Nearly $2 Billion in Natural Gas Revenues Generated from Existing Impact Taxes in Pennsylvania

HARRISBURG, June 17, 2020 – API-PA Executive Director Stephanie Catarino Wissman welcomed today’s report by the Public Utility Commission showing community and municipal disbursements and revenues received through the taxation of Pennsylvania’s natural gas industry totaled $200,364,500 for the 2019 reporting year.

“The Public Utility Commission report shows that, even in current market conditions, natural gas development continues to supply essential revenues and fuel to power recovery efforts as Pennsylvanians transition to a ‘new normal,’” API-PA Executive Director Stephanie Catarino Wissman said. “As the Commonwealth recovers, natural gas companies will provide the foundational energy to allow people to return to work, visit their families, eat at restaurants, and otherwise continue on with their lives. We should support legislative policies that balance what is working to support the commonwealth during economic recovery and build on opportunities for economic growth and job creation.”

Pennsylvania has generated nearly $2 billion in new revenues from the existing impact tax since 2012. According to the PUC, the 2019 distribution is approximately $42.6 million lower than last year, largely due to the average price of natural gas in 2019 ($2.63 per MMBtu) versus the average price in 2018 ($3.09 per MMBtu), resulting in a lower impact fee payment for each well than the 2018 reporting year.

Distribution of the 2019 revenues collected include:

• $109,180,326 for the 2019 reporting year will be distributed among county and municipal governments directly affected by drilling
• $ 72,186,900 to be allocated to the Marcellus Legacy Fund, providing financial support for environmental, highway, water and sewer projects, rehabilitation of greenways and other projects throughout the state
• 18,397,250 will be distributed to state agencies, as specified by Act 13

The full report is available on the PUC’s Act 13 website, here.

API-PA is a division of API, which represents all segments of America’s natural gas and oil industry. API’s more than 600 members produce, process, and distribute most of the nation’s energy. The industry supports 10.9 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. API was formed in 1919 as a standards-setting organization. In its first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.