Code of Alabama - Title 9: Conservation and Natural Resources - Chapter 17 - Oil and Gas

• Article 1 Conservation and Regulation of Production.
• Section 9-17-1 Definitions
  Unless the context otherwise requires, the following terms shall have the following meanings: (1) BOARD. The State Oil and Gas Board created by this article....
• Section 9-17-2 Declaration of public policy; purpose of article
  The prevention of waste of oil and gas and the protection of correlative rights are declared to be in the public interest. The purpose of...
• Section 9-17-3 Oil and Gas Board - Created; composition; compensation and members emeritus
  (a) There is created and established a board, to be known as the State Oil and Gas Board, to be composed of three members to...
• Section 9-17-3.1 Oil and Gas Board — Exemption from Sunset Law
  Commencing on February 8, 2018, the State Oil and Gas Board is not subject to review as an enumerated agency under the Alabama Sunset Law.
• Section 9-17-4 Oil and Gas Board - Quorum; votes required for promulgation of rules, regulations or orders
  Two members of the board shall constitute a quorum, but two affirmative votes shall be necessary for the adoption or promulgation of any rule, regulation...
• Section 9-17-5 Oil and Gas Board - Representation in litigation; administration of oaths
  The Attorney General shall be attorney for the board; provided, that in cases of emergency the board may call upon the district attorney of the...
• Section 9-17-6 Oil and Gas Board - Powers and duties generally
  (a) The board shall have jurisdiction and authority over all persons and property necessary to administer and enforce effectively the provisions of this article and...
• Section 9-17-7 Oil and Gas Board - Rules of procedure for hearings, etc.; promulgation, etc., of rules, regulations or orders generally; promulgation, etc., of emergency rules, regulations or orders
  (a) The board shall prescribe its rules of order or procedure in hearings or other proceedings before it under this article. (b) No rule, regulation...
• Section 9-17-8 Oil and Gas Board - Powers as to witnesses; enforcement of subpoenas issued by board
  (a) The board or any member thereof is hereby empowered to issue subpoenas for witnesses, to require their attendance and the giving of testimony before...
• Section 9-17-9 State Oil and Gas Supervisor
  The State Geologist shall be, ex officio, the State Oil and Gas Supervisor and shall perform all of the duties of and is hereby vested...
• Section 9-17-10 Employment of personnel
  (a) The Oil and Gas Supervisor, with the concurrence of the board, shall have the authority and it shall be his duty to employ all...
• Section 9-17-11 Waste prohibited
  Waste of oil or gas as defined in this article is hereby prohibited.
• Section 9-17-12 Limitations on regulations; drilling or production units; producers' shares
  (a) Whether or not the total production from a pool is limited or prorated, no rule, regulation, or order of the board shall be such...
• Section 9-17-13 Integration of interests; cycling operations; orders of board; procedures
  (a) When any mineral or other related interests deriving from two or more separately owned tracts of land are embraced within an established or a...
• Section 9-17-14 Limitations upon rules, regulations or orders establishing limits on production allowable within state or from separate pools; production of more than established allowable production or production in unauthorized manner
  (a) Whenever the board limits the total amount of oil or gas which may be produced in this state, the limit so fixed shall not...
• Section 9-17-15 Judicial review of rules, regulations or orders
  Any interested person aggrieved by any rule, regulation or order made or promulgated by the board under this article and who may be dissatisfied therewith...
• Section 9-17-16 Injunctions - Issuance against board, etc
  (a) No temporary restraining order or injunction of any kind shall be granted against the board or the members thereof or against the Attorney General...
• Section 9-17-17 Injunctions - Issuance against persons violating, etc., provisions of article, rules, etc
  Whenever it shall appear that any person is violating or threatening to violate any provision of this article or any rule, regulation or order made...
• Section 9-17-18 Injunctions - Appeals
  In any civil action where the board, in the name of the state, seeks enforcement of this article or of any rule, regulation or order...
