Pennsylvania

Energy. Environment. Economy.

Pennsylvania Will Get 3 Percent Less This Year In Shale Drilling Impact Fees

EPA/ Jim Lo Scalzo/ Landov

A gas drill rig near Montrose.

Despite a slowdown in natural gas drilling, Pennsylvania will only see a small drop in the amount of impact fees it’s collecting, according to new data released this week by the Pennsylvania Public Utility Commission (PUC).

A year-old law, known as Act 13, places an impact fee on every gas well in the Marcellus Shale formation.

Last year, Act 13 brought in $204 million to the state and local communities. This year, it’s expected to bring in $198 million — a three percent drop.

There’s less money because the fees are tied to the price of natural gas, which declined by a third. That meant drillers were assessed a smaller annual fee ($45,000 per well in 2012) instead of the $50,000 fee they paid in 2011. Smaller, vertical wells paid $9,000 last year.

Companies begin paying as soon as a well is drilled (in industry lingo, when the well is “spud”). After that, the fees continue for 15 years while steadily getting smaller. So in 2012 there were also fewer of the higher “first-year” well fees. About 6,000 wells across Pennsylvania are subject to the law.

Payments were due to the PUC by April 1. The commission is charged with collecting and disbursing the fees. About $25 million stays at the state level for agencies impacted by drilling. The remaining money is given to local governments, with 60 percent going directly to areas impacted by drilling, and 40 percent to the Marcellus Legacy Fund, which gets used in communities across the state for things like infrastructure projects and environmental upgrades.

The PUC released the 2012 data on a new interactive website it’s created to show how the fees are assessed and where the money is going.

The table below shows drilling companies and what they’re required to pay for 2012:

Show rows.
Producer Name
Vertical Well Count
Horizontal Well Count
Amount Due
Amount Paid
Grand Total2885219$198,487,000$192,432,950
CHESAPEAKE APPALACHIA LLC0743$27,365,000$27,365,000
RANGE RESOURCES APPALACHIA LLC9637$24,826,000$24,844,950
TALISMAN ENERGY USA INC1570$20,247,000$20,247,000
SHELL WESTERN E&P INC LP1451$17,242,000$17,289,000
CHEVRON APPALACHIA LLC5295$11,444,000$11,444,000
ANADARKO E&P CO LP0304$11,300,000$10,835,000
CABOT OIL & GAS CORP41246$9,567,000$9,657,000
EQT PRODUCTION CO0226$8,760,000$8,760,000
CNX GAS CO LLC4206$7,850,000$7,850,000
EOG RESOURCES INC0175$6,305,000$6,305,000
SOUTHWESTERN ENERGY PROD CO4153$6,255,000$6,255,000
SENECA RESOURCES CORP0150$5,640,000$5,640,000
WPX ENERGY APPALACHIA LLC5143$5,460,000$5,460,000
XTO ENERGY INC10127$4,965,000$4,965,000
PA GEN ENERGY CO LLC1125$4,802,000$4,802,000
CHIEF OIL & GAS LLC689$3,481,000$3,481,000
CARRIZO (MARCELLUS) LLC084$3,200,000$3,200,000
RE GAS DEV LLC773$2,794,000$2,794,000
ENERGY CORP OF AMER070$2,540,000$2,540,000
ATLAS RESOURCES LLC10239$2,193,000$2,193,000
ULTRA RESOURCES INC053$1,855,000$1,855,000
CITRUS ENERGY CORP126$957,000$957,000
TRIANA ENERGY LLC016$560,000$560,000
VANTAGE ENERGY APPALACHIA LLC014$550,000$550,000
HUNT MARCELLUS OPERATING CO LLC012$440,000$440,000
TENASKA RES LLC011$385,000$385,000
HILCORP ENERGY CO05$225,000$225,000
INFLECTION ENERGY LLC05$225,000$225,000
BURNETT OIL CO INC05$185,000$185,000
PENN VIRGINIA OIL & GAS CORP05$185,000$185,000
HALCON OPR CO INC04$180,000$180,000
ENERPLUS RES (USA) CORP03$115,000$115,000
ANTERO RESOURCES APPALACHIAN CORP03$105,000$105,000
SM ENERGY CO03$105,000$105,000
MDS ENERGY LTD110$91,000$91,000
FLATIRONS DEVELOPMENT LLC02$70,000$70,000
NORTHEAST NATURAL ENERGY LLC02$70,000$70,000
SAMSON RES CO02$70,000$70,000
VANTAGE ENERGY APPALACHIA II LLC02$70,000$70,000
DOMINION TRANS INC70$49,000$49,000
BAKER GAS INC10$7,000$7,000
CARRIZO OIL & GAS INC10$7,000$7,000
AMER OIL & GAS LLC00$0$0
BELDEN & BLAKE CORP00$0$0
BLX INC110$81,000$0
BRICKER DONNA M00$0$0
CAMPBELL OIL & GAS INC00$0$0
CONSOL GAS CO00$0$0
DL RESOURCES INC00$0$0
EM ENERGY PA LLC00$0$0
ENCANA OIL & GAS USA INC00$0$0
ENDEAVOUR OPERATING CORP00$0$0
ENERVEST OPR LLC00$0$0
EXCO RESOURCES PA LLC12132$4,914,000$0
GREAT OAK ENERGY INC00$0$0
GREAT PLAINS OPER LLC DBA GREAT MTN OPER01$35,000$0
GUARDIAN EXPLORATION LLC00$0$0
HESS CORP00$0$0
JM BEST INC00$0$0
M & M ROYALTY LTD00$0$0
NOBLE ENERGY INC07$315,000$0
SNYDER BROS INC480$400,000$0
VISTA OPR INC00$0$0
WILLIAM MCINTIRE COAL OIL & GAS00$0$0

 

 

Source: Pennsylvania Public Utility Commission (Note: Discrepancies between the amount due and the amount paid mean either the payment has not been processed yet, or the producer is disputing the fee. According to the PUC, approximately 100 wells are being disputed.)

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