PA PUC Publishes Marcellus Impact Tax Hike – Older Wells Up 116%

Marcellus drillers who have drilled new wells over the past three years in Pennsylvania are going to get hit by an increase in the state’s impact fee. However, older shale wells (drilled 11 to 15 years ago) will get hit the hardest by the 2025 impact fee/tax. Drillers must pay the impact fee (PA’s equivalent of a severance tax) once per year, based on the wells they drilled or operated during the previous year. The fee is a complex calculation based on (a) how long a well has been drilled, (b) the average NYMEX Henry Hub price for natural gas from the previous year, and (c) a cost adjustment for inflation. The fees PA drillers will pay this year, depending on how long a well has been drilled, range from 3.8% higher to 116.1% higher.

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