On October 31, the Independent Fiscal Office estimated the Calendar Year 2022 Act 13 Drilling Impact fee will generate a record $274.8 million in revenue at the lowest effective tax rate on record-- 0.7 percent.

CY 2022 revenue is a $40.4 million increase over CY 2021-- 17.2 percent.

The IFO said the reason for record revenues is due to the spike in natural gas prices in 2022 that results in a higher per well fee under the fee formula in Act 13 of 2012 as well as an increase in the number of new producing wells.

For CY 2022, the ETR is projected to decline to 0.7 percent. This reduction is due to a notable increase in the market value of natural gas that more than offsets the increase in estimated impact fee collections.

Market value is projected to increase by 126% from the prior year, the strongest growth since the inception of the impact fee. This is entirely due to price increases, as statewide production growth for CY 2022 is projected to remain flat.

Click Here for a copy of the IFO fee report.

Related Articles:

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-- PA PUC: Cost Of Natural Gas Provided By Major Utilities In PA Increased As Much As 154% Over Last Year [PaEN]

-- LancasterOnline: Met-Ed To Hike Residential Electric Rates 9.6% Starting Dec. 1 [Due To Cost Of Natural Gas To Generate Power]

-- Scranton Times: 18% Rate Increase Awaits PPL Electric Customers Dec. 1 [Due To Cost Of Natural Gas To Generate Power]

-- National Fuel Gas Requests PUC To Approve 9.2% Increase In Base Delivery Charge; Separate Cost Of Gas Up 127.8% Since May 2021 [PaEN]

-- PUC Approves 9% Increase In The Basic Monthly Bill For Typical PECO Natural Gas Division Customers; On Top Of An 103.2% Increase In Cost Of Natural Gas [PaEN]

-- PA Low-Income Home Energy Assistance Program (LIHEAP) Will Accept Applications Starting Nov. 1 [PaEN]

Related Articles This Week:

-- Gov. Wolf Signs Massive, 20-Year Taxpayer Subsidies Into Law For Natural Gas, Hydrogen And Petrochemical Industries With No Public Accountability Or Environmental Safeguards  [PaEN]

-- York Dispatch Editorial: Energy Companies Are Reporting Record Profits, PA Lawmakers Don’t Need To Give Them More Tax Breaks  [PaEN]

-- Gov. Wolf Signs Bill Creating Well Plugging Grant Program; Again Fails To Address Woefully Inadequate Conventional Well Plugging Bonding; Fails To Report On Bonding Petitions; Or Issue Conventional Drilling Compliance Report  [PaEN]

-- On-Demand Webinar: Creating A Healthy Home And Community With Shale Gas Development In Your Neighborhood  [PaEN]

-- DEP Permit Notices -- Oil & Gas Industrial Facilities  [PaEN] 

-- A Study Finding Microplastics In 100% Of Exceptional Value, High Quality, Class A Trout Streams Sampled In PA Is Disturbing To Wildlife Advocates  [PaEN]

-- Scranton Times/Republican Herald Editorial: Legislators Like Plastics, Expect More  [PaEN]

[Posted: October 31, 2022]

11/7/2022