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Gold/Mining/Energy : Shale Natural Gas, Oil and NGLs and ESA

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From: jrhana5/26/2009 1:30:20 PM
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Marcellus drilling spurs road bond debate

scrantontimes.com

by robert swift (HARRISBURG BUREAU CHIEF)
Published: May 25, 2009

HARRISBURG - Natural gas drilling in the Marcellus Shale formation is spurring debate about requiring owners of overweight vehicles to pay higher road bonds.

These bonds help pay for damage to roads caused by large vehicles and frequent truck traffic. A recent study by the Pennsylvania Budget and Policy Center on the impact of gas drilling points out local taxpayers bear the burden of fixing roads when damage exceeds the road bond amount.

Since 1978, state law has allowed local officials to require owners of overweight vehicles to post bonds of up to $12,500 per road mile. This bond amount has remained unchanged even though the current cost of replacing damaged roadway is estimated at more than $100,000 per road mile. Municipal officials can set a 10-ton vehicle weight limit on roads found in need of traffic restrictions. Owners of overweight vehicles can apply for a travel permit and post the road bond.

The $12,500 may fill a few potholes, said Elam Herr of the Pennsylvania State Association of Township Supervisors, which wants a higher bond amount set.

"But it isn't going to do much more than that," he said.

The exploration of the Marcellus formation, underlying much of Northeast and Central Pennsylvania, by energy companies during the past two years has brought new focus to this debate.

Some of the drilling equipment weighs more than 100 tons, far above the posted weight limits on rural roads and bridges, according to the budget center study. The study suggests the number of truck trips per well can range from 350 to 1,000.

PennDOT officials are considering whether to set a higher bond amount through regulation, as is customary, but no decisions have been made.

Some state lawmakers favor stronger action.

A measure by Rep. Mark Longietti, D-7, Sharon, would require PennDOT to set a new bond amount by 2011 based on maintenance costs and update it every three years. The House Transportation Committee held a hearing on the bill last year.

Mr. Longietti's bill includes a presumption that in a legal dispute, overweight trucks would have caused road damage unless the owners can prove otherwise. This would shift the burden of proof in favor of local municipalities.

It's difficult for municipal officials to prove that specific vehicles damaged a road without having video cameras installed 24 hours a day, Mr. Longietti said.

A drilling firm would find it hard to prove its vehicles didn't cause damage if that provision was in effect, said Stephen Rhoads, president of the Pennsylvania Oil and Gas Association, a trade group.

"It creates a huge benefit to the municipality against a bonded road user," he added.

In the absence of state action, a number of drilling firms and municipalities have reached voluntary agreements for the payment of road bonds above the current limit, Mr. Rhoads said.

Contact the writer: rswift@timesshamrock.com
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