Pa. expects millions from higher drilling fees

Pennsylvania is increasing natural-gas well permit fees for Marcellus Shale drilling. The fees are expected to generate $4.7 million in new revenue that will support oil and gas regulation.

The Department of Environmental Protection said Friday the Environmental Quality Board (EQB) adopted the new fees, which will fix the price at $5,000 for horizontal natural gas wells and $4,200 for vertical wells. Fees formerly were based on well-bore length, and generated about $3,200 for a horizontal well and $2,900 for a vertical well.

The last fee increase took effect in 2009 during the early stages of the shale-gas boom, increasing the fees from a flat $100 per permit. - Andrew Maykuth