reglab/statecodes huggingface dataset:
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-3 - Oil and Gas Board - Created; Composition; Compensation and Members Emeritus.

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 be appointed by the Governor for terms of the following duration: One member for a term of two years; one member for a term of four years; and one member for a term of six years. At the expiration of the term for which each of the original appointments is made, each successor member shall be appointed for a term of six years; and, in the event of a vacancy, the Governor shall by appointment fill such unexpired term. Each member shall be eligible for reappointment at the discretion of the Governor. The membership of the board shall be inclusive and reflect the racial, gender, geographic, urban/rural, and economic diversity of the state. The board shall annually report to the Legislature by the second legislative day of each regular session the extent to which the board has complied with the diversity provisions of this subsection. Each member of the board shall be a resident and citizen of the State of Alabama and shall be a qualified voter therein. Each member shall qualify by taking an oath of office and shall hold office until his or her successor is appointed and qualified. The board shall elect from its number a chairman. The board shall meet or hold hearings at such times and places as may be found by the board to be necessary to carry out its duties. Each member of the board shall receive as compensation for his or her services an annual salary of three thousand six hundred dollars ($3,600) and, in addition thereto, each member shall be entitled to a travel and office expense allowance of five hundred dollars ($500) per month. The compensation and travel and office expense allowance as above set forth shall be paid from the Oil and Gas Fund.
(b) Any person who has served 19 or more years continuously on the board shall be a nonvoting member emeritus of the board. A member emeritus shall receive no compensation, salary, or travel or expense allowance or reimbursement for his or her service on the board.
(Acts 1945, No. 1, p. 1, §3; Acts 1965, 2nd Ex. Sess., No. 82, p. 112, §1; Acts 1967, No. 219, p. 584, §1; Acts 1990, No. 90-104, p. 114, §3; Acts 1994, No. 94-593, p. 1100, §3; Act 2010-276, p. 499, §3.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-3.1 - Oil and Gas Board — Exemption From Sunset Law.

Section 9-17-3.1
THIS SECTION WAS ASSIGNED BY THE CODE COMMISSIONER IN THE 2018 REGULAR SESSION, EFFECTIVE FEBRUARY 8, 2018. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT.
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.
(Act 2018-75, §3.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-4 - Oil and Gas Board - Quorum; Votes Required for Promulgation of Rules, Regulations or Orders.

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 or order of the board.
(Acts 1945, No. 1, p. 1, §6.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-5 - Oil and Gas Board - Representation in Litigation; Administration of Oaths.

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 circuit where the action is to be brought or defended to represent the board until such time as the Attorney General may take charge of the litigation. Any member of the board, or the secretary thereof, shall have power to administer oaths to any witness in any hearing, investigation or proceeding contemplated by this article or by any other law of this state relating to the conservation of oil and gas.
(Acts 1945, No. 1, p. 1, §7.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-8 - Oil and Gas Board - Powers as to Witnesses; Enforcement of Subpoenas Issued by Board.

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 it and to require the production of such books, papers and records in any proceeding before the board as may be material upon questions lawfully before the board. Such subpoenas shall be served by the sheriff or any other officer authorized by law to serve process in this state. No person shall be excused from attending and testifying or from producing books, papers and records before the board or a court or from obedience to the subpoena of the board or a court on the ground or for the reason that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture; provided, that nothing contained in this section shall be construed as requiring any person to produce any books, papers or records or to testify in response to any inquiry not pertinent to some question lawfully before such board or court for determination. No natural person shall be subjected to criminal prosecution or to any penalty or forfeiture for or on account of any transaction, matter or thing concerning which he may be required to testify or produce evidence, documentary or otherwise, before the board or court or in obedience to its subpoena; provided, that no person testifying shall be exempt from prosecution and punishment for perjury committed in so testifying.
(b) In case of failure or refusal on the part of any person to comply with any subpoena issued by the board or any member thereof or in case of the refusal of any witness to testify or answer to any matter regarding which he may be lawfully interrogated, any circuit court in this state, on application of the board, may, in term time or vacation, issue an attachment for such person and compel him to comply with such subpoena and to attend before the board and produce such documents and give his testimony upon such matters as may be lawfully required, and such court have the power to punish for contempt as in case of disobedience of like subpoenas issued by or from such court or for a refusal to testify therein.
(Acts 1945, No. 1, p. 1, §11.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-9 - State Oil and Gas Supervisor.

