Bill > HB1372

This bill amends Oklahoma's gross production tax law to provide a 50% tax reduction for recovery projects involving orphaned wells (wells that have been abandoned by previous owners) for the first 36 months of production. To qualify for this tax reduction, producers must first file a $25,000 surety bond, letter of credit, cash, or certificate of deposit with the Secretary of State for each well transferred from the Corporation Commission's orphaned well list. The bond will be held for the benefit of the Corporation Commission Plugging Fund in case the well is abandoned and returns to the orphaned well list. After the initial 36-month period with the reduced tax rate, the tax will increase to the full rate prescribed by existing law. The bill aims to incentivize the recovery and productive use of abandoned wells while providing a financial safeguard for potential future abandonment. The provisions will take effect on July 1, 2025, and the bill includes an emergency clause to emphasize its immediate importance for public safety and economic development.

Agriculture and Natural Resources, Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1372&Session=2600