IFO Says PA Impact Fee Revenue Will Fall to “Record Low” for 2020
Pennsylvania’s Independent Fiscal Office (IFO) provides revenue projections for use in the state budget process along with impartial and timely analysis of fiscal, economic, and budgetary issues to assist PA residents and the General Assembly in their evaluation of policy decisions. The IFO published its Monthly Economic Update on Wednesday (for December). The update contains a rather ominous paragraph projecting impact fee revenues for 2020 will drop by $53 million–to the lowest level of revenue generated since PA enacted an impact fee.
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For some reason, S&P Global Platts has not tabulated and reported on the latest Enverus rig count numbers for the past few weeks. Have no fear. MDN pulled the latest rig count report directly from Enverus. It shows that over the past week (ending Dec. 16), the U.S. rig count fell by five to 401 active rigs.
Leftists, like Pennsylvania Gov. Tom Wolf, always have to learn lessons the hard way. In August, Wolf’s Dept. of Environmental Protection (DEP) finalized and put into effect a massive increase in the permit fee to drill new shale wells, going from $5,000 per well to $12,500 (see 
Two weeks ago MDN reported that Enbridge, builder of the Weymouth, Massachusetts compressor station, said the compressor would come online Dec. 4 (see 
Anti-fossil fuelers have a new favorite lie to tell: Any kind of power plant or pipeline that uses natural gas is racist. It’s a sick and twisted lie, but that’s the line they now use. For example, the Virginia Air Pollution Control Board recently approved a permit for the construction of a new 17-megawatt natural gas power plant to power the Norfolk Naval Shipyard in Portsmouth, Virginia. Environuts are hollering it’s racist.
In Pennsylvania, there are two permits required by the Dept. of Environmental Protection (DEP) for nearly every shale well drilling project: A Chapter 102 (erosion and sediment control) and a Chapter 105 (water obstructions and encroachments). The DEP has proposed and is seeking comments on wide-ranging amendments to its Chapter 105 regulations.
In March 2019 MDN told you about Kinder Morgan’s Natural Gas Pipeline Company of America LLC (NGPL) project that carries Marcellus/Utica gas from the Midwest all the way to the Gulf Coast to feed just about any of the existing or under construction LNG export plants in the region (see 
The State of Connecticut’s “Siting Council” changed its mind in July 2019 and approved NTE Energy’s proposed project to build a 650-megawatt natural gas-fired electric plant in Killingly, after initially rejecting it (see 
By now it’s a cliche to say that 2020 has been an exceptional year–and not in a good way. For the first time in our memory of writing MDN, we witnessed widespread curtailments or “shut-ins” of wells in the Marcellus/Utica during 2020. That is, drillers voluntarily turned the values off and flowed less gas in a bid to (a) not sell the gas at prices that don’t return a profit, and (b) drive up the price of gas (see 
Yesterday our favorite government agency, the U.S. Energy Information Administration (EIA), published our favorite monthly report, the Drilling Productivity Report (DPR). The latest DPR, which shows estimates for oil and gas production from the seven largest shale plays in the U.S., shows a drop in shale gas production across all plays (including the Marcellus/Utica)–except for a slight production increase in the Haynesville–coming next month in January. The M-U is forecast to drop another 154 million cubic feet per day (MMcf/d) from production levels in December.