By OGJ editors
HOUSTON, June 4 -- The Oklahoma Independent Petroleum Association (OIPA) has praised the Oklahoma legislature's recent passage of a statute containing tax incentives to spur natural gas exploration and encourage deep gas drilling efforts.
Senate Bill 947 extends gross production tax rebates on deep and horizontal drilling to 48-60 months from 28 months. The bill also creates a tiered system of gross production tax percentages if the price of Oklahoma natural gas falls below $2.10/Mcf.
OIPA backed the measure, which was introduced by Sen. Johnnie Crutchfield (D-Ardmore) and Rep. Larry Rice (D-Pryor). Gov. Frank Keating has until June 7 to sign or veto the bill, an OIPA spokesman told OGJ.
OIPA Pres. Mark Monroe called the legislation "another example of the responsiveness of state lawmakers on oil and gas issues."
"Our state's energy future is closely tied to how well we find and produce the hard-to-get deep gas," Monroe said, adding that deep gas drillers risk investing up to $20 million/well.