The Independent Fiscal Office released a report on the calendar year 2024 natural gas impact fee that will be distributed in July 2025, as well as the future outlook for the fee. According to the report, the Public Utility Commission has collected $164.4 million for the 2024 calendar year, $15 million (8%) less than 2023. The decline is largely due to a significant decrease in the new wells that pay the highest fee. PUC data shows that 304 new wells paid the highest fee for 2024, a decrease of 120 wells since 2023.  

The fees imposed vary by how many years a well has been subject to the fee and by the annual average price of natural gas in the prior year. In 2022, the price peaked at $6.64 and the fees collected were at the highest rate. For 2024, the fee was $51,800 for a new well, the same as 2023 but a 25% decline compared to 2022. 

Townships that receive the natural gas impact fee should generally expect to receive smaller payments in July unless additional wells were drilled in your township or in the county during 2024. Township officials can determine the wells in their township and county by clicking here to view producer reports on the PUC’s interactive website. Go into the producer or producers in your township and choose the “Wells” tab behind the producer’s address. The county, municipality, and spud date are listed, and whether the well is active (which means the fee was levied for 2024) and the date when the well was spud (drilled). Click here for the IFO report.  

Stay tuned for PUC distribution announcement early next week. We will bring it to you first!