PA Supreme Court Enforces “Impact Fees” Against Natural Gas Drillers, Defines Scope

The Pennsylvania Supreme Court has issued an opinion providing guidance to the natural gas industry regarding the application of “impact fees” associated with hydraulic fracturing. ​In Snyder Brothers, Inc., v. Pennsylvania Public Utility Commission, et. al., the court decided that natural gas drillers whose production from wells exceeds 90,000 cubic feet per day, for even one month of the year, will be required to pay impact fees. The decision overturns Pennsylvania’s intermediary appellate court’s prior decision that allowed drillers to avoid the impact fee if their vertical wells were classified as “stripper wells,” which, by definition, are not subject to impact fees due
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