Inactive Well Gross Production Tax Exemption

The inactive well exemption from Oklahoma gross production tax came about in 1994 from Senate Bill 841 and Sentate Bill 495 in 1995.  Provides for a refund of 6% out of the total 7% gross production tax for production from wells that have not produced oil, gas, or oil and gas for a period of not less than the 2 years prior to July 1, 1994.  For wells where production was reestablished on or after July 1, 1997 and prior to July 1, 2012, a 1 year inactivity period is required.

Qualifying wells will receive a gross production tax refund for 28 months from the date the production is reestablished.  After June 30, 2003 refunds must be filed within 18 months of the date in which they can first be filed. 

Refunds will not be allowed if weighted average price of Oklahoma oil exceeds $30/bbl. and the weighted average wellhead price of Oklahoma natural gas exceeds $5.00/MCF on an annual calendar year basis. 

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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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Gross Production Tax Refunds

Over the years we have worked with over 70 companies and recovered over $30 million in refunds for those companies. We have obtained refunds for large publicly traded companies and small privately held companies. We have been able to get a a refund of gross production taxes for every client that has retained our services.

Because of our years of experience we are able to obtain these refunds with very little of our clients' time. Based on our experience we are able to identify opportunities that in-house accountants would miss. Outsourcing your gross production tax refunds will result in a larger refund because of our years of experience. Our fees are based on a contingency fee structure so there is no fee is we are not able to recover a refund for your company. Give our office a call today to schedule your free assessment of the refunds that may be available to your company.

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