Oklahoma oil and gas tax rebate would be eliminated under bill

OKLAHOMA CITY (AP) — A tax rebate for oil and natural gas wells projected to cost Oklahoma $133 million in the coming fiscal year would be completely eliminated under a bill overwhelmingly approved in the Oklahoma Senate.

The Senate voted 37-6 for the bill on Thursday, the same day some of the state’s top energy leaders announced separately that they’ve agreed to limit the tax rebate to $25 million annually. Oklahoma Independent Petroleum Association President Mike Terry says the members would like to retain the rebate for wells producing the equivalent of 10 barrels of oil per day or less.

The rebate targets wells that are called “at risk” because they produce little profit. The rebate allows producers of such wells to recoup nearly all of the taxes paid on the production.