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 approved after July 1, 2022, allowing these projects to be exempt from gross production tax for up to five years. Additionally, it provides a refund mechanism for operators claiming these exemptions, with specific requirements for filing and limits on the total amount of refunds available. The bill also establishes a new exemption for oil and gas used to generate electricity for microgrids, allowing for a 50% reduction in gross production tax, along with a similar refund process.

Key changes include the deletion of references to the effective date of the act and the insertion of specific dates, such as July 18, 2018, as a cutoff for certain tax rates. The bill also clarifies the definition of "microgrid" and outlines the conditions under which refunds can be claimed, including the requirement for applications to be filed with the Oklahoma Tax Commission. The overall aim of the bill is to incentivize enhanced recovery projects and the use of recycled water in oil and gas production while ensuring a structured process for tax refunds and exemptions. The act is set to take effect on November 1, 2025.

Statutes affected:
Introduced: 68-1001