Horizontally Drilled Well Incentive

Oklahoma 1994 Senate Bill 841 and 1995 Senate Bill 495 provide for a gross production tax refund for horizontally drilled wells.  The refund is 6/7ths of the gross production tax paid during the qualifying time.  Refunds can be obtained for 24 months or until project payback for wells that began producing prior to July 1, 2002.  For wells with production began after July 1, 2002 but prior to July 1, 2011, the term runs from beginning date until project payback is achieved, but not to exceed 48 months starting with the month of initial production.

Refund claims must be filed within 18 months after the first day of the fiscal year in which the refund is first available.  The price caps do not apply to this type of refund.

Petroleum Accounting Consultants Managing Member, Sean M. Hugo, CPA, discusses horizontal well gross production tax refunds.

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Testimonials

"I found their staff to be very knowledgeable and professional. Because of their knowledge of the rules and requirements, they were able to tell me which wells would qualify for relief. Many wells were eligible that I did not think would be according to my interpretation of the requirements.

I was very pleased with the outcome and the amount of refunds that I received. I look forward to a continuing relationship with Petroleum Accounting Consultants and I highly recommend their services."

Lewis A. Hembree Production Company
Lewis A. Hembree


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Severance Taxes

An cost effective alternative to hiring your own accounting staff to complete your severance tax reporting requirements is to hire Petroleum Accounting Consultants, PLLC.

Our consultants can complete your severance tax returns and save you money on salary expense and payroll tax expense. More importantly our consultants are familiar with the various severance tax incentives offered by oil and gas producing states and can take advantage of them, which will save you money on your severance taxes.

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