• Section 9-17-19 Civil actions for damages for violations of provisions of article, rules, etc.; actions by private parties to enjoin violations of provisions of article, rules, etc
  (a) Nothing contained or authorized in this article and no civil action by or against the board and no penalties imposed or claimed against any...
• Section 9-17-21 Illegal oil, gas or product - Sale, acquisition, processing, handling, etc
  (a) The sale, purchase or acquisition or the transportation, refining, processing or handling in any other way of illegal oil, illegal gas or illegal product...
• Section 9-17-22 Illegal oil, gas or product - Seizure, condemnation and sale
  Apart from and in addition to any other remedy or procedure which may be available to the board or any penalty which may be sought...
• Section 9-17-23 Owners not to allow wells to get out of control, etc.; rights of board upon failure of owners to control wells; powers, etc., of board to secure payment by owners of costs and expenses of controlling or plugging wells
  In order to protect further the natural gas fields and oil fields in this state, it is hereby declared to be unlawful for any owner...
• Section 9-17-24 Notification requirement; hearing; fees; Alabama Oil and Gas Board Special Fund
  (a) Any person desiring or proposing to drill any well in search of oil or gas or any person proposing to drill a Class II...
• Section 9-17-25 Tax for expenses of administration and enforcement of article - Levied; exemptions; payment
  (a) For the purpose of defraying the expenses connected with the administration and enforcement of this article, including the expense of the inspections, tests, analyses,...
• Section 9-17-26 Tax for expenses of administration and enforcement of article - Records, returns and remittances of producers; determination of gross value at point of production; rules and regulations
  (a) It shall be the duty of every person producing or in charge of production of crude petroleum or natural gas from any well or...
• Section 9-17-27 Tax for expenses of administration and enforcement of article - Recovery of tax improperly collected
  In the event that any collection of tax is improperly made in an effort to enforce the provisions of Section 9-17-25 or Section 9-17-35, either...
• Section 9-17-31 Tax for expenses of administration and enforcement of article - Disposition and expenditure
  All funds collected pursuant to the tax levied on the producer of crude petroleum oil or natural gas produced for sale, transport, storage, profit or...
• Section 9-17-32 Penalty for violations of provisions of article, rules, etc.; penalty applicable to each prohibited transaction relating to illegal oil, gas, or product; penalty for aiding or abetting violations of provisions of article, rules, etc.; payment of fine not to abridge private causes of action for damages for violations of rules, etc
  (a) Any person who knowingly and willfully violates any provision of this article, or any rule, regulation or order of the board made under this...
• Section 9-17-33 Disposition of proceeds from sale of oil or gas production
  (a) As used in this section, the following terms shall have the following meanings: (1) CHECK STUB. The financial record attached to a check, included...
• Section 9-17-34 Additional definitions
  In addition to the definitions contained in Section 9-17-1, which shall apply for the purpose of computing the tax as provided in Section 9-17-35, except...
• Section 9-17-35 Tax based on gross proceeds for offshore production
  (a) The tax levied upon the producers of offshore production, produced from depths greater than 8,000 feet below mean sea level, shall be computed at...
• Article 2 Leases.
• Division 1 General Provisions.
• Section 9-17-50 Cancellation on records of lapsed optional leases; liability of lessees for failure or refusal to mark leases cancelled on records, etc., upon request of lessors
  (a) Whenever by reason of the termination of the full period within which an optional gas and oil lease which is of record may be...
• Division 2 Leases by State.
• Section 9-17-60 Authorization for leasing of certain state lands for exploration, development and production - Lands of Department of Conservation and Natural Resources
  The Commissioner of Conservation and Natural Resources, on behalf of the state, is hereby authorized to lease any lands or interest therein under the jurisdiction...
• Section 9-17-61 Authorization for leasing of certain state lands for exploration, development and production - Lands of other state departments, institutions or agencies
  The Commissioner of Conservation and Natural Resources, on behalf of the state, is hereby authorized, upon the written request of the head of any state...
• Section 9-17-62 Authorization for leasing of certain state lands for exploration, development and production - Lands under navigable streams, waters, etc
  The Commissioner of Conservation and Natural Resources, on behalf of the state, is hereby authorized to lease, upon such terms as he may approve, any...
