OK SB885

Amends Oklahoma gross production tax law (68 O.S. 2001, Section 1001) effective July 1, 2013, establishing a uniform 7% tax rate on oil production, replacing the previous variable rate structure based on price thresholds.

Reduces gross production tax to 1% for horizontally-drilled wells producing oil, gas, or oil and gas from July 1, 2011 through July 1, 2015, for an initial 48-month period from first production.

Reduces gross production tax to 4% for wells drilled to depths between 15,000 and 17,499 feet spudded July 1, 2011 through July 1, 2015, for 48 months from first sales; reduces tax to 4% for wells 17,500+ feet deep for 60 months.

Extends previous exemptions and reduced tax rates for horizontally-drilled wells and deep wells that qualified before July 1, 2011, allowing them to continue at reduced rates (1% or 4%) for their full qualifying periods after July 1, 2011.

Maintains existing exemption and refund provisions for enhanced recovery projects, inactive well reactivation, production enhancement projects, and new discoveries, with continuation of 1% minimum tax on certain exempt production.