Oklahoma governor signs bill raising energy output tax

|By:, SA News Editor

Oklahoma Gov. Fallin signed legislation yesterday that will raise taxes on the state's oil and gas wells but was supported by the state's largest oil and gas producers, Devon Energy (DVN), Continental Resources (CLR) and Chesapeake Energy (CHK).

The new law takes effect in 2015 and will tax energy companies at a 2% rate on a well's oil and gas output for the first three years of its life; after that, the tax rate rises to 7%.

Critics say the higher rate still falls short of what's needed to help fund education and infrastructure improvements.