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| Letters published by the Pittsburgh Post-Gazette are offered here for broader comment and discussion. |
A severance tax on natural gas, especially with prices as low as they are today, is not the budget panacea many people think it would be.
With natural gas commodity prices currently about half of what they were a year ago, the revenue generated from such a tax would also be cut in half or even less if the increased cost of doing business in Pennsylvania drives producers to states offering a much better return on their investments.
The other taxes imposed on businesses in the commonwealth also cannot be excluded from the conversation about a severance tax. Simply put: This is a costly state in which to do business.
These facts have led to the ongoing development of a reasonable impact fee, now being discussed in Harrisburg. It is being evaluated carefully, recognizing that Pennsylvania is still competing with other states for investment, seeing some rigs move to Ohio and others being idled.
The real story Mr. Norman overlooked is the savings that can be made in public transit with a strong shift toward using inexpensive natural gas for more buses, as the Port Authority is evaluating. Taken across the state, it would save hundreds of millions of dollars in fuel costs and reduce diesel emissions and our dependence on foreign oil.
LOUIS D. D'AMICO
President/Executive Director
Pennsylvania Independent Oil & Gas Association
Marshall

The Raja plan was to slash employee retirement and benefit plans, kill the unions, convert the fleet and SELL gas to PAT.
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