PA Pays Out $234M in Impact Tax for 2021 – 2nd Highest Ever
Last Friday the Pennsylvania Public Utility Commission (PUC) posted detailed information about this year’s distribution of last year’s impact fees generated by natural gas producers. Great news! PA raised a total of $234 million from Act 13 impact fees (PA’s version of a severance tax). That is the second-highest amount raised and distributed by impact fees from the beginning of the program. The impact fee is based, in part, on the NYMEX Henry Hub price of natural gas. The price went up a lot last year. It’s gone up even more this year. County and municipal governments directly affected by drilling are receiving a total of $123 million for the 2021 reporting year–roughly half of the revenue raised. The rest goes into the black hole of Harrisburg where PA politicians use it as play money for their favorite causes.
Read More “PA Pays Out $234M in Impact Tax for 2021 – 2nd Highest Ever”
A few days ago MDN received a phone call from the Harrisburg Patriot-News, from a reporter asking editor Jim Willis for comments on the latest activity in the Pennsylvania Marcellus. Are royalties doing better? Has there been more drilling activity? Jim tackled the question about drilling activity this way: Yes, there has been a *slight* increase in drilling activity, but not a huge increase. The reporter talked with multiple sources and published an article yesterday.
Two days ago Pennsylvania House Environmental Resources and Energy Committee (ERE) Majority Chairman Daryl Metcalfe (R-Butler) issued a co-sponsorship memo asking for other House members to sponsor a resolution with him calling for the impeachment of outgoing Dept. of Environmental Protection (DEP) Secretary Patrick McDonnell. Metcalfe calls the measure his “parting gift” to McDonnell who is leaving the agency on July 2nd (see 
Last weekend the Pennsylvania Dept. of Environmental Protection (DEP) published a notice in the weekly (Saturday) edition of the Pennsylvania Bulletin to announce final guidance (i.e. regulations) on handling radioactive waste going to solid waste processing and disposal facilities from unconventional shale gas drilling operations and other sources. Last year MDN told you about a plan by the Wolf administration to require quarterly testing at landfills that accept shale drill cuttings (see 
Last October Pennsylvania Attorney General Josh Shapiro, who is now running for governor, indicted Energy Transfer with 48 enviro-crimes related to the building of the Mariner East pipeline project (see 
Pennsylvania, Ohio, and West Virginia are all scrambling to form working groups or other alliances in an attempt to be THE state chosen for one of four regional hydrogen hubs funded by the so-called Biden infrastructure bill (see 
“If you tell a lie big enough and keep repeating it, people will eventually come to believe it.” (Quote attributed to Joseph Goebbels, the head of Nazi Germany’s Ministry of Propaganda) The left so often adopts the attitude if you keep repeating the same lie over and over–preferably the bigger the lie the better–the lie will become accepted as the truth. State Sen. Katie Muth, D-Montgomery, chair of the Pennsylvania Senate Democratic Policy Committee, and Sen. Jim Brewster, D-Allegheny, are expert practitioners of this strategy with respect to lying about the Marcellus Shale and fracking. They were at it again last week holding a public (i.e. propaganda) hearing at the Community College of Allegheny County.
The so-called Regional Greenhouse Gas Initiative (RGGI), a tax on carbon dioxide emissions from coal and natural gas-fired power plants aimed at killing off those two sources of energy, is more expensive than ever. Pennsylvania Gov. Tom Wolf is forcing PA to join the RGGI cabal of 11 states (most of them in the northeast), a move endorsed by the man who wants to replace him in November, PA Attorney General Josh Shapiro (see 
Last week the Pennsylvania Independent Fiscal Office (IFO) released its latest quarterly Natural Gas Production Report for January through March 2022 (full copy below). There was 136 new horizontal wells spud (drilled) in 1Q22, an increase of nine wells (7.1%) compared to 1Q21. However, natural gas production volume was 1,851 billion cubic feet (Bcf) in 1Q22, a slight decrease (-0.6%) from 1Q21. It is the first quarterly decrease in production in over a year.
The Bidenistas at the Dept. of Interior breathlessly announced the agency is (finally) releasing $33 million to plug 277 orphaned oil and gas wells across the country located on federal lands. The average price per plugging is $119,000. Spending $33 million to plug wells on federal lands is chump change compared to the $4.7 billion allocated for plugging old wells under the so-called Biden infrastructure bill. Why is the government paying $119K to plug wells that normally cost maybe $50,000 to plug? We’ll answer that question with another question. Why does the government pay $400 for a hammer it could buy at Lowes for $18?