Natural Gas Policies Poised to Stifle Keystone-State Energy Boon

WASHINGTON, Jan. 30, 2012 /PRNewswire-USNewswire/ -- Small Business and Entrepreneurship Council chief economist Raymond J. Keating today expressed concern that low natural gas prices coupled with high "impact fees" under consideration by Pennsylvania's legislature could drive shale business out of the state and with it, the jobs and prosperity development generates.

"Gas prices may be beyond Harrisburg's control, but the state's tax policy is not. Falling prices are already forcing companies like Chesapeake to cut production and shut down dozens of rigs that support hundreds of jobs—a number of which are expected to be in Pennsylvania.

"While state lawmakers can do little to influence gas prices, the Assembly has complete charge over whether it gives energy companies yet another reason to shed projects and jobs in the state. As legislators drive fees up, they could drive business out."

A pending compromise bill between Senate and House would drive the fee associated with drilling for shale oil in Pennsylvania up to around $260,000 per well over 10 years.

"The wrong choice could deliver a heavy blow to small businesses across the state that depend on energy-production-related income."

The House and Senate are expected to offer a compromise deal regarding the impact fees to be finished before Governor Tom Corbett's February Budget Address, which takes place on the 7th of the month.

SBE Council is a national small business advocacy and research organization dedicated to protecting small business and promoting entrepreneurship. For more information, please visit: www.sbecouncil.org.

CONTACT: Mabel Vaught, +1-703-242-5840, [email protected]

SOURCE Small Business & Entrepreneurship Council