Shale drilling generated more than $225 million last year in impact fees that will go to counties and municipalities that bear the brunt of drilling activity, an 11 percent increase over 2012. Rising natural gas prices were the primary factor in pushing up fee revenue between 2012 and 2013, according to the Pennsylvania Public Utility Commission.The price of natural gas helps determine how much drilling companies will pay, said Jennifer Kocher, spokeswoman for the PUC. The average price of natural gas last year was $3.65 per thousand cubic feet, up from $2.78 in 2012.
Producers drilled 1,187 new wells in 2013, Ms. Kocher noted. Each horizontal well — about 1,129 last year — requires a $50,000 payment. There were about 58 vertical wells drilled, with a smaller $10,000 fee. The impact fee for older wells is on a sliding scale.
Read more: http://powersource.post-gazette.com/powersource/policy-powersource/2014/06/05/Shale-impact-fee-revenue-rose-in-2013-state-reports/stories/201406040194