OKLAHOMA CITY (AP) — A bill that would adjust a generous tax incentive for horizontally drilled oil and gas wells and extend it to all wells drilled in Oklahoma has cleared budget committees in the House and Senate.
The full House and Senate will consider the measure that the committees approved Tuesday.
The bill would increase the tax rate on horizontal wells from 1 percent to 2 percent for the first three years of a well's production. After that, the rate would increase to the standard production tax rate of 7 percent.
The tax rate on production from traditional vertical wells, which is currently 7 percent, would also drop to 2 percent for three years.
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