Pennsylvania

Energy. Environment. Economy.

Gas drilling impact fee revenue up 11 percent this year

The state expects to bring in $224.5 million in impact fee revenue from natural gas drillers this year.

Lindsay Lazarski/WHYY

The state expects to bring in $224.5 million in impact fee revenue from natural gas drillers this year.

Pennsylvania expects to collect $224.5 million in impact fees levied on natural gas drilling companies this year– an 11 percent increase over the amount collected last year.

The state’s 2012 oil and gas law, Act 13, charges drillers for each well. The fee can range from $40,000 to $60,000 per well, depending on the price of natural gas.

This year, drillers paid $50,000 for new horizontal wells– up from $45,000 last year because the price of gas increased. Smaller, vertical wells paid $10,000.

The state Public Utility Commission (PUC) is charged with collecting and distributing the fee. Spokeswoman Jennifer Kocher says there were approximately 1,200 new wells drilled in 2013.

“The vast majority of the wells were horizontal wells,” she says.

Range Resources paid the most this year ($27,992,000) followed by Chesapeake Energy ($26,727,950) and Shell ($17,004,450).

The fee declines over time and drillers continue to pay for 15 years.

Governor Corbett issued a statement noting the success of the law, which has brought in $630 million to the state so far.

“We are building a stronger Pennsylvania by harnessing our abundant resources to create jobs for working families, reinvest in our local communities, and protect our environment for generations to come,” Corbett said.

Approximately $25 million stays at the state level and goes to agencies impacted by the natural gas boom, like the state Department of Environmental Protection.

Of the remaining revenue, 60 percent goes back to local governments hosting drilling operations, and 40 percent goes to the Marcellus Legacy Fund, which is disbursed to municipalities throughout the state for environmental and infrastructure projects.

The Pennsylvania division of the American Petroleum Industry touted the amount of money drillers are spending in the state.

“The oil and natural gas industry is investing in communities, providing new revenue for the government and delivering a long-term path to new jobs for Pennsylvania workers,” said executive director Stephanie Catarino Wissman in a statement.

A recent analysis by the state’s Independent Fiscal Office found Pennsylvania has one of the lowest effect tax rates on natural gas production in the country. The report compared Pennsylvania’s impact fee against the more common severance taxes in other states, which are based on gas production volumes.

The analysis was criticized by the Corbett administration and the gas industry for excluding certain types of taxes, including corporate income tax.

The impact fee has already become an issue in the current race for governor. Corbett’s Democratic challengers have called for various severance taxes on gas production, which many have vowed to spend on public education.

Corbett has said the current fee structure is best because it keeps much of the money at the local level for communities dealing with the impacts of drilling operations.

Municipalities are required to report how they spent last year’s impact fee money to the PUC by April 15.

Here’s how much each company paid:

Show rows.
COMPANY NAME
AMOUNT DUE
AMOUNT PAID
RANGE RESOURCES APPALACHIA LLC$27992000$27992000
CHESAPEAKE APPALACHIA LLC$26727950$26727950
SWEPI LP$17004450$17004450
TALISMAN ENERGY USA INC$13978150$13978150
CHEVRON APPALACHIA LLC$13432450$13432450
CABOT OIL & GAS CORP$13277000$13277000
EQT PRODUCTION CO$12506350$12506350
ANADARKO E&P CO LP$12292700$12292700
SOUTHWESTERN ENERGY PROD CO$10941250$10941250
CNX GAS CO LLC$8807500$8807500
SENECA RESOURCES CORP$7580250$7580250
XTO ENERGY INC$7429950$7429950
CHIEF OIL & GAS LLC$6813600$6813600
PA GEN ENERGY CO LLC$5687750$5687750
EOG RESOURCES INC$5448750$5448750
WPX ENERGY APPALACHIA LLC$5382800$5375000
EXCO RESOURCES PA LLC$4509500$4509500
CARRIZO (MARCELLUS) LLC$3685100$3685100
RE GAS DEV LLC$3420950$3420950
ENERGY CORP OF AMER$2779100$2779100
RICE DRILLING B LLC$1886400$1886400
ATLAS RESOURCES LLC$1735850$1735850
ULTRA RESOURCES INC$1622800$1622800
HILCORP ENERGY CO$1451500$1451500
ALPHA SHALE RES LP$1259700$1259700
CITRUS ENERGY CORP$1221700$1221700
NOBLE ENERGY INC$880950$880950
PENN ENERGY RESOURCES$680700$680700
TRIANA ENERGY LLC$480800$480800
HUNT MARCELLUS OPERATING CO LLC$380600$380600
TENASKA RES LLC$330550$330550
HALCON OPR CO INC$310350$310350
SNYDER BROS INC$223250$222650
EM ENERGY PA LLC$170300$170300
NORTHEAST NATURAL ENERGY LLC$160200$160200
BURNETT OIL CO INC$160250$160000
STONE ENERGY CORP$120200$120200
MDS ENERGY DEVELOPMENT LLC$100500$100500
ENERPLUS RES (USA) CORP$100150$100150
CAMPBELL OIL & GAS INC$100100$100100
SM ENERGY CO$90150$90150
FLATIRONS DEVELOPMENT LLC$60100$60000
BLX INC$46350$46350
MDS ENERGY LTD$38250$38250
CARRIZO OIL & GAS INC$6050$6050
REDMILL DRILLING$8050$6050
PENN VIRGINIA OIL & GAS CORP$160250$0

Source: Pennsylvania Public Utility Commission

Comments

About StateImpact

StateImpact seeks to inform and engage local communities with broadcast and online news focused on how state government decisions affect your lives.
Learn More »

Economy
Education