OKLA. SOLONS APPROVE OIL, GAS INCENTIVES

Oklahoma's legislature has unanimously passed legislation providing significant incentives for new drilling and production in the state. Senate Bill 841 passed 46 0 in the Senate and 99 0 in the House late last month. It is expected to be signed soon by Gov. David Walters. The measure provides a temporary holiday from most of the state's 7% gross production tax on new incremental off and gas produced from current leases. It also provides for a 28 month window in which producers can

June 13, 1994

Oklahoma's legislature has unanimously passed legislation providing significant incentives for new drilling and production in the state.

LEGISLATION

Senate Bill 841 passed 46 0 in the Senate and 99 0 in the House late last month.

It is expected to be signed soon by Gov. David Walters.

The measure provides a temporary holiday from most of the state's 7% gross production tax on new incremental off and gas produced from current leases. It also provides for a 28 month window in which producers can apply for gross production tax credits if they:

Return wells to production that have been inactive for as much as 2 years.
Conduct qualifying workover or recompletion techniques that increase current production.
Drill new wells to more than 15,000 ft.

The bill also repeals the conservation excise tax on natural gas, a portion of state tax that increases taxes on gas production, when the wellhead price of gas drops below $1/Mcf.