Oipa

The Oklahoma Independent Petroleum Association (OIPA) has filed a pair of legal challenges over a ballot initiative to enact an additional 5% gross production tax on oil and natural gas wells during the first 36 months of production, with the proceeds going to fund the state’s education needs.

Parting company with mainstream oil and natural gas groups, the Oklahoma Energy Producers Alliance (OEPA), composed of private and small operators, on Wednesday urged state lawmakers to raise the gross production tax back to 7% to help resolve the state’s current budget crisis.

In the state with the nation’s second-highest drilling rig count, Oklahoma elected and industry officials are considering an across-the-board hike of the tax on oil/natural drilling, but it would still be considerably lower than a counter proposal by a billionaire philanthropist in Oklahoma City.