On June 25, the Independent Fiscal Office released an updated report on Act 13 drilling impact fee revenues based on two scenarios-- no change in the current fee will result in only a slight decrease in revenue, but if natural gas prices remain low and the fee changes, a $53.4 million loss is expected.

Under the “no fee change” scenario, revenues for calendar year 2020 should be about-- $199.9 million.  Revenue was $200.365 million in 2019, which was $51.4 million less than in 2018-- $251.831 million.

However, if the price of natural gas is less than $2.25 per MMBtu, the fee formula in Act 13 calls for another lowering of the fee which will reduce revenues by another $53.4 million.

That could mean a significant drop of over $104 million in Act 13 drilling impact fee revenues in just two years.

Click Here for the full report.

Related Article:

PUC Distributes Over $200 Million In Act 13 Drilling Impact Fees; A Sharp Drop Of $51.5 Million From Last Year

[Posted: June 25, 2020]

6/29/2020