Gas Drilling Fees to Increase
Proposals to increase the fees that companies must pay to drill into the Marcellus Shale natural gas formation in Pennsylvania are past a first hurdle.
The Environmental Quality Board approved a Department of Environmental Protection request to impose new fees for Marcellus Shale drilling permits that will replace the flat $100 permit fee with a variable fee structure based on well depth.
The new fee structure sets a base permit cost of $900 for all Marcellus Shale wells up to 1,500 feet deep, and imposes an additional cost of $100 for every 500 feet of depth past 1,500 feet.
The DEP says the new fee structure will help ensure adequate funding to cover program expenses for permit reviews and well site inspections. The fee increase will also allow the department to hire additional staff in Meadville, Pittsburgh and Williamsport to process permits and monitor drilling activities in the northcentral and northeastern areas of the commonwealth.
The Environmental Quality Board approved a Department of Environmental Protection request to impose new fees for Marcellus Shale drilling permits that will replace the flat $100 permit fee with a variable fee structure based on well depth.
The new fee structure sets a base permit cost of $900 for all Marcellus Shale wells up to 1,500 feet deep, and imposes an additional cost of $100 for every 500 feet of depth past 1,500 feet.
The DEP says the new fee structure will help ensure adequate funding to cover program expenses for permit reviews and well site inspections. The fee increase will also allow the department to hire additional staff in Meadville, Pittsburgh and Williamsport to process permits and monitor drilling activities in the northcentral and northeastern areas of the commonwealth.
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