RPT: PA Collected $164M in Revenues From Natural Gas in 2024
Pennsylvania’s budget coffers received more than $164 million from the state’s natural gas industry last year, the Pennsylvania Public Utility Commission (PUC) announced Monday. Industry advocates say that, while the number is slightly lower than 2023, it’s yet another reminder of how important the energy sector is to Pennsylvania and its economy.
“Natural gas development delivers real, measurable benefits for Pennsylvania communities – driving job creation, powering economic growth and strengthening energy security,” said Jim Welty, president of the Marcellus Shale Coalition. “Beyond these core advantages, this industry continues to invest in projects that improve quality of life across the commonwealth. The impact fee alone has generated nearly $3 billion since 2012 – a clear, bipartisan policy success that reinforces the broad, lasting value of Pennsylvania’s natural gas resources.”
The revenue will be distributed to counties, municipalities, and state programs under Act 13 of 2012, which established the unconventional gas well fee, the PUC said.
“The impact fee continues to provide significant and sustained support for Pennsylvania communities – especially those directly affected by natural gas development,” said PUC Chairman Stephen M. DeFrank. “More than a decade into Act 13, this funding continues to bolster local infrastructure, environmental projects, and public services across the commonwealth.”
Since Act 13 began, Pennsylvania communities have received more than $2.88 billion.
The 2024 distribution is about $15 million lower than last year’s total, the PUC said. This was primarily due to fewer new wells. Only 314 new wells began producing in 2024, compared to 421 in 2023. Because new wells (year-one wells) are subject to the highest impact fee, this can impact annual impact fee revenue.
Another reason revenues were flat: the price of natural gas was largely unchanged from 2023, averaging $2.74 per one million British Thermal Units (MBtu).
The 2024 impact fee includes $86.5 million to counties and municipalities directly affected by drilling activity; $57.7 million to the Marcellus Legacy Fund, which supports statewide environmental initiatives, greenways, and infrastructure projects; and $20.4 million to state agencies, as directed by Act 13.
Delaware Valley counties receive $2.7 million in funding, according to a Marcellus Shale Coalition spokesperson. This includes $424,409 for Bucks County; $361,206 for Chester County; $378,902 for Delaware County; $570,760 for Montgomery County, and $1 million for Philadelphia.
State Sen. Gene Yaw (R-Bradford) called the funding from the impact fee “a tremendous benefit,” noting that counties benefit whether they have gas drilling or not.
Natural gas development is a key economic driver in Pennsylvania.
In 2022, the industry contributed more than $6 billion in local, state and federal tax revenues, according to a Marcellus Shale Coalition economic impact study. The sector supports over 120,000 family-sustaining jobs, with average wages approaching $100,000 – more than double the state median, officials said.
In addition to strengthening Pennsylvania’s economy, natural gas production continues to translate into real-world cost savings for consumers. Households and businesses that use natural gas across the commonwealth saved nearly $10 billion last year compared to 2008 prices, an MSC analysis of state PUC data shows.
“The natural gas impact fee provides critical financial support to communities across Pennsylvania. Pennsylvania developed a first-in-the-nation plan to fund communities directly rather than passing money to the state capital first and hoping it made its way to impacted communities,” said Pennsylvania State Association of Township Supervisors Executive Director David Sanko. “These funds enable townships and other municipalities to invest in key priorities such as water and sewer upgrades, road and bridge improvements, public safety, and affordable housing initiatives.”
