PA Environment Digest Blog: PUC Distributes $164.5 Million In CY 2024 Act 13 Shale Gas Drilling Fees To Communities, Statewide Programs; $15 Million Less Than Last Year

On June 23, the Public Utility Commission announced the distribution of $164,592,500 in Act 13 natural gas per well impact fees collected from producers for the 2024 reporting year.-- $15 million less than last year.

This funding benefits counties, municipalities, and state programs under Act 13 of 2012, which established the unconventional gas well fee.

[The fees are paid only by unconventional shale gas well owners. Owners of hundreds of thousands of conventional oil and gas wells pay nothing.]

“The impact fee continues to provide significant and sustained support for Pennsylvania communities – especially those directly affected by natural gas development,” said PUC Chairman Stephen M. DeFrank. “More than a decade into Act 13, this funding continues to bolster local infrastructure, environmental projects, and public services across the Commonwealth.”

This year’s distribution brings the cumulative total of impact fees collected and distributed since 2012 to more than $2.88 billion.

Breakdown of the 2024 Impact Fee Distribution--

-- $86.5 million to counties and municipalities directly affected by drilling activity.

-- $57.7 million to the Marcellus Legacy Fund, which supports statewide environmental initiatives, greenways, and infrastructure projects.

-- $20.4 million to state agencies, as directed by Act 13.

The PUC has submitted this year’s distribution data to the Pennsylvania Treasury, which is expected to begin issuing payments in early July.

Factors Affecting This Year’s Distribution

The 2024 distribution is approximately $15 million lower than last year’s total, due primarily to--

-- A decrease in new wells spud in 2024 (314), compared to 421 in 2023.

-- A similar average natural gas price in 2024 ($2.74 per MMBtu), which remained nearly unchanged from 2023.

Because new wells (“Year One” wells) are subject to the highest impact fee, fluctuations in their number can significantly affect annual collections.

Accessing Detailed Distribution Data

Extensive information about this year’s impact fees – including county- and municipality-level distributions, producer payments, and historical data since 2011 – is available on the PUC’s Act 13 website.

Users can--

-- Search individual distributions to counties and municipalities.

-- Review how funds were used based on local government reporting.

-- Download data by year or region.

Background on Act 13

The PUC administers the collection and distribution of impact fees on unconventional gas wells, as established by Act 13 of 2012, to ensure that communities across Pennsylvania receive support for infrastructure and environmental improvements linked to natural gas development.

Click Here for PUC announcement.

Inconsistent Revenues

[Editor’s Note: Act 13 Impact Fee produces an inconsistent source of revenue to support payments to counties and communities with impacts from shale gas drilling and to support statewide environmental restoration programs.

[A report in September of 2024 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.

[PA Senate Republicans have also moved legislation to punish communities taking steps to protect their residents from the health and environmental impacts of shale gas drilling by withholding Act 13 drilling impact fees.

[Senate Bill 102 punishes local elected officials who want to better protect their constituents from the documented adverse health and environmental impacts of shale gas development by prohibiting municipalities from receiving Act 13 drilling impact fees if they set protective standards on the development of natural gas that “imposes a standard or condition on well development that conflicts with or exceeds those contained” in state law. Read more here.

[The legislation was prompted by an ordinance adopted by Cecil Township in Washington County that establishes a 2,500 setback from shale gas well pads. The current minimum setback is 500 feet from a well bore. Read more here. ]

Resource Links:

-- PA Senate Republicans Vote To Punish Communities Taking Steps To Protect Their Residents From Health, Environmental Impacts Of Shale Gas Drilling [PaEN]

-- Independent Fiscal Office Estimates CY 2025 Act 13 Drilling Impact Fee Revenues At $235 Million, $70 Million More Than CY 2024 [PaEN]

PA Oil & Gas Industry Public Notice Dashboards:

-- PA Oil & Gas Weekly Compliance Dashboard - June 7 to 27 - Finding 27,000 More Abandoned Conventional Wells; Not Tracking Water/Wastewater Pipelines; Failure To Comply With DEP Orders; Inadvertent Pipeline Construction Returns - Again [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - June 28 [PaEN]

-- DEP Publishes Notices On Transcontinental Gas Pipe Line Company Northeast Supply Enhancement Quarryville Pipeline Loop, Compressor Station Permits/Approval In Chester, Lancaster Counties [PaEN]

-- DEP Posted 81 Pages Of Permit-Related Notices In June 28 PA Bulletin [PaEN]

Monday, June 23, 2025

PUC Distributes $164.5 Million In CY 2024 Act 13 Shale Gas Drilling Fees To Communities, Statewide Programs; $15 Million Less Than Last Year

No comments:

Post a Comment