This bill amends the gross production tax regulations in Oklahoma, specifically targeting the production of oil, gas, and certain minerals. It introduces exemptions for secondary and tertiary recovery projects initiated on or after July 1, 2022, allowing these projects to be exempt from gross production tax for up to five years. Additionally, it establishes a refund mechanism for operators claiming these exemptions, requiring applications to be filed with the Oklahoma Tax Commission. The bill also specifies that production from wells using recycled water will earn a similar exemption for 24 months, proportional to the amount of recycled water used.

Furthermore, the bill introduces a new exemption for oil and gas production used to generate electricity for microgrids, allowing for a 50% reduction in gross production tax. The Tax Commission is granted authority to oversee the refund process and ensure compliance with reporting requirements. The bill updates various statutory language and clarifies the conditions under which these exemptions and refunds can be claimed, while also setting a cap on the total amount of refunds available for each fiscal year. The act is set to take effect on November 1, 2025.

Statutes affected:
Introduced: 68-1001