Jun 28, 2022 3 min read

Notwithstanding a volatile natural gas market, Washington County leads the state in natural drilling impact fee revenue. The county received the most significant share of impact fees among Pennsylvania’s 67 counties. We also led the state in the number of wells with 1,938, with more than 500 new wells put into production statewide last year.

The Pennsylvania Public Utility Commission (PUC) is responsible for implementing the collection and distribution of an unconventional gas well fee (also called an impact fee) signed into law as Act 13 of 2012. Since 2012, the PUC has collected $2.26 billion in impact fees.

Act 13 provides for the imposition of an unconventional gas well fee and the distribution of those funds to local and state governments. It also contains provisions regarding how the impact fee may be spent. A significant portion of the funds collected will be distributed directly to local governments to cover the local impacts of drilling. Also, several state agencies will receive funding to be used for a variety of other purposes.

In short, the bulk of Act 13 funds is sent to municipalities to cover costs associated with drilling in their community. For example, Amwell Township received nearly $1 million, making it the fourth greatest appropriation statewide. The Act 13 money enabled the county to make numerous capital improvements and investments without using general fund monies or issuing new debt. Specifically, county projects such as bridge upgrades, courthouse restoration, and public safety projects have benefited.

According to the PUC, county and municipal governments directly affected by drilling will receive $123,217,163 for the 2021 reporting year. Additionally, $86,030,934 will be transferred to the Marcellus Legacy Fund, which provides financial support for environmental, highway, water and sewer projects, rehabilitation of greenways, and other projects throughout the state. Also, $25,189,477 will be distributed to state agencies, as specified by Act 13.

In Washington County, we will receive $7.6 million in impact fees. Again, this is the most of any county in the state. This year’s modest increase in the state’s natural gas market should start a much larger trend to use our vast reserves. Pennsylvania is the second-largest gas producer in the country, and the Appalachian Basin is the third-largest producing region in the world.

We must ensure that natural gas remains an essential part of the state’s and U.S. energy strategy. Pennsylvania should use its assets to rebuild U.S. manufacturing and provide energy security for the U.S. and our allies. In Washington County, that starts with increased natural gas production and opening our pipelines.

Nick Sherman

Washington County commissioner