Pennsylvania is projected to collect higher impact fees from unconventional natural gas producers for 2021, reversing losses tied to lackluster demand and low commodity prices in recent years.

The state’s Independent Fiscal Office (IFO) released projections this week estimating that unconventional producers will pay $233.8 million in impact fees for 2021, up by nearly $88 million from 2020. Collections declined from a record high of $251.8 million in 2018. The IFO bases its projections on data published by the state Department of Environmental Protection, which regulates the oil and gas sector. 

Average New York Mercantile Exchange prices jumped to $3.84/MMBtu last year. Annual production is also projected to increase to 7.6 Tcf in 2021 from about 7 Tcf in the prior year....