Miller concerned about natural gas price, revenue
Treasurer Ken Miller said Thursday he is concerned that low natural gas prices could force the Board of Equalization to lower its estimate of revenue from the gross production tax on the resource when the board meets later this month.
Â
Miller said he has been reviewing forecasts for the price of natural gas for fiscal year 2013, which begins July 1. For the first six months of the fiscal year, Miller said forecasters generally predict natural gas will sell for $2.65 per thousand cubic feet (mcf). Forecasts for the second half of the fiscal year are more uncertain, he said. The General Revenue Fund estimate approved by the Board of Equalization in late December included $267.3 million of revenue from the gross production tax on natural gas based on an average annual price of $4 per mcf.
Â
The price of natural gas closed at $2.54 per mcf in Thursday’s trading on the New York Mercantile Exchange. For the full story go to www.ecapitol.net