Gross Production Tax Challenge Dismissal Will Keep State Economy Growing

Strong energy sector now has certainty about costs of doing business

Oklahoma City (September 15, 2014) – Today’s dismissal of a challenge to the provisions of House Bill 2562 brings certainty to one of the most important industries in the state. The gross production tax rate compromise allows companies to move forward with plans for drilling in the coming year.

“A recent study of Oklahoma’s oil and gas industry by the State Chamber Research Foundation shows how important the energy sector is to the state,” said State Chamber President and CEO Fred Morgan. “Providing assurance for companies that invest billions of dollars and employ tens of thousands of people in Oklahoma will only help the economy.”

Under the provisions of HB 2562, the gross production tax on all wells will be discounted from seven percent to two percent for the first three years. Currently, only horizontal and other special wells get a discount rate of one percent for four years.

“We are thrilled that oil and gas companies can now better plan for the future to continue Oklahoma’s renaissance and contribute to the country’s energy security,” said Morgan.

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