Thursday, June 25, 2020

Independent Fiscal Office Predicts Another $53.4 Million Decrease In Drilling Impact Fee Revenues In 2020 If Natural Gas Prices Remain Low

On June 25, the
Independent Fiscal Office released an updated report on Act 13 drilling impact fee revenues based on two scenarios-- no change in the current fee will result in only a slight decrease in revenue, but if natural gas prices remain low and the fee changes, a $53.4 million loss is expected.
Under the “no fee change” scenario, revenues for calendar year 2020 should be about-- $199.9 million.  Revenue was $200.365 million in 2019, which was $51.4 million less than in 2018-- $251.831 million.

However, if the price of natural gas is less than $2.25 per MMBtu, the fee formula in Act 13 calls for another lowering of the fee which will reduce revenues by another $53.4 million.

That could mean a significant drop of over $104 million in Act 13 drilling impact fee revenues in just two years.

Click Here for the full report.

[Posted: June 25, 2020]  PA Environment Digest

No comments :

Post a Comment

Subscribe To Receive Updates:

Enter your email address:

Delivered by FeedBurner