The Pennsylvania Public Utility Commission (PUC) on Friday posted detailed information about this year’s distribution of impact fees on natural gas producers – totaling $234,437,575 – on the PUC’s Act 13 website.
County and municipal governments directly affected by drilling will receive a total of $123,217,163 for the 2021 reporting year. Additionally, $86,030,934 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, $25,189,477 will be distributed to state agencies, as specified by Act 13.
McKean County government will receive $414,277.74.
Within the county, Norwich Township will receive the most money, at $207,902.83, followed by Sergeant Township at $195,325.74. No other municipality will receive nearly as much, as the well activity in the county is largely in those two townships.
The City of Bradford will receive $46,076.93; Bradford Township, $40,950.18; Wetmore Township at $33,469.20; Foster Township, $29,398.75; Keating Township, $29,398.75; Liberty Township, $23,954.89; Kane Borough, $21,011.62; Lafayette Township, $15,620.03; Hamlin Township, $14,956.18; Annin Township, $13,052.12; Ceres Township, $12,877.36; Otto Township, $12,487.11; Eldred Township, $7,643.93; Mount Jewett Borough, $6,003.42; Hamilton Township, $5,900; Port Allegany Borough, $5,866.32; Smethport Borough, $5,043.72; Corydon Township, $3,867.19; Lewis Run Borough, $3,582.58; and Eldred Borough, $2,127.57.
With this year’s distribution, the PUC has collected and distributed over $2.2 billion to Pennsylvania communities.
The PUC has forwarded the information to the Department of Treasury for payment and expects checks to be distributed in early July.
Marcellus Shale Coalition President David Callahan said, “Generating $2.3 billion in essential funding for state and local governments across all 67 counties, Pennsylvania’s unique natural gas tax is an effective policy that yields impactful results.”
According to the PUC, this year’s distribution is near $100 million higher than last year, driven primarily by the average price of natural gas in 2021 ($3.84 per MMBtu) versus the average price in 2020 ($2.08 per MMBtu) which generated a higher impact fee payment for each well in 2021 – along with the addition of 518 new wells during 2021.
Callahan commented, “The nearly 60 percent increase in this year’s distribution is directly related to heightened activity levels and the commodity price environment, underscoring the importance of policies that encourage domestic natural gas development, transportation and use. Our members continue to be focused on responsibly developing clean, abundant Pennsylvania natural gas, which is even more important today in keeping America and our allies energy secure.”
The distributions for individual municipalities are detailed on the PUC’s Act 13 website. (https://www.act13-reporting.puc.pa.gov/)
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.
