The third quarter Natural Gas Production Report from the Independent Fiscal Office shows natural gas production is up 5.1% over 2024. New wells spud is up by 53 new wells or 84.1% over the prior year. The average Pennsylvania spot hub price was $2.18, an increase of 74 cents or 51.4% over the prior year.  

What does this mean for townships? Townships with new wells, as well as those located in counties with new wells, can expect an increase in natural gas impact fees in 2026. As natural gas impact fees are based on the average price of natural gas, townships with older wells and those located in counties with older wells may receive at least the same and possibly higher natural gas fees in 2026 for wells that remain subject to these fees. Click here for the report.