Signed by Governor Mary Fallin

Vote Smart's Synopsis:

Vote to pass a bill that amends the gross tax rate for oil and gas wells.

Highlights:

• Increases the gross production tax rate on oil and gas wells from 4 to 7 percent (Sec. 1).
• Exempts horizontally drilled oil and gas wells that were operating prior to July 1, 2011 and after July 1, 2002 from the gross production tax increase for no more than 48 months (Sec. 1).
• Requires that individuals who request exemption from the gross production tax provide documentation to the Tax Commission explaining why they need the exemption, a request of which may be approved or denied by such commission (Sec. 1).
• Specifies that any oil or gas well drilled on or after July 1, 2015 shall have a gross production tax rate of 2 percent for the first 36 months following the passage of this bill, and 7 percent thereafter (Sec. 1).
• Defines “Horizontally Drilled Well” as an oil or gas well drilled in a geological formation in a way that produces an angle greater than 70 degrees from the vertical surface and laterally penetrates the ground a minimum of 150 feet (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the gross tax rate for oil and gas wells.

Highlights:

• Increases the gross production tax rate on oil and gas wells from 4 to 7 percent (Sec. 1).
• Exempts horizontally drilled oil and gas wells that were operating prior to July 1, 2011 and after July 1, 2002 from the gross production tax increase for no more than 48 months (Sec. 1).
• Requires that individuals who request exemption from the gross production tax provide documentation to the Tax Commission explaining why they need the exemption, a request of which may be approved or denied by such commission (Sec. 1).
• Specifies that any oil or gas well drilled on or after July 1, 2015 shall have a gross production tax rate of 2 percent for the first 36 months following the passage of this bill, and 7 percent thereafter (Sec. 1).
• Defines “Horizontally Drilled Well” as an oil or gas well drilled in a geological formation in a way that produces an angle greater than 70 degrees from the vertical surface and laterally penetrates the ground a minimum of 150 feet (Sec. 1).

Full Bill Text