HB 2562 Summary

• Modifies Oklahoma's gross production tax rates on oil and gas production, establishing a 7% tax rate effective July 1, 2015, with a reduced 2% rate for wells spudded on or after that date for the first 36 months of production.

• Extends expiration dates for multiple tax exemptions and incentives related to enhanced recovery projects, horizontally drilled wells, deep wells, new discovery wells, inactive wells, production enhancement projects, and wells using three-dimensional seismic technology through 2015-2020.

• Establishes refund procedures for exempt production, with refunds limited to 18 months after fiscal year end and requiring demonstration of reinvestment in Oklahoma oil and gas exploration and production.

• Modifies apportionment of gross production tax revenues collected at the 2% rate to state general revenue (50%) and county/school district funds (50%), and adds new allocations to water projects and infrastructure funds.

• Declares an emergency and establishes an effective date of July 1, 2014.