On June 26, the Independent Fiscal Office issued a report estimating the 2023 Act 13 Drilling Impact Fee revenue paid by unconventional shale gas operators will be between $10 and $184 million, a drop of $94 million from the record 2022 revenue of $278.9 million.

The primary drop in revenue, IFO said, was because the price of natural gas is projected to drop significantly and there is a projected 20% decline in new shale gas wells drilled.

[The price of natural gas has spiked up and down in reaction to Ukraine War-driven foreign markets over the last year+.]

[The Baker Hughes weekly report of natural gas drill rigs in Pennsylvania has been between 23 and 24 for at least the last six months, with one week at 22 and the number of shale gas well permits issued by DEP has been about the same as in 2022 so far this year.]

Conventional oil and gas operators do not pay this or any fees besides minimal permit-related fees.

The Act 13 Drilling Impact Fee is a per well fee, it is not based on natural gas production. 

[Fees based on natural gas production would be a much more reliable base for impact revenues in Pennsylvania.]

Click Here for a copy of the report.

Visit the PUC’s Act 13 Impact Fee webpage for more information on how this revenue is distributed.

PA Oil & Gas Public Notice Dashboards:

-- Pennsylvania Oil & Gas Weekly Compliance Dashboard - June 24 to 30 - Radiation Levels Prompt Shale Gas Wastewater Tank Decontamination; Replugging Conventional, Shale Gas Wells  [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices/Opportunities To Comment -  July 1   [PaEN]

-- DEP Posts 57 Pages Of Permit-Related Notices In July 1 PA Bulletin  [PaEN]

NewsClips:

-- Children’s Health Defense News: For Decades He Railed Against Fracking In Washington County - Now His Wife Has A Type Of Cancer Linked To Fracking Chemicals

-- Capital & Main - Audrey Carleton: Who Is Blocking Climate, Oil & Gas Bills In Pennsylvania?

-- TribLive: Concerns Over Proposed Invenergy Natural Gas-Fired Power Plant In Elizabeth Township To Be Aired Tuesday, June 27

-- TribLive: Opposition Continues On Proposed Natural Gas-Fired Power Plant On Yough River

-- The Center Square - Anthony Hennen: PA’s Natural Gas Act 13 Impact Fee Boom Year May Go Bust Next Year

-- Observer-Reporter Letter: Act 13 Drilling Impact Fees Don’t Help Those Impacted By Gas Drilling - By Cathy Lodge, Washington County

-- Observer-Reporter Letter: The Definition Of Insanity - Have Qualified Stewards Of Our Health, Environment, Learning, Play Spend Washington County’s $9 Million In Act 13 Impact Fee Money

-- Natural Gas Intelligence: Federal Court Voids Chesapeake Energy Settlement In PA Natural Gas Royalty Dispute

-- Vermont State Police: Joint Investigation Into June 1 Natural Gas Tanker Fire Finds Truck Was Destroyed And Damaged U.S. Route 7 In Ferrisburgh Was The Result Of Mechanical Failure

-- Wall Street Journal: Cheaper Natural Gas Prices In Store This Summer; Earlier Price Spikes Driven By Europe’s LNG Imports

Related Articles This Week:

-- Senate Overwhelmingly Confirms Richard Negrin As Secretary Of DEP  [PaEN]

-- House Democratic Leadership Blocks Environmental Committee Action On Bills Increasing Safety Zones Around Natural Gas Facilities, Cryptocurrency Permit Moratorium  [PaEN]

-- Environmental Quality Board Meets July 11 To Consider Changes To Water Quality Standards; DEP Reports Law Limiting Its Authority To Change Conventional Oil & Gas Well Bonding May Be Unconstitutional [PaEN]

-- DEP Citizens Advisory Council Meets July 11 On Programs To Promote Use Of Electric Vehicles; Chapter 105 Environmental Assessment Alternatives Analysis  [PaEN]

-- Independent Fiscal Office Projects 2023 Act 13 Shale Gas Drilling Impact Fee Revenue At $180 to $184 Million, A Drop Of $94 Million From 2022 Revenue  [PaEN]

-- Pennsylvania Groups Call For Transparency With State Plans For Carbon Capture, Storage  [PaEN]

[Posted: June 26, 2023]

7/3/2023