SALEM, Ohio — Pennsylvania’s natural gas impact fee generated $164.5 million in 2024, the Pennsylvania Public Utility Commission announced on June 23.
That’s down $15 million from the 2023 total of $179.6 million. This is due to a decrease in new wells spudded, 314 in 2024 compared to 421 in 2023, according to PUC. Wells in the first year of production pay the highest impact fee.
The average natural gas price was also nearly unchanged from 2023 to 2024. The impact fee schedule for horizontal wells is based on the average annual price of natural gas that year.
The impact fee is the state’s tax on unconventional oil and gas production, established in Pennsylvania Act 13, that is given to counties and municipalities to offset the impacts of natural gas drilling.
“The impact fee continues to provide significant and sustained support for Pennsylvania communities — especially those directly affected by natural gas development,” said Stephen M. DeFrank, PUC chairman, in a statement. “More than a decade into Act 13, this funding continues to bolster local infrastructure, environmental projects and public services across the Commonwealth.”
Since it was established in 2012, the impact fee has generated over $2.88 billion in Pennsylvania.
Last year, counties used the majority of their impact fee funding for their capital reserve fund; the second biggest use was for emergency preparedness and public safety. Municipalities used a majority of their impact fee funding for public infrastructure improvement in 2023.
Pennsylvania counties and municipalities are set to receive a total of $86.5 million in 2024. The top receiving counties of the impact fee in western Pennsylvania included Washington County, $4.9 million; Greene County, $3.4 million, and Butler County, $1.6 million. Washington County was also the top-receiving county in the state.
The top producer payments for 2024 were EQT Production Company with $25.5 million, Chesapeake Appalachia LLC with $23.8 million and Range Resources Appalachia LLC with $21.5 million.
Additionally, $57.7 million will go to the Marcellus Legacy Fund, which supports statewide environmental initiatives and infrastructure projects, and $20.4 million will go to various state agencies.
Payments will begin to be issued in early July, according to the PUC.
