Independent Fiscal Office Estimates 2023 Act 13 Shale Gas Drilling Impact Fee Revenue Will Drop By Nearly $105 Million, While Almost 400 New Wells Were Drilled So Far In 2023

On December 13, the Independent Fiscal Office estimated 2023 Act 13 shale gas drilling fee revenues will drop by $104.8 million to $174 million from last year's record $278.9 million due primarily from the reduction in the price of natural gas.

At the same time, there were 395 new shale gas wells drilled in 2023 and 656 new permits issued by DEP to drill new wells, as of December 8, expanding DEP's Oil and Gas Program workload and the natural gas infrastructure connecting the wells to market that must be regulated.

The IFO said the drop in revenue caused by the reduction in the price of natural gas accounted for $84.1 million of the decrease and fewer wells drilled in 2023 accounted for another $20.7 million.

Click Here for a copy of the IFO report.

The formula for the impact fee is contained in Act 13 and results in a per well fee and is not based on natural gas production.

The per well fee is collected by the Public Utility Commission.  The 2023 Act 13 impact fee will be collected in April 2024.

For more information, visit the PUC's Act 13 Impact Fee webpage.

PA Oil & Gas Industry Public Notice Dashboards:

-- PA Oil & Gas Weekly Compliance Dashboard - Dec.  9 to 15 - 500 Conventional Abandoned Well Violations; 25 Days Of Shale Gas Water Withdrawals Without Permission; Wastewater Pipeline Spill  [PaEN] 

-- PA Oil & Gas Industry Compliance So Far In 2023 - It Isn’t Pretty   [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices/Opportunities To Comment - December 16  [PaEN]

-- DEP Posted 68 Pages Of Permit-Related Notices In December 16 PA Bulletin  [PaEN]  

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[Posted: December 13, 2023]  PA Environment Digest