Business Groups to Appeal to Lawmakers to Reject Proposed to Tax on Oil and Natural Gas Production

Independent Oil and Gas Association of New York, Unshackle Upstate, Greater Binghamton Chamber of Commerce, New York Farm Bureau

Business groups will gather to oppose an 11th-hour proposal to raise the state's severance tax on oil and gas production.

The Independent Oil & Gas Association of New York, Unshackle Upstate, the New York Farm Bureau and the Greater Binghamton Chamber of Commerce will announce their opposition to an 11th hour proposal in the state Legislature to place another tax on oil and natural gas production in New York state.

The proposed production - or severance - tax would put thousands of low-volume producing wells across New York out of business. Producers would not be the only victims. If these companies fail, state and local governments would lose property taxes, landowners would lose royalty payments and companies would be forced to lay off workers.

Additionally, the business groups will argue that the tax: Is poorly timed and will inhibit future natural gas exploration, as New York is poised to allow increased exploration in the Marcellus Shale formation; Would adversely and exclusively affect Upstate New York communities;Will discourage exploration to the point that it will compound the current slow-down in natural gas production worldwide.