Western Pennsylvania counties and municipalities to see increased royalty revenue on natural gas production

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Allegheny and Westmoreland counties, along with the county municipalities, will receive approximately $3.1 million from the impact royalties the state collected last year from gas well production from Marcellus Shale, a considerable increase over the previous year, according to data released on Friday.

Allegheny County and its municipalities will receive nearly $1.9 million in impact fees last year, up from $1.1 million the previous year, while Westmoreland County and its municipalities will receive nearly $1.3 million in fees last year, up from about $772,000 in 2020, Pennsylvania’s Public Utility Commission said.

The state says checks will be sent out early next month.

The additional revenues are mainly attributable to the increase in the average price of natural gas last year. The average price last year was $3.84 per million British thermal units, down from $2.08 per million Btu in 2020, the PUC said. The 518 additional wells drilled in the state last year also helped boost revenue, the PUC said.

“The nearly 60% increase in distribution this year is directly related to increased activity levels and the commodity price environment, underscoring the importance of policies that encourage the development, transport and the use of domestic natural gas,” said David Callahan, president of the Marcellus Shale Coalition. , an industrial trade group supporting the development of natural gas.

Statewide, Pennsylvania collected $234.4 million in unconventional gas well impact fees on production in 2021, about $100 million more than what was generated from of 2020 production, the PUC said. The PUC is responsible for collecting and distributing fee money. Of the money generated last year, approximately $123.2 will go to municipalities.

The Marcellus Legacy Fund will receive $86 million. The fund provides money for environmental, road, water and sewer projects, greenway rehabilitation and other projects in the state. State agencies will receive $25.1 million, while county conservation districts and the state conservation commission will split $8.8 million, the PUC said.

The PUC said it has distributed more than $2.2 billion in impact fees to communities since the impact fees were enacted.

Joe Napsha is a staff writer for Tribune-Review. You can contact Joe at 724-836-5252, [email protected] or via Twitter .



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