Pa. Natural Gas Impact Fee Generates $209M+, Proceeds Benefit All Counties

Communities across Pennsylvania will receive more than $209 million in new impact fee revenue, Pennsylvania’s Public Utility Commission (PUC) announced yesterday. Since 2012 the impact fee – Pennsylvania’s drilling tax – has generated nearly $1.5 billion for communities in all 67 counties.

This natural gas impact fee is working as designed, generating hundreds of millions of dollars each year, MSC’s Dave Spigelmyer said.

“Pennsylvania’s impact fee – a special drilling tax that is paid on top of all other business taxes assessed in the Commonwealth – enables local governments to direct how the revenues are utilized. The tax revenues collected from the natural gas industry support local bridge, road and other critical infrastructure improvements, as well as community parks, first-responders, soil and water conservation districts, environmental projects and housing initiatives.”

Generating 21 percent more revenue than the previous year, this year’s drilling tax total is the third highest annual collection since implemented seven years ago. Combine the impact fee with all other businesses taxes assessed in the Commonwealth and natural gas development has generated billions of dollars in new taxes, royalties and bonus fees for Pennsylvania citizens.

Southwestern Pennsylvania and Northeastern Pennsylvania communities will see the largest share, with roughly $100 million flowing to counties and communities in those regions. Even communities in southeastern Pennsylvania, where no drilling activity takes place, receive a share of the funds, north of $4 million this year.

Additionally, $76.5 million will be transferred to the Marcellus Legacy Fund, a statewide grant program that supports environmental, highway, water and sewer projects, rehabilitation of greenways and other projects across the state. And, just under $20 million will be distributed to state agencies, like the Department of Environmental Protection.

Despite Pennsylvania natural gas impact fee generating nearly $1.5 billion in new revenue, Governor Wolf and some elected officials continue to push for even higher energy taxes.

“Additional energy taxes would cost local and trade union jobs, increase energy costs for consumers and hurt Pennsylvania’s economy,” added Spigelmyer. “Rather than promote uncompetitive policies, we need to capitalize on the generational opportunity to grow energy and manufacturing jobs across the Commonwealth.”

Here’s what they’re saying:

Pennsylvania regulators announce payouts from shale gas fees

“Pennsylvania regulators have decided how they will disburse nearly $210 million that was raised last year from fees on Marcellus Shale gas wells. County and municipal governments will receive $115 million, while state agencies will get $18 million. Another $76.5 million will go to the Marcellus Legacy Fund for environmental improvement programs, roadway repairs and water and sewer infrastructure upgrades. Officials say impact fee revenue jumped by about 21 percent last year.” (6/21/18)

Impact fee on Pa. shale wells tops $209 million this year

“Pennsylvania shale gas producers paid $209.6 million in impact fees this year, the state PUC said Thursday. The total is $36 million more than the prior year. … More than half of the total fees collected for 2017 — $114.8 million — will be distributed to county and local governments. … Roughly $50 million of the fees will go to southwestern Pennsylvania counties and municipalities.” (6/21/18)


Pa. discloses how it will divvy up $210M in shale gas fees

“The Pennsylvania PUC on Thursday disclosed how it will slice up the nearly $210 million pie of shale-gas impact fees from 2017, including portions totalling $3.65 million to Philadelphia and four surrounding counties. … Philadelphia will receive $1.4 million; Montgomery County will receive $732,000; Bucks County will receive $558,000; Delaware County will receive $502,000 and Chester County will receive $460,000.” (6/21/18)


Pennsylvania’s gas impact fees rise to $209 million this year

“Local governments in Pennsylvania will receive $209,557,300 this year in impact fees levied on Marcellus Shale gas companies, marking the third highest total since the fees went into effect in 2012. The amount is about $36 million higher than last year, according to the state PUC. … The impact fee money is collected annually and funneled to local governments… The money also goes to state agencies, like the Department of Environmental Protection, that oversee the industry and to the Marcellus Legacy Fund, which gets spread out around the state and can be used for conservation purposes.” (6/21/18)


Impact fees further boost Washington, Greene and its towns

“Natural gas production is up, and so are impact fee revenues – especially in Washington and Greene counties. … “It’s a big benefit for Washington and Greene counties. Production is up, which means jobs are increasing,” said Washington County Commissioner Harlan Shober. … “This funding highlights the significance of the natural gas industry in promoting our local economy,” State Sen. Camera Bartolotta said in a release. “Impact fee revenues support numerous projects throughout the region, and these improvements are another reminder of the importance of supporting the responsible development of our natural resources without saddling the industry with crippling regulations or onerous new taxes.” (6/22/18)


Marcellus Shale fees coming to local counties

“Blair and its surrounding counties and their municipalities will share more than $2.2 million in Marcellus Shale fees with nearly 60 percent heading to Clearfield County. … Statewide the PUC is disbursing $210 million in impact fees collected from gas producers on unconventional wells that use horizonal drilling and fracking to access gas deposits in the Marcellus Shale layer. (6/22/18)


Natural gas fee generates $209.5M in 2017

“Nearly $210 million has been disbursed in natural gas impact fees for drilling activity occurring in 2017, including $7.8 million for northcentral Pennsylvania counties and municipalities. … “Pennsylvania’s impact fee – a special drilling tax that is paid on top of all other business taxes assessed in the Commonwealth – is working as designed by enabling local governments to direct how the revenues are utilized,” said MSC president David Spigelmyer. (6/22/18)


PUC announces $210M distribution of gas drilling impact fees

“The Pennsylvania PUC disclosed on Thursday how it will divide the nearly $210 million from shale-gas impact fees from 2017, including $3.65 million to Philadelphia and four surrounding counties, with Chester County in line to get $460,000. … This year’s distribution is approximately $36 million higher than last year, or 21 percent, driven by an increase in the number of wells in Pennsylvania.” (6/22/18)

Click HERE and HERE to learn more about Pennsylvania’s natural gas impact fee.