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PA Bulletin, Doc. No. 21-183

NOTICES

PENNSYLVANIA PUBLIC
UTILITY COMMISSION

Act 13 of 2012; Producer Fees for Calendar Year 2020

[51 Pa.B. 665]
[Saturday, January 30, 2021]

 Average Annual Price of Natural Gas for Calendar Year 2020:(1)  $2.077

 Consumer Price Index, Urban Consumers, PA, NJ, DE and MD:(2)  1.1%

Number of Spud Wells for
Calendar Years 2019 and 2020

  2019   2020
Number of wells spud  614 476

 CPI adjustment to spud well fees is not applicable in 2020. See 58 Pa.C.S. § 2302(c) (relating to unconventional gas well fee).

Unconventional Gas Well Fees for
Calendar Year 2020

Year of Well(3)  Horizontal  Vertical—Producing  
Year 1 $40,500 $8,100
Year 2 $30,400 $6,100
Year 3 $25,400 $5,100
Year 4—10 $10,200 $2,000

(1) Source: www.business.directenergy.com

(2) Source: www.bls.gov

(3) Horizontal unconventional gas wells pay the yearly fee upon spudding plus 2 subsequent years. Fees after the first 3 years are based on production levels as defined in 58 Pa.C.S. § 2302(b.1). Vertical wells producing gas levels above a 90,000 cubic feet average in any one given month during the current reporting year are subject to 20% of the applicable horizontal well fee rounded to the nearest $100.

ROSEMARY CHIAVETTA, 
Secretary

[Pa.B. Doc. No. 21-183. Filed for public inspection January 29, 2021, 9:00 a.m.]



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