Severence tax change could effect jobs, tax dollars

UNDATED (KTHV) -- A proposed change
to the state's severance tax-- one of the
natural gas producers say it could cost jobs
and tax dollars. 
Arkansas has two different areas where
natural gas is drilled in  the Haynesville
shale in the southern part of the state and
the Fayetteville shale in the north. 
Gas companies say those landscapes could
drastically change if that measure passes.
Energy companies say if that happens the
natural gas companies drilling these
landscapes could disappear. 

The Natural Gas Severance Tax Act of
2012  proposes the severance tax on
natural gas extracted from within the State
of Arkansas to 7 percent of the market of
the gas at the time it is extracted from the
ground.
It also eliminates various severance tax
rates from 1.25 percent to 5 percent,
replacing them with the 7 percent rate.

Source: Today's THV 

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