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 with all the powers imposed upon and vested in the State Oil and Gas Supervisor under and by the terms and provisions of this article. The State Oil and Gas Supervisor shall be charged with the duty of enforcing this article and all rules, regulations and orders promulgated by the board. The State Oil and Gas Supervisor shall be, ex officio, secretary of the board and shall keep all minutes and records of the board. He shall, as secretary, give bond in such sum as the board may direct with corporate surety to be approved by the board, conditioned that he will well and truly account for any funds coming into his hands. The State Geologist shall receive $3,600.00 per annum for the performance of his duty under this article.
(Acts 1945, No. 1, p. 1, §4; Acts 1949, No. 671, p. 1033, §1; Acts 1969, No. 1033, p. 1916, §2.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-10 - Employment of Personnel.

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 personnel necessary to carry out the provisions of this article. Such personnel shall be employed under and shall be subject to the provisions of the Merit System Act.
(b) The State Oil and Gas Board is prohibited from discriminating against blacks in its employment practices.
(Acts 1945, No. 1, p. 1, §5; Act 2002-425, p. 1092, §3.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-11 - Waste Prohibited.

Section 9-17-11
Waste prohibited.
Waste of oil or gas as defined in this article is hereby prohibited.
(Acts 1945, No. 1, p. 1, §8.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › 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.

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 be less than the aggregate of the allowables fixed for each separate pool in this state for the prevention of waste in accordance with the foregoing definition of waste, plus the production from unrestricted pools, and it shall allocate or distribute the allowable so fixed among the separate pools. Such allocation or distribution among the pools of the state shall be made on a reasonable basis, giving to each pool with small wells of settled production an allowable production which will not accelerate or encourage a general premature abandonment of the wells in the pool.
(b) Whenever the board limits the total amount of oil or gas which may be produced in any pool in this state to an amount less than that amount which the pool could produce if no restriction were imposed (which limitation may be imposed either incidentally to or without a limitation of the total amount of oil or gas which may be produced in the state), the board shall prorate or distribute the allowable production among the producers in the pool on a reasonable basis so as to prevent or minimize reasonably avoidable drainage from each developed unit which is not equalized by counterdrainage and so that each producer will have the opportunity to produce or receive his just and equitable share, as set forth in this article, subject to the reasonable requirements for the prevention of waste.
(c) After the effective date of any rule, regulation or order of the board fixing the allowable production of oil or gas or both for any pool, no person shall produce from any well, lease or property more than the allowable production which is applicable, nor shall such amount be produced in a different manner than that which may be authorized.
(Acts 1945, No. 1, p. 1, §14.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-15 - Judicial Review of Rules, Regulations or Orders.

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 shall, within 30 days from the date said order, rule or regulation was promulgated, have the right, regardless of the amount involved, to institute a civil action by filing a complaint in the circuit court of the county in which all or part of the aggrieved person's property affected by any such rule, regulation or order is situated to test the validity of said rule, regulation or order promulgated by the board. Such civil action shall be advanced for trial and be determined as expeditiously as feasible, and no postponement or continuance thereof shall be granted except for reasons deemed imperative by the court. In such trials the validity of any rule, regulation or order made or promulgated under this article shall be deemed prima facie valid, and the court shall be limited in its consideration to a review of the record of the proceedings before the board, and no new or additional evidence shall be received.
The reviewing court shall limit its consideration to the following:
(1) Whether the rule, regulation or order is constitutional;
(2) Whether the rule, regulation or order was without or in excess of jurisdiction;
(3) Whether the rule, regulation or order was procured by fraud;
(4) Whether the rule, regulation or order is reasonable; and
(5) Whether the rule, regulation or order is unsupported by the evidence.
(Acts 1945, No. 1, p. 1, §15; Acts 1957, No. 575, p. 798; Acts 1965, 2nd Ex. Sess., No. 81, p. 111.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-16 - Injunctions - Issuance Against Board, Etc.

