According to Act 13, the fee begins the year the well is “spud,” which is defined as the year the actual drilling of the unconventional well began.
The fee for horizontal wells will be based upon year of well and average price of natural gas as follows (Note: Active Vertical wells are assessed
at 20 percent of the horizontal well fee for 10 years):
The average annual price for natural gas in 2023 was $2.74.
| $0.00 - $2.25 | $2.26 - $2.99 | $3.00 - $4.99 | $5.00 - $5.99 | $6.00 - $9999.99 |
| Year 1 | $46000.00 | $51800.00 | $57500.00 | $63200.00 | $69100.00 |
| Year 2 | $34500.00 | $40200.00 | $46000.00 | $51800.00 | $63200.00 |
| Year 3 | $28800.00 | $34500.00 | $34500.00 | $46000.00 | $57500.00 |
| Year 4 | $11600.00 | $17200.00 | $23000.00 | $23000.00 | $23000.00 |
| Year 5 | $11600.00 | $17200.00 | $23000.00 | $23000.00 | $23000.00 |
| Year 6 | $11600.00 | $17200.00 | $23000.00 | $23000.00 | $23000.00 |
| Year 7 | $11600.00 | $17200.00 | $23000.00 | $23000.00 | $23000.00 |
| Year 8 | $11600.00 | $17200.00 | $23000.00 | $23000.00 | $23000.00 |
| Year 9 | $11600.00 | $17200.00 | $23000.00 | $23000.00 | $23000.00 |
| Year 10 | $11600.00 | $17200.00 | $23000.00 | $23000.00 | $23000.00 |
| Year 11 | $5600.00 | $5600.00 | $11600.00 | $11600.00 | $11600.00 |
| Year 12 | $5600.00 | $5600.00 | $11600.00 | $11600.00 | $11600.00 |
| Year 13 | $5600.00 | $5600.00 | $11600.00 | $11600.00 | $11600.00 |
| Year 14 | $5600.00 | $5600.00 | $11600.00 | $11600.00 | $11600.00 |
| Year 15 | $5600.00 | $5600.00 | $11600.00 | $11600.00 | $11600.00 |
Under Act 13, beginning Jan. 1, 2013, the PUC may annually adjust the fee to reflect any upward changes in the Consumer Price Index
for all Urban Consumers for the Pennsylvania, New Jersey, Delaware and Maryland area in the preceding 12 months. The adjustment may
only occur if the total number of unconventional wells spud in a given year exceeds the number of unconventional wells in the prior year.