Taxation; gross production tax on certain interests; modifying tax rate. Effective date.

SB 311 modifies Oklahoma's gross production tax rates for oil and gas. It lowers the standard oil tax from 7% to 5% (with a 36-month 5% rate for oil/gas from wells spudded before July 18, 2018). The bill also adds new exemptions: oil/gas production from secondary/tertiary recovery projects approved after July 1, 2022, is exempt for up to 5 years, and wells completed using recycled water get a 24-month exemption proportional to recycled water use. These changes directly affect oil and gas producers, particularly those using enhanced recovery methods or recycled water, with refunds issued for exempted production. The bill takes effect July 18, 2025.