PA Independent Oil & Gas Assoc. v. PUC (majority)Annotate this Case
The issue presented to the Pennsylvania Supreme Court in this appeal centered on whether producers of natural gas from certain vertical wells were subject to assessment of a yearly impact fee established by Chapter 23 of the Pennsylvania Oil and Gas Act (“Act 13”). The vertical wells that at issue used the hydraulic fracturing process ("fracking") to extract natural gas through a vertical well bore from Marcellus Shale. Specifically, the issue centered on whether an impact fee would be assessed whenever a vertical well’s production exceeded an average of 90,000 cubic feet of natural gas per day for even one month of the year, or whether the well must exceed this production threshold in every month of the year, for the fee to be imposed. After careful review, the Supreme Court concluded that, under the relevant provisions of Act 13, the impact fee would be imposed on such wells if their production exceeds 90,000 cubic feet of natural gas per day for even one month of the year, as found by the Public Utility Commission (“PUC”). Therefore, the Court reversed the Commonwealth Court’s order, which had reversed the PUC; the PUC's order was reinstated.