Submitted by Edgar on Tue, 05/13/2014 - 5:51pm
Production of oil and gas wells in Oklahoma is taxed at a rate of seven percent with the exception of horizontal wells, which are taxed at a rate of one percent for the first 48 months of production. This tax break was created in the 1990s as an incentive for drillers to consider and use what was then an experimental process known as horizontal drilling. The incentive worked. Horizontal drilling is now the new normal. In 2013, 73 percent of all new wells drilled in the state were horizontal wells.
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