Shale Energy Law Blog
Allocation of Act 13 Well Fee Announced
June 9, 2014
Last week, Governor Tom Corbett announced that county and municipal allocations of the Act 13 well fee, which totaled $225 million for calendar year 2013, were available for review on the Pennsylvania Public Utility Commission’s website. The $225 million disbursement represents an 11% increase from 2012 and is in addition to the nearly $2 billion in corporate and personal income tax revenue paid by oil and gas companies in the past seven years. Approximately $123 million will be distributed to county and municipal governments that host shale activity. The county and municipal governments can use the money received from the Act 13 well fees on various expenses such as construction and repair of roads, emergency response preparedness, and sewer system construction and repair. Additionally, state and county agencies responsible for overseeing the natural gas industry, including the Department of Environmental Protection, will receive $17 million in funding from the well fee revenue. Another $82 million will be distributed by the Marcellus Shale Legacy Fund to counties for parks and recreation as wells as competitive grants awarded to local governments and non-profit organizations for environmental projects.