2018-06-28 / Local & State

PA Regulators Announce Payouts From Shale Gas Fees

HARRISBURG, Pa. (AP) –Pennsylvania regulators have decided how they will disburse nearly $210 million that was raised last year from fees on Marcellus Shale gas wells.

The state's Public Utility Commission announced its plans last Thursday.

County and municipal governments will receive $115 million, while state agencies will get $18 million. Another $76.5 million will go to the Marcellus Legacy Fund for environmental improvement programs, roadway repairs and water and sewer infrastructure upgrades.

Officials say impact fee revenue jumped by about 21 percent last year, driven by rebounding natural gas prices and growth in new wells exploring the vast Marcellus Shale reservoir.

The state legislature created the fee as an alternative to a severance tax assessed on production volume, which is commonly used in other oil and gas producing states.

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