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 or any district attorney or against any agent, employee or representative of the board restraining the board or any of its members or any of its agents, employees or representatives or the Attorney General or any district attorney, from enforcing any of the provisions of this article or any rule, regulation or order made under this article, except after due notice to the members of the board and to all other defendants and after a hearing at which it shall be clearly shown to the court that the act done or threatened is without sanction of law and, if enforced against the complaining party, will cause an irreparable injury. The judgment or order of the court granting temporary injunctive relief shall state the nature and extent of the probable invalidity of any provision of this article or of any rule, regulation or order made under this article involved in such suit and shall also contain a clear statement of the probable damage relied upon by the court as justifying the temporary relief.
(b) No temporary injunctive relief of any kind, including a temporary restraining order, against the board or the members thereof or its agents, employees or representatives or the Attorney General or any district attorney shall become effective until the plaintiff shall execute a bond to the state with sufficient surety in an amount to be fixed by the court, reasonably sufficient to indemnify all persons who may suffer damage by reason of the violation pendente lite by the complaining party of the provisions of this article or of any rule, regulation or order complained of. Such bond shall be approved by the judge of the court in which the civil action is pending, and the court may, from time to time on motion and with notice to the parties, increase or decrease the amount of the bond and may require new or additional sureties as the facts may warrant. Such bond shall be for the use and benefit of all persons who may suffer damage by reason of the violation pendente lite of this article or of any provision, rule, regulation or order complained of in such civil action, and any person so suffering damage may bring a civil action on such bond before the expiration of six months after any provision of this article or of any rule, regulation or order complained of shall be finally held to be valid in whole or in part or such civil action against the board or the members thereof shall be finally disposed of.
(Acts 1945, No. 1, p. 1, §16.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-17 - Injunctions - Issuance Against Persons Violating, etc., Provisions of Article, Rules, Etc.

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 under this article and unless the board without litigation can effectively prevent further violation or threat of violation, then the board, through the Attorney General, who may call to his assistance the district attorney of the circuit in which civil action is instituted, shall bring in the name of the State of Alabama against such person in the circuit court in the county of the residence of the defendant or, if there is more than one defendant, in the circuit court of the county of the residence of any of them or in the circuit court of the county in which such violation is alleged to have occurred, a civil action to restrain such person from continuing such violation or from carrying out the threat of violation. In such civil action the board, in the name of the State of Alabama, may obtain such injunctions, prohibitory and mandatory, including temporary restraining orders and preliminary injunctions, as the facts may warrant, including, when appropriate, an injunction restraining any person from moving or disposing of illegal oil, illegal gas or illegal product, and any or all such commodities may be ordered to be impounded or placed under the control of an agent appointed by the court if, in the judgment of the court, such action is advisable.
(Acts 1945, No. 1, p. 1, §17.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-18 - Injunctions - Appeals.

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 issued under this article, as provided in Section 9-17-17 or in any civil action where an interested party seeks to test the validity of or enjoin the enforcement of this article or any rule, regulation or order issued under this article as provided in Section 9-17-16, either party shall have the right of an immediate appeal to the Supreme Court from any judgment or order therein granting or refusing an injunction, whether temporary restraining order, preliminary injunction or permanent injunction, or other character of injunctive relief, or from any order granting or overruling a motion to dissolve such injunction. The manner of presenting any appeal as provided for in this section shall be governed by the provisions of the rules and laws of the State of Alabama regulating appeals in injunction proceedings.
(Acts 1945, No. 1, p. 1, §18.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › 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.

