Oklahoma Legislators making a few adjustments to drilling tax incentives today. HB 2562 http://webserver1.lsb.state.ok.us/cf_pdf/2013-14%20SUPPORT%20DOCUME…
Russell, please be a little more specific about type of information you need
This just came in from Devon.
Devon needs your help on an issue that could impact the future growth of the oil and gas industry in Oklahoma. Click here to ask your legislator to support House Bill 2562.
Leaders at Devon and in the industry have proposed creating a single gross production tax rate structure for all new wells drilled in Oklahoma. Under this proposal, production from oil and gas wells would be taxed at 2 percent for the first 36 months of production from a well and then 7 percent for the remaining life of the well. House Bill 2562 reflects this new structure.
Oklahoma assesses a gross production tax that Devon and other energy companies pay on oil and gas extracted within the state. Royalty owners typically pay their proportional share of gross production taxes. Currently, the initial gross production tax rate for horizontal wells, which require significantly higher cash outlays than traditional vertical wells, is effectively 1 percent for the first 48 months of production from a well before increasing to 7 percent for the remaining life of the well. This initial tax rate is set to expire soon, and if the legislature takes no action, the gross production tax will automatically increase to 7 percent on all wells.
Devon has been working with state officials to simplify the tax code and create a tax structure that is best for production growth in the state. This reformed gross production tax code would simplify the current system and provide certainty to Devon as the company plans capital budget expenditures.
Please consider joining industry peers and other concerned stakeholders in asking the Legislature to support House Bill 2562.
The Devon Advocacy Network will assist you in making your voice heard. A sample letter is provided, and you can amend it or write your own letter. Please also consider using the Devon Advocacy Network to forward this request to family, friends, and colleagues for their participation. Please see the attached guide that debunks many of the myths about the Oklahoma gross production tax debate.
I really don’t understand this bill. I am on Devon’s newsletter list and this came yesterday as if it was an emergency. I need to have it explained in laymen’s terms. Hoping that someone can help me with it on this site.
What does this mean for the mineral owner? Probably not good.
Debbie, Everything in life can be explained by using baseball. HB2562 may not be good for the home team, but it won’t make them loose. As for mineral owners, we should enjoy the game, because the umpires will call the plays. My earlier comment, about 8 hrs ago, addressed some of HB2562 amendments, but I’m not for or against, just amused.
Ha ha Martha, “…but I’m not for or against, just amused…” I agree totally. But how many strikes do they get?
Interesting article about the drilling moratorium in Mora Co. NM as it relates to the overall business of oil and gas drilling.
Mora County’s Drilling Ban, the Moral High Ground or Moronic?
The link below is a recent presentation from Osage. See p. 19 for a map. You are unfortunately on the down side of a very huge fault system that runs north to south. They are drilling on the east side where it is shallow and cheaper and not on your side where it is deeper and more expensive. The main players in the area are Slawson, Osage and Devon.
I see three leases in 20 since 2012, two in 2012 and one this year by Calix (Calyx?) Intergy is leasing in 18 in 2014.
Debbie, Do you think Devon can pass the 7% tax increase along to Sinopec, or will Sinopec purchase the remainder of Devon’s Northern OK holdings if emergency HB2562 doesn’t pass?
Debbie, My grandfather, his 5 brothers, 2 cousins and Smokey Joe Woods were members of a KS baseball circuit team in the late 1800’s. Smokey Joe said the circuit ‘boy’s’ made him a fast pitcher, because they could hit anything he threw. Quoting a line from the movie about a Kansas girl Erin Brockovich,“Let the game begin”.
Debbie, The number of strikes depends on the honesty of the umpires.
Thank you Martha for those links, and thank you Liz for your part OM educating us all a little more. All of this, including the LOST BURIED MOUNTAIN RANGE we know as the Nemaha Ridge, will certainly be in my book, and I may ask Martha to be an adviser for the final draft. Or maybe even a co-writer.
I wonder if the Nem Ridge might be Atlantis?
Cant take the credit a geologist informed me of this information.
I actually looked at every other group in this forum and we seem to be one of the largest. Thanks to everyone who keeps this forum running and up to date. I think we get more accomplished when it is a large group.
Sir Ron Von, It is not Atlantis. It’s Theia.
http://www.bing.com/videos/search?q=youtube++BBC’s+Walking+with+Monsters%2c+First+Life%2c+and+Prehistoric+Park&FORM=VIRE6#view=detail&mid=46DCD1DC6A2EDFF4753546DCD1DC6A2EDFF47535
Nemaha Ridge - how is that affecting production?
Liz, Faults trap the oil and gas, so this may help you understand the OU study. http://en.wikipedia.org/wiki/Compression_(geology
By the way, if Martha turns down your offer to be your co-writer, I would like jump in and send my resume for your job. My previous experience includes 8 years of writing, 2 in geology. So just let me know.