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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: April 18, 2017 11:37 AM
From: Representative Pam Snyder
To: All House members
Subject: Legislation amending Act 13 of 2012 clarifying the Unconventional Gas Well Impact Fee
In the near future I plan to introduce legislation that would clarify who has to pay the Unconventional Gas Well Impact Fee under Act 13 of 2012.

Act 13 provides that marginally producing gas wells, known as “stripper wells”, are exempt from paying the impact fee. Currently, a stripper well is defined as a well that is incapable of producing more than 90,000 cubic feet of gas per day during any calendar month. Recently, a decision by the Commonwealth Court determined that a well is subject to the impact fee only if the well exceeds the 90,000 cubic feet of gas per day in every month of the year.

The court’s interpretation of a “stripper well” will cause impact fee collections to decrease. The Public Utility Commission estimates that impact feel collections will fall by $16 million/year.

My legislation will amend the definition of “stripper well” so that it is clear that the impact fee applies to any that well meets the 90,000 cubic feet of gas per day in one month of the year.

Please join me in co-sponsoring this very important legislation.

Introduced as HB1283