• Section 9-17-63 Leases may authorize pooling or unitization
  Any lease executed under the provisions of this division may authorize the lessee to pool or unitize the lease, the lands or minerals covered thereby...
• Section 9-17-64 Execution of pooling or unitization agreements or amendments to leases to authorize same
  The Commissioner of Conservation and Natural Resources is hereby authorized to execute upon such terms as he may approve: (1) Pooling or unitization agreements affecting...
• Section 9-17-65 Lands to be leased upon basis of competitive bids; invitations for bids; opening of bids; acceptance or rejection of bids
  All lands proposed to be leased under the provisions of this division shall be leased only upon the basis of competitive bids. The Commissioner of...
• Section 9-17-66 Parties requesting advertisement of lands for lease purposes to pay for necessary legal advertisement
  All persons requesting the Commissioner of Conservation and Natural Resources to advertise state lands for oil and gas lease purposes shall be required to pay...
• Section 9-17-67 Charges for oil and gas lease tract charts
  The Department of Conservation and Natural Resources is hereby authorized to provide for a reasonable charge for its oil and gas lease tract charts, such...
• Section 9-17-68 Revenues from leases - Disposition
  The revenues that shall accrue under the provisions of this division from rentals, royalties and all other sources subject to the cost of administration shall...
• Section 9-17-69 Revenues from leases - Expenditure
  No such revenues shall be expended from such funds unless and to the extent appropriated by law.
• Article 3 Unit Operations.
• Section 9-17-80 Enhanced recovery methods
  The phrase "enhanced recovery methods" as used herein shall mean the increased recovery from a pool of oil or gas achieved by artificial means or...
• Section 9-17-81 Meeting of board to consider need for unit operation
  In order to promote the conservation of oil and gas resources, prevent waste, avoid the drilling of unnecessary wells, allow the drilling of wells at...
• Section 9-17-82 Order requiring unit operation - When issued
  The board shall issue an order requiring such unit operation if it finds that: (1) Unit operation of the field or of any pool or...
• Section 9-17-83 Order requiring unit operation - Contents
  The order shall be fair and reasonable under all the circumstances, shall protect the rights of interested parties and shall include: (1) A description of...
• Section 9-17-84 Order requiring unit operation - When effective; when automatically revoked
  An order requiring unit operation shall not become effective unless and until agreements incorporating the provisions of Section 9-17-83 have been signed or in writing...
• Section 9-17-85 New or amending orders
  (a) The board, by entry of new or amending orders, may from time to time add to unit operations portions of pools not theretofore included...
• Section 9-17-86 Alteration of contribution of separately owned tract
  When the contribution of a separately owned tract with respect to any unit pool has been established pursuant to subdivision (3) of Section 9-17-83, such...
• Section 9-17-87 Production and operations deemed to be those of separately owned tracts
  The portion of unit production allocated to a separately owned tract within the unit area shall be deemed for all purposes to have been actually...
• Section 9-17-88 Applicability of article
  This article shall apply only to field or pool units and shall not apply to the unitization of interests within a drilling unit as may...
• Article 4 Liquefied Petroleum Gas.
• Section 9-17-100 Definitions
  As used in this article, the following words and phrases shall have the following meanings, respectively, unless the context clearly indicates otherwise: (1) AUTHORITY HAVING...
• Section 9-17-101 Liquefied Petroleum Gas Board - Creation; composition; meetings; rules and regulations
  (a) There is created and established the Alabama Liquefied Petroleum Gas Board. The board shall be composed of eight members: The State Fire Marshal; the...
• Section 9-17-102 Liquefied Petroleum Gas Board - Compensation of members
  Board members shall receive travel expenses and per diem based at the rate that is currently prescribed by the state for its state employees, while...
• Section 9-17-103 Liquefied Petroleum Gas Board - Promulgation, etc., of rules and regulations; inspection of gas systems
  (a) The board shall have the power to make and enforce rules and regulations governing the design, construction, location, installation, and operation of containers, tanks,...
