OK HB2070

Amends 68 O.S. Section 2358 to provide a new income tax deduction for taxpayers who reestablish production from inactive oil or gas wells.

Allows a deduction equal to the value of oil, gas, or oil and gas produced from a reestablished well and sold during the 24 months following a 12-month production reestablishment period.

Defines an "inactive well" as one that has not produced for at least one year, or has experienced mechanical failure, casing leaks, or similar events causing production cessation.

Requires taxpayers to provide proof from the Corporation Commission that reestablished production complies with all applicable environmental requirements.

Directs the Oklahoma Tax Commission and Corporation Commission to promulgate rules implementing the provision; effective January 1, 2012.