Economically At-Risk Refunds

Due to the low oil price during 1997 and 1998 the Oklahoma Legislature passed the Economically At-Risk provision which allowed oil and gas operators to receive a gross production tax refund on any oil well that lost money on a working interest level.  While this provision was to help keep oil wells from being shut-in due to them being uneconomical gas wells would also qualify if they produced a gas to oil ratio of 15 to 1 or less.  

Due to the high price of oil and gas starting in 2005 many of Oklahoma's gross production tax refund incentives were blacked out.  The Oklahoma Legislature brought back the Economically At-Risk provision in 2005 in an effort to provide relief to operators who had wells that were losing money on a working interest level despite the higher oil and gas prices.  

The price caps associated with many of Oklahoma's other gross production tax refund incentives due not apply to the Economically At-Risk provision.  Refunds as far back as 1997 can still be obtained to this day.  

Petroleum Accounting Consultants Managing Member Sean M. Hugo, CPA discuss Economically At-Risk refunds claims at a recent Oklahoma Marginal Well Commission seminar.   

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"I have been extremely pleased with results Petroleum Accounting Consultants, PLLC has obtained for my company. The professional and knowledgeable staff obtained a substantial refund of tax dollars that we would not have had the time or the expertise to recover ourselves.

In order for them to perform their review it took less than one hour of my time. All that was required of me was to show their staff where the well files were and they took it from there. They completed all the necessary filings with the state agency's to obtain the refund and all I had to do was sign the refund checks.

It has been a great pleasure to deal with Petroleum Accounting Consultants, PLLC and we will continue to use their services. I would strongly recommend that all oil and gas operators contact Petroleum Accounting Consultants, PLLC to perform a review of their severance taxes."

Centaur Resources, Inc. - Ernest G. Brewer Jr.

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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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