Total Distribution Tops $2 Billion to Pennsylvania Communities
HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today posted detailed information about this year’s distribution of impact fees on natural gas producers – totaling $146,254,725 – on the PUC’s Act 13 website.
County and municipal governments directly affected by drilling will receive a total of $71,488,645.52 for the 2020 reporting year. Additionally, $51,032,424.77 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, $23,733,627.60 will be distributed to state agencies, as specified by Act 13.
With this year’s distribution, the PUC over the past ten years,
as collected and distributed over $2 billion to communities across Pennsylvania.
The PUC has forwarded the information to the Department of Treasury for payment and expects checks to be distributed in early July.
This year’s distribution is approximately $54 million lower than last year, driven primarily by the average price of natural gas in 2020 ($2.08 per MMBtu) versus the average price in 2019 ($2.63 per MMBtu) which caused a lower impact fee payment for each well in 2020 – along with the fewest number of new wells than in any year since the passage of Act 13.
The distributions for individual municipalities are detailed on the PUC’s Act 13 website.
Extensive details regarding the impact fee distribution are available online, including specifics on funds collected and distributed for each year since 2011. Visitors can search and download statistics such as distributions to individual municipalities or counties; allocation and usage of those funds, based on reports submitted by various municipalities; eligible wells per county/municipality; and payments by producers.
The PUC is responsible for implementing the collection and distribution of an unconventional gas well fee (also called an Impact Fee), established by the Unconventional Gas Well Impact Fee Act and signed into law as Act 13 of 2012.