In addition to direct participation in the community, JKLM Energy contributes to the community via Impact Fees and Royalty Payments.
opens in a new window Pennsylvania Act 13 requires JKLM Energy to pay an annual fee for each horizontal well it has started to drill, called an Impact Fee. Pennsylvania is the only state that levies an Impact Fee on unconventional natural gas operators. This fee is a significant extraction tax which provides substantial funding for Potter County and local municipalities. It is also in addition to road repair and road bonding, in which JKLM Energy must acquire a PennDot issued permit and finance any road cost recovery items such as damage repair and inspections.
Figures Sources: Sweden Township, Summit Township, Ulysses Township, Eulalia Township
Impact fees can be used in communities to reduce taxes, finance public infrastructure construction, parks, fire and EMS, social services, environmental programs, etc. Other portions of the funds are distributed to various state agencies. According to the PUC, JKLM Energy paid $1,342,200 in 2019. JKLM Energy’s total Impact Fee tax payments total more than $5.8 million since drilling began in 2015.
In order to continue seeing more benefits from Impact Fees, contact your township officials to tell them you support natural gas development.
While Pennsylvania does not have a "severance tax," analysis by the opens in a new window State Independent Fiscal Office suggests the Pennsylvania Impact Fee equates to being one of the highest extraction taxes in the United States.
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