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Local News

June 14, 2014

Legislators discuss issues at Chamber forum

CHICKASHA — State Sen. Ron Justice and State Rep. David Perryman discussed issues ranging from the gross production tax rate on oil and gas wells to education during a legislative coffee yesterday.

Chickasha Chamber of Commerce President Mark Rathe said the chamber hosts a legislative coffee with legislators after each session to allow locals to address their legislators about the events and issues of the last legislative session.

"The activity at the capitol is always driven by the members of their home district," Rathe said. "They're very aware that when you speak, you speak as part of an institution."

HSI Sensing President Ryan Posey said he attended both legislative breakfasts this year and was surprised at the diversity and controversial nature of the issues discussed.

"Last session seemed to have more deep and significant change on one topic," Posey said. "I was very interested in workers' compensation last time."

                       Gross Production Tax Rate for Oil and Gas Wells

Justice said a recent bill that reduced the gross production tax rate on oil and gas well has caused some people to say the tax should be higher or stay where it is, but it's important for Oklahoma to remain business-friendly.

A recent bill reduced the gross pruduction tax rate from 7 percent to 2 percent for 36 months of production for new wells spudded on or after July 1, 2015, and to 1 percent for 48 months of production for a horizontally-drilled well spudded or commencing production after July 1, 2011 and before July 1, 2015.

"We have some great opportunities in Oklahoma. The important thing is we capitalize on those opportunities as we see them," he said. "We have to continue being business friendly in our state and see that it continues to grow. We can't give away the farm in doing that, but we have to see our state moves forward."

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