Taxation; gross production tax on certain interests; providing exemption. Effective date.

SB 298 creates tax exemptions for specific oil and gas production in Oklahoma. It exempts secondary and tertiary recovery projects approved after July 1, 2022, from gross production tax for up to five years, and exempts wells completed using recycled water after July 1, 2022, for up to 24 months (proportional to recycled water use). Operators must pay the tax upfront and claim refunds after the fiscal year ends, with claims due within 18 months of the fiscal year start date. These exemptions apply to oil and gas producers meeting the defined project criteria under amended Section 1001 of Oklahoma’s tax code.