Nelson Says Beebe Opposition To Severance Tax Is Misinformed

Sheffield Nelson, the retired natural gas company executive and supporter of raising Arkansas’ severance tax, told a Sherwood Chamber of Commerce audience that Gov. Mike Beebe (D) was misinformed in his recent reversal of position.

Earlier this week, Beebe reversed his previous position and now says he would “probably” vote against Nelson’s proposal.

From Rob Moritz with our content partner, the Arkansas News Bureau:

“One of the things I think he [Beebe] relied on is some of the misinformation about that’s a gas play down there,” Nelson, a former natural gas company executive and failed gubernatorial candidate, said after an address to the Sherwood Chamber of Commerce. “He said he was afraid (the severance tax increase) would affect … natural gas prices, but that’s an oil play. I think they’ve misled the governor.”

The natural gas in the Brown Dense “is not gas you could capture and put into a pipeline, so it’s not a competitive fuel,” Nelson said.

Matt DeCample, spokesman for the governor, said Beebe was not misled.

“We know it’s predominately oil,” DeCample said, adding that “the governor had all the information, he reviewed it and drew his conclusions.”

Nelson also downplayed the results of a recent Talk Business-Hendrix College Poll that showed 55% of 759 Arkansas voters opposed raising the severance tax. Only 28% expressed support for Nelson’s measure, which still must collect more than 62,000 valid signatures to qualify for the November ballot.

You can read more of Moritz’s report here.