• Section 9-17-104 Appointment, compensation and bond of administrator; administrator and inspectors constituted peace officers; Liquefied Petroleum Gas Board Fund; excess balances to be transferred to fund
  (a) The board shall appoint, prescribe the duties of, and fix the compensation of an administrator. The board may dismiss an administrator at its discretion....
• Section 9-17-105 Permits; LP-Gas Recovery Fund; proof of insurance; surety bond; Liquefied Petroleum Gas Board Personal Bond Fund; change of name
  (a) The board may issue permits to any person, who is a citizen of the United States or, if not a citizen of the United...
• Section 9-17-106 Permit fees; reports and payment of fees by certain end users, suppliers, permit holders; invoice cost; exemption from Section 40-12-84
  (a) Fees for Permit A and Permit B. Every applicant for a Permit A or a Permit B, at the time of issuance, shall pay...
• Section 9-17-107 Requirements as to storage capacity; exemption; submission of plans; construction requirements; fees
  (a) The board shall require that every applicant for a Permit A have located within the State of Alabama a minimum of 30,000 (water gallon...
• Section 9-17-108 Directive order of discontinuance; appeal; injunction; hearings by board; imposition of penalties
  (a) Due to the inherent nature of liquefied petroleum gas which could cause a danger to the public or to a liquefied petroleum gas user,...
• Section 9-17-109 Violations; records; fees; assessment and hearing; filling of containers; installation, maintenance, etc., of appliances; damages
  (a) Any person violating this article or any rule, order, or regulation promulgated pursuant to this article shall, on conviction thereof, be fined not more...
• Section 9-17-110 Liquefied Petroleum Gas Research and Education Advisory Committee
  (a) The Liquefied Petroleum Gas Research and Education Advisory Committee is created. The committee shall consist of five members as follows: Two members shall be...
• Article 4A LP-Gas Room Heaters.
• Section 9-17-120 Definitions
  For the purposes of this article, the following words shall have the following meanings: (1) LP-GAS. Liquefied petroleum gas as defined in Section 9-17-100. (2)...
• Section 9-17-121 Installation of heaters - Residences
  The following LP-gas room heaters may be installed in a residence that is a one- or two-family dwelling and that is not a manufactured home...
• Section 9-17-122 Installation of heaters - Used manufactured homes
  The following LP-gas room heaters may be installed in a used manufactured home as follows: LP-gas listed vented room heaters equipped with a 100 percent...
• Section 9-17-123 Enforcement
  This article shall be enforced by the Liquefied Petroleum Gas Board.
• Section 9-17-124 Reference to National Fuel Gas Code
  Any reference to the National Fuel Gas Code, NFPA 54, shall include any future changes to the code when adopted by the Liquefied Petroleum Gas
• Section 9-17-125 Preemption of local law
  This article shall preempt any local law or any ordinance or authority of any local governing body to regulate the subject matter of this article...
• Article 5 Coalbed Methane Gas Well Plugging Fund.
• Section 9-17-130 Legislative findings and declaration
  The Legislature of the State of Alabama finds and declares that the protection of Alabama's environment is vital to the economy of this state; that...
• Section 9-17-131 Short title
  This article may be cited as the "Alabama Coalbed Methane Gas Well Plugging Fund Act."
• Section 9-17-132 Definitions
  For the purposes of this article, unless otherwise indicated, the following terms shall have the meanings respectively ascribed to them by this section: (1) BOARD....
• Section 9-17-133 Alabama Coalbed Methane Gas Well Plugging Fund
  There is hereby created the Alabama Coalbed Methane Gas Well Plugging Fund to be held by the State Treasurer and administered by the supervisor. The...
• Section 9-17-134 Determination by board of coalbed methane gas wells requiring plugging
  Whenever, in the determination of the board, after reasonable notice to the operator of a coalbed methane gas well and a hearing held by the...
• Section 9-17-135 Action authorized to be taken by board
  Upon making the determination described in Section 9-17-134, the board shall first collect the proceeds of the bond or bonds or the blanket bond of...
