SB1234 Summary

• Amends 68 O.S. 2011, Section 1001 to modify gross production tax refund provisions for oil and gas production exemptions.

• Limits total annual refunds paid under the exemption program to $50,000,000 for fiscal years covered by the refund claims; requires proportionate reduction of individual claims if total claims exceed this cap.

• Changes refund payment structure to installment payments over thirty-six (36) months instead of lump sum, with 9% annual penalty interest accruing on late payments.

• Applies to refund claims for specified well exemptions (horizontally drilled wells, deep wells, inactive wells, production enhancement projects) for production periods between July 1, 2009 and June 30, 2011.

• Takes effect July 1, 2012 with an emergency clause for immediate enactment upon passage and approval.