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 person for violating any provision of this article or any rule, regulation or order issued under this article and no forfeiture shall impair or abridge or delay any cause of action for damages which any person may have or assert against any person violating any provision of this article or any rule, regulation or order issued under this article. Any person so damaged by the violation may institute a civil action for and recover such damages as he may show that he is entitled to receive.
(b) In the event the board should fail to bring a civil action to enjoin any actual or threatened violation of any provision of this article or of any rule, regulation or order made under this article, then any person or party in interest adversely affected by such violation or threat thereof and who has requested the board to institute a civil action in the name of the state may, to prevent any or further violation, bring a civil action for that purpose in any court in which the board could have brought a civil action. If, in such civil action, the court holds that injunctive relief should be granted, then the state shall be made a party and shall be substituted by order of the court for the person who brought the action, and the injunction shall be issued as if the state had at all times been the complaining party.
(Acts 1945, No. 1, p. 1, §19.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-21 - Illegal Oil, Gas or Product - Sale, Acquisition, Processing, Handling, Etc.

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 is hereby prohibited.
(b) Unless and until the board provides for certificates of clearance or tenders or some other method so that any person may have an opportunity to determine whether any contemplated transaction of sale, purchase or acquisition or of transportation, refining, processing or handling in any other way involves illegal oil, illegal gas or illegal product, no penalty shall be imposed for the sale, purchase or acquisition or the transportation, refining, processing or handling in any other way of illegal oil, illegal gas or illegal product, except under circumstances stated in this section.
Penalties shall be imposed by the board for each transaction prohibited in this section when the person committing the same knows that illegal oil, illegal gas or illegal product is involved in such transaction or when such person could have known or determined such fact by the exercise of reasonable diligence or from facts within his knowledge. However, regardless of lack of actual notice or knowledge, penalties as provided in this article shall apply to any sale, purchase or acquisition and to the transportation, refining, processing or handling in any other way of illegal oil, illegal gas or illegal product where administrative provision is made for identifying the character of the commodity as to its legality. It shall likewise be a violation for which penalties shall be imposed for any person to sell, purchase or acquire or to transport, refine, process or handle in any other way any oil, gas or any product without complying with any rule, regulation or order of the board relating thereto.
(Acts 1945, No. 1, p. 1, §22.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-22 - Illegal Oil, Gas or Product - Seizure, Condemnation and Sale.

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 against or imposed upon any person with respect to violations relating to illegal oil, illegal gas or illegal product, all illegal oil, illegal gas and illegal products shall, except under such circumstances as are stated in this section, be contraband, forfeited to the State of Alabama and shall be seized and sold and the proceeds applied as provided in this section. When any such seizure shall have been made, it shall be the duty of the Attorney General of the state to institute at once condemnation proceedings in the circuit court of the county in which such property is seized by filing a complaint in the name of the state against the property seized, describing the same, or against the person or persons in possession of such illegal property, if known, to obtain a judgment enforcing the forfeiture. Any party claiming a superior right may intervene in said action by filing a complaint and have his claim adjudicated. The judge presiding in said circuit court may superintend and make all proper orders as to the method and manner of notice to be given to any party claiming any right in the property so seized to come in and assert his right thereto. The said court shall have authority to frame all orders of procedure so as to regulate the proceedings whereby persons may have an opportunity to come in and propound their claim to the seized property sought to be condemned.
The proceeds of the sale of any such property forfeited to the state shall, after paying all expenses of seizing, holding and selling such property, including the costs of court, be paid into the Oil and Gas Fund. The property sold shall be treated as legal oil, legal gas or legal product, as the case may be, in the hands of the purchaser, but the purchaser and the commodity shall be subject to all applicable laws, rules, regulations and orders with respect to further sale or purchase or acquisition and with respect to the transportation, refining, processing or handling in any other way of the commodity purchased. Nothing in this section shall deny or abridge any cause of action which a royalty owner or a lien holder or any other claimant may have because of the forfeiture of the illegal oil, illegal gas or illegal product against the person whose act resulted in such forfeiture.
(Acts 1945, No. 1, p. 1, §23.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › 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.

