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Natural Gas Impact Fee Generates $244 Million Last Year for Communities Across Pennsylvania
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Natural Gas Impact Fee Generates $244 Million Last Year for Communities Across Pennsylvania
Over $3.1 billion in funding allocated for critical state programs, local projects since 2012
HARRISBURG, PA, June 15, 2026 — Pennsylvania’s natural gas impact fee generated $244 million in 2025 for critical projects across the state, bringing the total revenue collected since 2012 to more than $3.12 billion, according to the Pennsylvania Public Utility Commission’s (PUC) new
report
on impact fee collection and distribution.
“Natural gas continues to deliver meaningful benefits for Pennsylvania and helps drive our economy,” said American Petroleum Institute Pennsylvania Executive Director Stephanie Catarino Wissman. “Year after year, these revenues help fund important local projects in all 67 counties – from road and bridge improvements to emergency services – demonstrating how this unique program is working for Pennsylvanians.”
As outlined in Act 13 of 2012, the impact fee is based on the average annual price of natural gas on the New York Mercantile Exchange (NYMEX) and the age of the well.
The Act 13 impact fee also increases in accordance with the price of natural gas. The average annual price of natural gas for 2025 was $3.43 per MMBtu, an increase over the 2024 average of $2.27.
Last year, a significant number of new wells were drilled compared to previous years. Based on well data from the Pennsylvania Department of Environmental Protection, 446 wells were drilled in 2025, an increase of 137 from 2024 and the most wells drilled in a year since 2022. New wells pay the highest fee.
“Natural gas development continues to produce a consistent stream of funding that’s reinvested into communities in every corner of the Commonwealth,” said Wissman. “Pennsylvania natural gas helps power our economy, support tens of thousands of jobs and provide affordable, reliable energy for American families and businesses, while helping to reduce carbon dioxide emissions in the power sector. This underscores how strong domestic production in states like Pennsylvania helps protect consumers and strengthen energy security.”
According to the PUC’s report, county and municipal governments with drilling operations will receive more than $133.8 million, while more than $20.9 million will be distributed to state agencies. Additionally, nearly $89.2 million will be transferred to the Marcellus Legacy Fund, which provides financial support for environmental, highway, water and sewer projects, greenways and other projects in all 67 counties in the Commonwealth, regardless of whether they have active drilling within their borders.
Under Act 13, the PUC is responsible for collecting and distributing the impact fee to state agencies and local jurisdictions.
The American Petroleum Institute Pennsylvania is a state affiliate office of the American Petroleum Institute (API). The API represents all segments of America’s oil and natural gas industry, supporting nearly 11 million U.S. jobs. With approximately 600 members, API companies produce, process, and distribute the majority of the nation’s energy. Founded in 1919, API has developed over 800 standards to enhance operational and environmental safety, efficiency, and sustainability.
