PUC: Calendar Year 2024 Act 13 Drilling Impact Fees To Remain Same As 2023; Dramatic Decline In Financial Support From Shale Gas Industry Continues

The Public Utility Commission published notice in the February 1 PA Bulletin setting Calendar Year 2024 Act 13 Drilling Impact Fees based on a formula set in law.  The fees will be the same as in 2023.

The fees will be--

Year of Well     Horizontal  Vertical—Producing

Year 1             $51,800              $10,400

Year 2             $40,200              $8,000

Year 3             $34,500              $6,900

Year 4—10     $17,200              $3,400

Year 11—15   $5,600 N/A

Dramatic Decline In Support By Shale Gas Industry

The decline of shale gas drilling caused by generally lower natural gas prices have resulted in a dramatic decline in revenue from the Act 13 drilling impact fee.

The Independent Fiscal Office estimates Act 13 fee revenue from 2024 fees are estimated to be $163.8 million, down from $179.6 million in 2023 and down from the record $278.9 million in 2022.  Read more here.

That’s a drop of $214.4 million in shale gas industry support since 2022.

This decline in revenue leaves significant holes in state, county and municipal budgets around the state.

A report last September by the Pittsburgh-based Allegheny Institute for Public Policy published a policy brief on the steep decline in revenues from the Act 13 shale gas impact fees going to counties and municipalities saying they need to "begin lowering their expectations" on support from the shale gas industry.  Read more here.

Gas Infrastructure Continues To Grow

Shale gas infrastructure continues to grow all across Pennsylvania-- more wells, more gas and wastewater pipelines, compressor stations, natural gas processing facilities, water withdrawals and other facilities.

Most need to be inspected and regulated by DEP and the PUC, some aren't regulated.

There were 735 new shale gas wells drilled in 2023 and 2024, bringing the total number of shale gas wells subject to the Act 13 impact fee to 12,050, according to the Independent Fiscal Office.

Visit the PUC Act 13 Impact Fee webpage for more information on the fee and disbursements.

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[Posted: January 31, 2025]  PA Environment Digest