Natural gas impact fees to hit record high in Pennsylvania
Thursday, November 3, 2022
Pennsylvania natural gas impact fees are expected to set a new record this year, driven by rising prices and more drilling, according to The Center Square.
A new estimate from the Independent Fiscal Office showed impact fees from natural gas wells totaled $275 million in 2022, which is $40 million higher than in 2021.
The increase in revenue is mostly the result of a rise in natural gas prices, which created higher per-well fees. Higher prices led to $34.7 million more in revenue. New wells played a smaller role, resulting in $5.7 million more in revenue.
Learn more: The Center Square > Pennsylvania natural gas impact fee collection to hit record-high $275M
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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.