HB 1372: Revenue and taxation; gross production tax; limited exemption for production from certain wells; surety; effective date; emergency. - Oklahoma

Floor (House) → Floor (Senate) · 7 edits

MODERATE

The bill was amended during Senate review to clarify tax rates, add new exemptions for secondary/tertiary recovery projects and orphaned wells, and introduce surety bond requirements for orphaned well recovery projects. These changes expand tax incentives for specific oil and gas recovery efforts while ensuring financial accountability for abandoned wells.

Scope change

The bill's scope expanded to include specific exemptions for secondary and tertiary recovery projects starting after July 1, 2022, and added requirements for surety bonds on orphaned well recovery projects.

TAX_RATES

Tax rates for oil and gas production were clarified with specific percentages (7% for oil and gas, 5% for pre-effective date wells, 2% for first 36 months if constitutional amendment passes).

EXEMPTIONS

Added exemptions for secondary and tertiary recovery projects approved after July 1, 2022, allowing up to 5 years of tax exemption from initial project start date.

Added 50% tax reduction for orphaned wells on the Corporation Commission's list for 36 months, after which full tax rate applies.

Added exemption for wells completed with recycled water on or after July 1, 2022, for up to 24 months proportional to recycled water usage.

REQUIREMENT

Required producers to file a $25,000 corporate surety bond per orphaned well to ensure well plugging if the project is abandoned.

DEFINITION

Added definition of 'recycled water' as oil and gas produced water and waste reconditioned or treated by mechanical or chemical processes into a reusable form.

TIMELINE

Established July 1, 2022, as the key date for determining eligibility for secondary/tertiary recovery exemptions and recycled water well exemptions.

House Committee Substitute → Floor (House) · 4 edits

MODERATE

The bill was revised from a committee substitute version to the House floor version, primarily changing the document header and formatting while preserving the core tax provisions. The substantive policy content regarding oil and gas tax rates, exemptions for recovery projects, and surety requirements remains unchanged in meaning, though line numbers and some text spacing were adjusted for the floor version.

Scope change

No substantive change to the bill's scope or applicability; the revision is primarily a formatting update from committee to floor version.

TECHNICAL

Document header changed from 'STATE OF OKLAHOMA' to 'HOUSE OF REPRESENTATIVES - FLOOR VERSION' to indicate the bill version.

Line numbers were renumbered throughout the document to reflect the new floor version format.

Added explanatory note 'BOLD FACE denotes Committee Amendments' to help identify changes made during committee review.

Minor text spacing and formatting adjustments were made throughout the document while preserving all substantive legislative language.

Proposed Committee Substitute (full committee) 1 → House Committee Substitute · 3 edits

MINOR

The bill was revised from a proposed committee substitute to a house committee substitute, primarily changing the bill's title page and amendment header information. The substantive legislative text regarding oil and gas tax rates, exemptions, and surety requirements appears to remain unchanged in the core content.

Scope change

No substantive changes to the bill's scope or applicability were identified; changes are limited to formatting and header information.

TECHNICAL

Changed the document header from 'PROPOSED COMMITTEE SUBSTITUTE' to 'COMMITTEE SUBSTITUTE' and updated the amendment submission information.

Replaced the amendment motion form with the standard committee substitute format for House Bill 1372.

CONTENT

The substantive tax provisions, including oil and gas tax rates, secondary recovery exemptions, orphaned well surety requirements, and recycled water exemptions, remain identical between versions.

Enrolled (final version) → Proposed Committee Substitute (full committee) 1 · 3 edits

MINOR

The bill text was replaced with a committee substitute version that reorganized the formatting and structure while maintaining the same substantive tax provisions. The core policy content regarding oil and gas tax rates, exemptions for secondary recovery projects, orphaned well recovery incentives, and recycled water completion exemptions remains unchanged from the enrolled version.

Scope change

No substantive change to the bill's scope or applicability; only formatting and structural reorganization occurred.

TECHNICAL

Document structure changed from enrolled format to committee substitute format with different header information and page numbering.

Line breaks and paragraph spacing were reorganized throughout the text for committee review purposes.

Committee amendment header and speaker/chair information was added to indicate this is a proposed substitute version.

Engrossed → Enrolled (final version) · 4 edits · May 7, 2025

MODERATE

The bill was transitioned from an Engrossed version to an Enrolled final version, with changes primarily involving formatting, sponsor attribution, and page numbering. The substantive policy content regarding tax rates, exemptions, and surety requirements for oil and gas production remains unchanged in meaning, though some text was reorganized and condensed during the finalization process.

Scope change

No substantive change to the bill's scope or applicability; the changes are primarily procedural and formatting-related.

TECHNICAL

Page headers and footers were reorganized and condensed during the transition from Engrossed to Enrolled version.

Some text was condensed and reorganized, particularly in the orphaned well surety requirements section, but the substantive requirements remain the same.

Page numbering and formatting markers were updated to reflect the final enrolled version.

ENFORCEMENT

Sponsor attribution was updated to reflect the final enrolled sponsors (Boles and Waldron of the House, and Green of the Senate).

Introduced → Engrossed · 5 edits · Apr 30, 2025

MODERATE

This bill was amended from its introduced version to its engrossed version, primarily involving formatting updates and clarifying language around orphaned well recovery funds and recycled water tax exemptions. The changes ensure clearer definitions of eligible wells and water treatment processes while maintaining the core tax incentives for Oklahoma oil and gas producers.

Scope change

The bill's scope remains focused on oil and gas taxation and production incentives, with no substantive changes to the overall applicability of the legislation.

TECHNICAL

Header formatting changed from 'AS INTRODUCED' to 'ENGROSSED HOUSE' indicating the bill has been amended and approved in its final form.

Updated page headers from 'Req. No. 10309' to 'ENGR. H. B. NO. 1372' to reflect the engrossed status of the bill.

REQUIREMENT

Clarified that bonds and financial instruments for orphaned well plugging funds must be held by the Secretary of State for wells transferred from the Corporation Commission's orphaned well list.

Reorganized subsections regarding tax exemptions for wells completed with recycled water to improve readability and clarity of refund procedures.

DEFINITION

Added language specifying that recycled water includes oil and gas produced water and waste treated through mechanical or chemical processes into a reusable form.

Revenue and taxation; gross production tax; limited exemption for production from certain wells; surety; effective date; emergency.

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