“Revenues from Pennsylvania’s impact fee imposed on unconventional (i.e. fracked) gas wells set a new record in 2022, with collections of $278.9 million. Collections for 2023 fell 37 percent to $174.6 million from 2022.
“Pennsylvania’s natural gas industry has long been an important part of the state’s economy, dramatically more so since the advent of shale gas production.
“The impact fee was introduced to compensate state and local entities for the impact of drilling.
“Understandably, counties and municipalities hosting wells have received considerable benefits, while some counties and/or municipalities saw little to no benefits.
“Even so, since the passage of Act 13, impact fees have generated over $2.7 billion for local governments and state agencies.
“Allegheny County has directly received nearly $20 million, while its municipalities have received roughly $10.1 million in that time.
“As noted in Policy Brief Vol. 23, No. 22, variations in disbursements are influenced by impact fee collections year-to-year.
“The record-breaking and anomalous year of 2022 was driven almost entirely by a soaring Henry Hub price.
“The following year, the Henry Hub price and collections both dropped to their lowest points since 2020.
“Going forward, impact fee collections are expected to decline over time as wells age, production slows and the price of natural gas falls.
“Regulatory and environmental pressures from policymakers will likely further contribute to an air of uncertainty over the future of the industry (see Policy Brief Vol. 21, No. 25).”
Click Here to read the entire Policy Brief.
Resource Links - Impact Fee:
Upcoming Event
-- September 24-- Center For Coalfield Justice Hosts Program In Washington County On Increasing Setbacks From Oil & Gas Infrastructure
PA Oil & Gas Industry Public Notice Dashboards:
-- Homeowner Complaint Results In DEP Emergency Plugging Of A Penn Resources, Inc. Conventional Oil Well Leaking Gas, Oil, Wastewater In McKean County [PaEN]
-- DEP Discovers Wastewater Spill From Conventional Oil/Gas Well That Could Be Seen From Google Earth In Armstrong County As A Result Of A Complaint [PaEN]
-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - September 21 [PaEN]
-- DEP Posted 77 Pages Of Permit-Related Notices In September 21 PA Bulletin [PaEN]
Related Articles This Week - Gas:
-- Exploding Water Well Shed Triggers DEP Investigation Of 59+ Abandoned Conventional Oil & Gas Wells In Cyclone, McKean County; Highlights Limits On Providing Temporary Water For Well Owners Impacted [PaEN]
-- Cecil Township, Washington County Posts Proposed Ordinance Increasing Setbacks From Shale Gas Well Pads Of 2,500 Feet From Homes, Businesses; 5,000 Feet From Schools, Hospitals; Nov. 4 Hearing, Meeting Set [PaEN]
-- Environmental Health Project: State Dept. Of Health Progress On Implementing Recommendations After Pitt Health Studies Show Impacts From Shale Gas Development ‘Extremely Limited’ [PaEN]
-- Protect PT: Westmoreland Landfill Surrenders Air Quality Permit For An Evaporator System To Dispose Of Leachate Wastewater Impacted By Shale Gas Drilling Waste [PaEN]
-- Del-Chesco United For Pipeline Safety: Texas Explosion Shows Communities In PA With Energy Transfer's Mariner East Pipeline And Other Pipelines Are Vulnerable To The Same Unmitigated Risk From Unsecured Pipeline Valves [PaEN]
-- Susquehanna River Basin Commission Approved, Renewed 24 Shale Gas Well Pad Water Use General Permits In August; 212 General Permits So Far In 2024 [PaEN]
-- Allegheny Institute For Public Policy: Counties, Municipalities Need To ‘Begin Lowering Their Expectations’ On The Support From Shale Gas Industry Drilling Impact Fee [PaEN]
-- Utility Dive: North American Electric Reliability Corp Sounds Alarm Over Maintaining Sufficient Winter Natural Gas Supplies To Address Extreme Winter Conditions; PA Gas Producers Cutting Production, Pulling Drill Rigs [PaEN]
-- Baker Hughes: PA Natural Gas Drilling Rigs At 14, Same As Last Week - Down 33% Since Aug. 23 [Industry Efforts To Increase Natural Gas Prices Continue]
NewsClips:
-- The Energy Age Blog: North Fayette Residents Raise Concerns About Proposed Range Resources Fracking Site In Allegheny County
-- The Allegheny Front - Reid Frazier: Scientists Skeptical Of CNX Claim Its Fracking ‘Poses No Public Health Risks’
-- TheDailyClimate.org: Residents Say Pennsylvania Has Failed Communities After State Studies Linked Shale Gas Fracking To Child Cancer
-- Inside Climate News - Kiley Bense: Eureka Resources Oil/Gas Wastewater Treatment Company Struggles Raise Questions About The Future Of Lithium Extraction From Oil/Gas Wastewater
-- Sierra Club Magazine: Plants & Goodwin Racing To Fix Pennsylvania’s Leaking Conventional Oil & Gas Wells
-- Warren Times Editorial: There Isn’t Enough Money To Plug All Oil & Gas Wells Abandoned By Conventional Well Owners, Must Use Funds In A Cost-Effective Way
-- Post-Gazette - Anya Litvak: Peoples Natural Gas Customers To See 12% Rate Increase This Month, With More Increases On The Way
-- The Energy Age Blog: Peoples Natural Gas Customers Will See 12% Rate Increase This Month - More Increases On The Way!
-- New York Times: Big Energy Issue In Pennsylvania Is Low Natural Gas Prices, Not Fracking; PA Has Gas Glut; Drillers Throttling Production [PDF of Article]
-- Bloomberg: AI Boom Is Driving A Surprise Resurgence Of US Gas-Fired Power Plants [Not In PA]
-- Food & Water Watch: Explosion Of Energy Transfer Natural Gas Liquids Pipeline In Texas Highlights Company’s Terrible Safety Record In Pennsylvania
-- WFMJ/AP: Energy Transfer Natural Gas Liquids Pipeline Fire That Burned For 4 Days Now Out In Houston
-- Bloomberg: Human Remains Found In Vehicle Involved In Energy Transfer Natural Gas Liquids Pipeline Fire In Houston
[Posted: September 19, 2024] PA Environment Digest
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