OK HB3986

Amends Oklahoma gross production tax law (68 O.S. Section 1001) to expand eligibility for the recycled water exemption by removing the requirement that wells be "drilled but not completed as of July 1, 2021"

Wells completed using recycled water qualify for a gross production tax exemption for 24 months from first sales, with the exemption proportional to the percentage of recycled water used in completion

Secondary and tertiary recovery projects approved on or after July 1, 2022 remain exempt from gross production tax for up to 5 years, with annual refund caps of $15 million for recovery projects and $10 million for recycled water exemptions

No single entity (including subsidiaries) may receive more than 20% of the $15 million annual cap for secondary/tertiary recovery project refunds

Effective date: January 1, 2027