In a decision that is likely to have costly consequences for natural gas producers in Pennsylvania, the state Supreme Court has ruled that any unconventional gas well that produces more than 90,000 cubic feet of gas per day for even just one month of a calendar year is subject to impact fees.

The high court’s 6-1 Dec. 28 decision in Snyder Brothers v. Pennsylvania Public Utility Commission reversed an en banc Commonwealth Court ruling from 2017 that had reached the opposite conclusion: that a gas well’s production needed only to fall to or below 90,000 cubic feet for one month out of the year in order for the well to be exempted from impact fees under Act 13.

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