PUC Details $200 Million Distribution of Gas Drilling Impact Fees to Pennsylvania Communities; Total Distribution Tops $1.9 Billion
Published on 6/17/2020
Filed under: Gas
HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today posted detailed information about this year’s distribution of impact fees on natural gas producers – totaling $200,364,500 – on the PUC’s Act 13 website.
With this year’s distribution, the PUC over the past nine years, has collected and distributed over $1.9 billion to communities across Pennsylvania.
County and municipal governments directly affected by drilling will receive a total of $109,180,326 for the 2019 reporting year. Additionally, $72,186,900 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, $18,397,250 will be distributed to state agencies, as specified by Act 13.
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 $42.6 million lower than last year, driven primarily by the average price of natural gas in 2019 ($2.63 per MMBtu) versus the average price in 2018 ($3.09 per MMBtu) which caused a lower impact fee payment for each well in 2019.
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.
The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.
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