The Oklahoma Energy Producers Alliance has created a split in Oklahoma’s energy industry with a call to restore the gross production tax on oil and gas to 7 percent.
The group says it conducted a poll and found 67% of those questioned support “restoring the Gross Production Tax to the historical seven percent for all oil wells.”
Only 25% oppose the move.
The Alliance President, Dewey Bartlett Junior said the proposed increase receives support across partisan lines, with majority support among Republicans with 57%, Democrats at 76% and Independent voters at 74%.
A breakdown showed 68% of those questioned in Oklahoma City support the increase while 65% in Tulsa favor it.
“Even at 7%, this rate is still lower than any other major oil and gas producing state,” stated the OCPA’s announcement. The effective rate in Texas is 8.5% and 8.55 in North Dakota.
The Alliance urged its members to contact the legislature and the governor to restore the 7% tax as the special legislative session is set to be held Monday, Sept. 25.
But the Oklahoma Oil and Gas Association’s Chad Warmington, representing the state’s largest producers opposed the call for an increase during the legislative session and is against it now. The Association has pointed out the oil and gas industry is Oklahoma’s largest single source for tax funding public services” through its gross production taxes, local property taxes and payroll taxes.