Friday, January 29, 2016

Drilling Impact Fees Drop By $5,000 Per Well, Revenue Lost Could Be As Much As $34 Million

The Public Utility Commission published notice in the January 30 PA Bulletin that 2015 Act 13 drilling impact fees will drop by $5,000 per horizontal well, except for wells 3 years old.
The 2015 impact fee will be--
                     Horizontal        Vertical
1st Year $45,300 $9,100
2nd Year $35,200 $7,000
3rd Year $30,200 $6,000
4th Year $15,100 $3,000
5th Year $15,100 $3,000
1st Year $50,300 $10,100
2nd Year $40,200 $ 8,000
3rd Year $30,200 $ 6,000
4th Year $20,100 $ 4,000
The PUC will get reports from well producers in April that will be used to calculate the final revenue for calendar year 2015 based in part on this fee reduction.
Last June, the Independent Fiscal Office projected a decline in Act 13 impact fee revenues by $33.9 million for the 2015 Calendar year totalling $189.6 million.  In 2014 fee collections totaled $223.5 million.  Their assumptions were based in part on a reduction of the per well fee by $5,000 and declines in the price of natural gas.
For more information, visit the PUC’s Act 13 Drilling Impact Fee webpage.
Related Stories:
Short Week In Harrisburg, But Still Long-Running Issues Dominated-- Budget, Kane
Independent Fiscal Office: Oil & Gas Lease Fund Revenues To Drop Nearly 40 Percent

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