2013 Pa. Act 13 Well Fees Expected To Generate $224.5 Million

2013 Pa. Act 13 Well Fees Expected To Generate $224.5 Million

By Nicholas J. Habursky

Governor Tom Corbett announced on Friday that the state of Pennsylvania expects to collect $224.5 million in 2014 through Act 13’s well fee assessed on unconventional wells.  This figure represents an 11% increase over the previous year.  Since Act 13 became law in 2012, the total amount collected from the fee accounts for more than $630 million in revenue.

 The majority of the Act 13 well fee funds are directly distributed to counties and municipalities for a variety of authorized uses.  A portion of the funds are also distributed to commonwealth agencies such as the DEP and conservation programs like Growing Greener and Marcellus Legacy Fund.

 Act 13 imposes a 15 year fee for companies drilling into the Marcellus Shale formation.  The annual fees can range between $5,000 to $60,000 per well, depending on the current price of natural gas and the age of the well.

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