The Independent Fiscal Office Thursday released a report on Act 13 drilling impact fees projecting a continued decline in revenue from the fees in 2016 in a variety of likely scenarios of between $5.4 million to $56.5 million.

The combination of low gas prices and fewer new wells producing is the cause of the decline, just like it was in 2015 fee collections.

The IFO concluded, “If these conditions hold, then drilling activity will likely remain subdued through 2018 and impact fee revenues will have limited opportunity for growth.”

The report also notes the development of new pipeline capacity to better connect natural gas producing areas to major markets in other states could allow regional prices of gas to rebound.

A copy of the report is available online.

The Allegheny Institute for Public Policy also issued a report Wednesday also noting downward pressure on drilling impact fee revenues.

NewsClips:

Shale Gas Impact Fees Expected To Drop Again In PA

Shale Gas Impact Fee Predicted To Fall In 2016

Cumberland Twp Supports Police With Drilling Fees

Bradford County Invests Impact Fees In Bridge Fund

Schuylkill County Receives Greenways, Trails Grants From Impact Fees

Related Stories:

Allegheny Institute: Shale Gas Impact Fee Collections Dip Sharply

Reminder Of What’s In The FY 2016-17 State Budget For The Environment: Nothing Much

CBF-PA: PA State Budget Lacks Funding To Reach Clean Water Goals

PA Growing Greener Coalition: Must Invest More In Environmental Cleanup, Parks

Fiscal Code Bill Amendments Cut $39 Million From Environmental Funds

$1.3 Billion Tax/Revenue Package Now Law

State Budget Includes New Coal Refuse Energy & Reclamation Tax Credit

7/18/2016