Pennsylvania Utility Commission: 2023 Natural Gas Impact Fees Top $278 Million

Pennsylvania’s Public Utility Commission announced this week that the commonwealth and its localities will collect nearly $279 million from natural gas extraction impact fees this year. 

The revenues, applying to drilling activity throughout 2022, bring the total fees collected for gas extraction from the Marcellus Shale sedimentary rock formation to $2.5 billion since 2012, the year lawmakers imposed the tax on fossil-fuel producers. This year’s allocations will be the largest yearly amount the government amassed through the levy, representing a 19 percent increase over the prior year’s take. 

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Pennsylvania Localities Benefitting Substantially from Gas Extraction Fee

While Democrats insist Pennsylvania misses out on revenue from natural gas extraction, a Pittsburgh nonprofit’s analysis published on Thursday observes drilling impact fees yielded $2.25 billion through 2021.

Since the boom in hydraulic fracturing (or fracking), the horizontal drilling technique gas companies use to access the vast reserves of fossil fuel from the Marcellus Shale sedimentary rock formation, many politicians have eyed an extraction tax. Instead of such a tax, former Governor Tom Corbett (R) and a Republican-led legislature levied an impact fee in 2012, with revenues going to localities largely to mitigate fracking-related environmental disruption. In the new policy brief from the Allegheny Institute (AI), the think tank’s executive director Frank Gamrat detailed those revenue gains. 

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