Range Resources recently posted an informative new video on YouTube explaining the impact fee, Pennsylvania’s tax on natural gas producers.
Range Resources has been drilling Pennsylvania Marcellus Shale since 2014. They drilled their first successful well, called the Renz #1, in Washington County. As an energy producer in Pennsylvania, Range, as well as other producers, pay an annual fee on each and every well they drill, called an impact fee.
The impact fee is Pennsylvania’s way of taxing natural gas. Pennsylvania is the only state with the impact fee. The Pennsylvania legislature chose to assess the impact fee (its’s own version of a severance tax) so they could allocate revenue to every county, not just the counties where the actual drilling took place.
Since 2011 nearly $1.5 billion has been paid by the natural gas industry in impact fees. Just this year alone more than $200 million has been collected. Range Resources, a leader in the Marcellus shale, has been among the top paying energy producer of impact fees. Range’s operations have generated nearly $200 million in impact fee revenues alone.
Washington County is Range’s core operating area and it has greatly benefited from the impact fee. It has received nearly $110 million which has helped build new bridges and roads, improved parks, help support first responders and funded many environmental and community projects.
The video highlights only some of the many ways the clean, abundant natural gas, which Range Resources and other natural gas drillers produce, benefits Pennsylvania. So when Governor Tom Wolf tells you the natural gas industry is not paying their fair taxes by way of a severance tax, he is stretching the truth.
You can check out all of Range Resource’s videos on their YouTube channel.