IFO Estimates FY 2018 Drilling Impact Fee Revenue At $247 Million, A Record
On January 24, the Independent Fiscal Office estimated the Act 13 drilling impact fee will generate $247 million from fees imposed in 2018, $37.4 million more than last year.
This also represents the most revenue ever collected under this fee since it was created in 2012. The previous high was $225.7 million in 2013, the first year the fee was imposed.
The impact fee is a per well fee imposed on producing shale gas wells. It is not based on natural gas production.
The revenue from the fee is distributed by the Public Utility Commission to counties and municipalities, state agencies, county conservation districts and other programs like the Environmental Stewardship (Growing Greener) Fund and the Commonwealth Financing Authority from the Marcellus Legacy Fund.
Since it was enacted, the impact fee has raised $1.7 billion in revenue.
The IFO notes the estimate includes about $22.3 million the Public Utility Commission stands to collect based on a fee dispute involving so-called stripper gas wells resolved by the PA Supreme Court in December.
Click Here for a copy of the report.
[Posted: Jan. 24, 2019]
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