The Public Utility Commission published notice in the January 30 PA Bulletin that 2015 Act 13 drilling impact fees will drop by $5,000 per horizontal well, except for wells 3 years old.

The 2015 impact fee will be--

                      Horizontal        Vertical

1st Year           $45,300           $9,100

2nd Year          $35,200           $7,000

3rd Year          $30,200           $6,000

4th Year          $15,100           $3,000

5th Year          $15,100           $3,000

The 2014 impact was--

1st Year           $50,300           $10,100

2nd Year          $40,200           $ 8,000

3rd Year          $30,200           $ 6,000

4th Year          $20,100           $ 4,000

The PUC will get reports from well producers in April that will be used to calculate the final revenue for calendar year 2015 based in part on this fee reduction.

Last June the Independent Fiscal Office projected a decline in Act 13 impact fee revenues by $33.9 million for the 2015 Calendar year totalling $189.6 million.  In 2014 fee collections totaled $223.5 million.  Their assumptions were based in part on a reduction of the per well fee by $5,000 and declines in the price of natural gas.

For more information, visit the PUC’s Act 13 Drilling Impact Fee webpage.

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2/1/2016