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 to allow a well to go wild or to get out of control. The owner of any such well shall, after 24 hours written notice by the board given to him or to the person in possession of such well, make reasonable effort to control such well. In the event of the failure of the owner of such well within 24 hours after service of the notice above provided for to control the same, if such can be done within the period, or to begin in good faith, upon service of such notice, operations to control such well or upon failure to prosecute diligently such operations, then the board shall have the right to take charge of the work of controlling such well, and it shall have the right to proceed, through its own agents or by contract with a responsible contractor, to control the well or otherwise to prevent the escape or loss of gas or oil from such well, all at the reasonable expense of the owner of the well. In order to secure to the board in the payment the reasonable cost and expense of controlling or plugging such well, the board shall retain the possession of the same and shall be entitled to receive and retain the rents, revenues and incomes therefrom until the costs and expenses incurred by the board shall be repaid. When all such costs and expenses have been repaid, the board shall restore possession of such well to the owner; provided, that in the event the income received by the board shall not be sufficient to reimburse the board as provided for in this section, the board shall have a lien or privilege upon all of the property of the owner of such well, except such as is exempt by law, and the board shall proceed to enforce such lien or privilege by a civil action brought in any court of competent jurisdiction, the same as any other like civil action, and the judgment so obtained shall be executed in the same manner now provided by law for execution of judgments. Any excess over the amount due the board which the property seized and sold may bring, after payment of court costs, shall be paid over to the owner of such well.
(Acts 1945, No. 1, p. 1, §24.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-25 - Tax for Expenses of Administration and Enforcement of Article - Levied; Exemptions; Payment.

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, and all other expenses connected with the supervision and protection of crude petroleum oil and natural gas in the State of Alabama, there is hereby levied on the producer a tax equal in amount to two percent of the gross value, at the point of production, of the crude petroleum oil or natural gas produced for sale, transport, storage, profit, or for use from any well or wells in the State of Alabama. Provided, however, that the tax on offshore production, produced from depths greater than 8,000 feet below mean sea level, shall not be computed as a percentage of gross value at the point of production, as provided in this section, but shall be computed as a percentage of gross proceeds, as provided in Section 9-17-35. Also provided, that natural gas lawfully injected into oil or gas pools or reservoirs in the soil or beneath the soil or waters of the State of Alabama is exempt from this tax. Provided, further, that natural gas lawfully injected into the earth for the purpose of lifting oil or gas in the State of Alabama is exempt from this tax. However, if any gas so injected into the earth is sold for such purposes or injected into underground storage facilities as defined in Section 9-17-150 et seq., then the gas so sold or injected shall not be exempt from this tax. Natural gas lawfully vented or flared in connection with the production, treatment, or processing of oil or gas is exempt from the tax. The tax shall be paid to the Department of Revenue directly by the purchaser when authorized in writing by the producer, and, when so paid, the producer or person in charge of production shall be relieved of any further liability.
(b) For any well for which the initial permit issued by the Oil and Gas Board is dated on or after July 1, 1996, and before July 1, 2002, except a replacement well for a well for which the initial permit was issued by the Oil and Gas Board is dated before July 1, 1996, the applicable rate of tax levied pursuant to subsection (a) shall be one percent for a period of five years commencing with commercial production, after which subsection (a) shall apply.
(Acts 1945, No. 1, p. 1, §26; Acts 1953, No. 453, p. 558; Acts 1984, No. 84-661, p. 1325, §1; Acts 1994, No. 94-367, p. 615, §1; Acts 1996, 2nd Ex. Sess., No. 96-877, p. 1688, §1; Act 99-584, p. 1332, §1; Act 2009-147, p. 284, §1.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › 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.

