Okla. Admin. Code § 165:10-21-107

Current through Vol. 42, No. 4, November 1, 2024

Section 165:10-21-107 - General

(a)Scope. Exemption from the levy of gross production tax on production from wells which are completed with the use of recycled water will be determined according to the provisions of this Part, 68 O.S. § 1001(E) and other applicable sections of such statute.

(b)Definitions. "Recycled water" means oil and gas produced water and waste that has been reconditioned or treated by mechanical or chemical processes into a reusable form.

(c)Exemption. The production of oil, gas, or oil and gas from wells drilled but not completed as of July 1, 2021, which are completed with the use of recycled water on or after July 1, 2022, shall qualify for an exemption from the gross production tax levied pursuant to 68 O.S. § 1001 for a period of twenty-four (24) months from the date of first sales. The exemption shall be proportional to the percentage of recycled water to the total amount of water used to complete the well.

(d)Approval. The Commission's Oil and Gas Conservation Division shall indicate on the Form 1002A Completion Report for the well whether the well qualifies for the exemption.

Okla. Admin. Code § 165:10-21-107

Adopted by Oklahoma Register, Volume 40, Issue 24, September 1, 2023, eff. 10/1/2023