Oklahoma Administrative Code
Title 710 - Oklahoma Tax Commission
Chapter 45 - Gross Production
Subchapter 9 - Exemptions and Exclusions
Part 25 - PRODUCTION COMPLETED WITH THE USE OF RECYCLED WATER
Section 710:45-9-122 - Exemption and qualification

(a) Exemption. Production completed with the use of recycled water shall qualify for an exemption from the gross production tax from the date of first sales for a period of twenty four (24) months. The exemption provided shall be proportional to the percentage of the total amount of water used to complete the well that is recycled water.

(b) Administrative approval and determination; order. An operator seeking the exemption from gross production tax shall make application to the Oklahoma Corporation Commission for a determination that such project qualifies for the exemption.

(c) Application to Oklahoma Tax Commission. Upon approval from the Oklahoma Corporation Commission, the operator shall electronically submit an application for exemption to the Tax Commission through OKTAP. The application shall include a copy of the Oklahoma Corporation Commission Form 1002A, approved by the Oklahoma Corporation Commission, identifying the volume and percentage of recycled water used in completion.

(d) Tax Commission may require additional information. For audit purposes, the Tax Commission may require additional information, such as copies of the operator's federal income tax return, joint interest billings, or other documentation regarding lease production or expenses.