HARRISBURG — Pennsylvania’s natural gas impact fee generated $164.5 million in 2024, the Pennsylvania Public Utility Commission (PUC) announced.

This brings the 14-year total to more than $3 billion in funds generated by the industry dedicated to community, environmental and infrastructure needs across the commonwealth.

According to the chart, McKean County, as a county with unconventional wells, will receive $253,785.23, while rehabilitation of greenways will receive $25,963.84. There were 105 eligible wells in the county.

The municipality with the highest allocation in the county was Norwich Township, with 48 eligible wells, at $123,754.68; followed by Sergeant Township, with 48 wells, and an allocation of $121,300.89.

The City of Bradford’s allocation was $27,094.35, the second lowest since 2020. In its first year, the city’s allocation was $26,284.87. The highest was for the year 2022, when the city received $52,890.90.

Bradford Township will receive $25,415.73, again, second lowest since 2020’s allocation, which was $23,561.90. The highest was for the year 2022, with $49,995.09.

Foster Township was allocated $17,935.08, second lowest to the year 2020, which was $16,762.64. The highest was in 2022 at $34,785.24.

Annin Township’s allocation was $8,121.78; Ceres Township, $7,830.77; Corydon Township, $2,428.56; Eldred Township, $4,552.73; Eldred Borough, $1,299.99; Hamilton Township, $3,732.15; Hamlin Township, $11,498.99; Kane Borough, $13,240.20; Keating Township, $17,638.61; Lafayette Township, $9,744.73; Lewis Run Borough, $2,208.92; Liberty Township, $14,906.07; Mount Jewett Borough, $3,668.90; Otto Township, $7,705.40; Port Allegany Borough, $3,723.95; Smethport Borough, $2,967.71; and Wetmore Township, $20,403.11.

Since its creation in 2012 under Act 13, the impact fee has provided a consistent stream of funding to all 67 Pennsylvania counties – even regions without industry activity. These funds can be used for a variety of municipal needs, including infrastructure improvements, emergency services, economic development projects and environmental protection.

“The impact fee continues to provide significant and sustained support for Pennsylvania communities – especially those directly affected by natural gas development,” said PUC Chairman Stephen M. DeFrank. “More than a decade into Act 13, this funding continues to bolster local infrastructure, environmental projects and public services across the commonwealth.”

This year’s distribution brings the cumulative total of impact fees collected and distributed since 2012 to more than $2.88 billion.

“Natural gas development delivers real, measurable benefits for Pennsylvania communities — driving job creation, powering economic growth and strengthening energy security,” said Jim Welty, president of the Marcellus Shale Coalition. “Beyond these core advantages, this industry continues to invest in projects that improve quality of life across the commonwealth. The impact fee alone has generated nearly $3 billion since 2012 — a clear, bipartisan policy success that reinforces the broad, lasting value of Pennsylvania’s natural gas resources.”

Natural gas development remains a key economic driver in Pennsylvania. In 2022, the industry contributed more than $6 billion in local, state and federal tax revenues, according to a Marcellus Shale Coalition economic impact study. The sector supports over 120,000 family-sustaining jobs, with average wages approaching $100,000 – more than double the state median.

“The natural gas impact fee provides critical financial support to communities across Pennsylvania. Pennsylvania developed a first-in-the-nation plan to fund communities directly rather than passing money to the state capital first and hoping it made its way to impacted communities,” said Pennsylvania State Association of Township Supervisors executive director David Sanko. “These funds enable townships and other municipalities to invest in key priorities such as water and sewer upgrades, road and bridge improvements, public safety and affordable housing initiatives.”

While all counties receive a share of annual impact fee revenues, distributions are weighted toward regions with active development. The fee structure — based on the number of wells drilled, their age and market prices — means total collections fluctuate from year to year. State agencies, including the Pa. Department of Environmental Protection, the Fire Commissioner, Pa. Emergency Management Agency and Pa. PUC also receives funding directly from the impact fee for programs like the Pa. Housing Affordability & Rehabilitation Enhancement (PHARE) fund, the Greenways, Trails, and Recreation Program, the Watershed Restoration Protection Program, among others.

The PUC offered a breakdown of the 2024 impact fee distribution: $86.5 million to counties and municipalities directly affected by drilling activity; $57.7 million to the Marcellus Legacy Fund, which supports statewide environmental initiatives, greenways, and infrastructure projects; and $20.4 million to state agencies, as directed by Act 13.

The PUC has submitted this year’s distribution data to the Pennsylvania Treasury, which is expected to begin issuing payments in early July.