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On June 28, the Independent Fiscal Office issued its estimate of revenues for 2019 from the Act 13 drilling impact fees saying there could be a $9.6 million revenue increase over this year or a $37.1 million decrease, depending on the price of natural gas.
The reason for the wide range is the formula used to calculate the fees which is based in part on the average annual price of natural gas on the New York Mercantile Exchange.
If that price reverts back to a level below $3.00 per million BTU for 2019, the impact fee schedule will decrease by $5,000 per well compared to 2018.
For the first six months of 2019, the price has ranged from $2.64 to $3.63. In 2018 the average price was $2.93. The IFO said energy forecasts have the spot price for national gas averaging $2.90 for the remainder of the year.
Click Here for the full report.
NewsClips:
Legere: Shale Gas Impact Fees Raise $252 Million, Breaking Record
Hurdle: Drilling Impact Fee Revenue Rises To 7-Year High Boosted By Stripper Well Decisions
PA Communities In Line To Get Share Of $251.8 Million In Drilling Impact Fees
Lycoming County Receives $10.5 Million From Drilling Impact Fee
Washington, Greene Counties To Receive $14 Million In Drilling Impact Fees This Year
Frazier: Washington County Parents Want PA To Look At Whether Fracking Is Related To Cancer Cases
Heartland Institute: Fracking Isn’t Causing Health Problems For PA School Children
Op-Ed: Fracking Does Not Need To Be Linked To Cancer To Ban It In PA
Editorial: State Must Move Quickly On Fracking Health Study
Related Articles:
PUC Distributes Nearly $252 Million In Act 13 Drilling Impact Fee Revenue, Largest Amount To Date
Column: Desire For Riches Often Comes At The Cost Of Natural Resources
[Posted: June 29, 2019]
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