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Natural gas impact fees lower than normal in Susquehanna County

The cost of natural gas and less production from wells in 2020 made the disbursement of funds to Pennsylvania less than the year before.

SUSQUEHANNA COUNTY, Pa. — Susquehanna County is the second-most productive county of natural gas in Pennsylvania, with 1,724 wells. Each year, counties and municipalities receive money from impact fees companies that produce the product pay.

This year, $146 million to be shared across the state, with Susquehanna County getting just over $4 million. While the money may seem like a good amount, it is significantly less than in previous years.

"If we get $4 million instead of $5 million less, I'm OK with that. What, I'd love to have $10 million. Sure, but just because we got $4 million, I'm not upset. I'll take four every year if you want to give me that. And I know municipalities feel the same way," said Susquehanna County Commissioner Alan Hall.

The impact fee money can be used for things like infrastructure, including the county being able to build a new 911 center without taxpayer dollars.

"We would normally have to go out and borrow the money or get a bond issue and pay the money back. So in order to borrow $20 million, we would have had to bond out at least $30 million," Commissioner Hall said.

Some municipalities rely on the extra money to help the yearly budget. The price for companies to sell natural gas dropped to $2.06 in 2020 from $2.63 in 2019, partially because of the pandemic, and that trickles down to the disbursement of funds.

Auburn Township and New Milford Township are both receiving more than $600,000 this year, with several other townships getting upwards of $500,000.

Despite the decrease in the amount they'd hoped for, Commissioner Hall says it's still better than nothing.

"Because it's so fluid as to what happens with the gas industry. So listen, you know, they can make a rule change tomorrow in Harrisburg and shut the industry down completely. So, you know, we never take and budget what next year's money is going to be used for it because we don't know what we're going to get," Commissioner Hall added.

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