This bill amends the gross production tax regulations in Oklahoma, specifically targeting the taxation of oil, gas, and certain mineral productions. It introduces an exemption for secondary and tertiary recovery projects approved on or after July 1, 2022, allowing these projects to be exempt from gross production tax for up to five years. Additionally, it provides a similar exemption for oil and gas production from wells completed with recycled water, effective for 24 months from the date of first sales. The bill also establishes a refund mechanism for operators claiming these exemptions, requiring applications to be filed with the Oklahoma Tax Commission.

Furthermore, the bill introduces a new exemption for oil, gas, or oil and gas used to generate electricity for microgrids, allowing for a 50% reduction in gross production tax. It outlines the process for claiming refunds, including deadlines and eligibility criteria, and sets a cap on the total amount of refunds that can be issued for these exemptions. The bill updates various statutory language and clarifies definitions related to the exemptions and refund processes. The effective date for these changes is set for November 1, 2025.

Statutes affected:
Introduced: 68-1001