Revenue from Pa. gas drilling fees decreases in 2019
Tuesday, January 14, 2020
Lower natural gas prices translated into a 21.3% drop in drilling fee revenue for Pennsylvania in 2019, despite production growth in the Marcellus Shale play, according to Kallanish Energy.
Last week, Pennsylvania’s Independent Fiscal Office projected impact fee collections for last year will total $198.2 million, which is a $53.6 million drop from the year prior. The drop breaks a two-year streak of increasing revenue within the state.
Payments are due by July 1, and the money largely stays in drilling communities.
Learn more: Kallanish Energy > Pennsylvania gas drilling fee revenue slides in 2019
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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.