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 wells in the State of Alabama for sale, transport, storage, profit or for use to keep and preserve such records of the amount of all such crude petroleum oil or natural gas produced for sale, transport, storage, profit or for use as may be necessary to determine the amount of the tax for which he is liable under the provisions of Section 9-17-25 and Section 9-17-35.
(b) It shall be the further duty of every such person to file with the Department of Revenue, not later than the fifteenth day of the second calendar month following the month of production, a return, subscribed by the person who completes such return, which must contain a printed declaration that it is made under the penalty of perjury, showing the amount of crude petroleum oil or natural gas produced for sale, transport, storage, profit or for use during the second preceding month, to compute on the return the amount of tax charged against him in accordance with the provisions of Section 9-17-25 and Section 9-17-35 and to transmit to the Department of Revenue with such return a remittance covering the tax chargeable against him. The return shall contain such other information and shall be in such form as the Department of Revenue shall designate.
(c) The Department of Revenue is authorized to determine the gross value at the point of production as required under Section 9-17-25, and the gross proceeds attributable to offshore production as required under Section 9-17-35, both in accordance with customary practice.
(d) The Department of Revenue is hereby authorized to promulgate reasonable rules and regulations relating to the administration and enforcement of this article provided, however, that no rule or regulation adopted or promulgated by the department shall alter, limit, extend or be out of harmony with any of the provisions of this article.
(Acts 1945, No. 1, p. 1, §27; Acts 1981, No. 81-703, p. 1180, §1; Acts 1991, 1st Ex. Sess., No. 91-798, p. 193, §3; Act 2009-147, p. 284, §1.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-27 - Tax for Expenses of Administration and Enforcement of Article - Recovery of Tax Improperly Collected.

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 as a result of a mistake of law or fact, the amount so paid may be recovered in the same manner as is provided by law for the recovery of other taxes erroneously paid directly to the Department of Revenue.
(Acts 1945, No. 1, p. 1, §28; Act 2009-147, p. 284, §1.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-31 - Tax for Expenses of Administration and Enforcement of Article - Disposition and Expenditure.

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 for use, from any well or wells in the State of Alabama, as is provided in Section 9-17-25 and Section 9-17-35, shall be deposited in the State Treasury to the credit of the General Fund and shall be expended only in the manner provided by appropriation by the Legislature.
(Acts 1961, Ex. Sess., No. 95, p. 2008, §1; Act 2009-147, p. 284, §1.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › 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.

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 article shall, in the event a penalty for such violation is not otherwise provided for in this article, be subject to a fine not to exceed $10,000.00 a day for each and every day of such violation and for each and every act of violation, such fine to be recovered by a civil action in the circuit court of the county where the defendant resides, or in the county of the residence of any defendant if there is more than one defendant, or in the circuit court of the county where the violation took place. The place of the civil action shall be selected by the board, and such civil action, by direction of the board, shall be instituted and conducted in the name of the board by the attorney for the board or by the Attorney General or under his direction by the district attorney for the county where the civil action is instituted.
(b) The payment of any fine as provided for in this section shall not have the effect of changing illegal oil into legal oil, illegal gas into legal gas or illegal product into legal product; nor shall such payment have the effect of authorizing the sale, purchase or acquisition or the transportation, refining, processing or handling in any other way of such illegal oil, illegal gas or illegal product, but, to the contrary, the fine shall be imposed for each prohibited transaction relating to such illegal oil, illegal gas or illegal product.
(c) Any person knowingly and willfully aiding or abetting any other person in the violation of any statute of this state relating to the conservation of oil or gas or the violation of any provision of this article or any rule, regulation or order made under this article shall be subject to the same penalty prescribed in subsection (a) of this section for the violation by such other person.
(d) The payment of any fine shall not impair or abridge any cause of action which any person may have against the person violating a rule, regulation or order by reason of an injury resulting from such violation.
(Acts 1945, No. 1, p. 1, §21; Acts 1990, No. 90-104, p. 104, §3.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 1 - Conservation and Regulation of Production. › Section 9-17-35 - Tax Based on Gross Proceeds for Offshore Production.

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 the rate of one and sixty-six one hundredths percent (1.66%) of the gross proceeds attributable to the offshore production.
(b) The gross proceeds for offshore production required to be calculated under this section shall be reported and allocated in accordance with Section 40-20-22.
(Act 2009-147, p. 284, §2.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › 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.

