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Energy leaders agree to cap Oklahoma tax rebate program

OKLAHOMA CITY (AP) — A tax rebate for oil and natural gas wells projected to cost Oklahoma $133 million in the upcoming fiscal year would be capped at $25 million per year under a bill that’s been agreed to by some of the state’s top energy industry leaders.

The Oklahoma Independent Petroleum Association announced Thursday its governing board agreed to accept a change to the bill that targets wells dubbed “at risk,” because they produce little profit. The tax rebate allows producers of such wells to recoup nearly all of the taxes paid on the production.

OIPA President Mike Terry says under the deal, the rebate would be capped at $25 million per year and apply only to wells producing the equivalent of 10 barrels of oil per day or less.

Related: Texas-based Newfield Exploration announces Oklahoma layoffs.

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