Pa. shale gas impact fees raise $251.8 million
Friday, July 5, 2019
Impact fees for payments for natural gas drilling in Pennsylvania will reach a record amount this year, according to the Pennsylvania Public Utility Commission.
The annual fee collected for natural gas wells tapping the Marcellus and Utica shales totaled $243 million for 2018, plus $8.9 million in back fees from companies that had withheld payments for several years while courts decided which low-producing “stripper” wells were exempt from the law.
The nearly $252 million is well above the previous record total of $225.7 million for 2013.
Learn more: Tribe Live > Pa. communities in line to get share of $251.8 million in natural gas fees
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.