Taking Gas In Kind

PROD/WPT is just a heading for where they show the Production Tax. It was set up for the Windfall Profit Tax and never got changed. Now I am doing the math on that well and finding that the rate is about 7.9% and have asked for an explanation since it appears that Oklahoma is a 7% tax rate.

Production and state taxes are normal and not part of the “post production costs”. I look up new wells on the OTC site and check the dates and tax levels. Some wells get a lower tax rate for a few years.