Lower natural gas prices and the mix of new and existing wells in Pennsylvania drove an estimated $55.9 million year/year decrease in the impact fees collected by natural gas producers in 2020, according to the latest figures from the state’s Independent Fiscal Office (IFO).

Natural gas producers paid a projected $144.9 million in impact fees last year, the IFO said. For the same period, the average price of natural gas at U.S. benchmark Henry Hub was $2.08/MMBtu. Because the price dropped below $2.25, the impact fee schedule decreased by $5,000 per horizontal well compared to 2019 levels, according to IFO. This resulted in a roughly $52.1 million decline in fees collected.

Fees also were negatively impacted by reduced collections from aging wells that pay lower fees and wells...