1994 Oklahoma Senate Bill 841 and 1995 Oklahoma Senate Bill 495 allow for oil and gas operators to file for a gross production tax refund on the incremental production achieved based on a qualifying workover project. The production enhancement project must have began after July 1, 1994 but before July 1, 2012. Oil and gas operators can receive a gross production tax refund for 28 months from the date of completion of the production enhancement project.
The gross production tax refund is the amount of production that exceeds the average of the 12 months prior to the start of the qualifying project.
Petroleum Accounting Consultants Managing Member, Sean M. Hugo, CPA, discusses the production enhancement tax exemption at a Marginal Well Commission seminar in August 2011.
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