• Section 9-17-136 Liability of owners and operators
  Whenever costs of plugging a coalbed methane gas well shall have been incurred by the board pursuant to this article and the board shall have...
• Section 9-17-137 Plugging fees payable into fund; investment and use of fund
  (a) In addition to the requirements and fees provided for in Section 9-17-24(a), any person desiring, after April 25, 1990, to drill any coalbed methane...
• Section 9-17-138 Termination of fund
  Should the board determine that all coalbed methane gas wells in the State of Alabama have been plugged and abandoned, or should the board determine,...
• Section 9-17-139 No liability of state, board or supervisor to third parties
  Nothing in this article shall establish or create any liability or responsibility on the part of the board, the supervisor or the State of Alabama...
• Article 6 Underground Gas Storage.
• Section 9-17-150 Definitions
  Unless the context otherwise requires, the words and terms defined in this section shall have the following meanings when found in this article: (1) UNDERGROUND...
• Section 9-17-151 Legislative declaration; jurisdiction
  (a) The underground storage of gas which promotes the conservation thereof, which permits the accumulation of large quantities of gas in reserve for orderly withdrawal...
• Section 9-17-152 Board approval; recordation of order; certificate of effectiveness; dissolution of fields and units; determination of commercial reserves; creation of cavities
  (a) The use of an underground reservoir as a storage facility for gas is hereby authorized, provided that the board shall first enter an order,...
• Section 9-17-153 Protection against pollution and escape of gas; property rights
  (a) The board shall issue such orders, rules and regulations as may be necessary for the purpose of protecting any such storage facility against pollution,...
• Section 9-17-154 Eminent domain
  (a) Any storage operator is hereby empowered, after obtaining approval of the board as herein required, to exercise the right of eminent domain in the...
• Section 9-17-155 Right of landowner to drill and make other use of land
  The right of eminent domain granted by Section 9-17-154 shall be without prejudice to the right of the owner of said land or of other...
• Section 9-17-156 Exemption from taxation and certain gas deemed injected
  No storage operator shall be subject to any privilege or other tax on production, severance, extraction or withdrawal of gas that has been injected into...
• Section 9-17-157 Secondary or tertiary operations
  Nothing in this article shall apply to the conduct of gas storage operations as a part of or in conjunction with any secondary or tertiary...
• Article 7 Alabama Propane Education and Research Act of 2009.
• Section 9-17-170 Short title
  This article may be cited as the Alabama Propane Education and Research Act of 2009.
• Section 9-17-171 Definitions
  As used in this article, the following terms shall have the following meanings: (1) AGRICULTURE. The art or science of cultivating the ground and raising...
• Section 9-17-172 Purpose
  It is hereby declared to be in the interest of public welfare that propane gas wholesalers are encouraged to act jointly and in cooperation with...
• Section 9-17-173 Promotional activities
  It is further declared to be in the public interest and highly advantageous to the economy of the State of Alabama that the propane gas...
• Section 9-17-174 referendum for assessment
  (a) The qualified industry organization shall conduct at its own expense a referendum among wholesalers and retail marketers doing business in the State of Alabama...
• Section 9-17-175 Alabama Propane Education and Research Council
  (a) The qualified industry organization shall select members of the council from nominations made by retail marketers and wholesalers operating in the State of Alabama....
• Section 9-17-176 Assessment
  (a) The council shall set the initial assessment at no greater than one-tenth of one cent per gallon of odorized propane. Thereafter, annual assessments shall...
• Section 9-17-177 Enforcement
  The council is authorized to bring an action in a court of competent jurisdiction to specifically enforce this article and prevent or restrain any person...
• Section 9-17-178 Price of propane
  In all cases, the price of propane shall be determined by market forces. Consistent with the antitrust laws, the council may take no action, nor...
• Section 9-17-179 Construction
  Nothing in this article may be construed to preempt or supersede any other program relating to propane education and research organized and operated under the...

Last modified: May 3, 2021