Wednesday, June 24, 2015

Independent Fiscal Office Report: Drilling Fees Could Decline To $189.6 Million In 2015

The Independent Fiscal Office Wednesday released an update report on Act 13 drilling fee revenues estimates the drilling impact fee will result decline from $208.6  million to $189.6 million in revenue from a total of $223.5 million in 2014.
The IFO says reductions in revenue will be caused by--
-- Declines in the price of natural gas resulting in a reduction of about $5,000 per well in 2015;
-- Decline in the number of wells brought into production in 2015 when they pay the highest fees.  They noted so far in 2015 no wells have been brought into production.
-- Existing wells pay lower fees over time.
A copy of the report is available online.

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