State senators send the governor a bill changing tax credits for oil and gas leases deemed "at risk."
The Senate proposed eliminating the tax credit but approved House amendments that just cap it. Sen. Brian Bingman said the difference in the proposals isn’t that much revenue.
"Elimination would provide $133 million next year. With this change, it's $120 million, approximately," Bingman said.
The largest portion of the revenue, 52 percent, will go into the general revenue fund. Common and higher education and the Oklahoma student aid revolving fund will get equal portions amounting to about $20 million. A small portion will go to county road funds.
The bill caps the total annual payments under the tax credit at $12.5 million.
Sen. Ralph Shortey said the credit should have been left alone.
"The importance of that is more than just producing the well," Shortey said. "It's keeping that well alive so that service companies can service it, so that employees can monitor it, so that economic development happens because that well is still producing."
At-risk leases are those with a profit less than their prior year gross production tax and producing 10 or fewer barrels of oil or 60,000 cubic feet or fewer of natural gas per day.
