Commonwealth Court Defines Stripper Wells

By:  Michael K. Reer

On March 29, 2017, the Commonwealth Court of Pennsylvania issued a decision interpreting Act 13’s impact fee provisions.  Pennsylvania’s Act 13 requires certain unconventional wells to pay impact fees during the first several years of operation.  “Stripper wells” – defined by Act 13 as an “unconventional gas well incapable of producing more than 90,000 cubic feet of gas per day during any calendar month” are exempt from the impact fee.  The Commonwealth Court determined that Act 13 uses the word “any” to mean “every” and therefore held that an unconventional well is not subject to the impact fee if the well is not capable of producing more than 90,000 cubic feet of gas per day in every calendar month.  The case is Snyder Brothers, Inc. v. Pa. Public Utility Comm’n, No. 1043 C.D. 2015. 

Thursday, April 06, 2017

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