Jun 26, 2025 By Mike Jones 4 min read

For the second year in a row, the state’s natural gas drilling impact fee money has decreased the amount paid out to counties and municipalities – dropping to the second lowest level in the nearly 15-year history of the program – further squeezing local budgets.

The amount distributed through Act 13 dropped statewide to just under $164.6 million for this year, which represented a nearly 10% drop from the year before and less than two-third of the record amount of $278.8 million doled out in 2023.

The state Public Utility Commission on Monday released the annual distribution figures, which once again showed Washington County received the most revenue with $4.96 million. Greene County was fourth on the list of counties statewide with $3.45 million while Fayette County lagged far behind with $608,318. All saw a slight drop in revenue from last year, but more concerning is the fees distributed in this round were nearly half of what the three counties received in 2023.

The revenue figures last year dropped to the lowest levels since the COVID-19 pandemic wreaked havoc on the industry in 2020, and it appears to be from decreased natural gas prices and a fee schedule that tails off as wells are farther into production. That can have a debilitating effect on small municipalities in rural areas that rely on the windfall of money to help boost their budgets, although local officials said the money is more of a luxury than a dedicated revenue stream.

Amwell Township in Washington County received the fourth most allocation of any municipality in the state with $621,812, but it was still a slight decrease from last year. That was not unexpected since many local officials thought the program that began in 2012 would eventually dip, Amwell Township Supervisor Scott Hartley said.

“I think when it first started that after 10 years or so it would probably drop off, so it’s not a huge surprise,” Hartley said. “Obviously, the more money the better to benefit the township. But it’s nothing detrimental.”

He said they’ve been very deliberate with their spending of Act 13 funds over the years, focusing on one-time infrastructure expenses such as public water, sewage and road improvement, or using it for public works equipment.

“We’ve always been smart with it,” Hartley said “We know it’s going to decrease each year and it’s going to end one of these days.”

There have been large swings in recent years, with the $143.6 million generated during 2020 being the lowest amount raised compared to just two years later when the natural gas drilling industry came roaring back and provided a record $278.8 million from the 2022 production year. Municipalities typically use the money for infrastructure projects or to help fund emergency services, although they can also stash the money away in capital improvement reserve funds.

Center Township in Greene County received the second highest allocation in the state with $759,249, while neighboring Franklin Township was seventh on the list with $608,412. Franklin Township Board of Supervisors Chairman Corbly Orndorff said they’ve used a portion of the money the past two years to boost the volunteer fire department, so less money means a smaller percentage going to fire services. The volatile nature of the revenue figures prompted the township officials to use it for more fluid purposes rather than a line item in the budget they would have to fund annually, like a full-time police department.

“We realize there’s no guarantee. It won’t always be there,” Orndorff said. “This is totally an unknown and we don’t want to get our budgets relying on it.”

Still, industry leaders said the program remains important since it offers money to local and county governments directly impacted by the drilling industry, noting it’s delivered $3 billion since starting in 2012.

“Natural gas development delivers real, measurable benefits for Pennsylvania communities – driving job creation, powering economic growth and strengthening energy security,” Marcellus Shale Coalition President Jim Welty said in a written statement. “Beyond these core advantages, this industry continues to invest in projects that improve quality of life across the Commonwealth.”

Regardless, Orndorff said rural communities like Franklin Township are happy to have whatever money comes their way for as long as the program continues.

“It is definitely, obviously concerning. But we’ve made some investments with our money and long-term things doing major road improvements so we can maintain these (projects) and do more than just maintenance,” Orndorff said. “We’re monitoring it, but it’s one one of those things that we don’t have any direct control over.”