Energy Tax Proposal Discussed
Gov. Mary Fallin, Oklahoma lawmakers react to tax proposal from Devon, Chesapeake, Continental
By Randy Ellis
A new state gross production tax proposal pitched by Oklahoma City’s big three oil companies has the tentative support of the governor and Senate leadership, but is being criticized by a prominent Tulsa oilman and banker as being overly generous to the oil and gas industry at the expense of state services.
Whether it ultimately will be approved by the Legislature remains in doubt.
Leaders of Devon Energy, Chesapeake Energy Corp. and Continental Resources Inc. told The Oklahoman they have submitted a unified proposal to state negotiators.
That proposal calls for permanently setting Oklahoma’s gross production tax rate at 2 percent for the first 48 months on all new wells, regardless of whether they are horizontal or vertical, followed by a 7 percent tax rate for the remainder of each well’s production.
“The governor is inclined to support the concept and thanks the industry and Legislature for collaborating in the review process we recommended last summer,” said Preston L. Doerflinger, the governor’s secretary of finance.