© 2024 Public Radio Tulsa
800 South Tucker Drive
Tulsa, OK 74104
(918) 631-2577

A listener-supported service of The University of Tulsa
classical 88.7 | public radio 89.5
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

House Passes Bill to End Incentive Tax Rates for Some Oil and Gas Wells

The Oklahoma House passed a bill Wednesday to end gross production tax incentives on thousands of oil and gas wells on Dec. 1, but they didn’t do so without controversy.

House Bill 1085 would bring in an estimated $50 million this year and $100 million next year by ending incentives on 6,600 horizontal wells drilled before June 30, 2015.

Republicans rejected Democrats’ repeated attempts to amend the bill to cover all existing wells, saying that would require a three-fourths majority. Rep. Cory Williams said there’s no difference.

"For wells that are already in production and we're removing an incentive, which is what we're doing right here, there's zero reason why we can't remove the incentive for every operating well today with 51 votes in this chamber," Williams said.

Rep. Bobby Cleveland accused Democrats of attacking the oil industry.

"These people employ Oklahoma people, with an average salary of $102,000 a year," Cleveland said. "The average salary in Oklahoma is $42,000. But you want to go after big oil. It's a fake. It's fossil fuels they're against, completely against."

Democrats also tried to shoehorn into Wednesday’s vote a $455 million revenue package that didn’t pass committee last week. That move was also rejected.

Rep. Regina Goodwin said the House isn’t doing its job in special session.

"How do we, as elected officials, actually leave this chamber, go outside the walls here, and actually look our constituents in the eye and say we're doing the best we can?" Goodwin said. "Nobody can say that."

HB1085 passed 64–31. The emergency clause on the bill, which was needed for the incentives to end Dec. 1, passed 75–18. Without the emergency clause passing by a two-thirds majority, the state would have to wait 90 days from when the governor signs the bill before it takes effect.

HB1085 now goes to the Senate.

Matt Trotter joined KWGS as a reporter in 2013. Before coming to Public Radio Tulsa, he was the investigative producer at KJRH. His freelance work has appeared in the Los Angeles Times and on MSNBC and CNN.