The Pennsylvania Public Utility Commission (PUC) collected impact fees from the natural gas industry totaling $173,258,900 for 2016.
In Pennsylvania, more than $1.2 billion in Impact Fees have been collected and distributed to communities across Pennsylvania since enacted in 2012. The 2016 amount is about $14.5 million lower than 2015 due to a continued reduction in the price of natural gas (which resulted in a $5,000 per well reduction in the fee paid this year) and increasing age of many wells, which also reduces the per-well fee. This decline has resulted in funding changes for many individual municipalities.
County and municipal governments directly affected by drilling will receive a total of $93.128 million for the 2016 disbursement year. Additionally, $62.086 million will be placed into the Marcellus Legacy Fund, which provides financial support for environmental, highway, water and sewer projects, rehabilitation of greenways and other projects throughout the state. Also, $18 million will be distributed to state agencies specified by the Act. Checks are to be distributed in early July.
The PUC website highlights the top disbursement breakdowns across the state
Top counties receiving impact fees for 2016 and by well count:
| County | Impact Fees | Wells |
|---|
| Washington | $5.381 million | 1452 wells |
| Susquehanna | $4.863 million | 1304 wells |
| Bradford | $4.319 million | 1210 wells |
| Greene | $3.794 million | 1084 wells |
| Lycoming | $3.179 million | 875 wells |
| Tioga | $2.427 million | 883 wells |
| Butler | $1.672 million | 482 wells |
Top municipalities receiving impact fees for 2016 and by well count:
| Municipality, County | Impact Fees | Wells |
|---|
| Cummings, Lycoming | $922 thousand | 248 wells |
| Morris, Greene | $775 thousand | 171 wells |
| Auburn, Susquehanna | $771 thousand | 131 wells |
| Center, Greene | $731 thousand | 191 wells |
| Cogan House, Lycoming | $687 thousand | 179 wells |
| New Milford, Susquehanna | $673 thousand | 157 wells |
| Cumberland, Greene | $647 thousand | 72 wells |
Top producer payments for 2016:
| Company | Impact Fee |
|---|
| Range Resources Appalachia LLC | $22.762 million |
| EQT Production Co | $18.268 million |
| Chesapeake Appalachia LLC | $14.015 million |
| SWN Production Company LLC | $12.790 million |
| Cabot Oil & Gas Corp | $12.552 million |
| Repsol OIl & Gas USA, LLC | $ 9.535 million |
| Seneca Resources Corp | $ 9.470 million |
In 2015, the counties used the fees for the following services:
| Impact Fee Use | Amount |
|---|
| Capital Reserve Fund | $17.434 million |
| Emergency Preparedness/Public Safety | $5.415 million |
| Public Infrastructure Construction | $3.641 million |
| Judicial Services | $2.487 million |
| Social Services | $2.268 million |
| Information Technology | $1.355 million |
| Environmental Programs | $0.996 million |
| Storm water/Sewer Systems | $0.834 million |
| Tax Reductions | $0.261 million |
| Career & Technical Centers | $0.153 million |
| Planning Initiatives | $0.004 million
|
In 2015, municipalities reported using fees for the following services:
| Impact Fee Use | Amount |
|---|
| Public Infrastructure Construction | $27.606 million |
| Capital Reserve Fund | $17.885 million |
| Emergency Preparedness Fund | $6.830 million |
| Amount Not Reported | $3.190 million |
| Storm Water/Sewer Systems | $1.791 million |
| Environmental Programs | $1.277 million |
| Tax Reductions | $0.849 million |
| Planning Initiatives | $0.516 million |
| Information Technology | $0.228 million |
| Water Preservation & Reclamation | $0.125 million |
| Judicial Services | 0.039 million |
| Social Services | $0.037 million |
| Housing | $0.011 million |
| Career & Technical Centers | $0.005 million |
The PUC reported 8,035 horizontal wells and 86 vertical wells were eligible for the 2016 impact fees. There were 648 horizontal and 674 vertical wells deemed ineligible, and 110 horizontal and 49 vertical wells has a disputed status.
The PUC’s is responsible for implementing the imposition, collection and distribution of an unconventional gas well fee (also called a drilling impact fee) was established by the Unconventional Gas Well Impact Fee Act, signed into law as Act 13 of 2012. Information can be found on PUC’s website.