This bill amends the gross production tax laws in Oklahoma, specifically targeting oil and gas recovery projects. It introduces a temporary discounted tax rate of five percent (5%) for oil and gas production from wells spudded before and after the effective date of the act, lasting for thirty-six months from the month of first production. Additionally, the bill provides a fifty-percent reduction in gross production tax for recovery projects associated with wells on the Corporation Commission's orphaned well list, also for a period of thirty-six months. To ensure compliance, producers must file a corporate surety bond or similar financial assurance of $25,000 with the Secretary of State.

The bill also outlines various exemptions and refund processes for secondary and tertiary recovery projects, particularly those approved after July 1, 2022. It specifies that production from these projects will be exempt from gross production tax for up to five years, while also detailing the conditions under which refunds for exempted taxes can be claimed. The act is set to take effect on July 1, 2025, and includes an emergency clause for immediate implementation upon passage and approval.

Statutes affected:
Introduced: 68-1001