jdaddy wrote:
I love how the industry is saying that we are driving them away and that they will take their ball and go some where else to play. This, after telling us we have the largest pockets of MS drillable gas in the country. 100 years worth right? They are going to other states were regulation is "more stable". We should have left it stable at zero tax I guess. Instead of being thankful for the zero severance tax they have paid to date, they are complaining.
At the current drill head rate of $4.22 per MCF, the tax is 9% at $.39 per MCF. Now, I gotta say I want to get that money into the growing greener fund, but 9% maybe a bit much. 1.5% like Arkansas is too low however. I think we should definitely use a % basis versus a fixed price per, as rates fluctuate over the months/years will almost certainly drive natural gas rates higher. I have not read the suggested bill, but are their annual increases or inflation adjustments to the $.39? I mean we are going to look pretty stupid in 20 years when MCF is $28 and we are getting $.39.