mr. Allan spotlighted DCNR's success in getting the state forests independently recertified, thereby allowing timber from there to be sold as sustainably harvested. He said that shows the forests are being managed to protect their long-term health even as Marcellus gas drilling occurs.
Contact the writer: rswift@timesshamrock.com