Decreased demand sinks Pa. drilling impact fee to record low
Friday, December 18, 2020
Pennsylvania’s drilling impact fee will sink to a record low this year due to decreased demand caused by the coronavirus pandemic, according to The Center Square.
The price of natural gas on the New York Mercantile Exchange, which determines the impact fee, declined 21% this year to $2.08, according to the Independent Fiscal Office. The IFO estimates any price below $2.25 would deplete impact fee funding by $53 million.
The impact fee authorizes a tax on unconventional natural gas wells and is distributed across the state’s 67 counties of economic development projects.
Learn more: The Center Square > Pennsylvania’s drilling impact fee sinks to record low amid pandemic losses
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