Pennsylvania natural gas impact fees surge 48% as prices trigger higher fee schedule

Pennsylvania’s annual haul from the impact fee on natural gas drilling will reach the highest level since 2022 as the average natural gas price led to a higher fee for many of the 12,504 wells drilled last year, according to projections from the Independent Fiscal Office.

IFO said it expected about $243.9 million in impact fees from the state’s natural gas producers, which is 48% higher than the $164.6 million collected for 2024 and the highest since $278.9 million for calendar year 2022. It’s higher than a previous projection released late last year.

There were 442 more wells drilled in Pennsylvania in 2025than in 2024, according to Pennsylvania Public Utility Commission data. That was the highest since 2022. But it was the higher price of natural gas — up 51% to an average of $3.43 per thousand BTU — that kicked in a higher fee schedule for new wells in 2025 compared to previous years. A higher fee goes into effect when the average natural gas price on the New York Mercantile Exchange (NYMEX) is over $3, as well as an inflation adjustment of 3.9%.