Pennsylvania’s Gas Drilling Impact Fee Distribution Rises by $100 Million

(Reuters) — The Pennsylvania Public Utility Commission (PUC) said on June 17 that 2021’s impact fees on natural gas producers were about $100 million higher than in 2020, due to higher gas prices and the addition of new wells.

The average price of natural gas was $3.84 per million British thermal units (MMBtu) compared with 2020’s $2.08 per MMBtu, the PUC said in a press release, with 518 new wells added during 2021.

County and municipal governments directly affected by drilling will receive a total of about $123.2 million for the 2021 reporting year, per the PUC, out of the year’s total of about $234.4 million.

“Additionally, $86,030,934 will be transferred to the Marcellus Legacy Fund, which provides financial support for environmental, highway, water and sewer projects, rehabilitation of greenways and other projects throughout the state. Also, $25,189,477 will be distributed to state agencies, as specified by Act 13,” the PUC said.

The PUC, which has been collecting fees from gas wells and distributing them to local governments, said it has collected and distributed over $2.2 billion to Pennsylvania communities.

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