Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Shale Impact Fees Fall Because of Oversupply of Natural Gas

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Shale Impact Fees Fall Because of Oversupply of Natural Gas

Article excerpt

Pennsylvania shale gas producers paid $187.7 million in impact fees for last year, by far the lowest annual amount since the state began collecting the fee four years ago, according to figures published Wednesday by the state Public Utility Commission.

The lower fees reflect the industry's current bust cycle, in which an oversupply of natural gas depressed prices, forcing companies to cut back on drilling new wells.

The 2015 fee total is $35.8 million less than last year's and it is $16.5 million lower than the next-lowest annual collection, which was based on Marcellus Shale wells that were drilled prior to 2012.

Impact fees are assessed after each calendar year on wells extracting gas from the Marcellus and other shale layers, with the highest amount due the first year a well is drilled and lower amounts due in subsequent years for up to 15 years. …

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