Pennsylvania imposes an impact fee on energy companies for each natural gas-producing well they drill in the state. The impact fee was enacted in response to the large concentration of natural gas producers flocking into the Marcellus Shale region. However, in the commotion of ramping up drilling operations and focusing on the impact fee, companies may fail to fully consider the effects of Pennsylvania's sales, corporate net income and franchise taxes on their Marcellus operations.
So while safety, land and mineral rights litigation often grabs the spotlight when discussing Marcellus Shale activities, taxes could be the final frontier in Marcellus Shale litigation. This article discusses: (1) the impact fee and its effect on Pennsylvania drillers; (2) the basic exemptions available for Marcellus companies; and (3) lesser-known issues involving Keystone Opportunity Zones and Pennsylvania's franchise tax.
Pennsylvania's Impact Fee
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