Pennsylvania’s natural gas impact fee rose 48% to $243.8 million for 2025, an increase of $79 million for distribution to counties, municipalities and state programs.
The increase came from a jump in natural gas wells drilled last year and higher prices, the state said Monday.
The 444 new wells drilled last year, an increase from 309 in 2024, helped to drive the increase because the new horizontal wells drilled into the Marcellus shale reserves are subject to the highest impact fee, the Pennsylvania Public Utility Commission said.
The revenue generated from the Act 13 impact fee on natural gas producers will result in:
- $133.8 million distributed to counties and municipalities directly impacted by gas well drilling
- $89.2 million for the Marcellus Shale Legacy Fund that supports statewide environmental initiatives, greenways and infrastructure projects
- $20.9 million to state agencies, as directed by the Act 13 requirements, according to the PUC.
The state is expected to distribute the money early next month, the PUC said.
“Pennsylvania’s natural gas industry continues to provide measurable benefits to our commonwealth. Pennsylvania’s approach to distributing this tax is transparent and delivers revenue back into communities in all 67 counties,” said James Welty, president of the Marcellus Shale Coalition, a Pittsburgh-area trade organization.
With the additional revenue from Act 13 impact fees for 2025, the PUC said more than $3.12 billion has been distributed from that revenue stream since 2012.
Pennsylvania is also the only state that annually raises its tax rate on shale gas by a rate of inflation, which was 3.8% over the distribution in 2025, the Marcellus Shale Coalition said.
The fee for the new horizontal wells drilled last year was $59,700, which is based on the annual average natural gas price that rose to $3.43 per million British Thermal Unit, up from $2.27 , the PUC said. The million BTU is a standard measurement for large quantities of natural gas.
Act 13 ensures that by bypassing layers of bureaucracy, the money reaches the municipalities experiencing the greatest impact, said David Sanko, executive director of the Pennsylvania State Association of Township Supervisors.
Westmoreland County will see $1.67 million from the impact fee in 2025, an increase of $627,000 from last year.
Derry Township, with 53 wells within its borders, will receive more in impact fee revenue — $247,337 — than any of the county’s 65 municipalities.
“We save the money for equipment purchases like trucks and tractors and other equipment,” said Don Kunkle, a township supervisor.
The township recently bought two F-250 Ford trucks it will use for snowplowing, Kunkle said.
For Washington Township, the impact fee from natural gas activity will be $243,046.
“It helps so that we don’t need to use our general tax fund dollars” to do some of projects, said Joe Olszewski, a township supervisor.
Washington Township puts the impact fee into its capital improvements fund for roadwork, the municipal building, projects at the township’s Kunkle Park, stormwater management work, and bridge and culvert improvements.
Hempfield Township, which will receive $233,182, typically uses that money for public works and public safety purchases, said Aaron Siko, township manager.
It used Act 13 money this year for a mower, equipment for the fire service and a mini-loader, Siko said.
The use of that money depends on budget needs, Siko said. Sometimes, the allocation will be rolled over into the next year’s distribution for a larger expense, he said.
Sewickley Township is to receive $192,706 from the 2025 allocation.
“It really helps because we have a lot of projects. We’re short money for roadwork all the time,” said Mark Petros, chairman of the Sewickley Township board of supervisors.
That money is split between paving roads and purchasing salt to spread on the roads during winter, said Michael Gray, Sewickley Township manager.
In addition to the impact fee from gas well drilling, Gray said Sewickley will get $162,000 in gas well royalties from the wells drilled on township land, which helps to offset unbudgeted expenditures.
The state will distribute $2.04 million from the impact fee in Allegheny County, an increase of $778,000 from 2024. Pittsburgh is to receive $67,687, a $28,000 increase. Forward Township is to receive the most in impact fees — $235,980, an increase of about $82,000 from the 2024 distribution. Findlay Township is to receive $190,056, an increase of about $94,000 from the 2024 distribution. Frazer is to receive $157,364, and Fawn is to get $85,571.
Publication: Pittsburgh Tribune-Reviewhttps://triblive.com/local/valley-news-dispatch/new-wells-higher-gas-prices-raise-states-impact-fee-distribution-to-244-million/