The Oklahoma Energy Producers Alliance says it’s starting a petition drive to let Oklahoma voters decide whether there should be an increase in the gross production tax on oil and gas.
Some of the vertical well producers who belong to the OEPA voted at their October board meeting to support putting the issue on a 2018 ballot according to a report in the political news website, NON-DOC.
“We think it’s in the best interest of Oklahomans for the gross production tax rate to go to 7 percent,” said Mike Cantrell, co-chairman of the Alliance. “The big players in the industry done a great job of co-opting leadership on not doing that, so we can’t think of another option except take it direct to the people with an initiative petition, which I think would pass.”
The petition would need at least 123,000 voter signatures in order to make it on to a state ballot. The Association has already hired oilman Mickey Thompson to run the campaign that is called Restore Oklahoma Now.
While some in the legislature propose raising the gross production tax from 2 to 4 percent on new wells, the Restore Oklahoma Now campaign is urging a full 7 percent.
“The idea this Legislature would hike the GPT only on new wells from 2 percent to 4 percent will generate less than $20 million a year to the state,” said Thompson. “It doesn’t scratch the surface of the need to address the education crisis. Our petition will repeal all the special GPT tiers immediately. Our petition will truly level the playing field, 7 percent on all production, period.”