Susquehanna County will receive nearly $6 million in revenue generated from 2019 Act 13 payments from natural gas producers, the Pennsylvania Public Utility Commission (PUC) announced last week.
The county’s impact fee allocation is the second highest in the state at about $5.763 million, behind Washington County which will receive $6.6 million. Washington County has the highest numbers of wells, with 1,837; while Susquehanna County has the second highest number of wells, at 1,627.
Three local townships are also among the top receiving municipalities in the state: Auburn Twp., $888,759.30; New Milford Twp., $754,432; and Springville Twp., $740,205. New Milford and Auburn townships are among the municipalities with the most wells. Auburn’s well count totals 175, and New Milford’s is slightly higher at 183.
Townships will, however, receive either $549,400 or 50 percent of their 2018 budget – whichever total is higher. For example, Auburn Twp. will receive the $549,400, exceeding the restricted rate by $41,650.
The two most active drillers in the county – Cabot Oil & Gas and Southwestern Energy – are among the top-paying Act 13 producers in the state in 2019. Cabot paid $16,922,100 in fees; and SWN paid $13,407,200.
“Act 13 continues to pay significant dividends for our local communities as drilling companies assist with the consequences of their activities,” said Rep. Tina Pickett (110th). “In addition to the impact fees, the natural gas industry remains an important job generator for the local economy and should remain so many more years to come.”
The PUC posted detailed information about this year’s distribution of impact fees on the PUC’s Act 13 website. The statewide distribution totals of $200 million. County and municipal governments directly affected by drilling will receive a total of $109,180,326 for the 2019 reporting year. Additionally, $72,186,900 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, $18,397,250 will be distributed to state agencies, as specified by Act 13.
The PUC is responsible for implementing the collection and distribution of the Impact Fee which signed into law as Act 13 of 2012. Including this year’s distribution, the PUC has collected and distributed over $1.9 billion to communities across the state in the past nine years.
According to the release issued by the PUC, this year’s distribution is approximately $42.6 million lower than last year, driven primarily by the average price of natural gas in 2019 ($2.63 per MMBtu) versus the average price in 2018 ($3.09 per MMBtu) which caused a lower impact fee payment for each well in 2019.
Last year, Susquehanna County received $7.14 million in Impact Fee revenue
The PUC has forwarded the information to the Department of Treasury for payment and expects checks to be distributed to the counties and municipalities in early July.
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