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.
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