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 kept alive by the payments of rentals or by reason of the termination of any of the options in such lease by reason of failure on the part of the lessee to comply with the condition therein for the prevention of forfeiture such lease shall lapse, the lessee must, on request in writing by the lessor, mark same cancelled on the records or must furnish the lessor with an instrument, duly acknowledged, directing the cancellation of such lease on the records.
(b) Any lessee failing or refusing to supply the lessor with such an instrument or failing or refusing to cancel any lease on the records within 30 days after receiving written demand as above shall be liable to such lessor for a reasonable attorney's fee incurred by the lessor in bringing suit to have such forfeiture and cancellation adjudged and, in addition thereto, shall be liable to the lessor for all damages suffered by the lessor by reason of his inability to make any lease on account of the first lease not having been cancelled.
(Acts 1945, No. 3, p. 26, §§ 1-2.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 2 - Leases. › 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.

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 of the Department of Conservation and Natural Resources for the exploration, development and production of oil, gas and other minerals or any one or more of them, on, in and under such lands.
(Acts 1956, 1st Ex. Sess., No. 158, p. 224, §1.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 2 - Leases. › Division 2 - Leases by State. › Section 9-17-61 - Authorization for Leasing of Certain State Lands for Exploration, Development and Production - Lands of Other State Departments, Institutions or Agencies.

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 department, institution or agency, to lease any land or interest therein owned by such department, institution or agency or in which such department, institution or agency has the beneficial interest for the exploration, development and production of oil, gas and other minerals or any one or more of them, on, in and under such lands.
(Acts 1956, 1st Ex. Sess., No. 158, p. 224, §2.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 2 - Leases. › Division 2 - Leases by State. › Section 9-17-62 - Authorization for Leasing of Certain State Lands for Exploration, Development and Production - Lands Under Navigable Streams, Waters, Etc.

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 lands or any right or any interest therein under any navigable streams or navigable waters, bays, estuaries, lagoons, bayous or lakes and the shores along any navigable waters to high tide mark and submerged lands in the Gulf of Mexico within the historic seaward boundary of this state, which is hereby declared to extend seaward six leagues from the land bordering the gulf, for the exploration, development and production of oil, gas and other minerals or any one or more of them, on, in and under such lands, and such lands or interests therein for such purposes shall be supervised and managed by the Department of Conservation and Natural Resources.
(Acts 1956, 1st Ex. Sess., No. 158, p. 224, §4.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 2 - Leases. › Division 2 - Leases by State. › Section 9-17-63 - Leases May Authorize Pooling or Unitization.

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 or any part thereof with other lands, leases or mineral estates or parts thereof upon such terms as the Commissioner of Conservation and Natural Resources may approve.
(Acts 1956, 1st Ex. Sess., No. 158, p. 224, §3.)
2023 Code of Alabama › Title 9 - Conservation and Natural Resources. › Chapter 17 - Oil and Gas. › Article 2 - Leases. › Division 2 - Leases by State. › Section 9-17-64 - Execution of Pooling or Unitization Agreements or Amendments to Leases to Authorize Same.

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 oil, gas and other minerals or any one or more of them, on, in or under lands within the jurisdiction of the Department of Conservation and Natural Resources so as to pool or unitize such interests in oil, gas and other minerals or any one of them with similar interests in other lands; and
(2) Agreements with lessees amending existing leases so as to authorize lessees to pool or unitize the leases, the lands or minerals covered thereby or any part thereof with other leases, lands or mineral estates or parts thereof, and to add to or change any other provisions thereof in order to make such existing lease(s) similar on those points with the lease form then being used by the Commissioner of Conservation and Natural Resources in making leases of similar state-owned property, except that no such change or addition may be made which changes the number of years stated as the primary term, or the lease bonuses, delay rentals, royalties, or any other compensation to be paid under the terms of such existing leases.
All pooling or unitization agreements or agreements amending existing leases or any part thereof executed under the provisions of this section by the Commissioner of Conservation and Natural Resources must be approved in writing by the Governor.
(Acts 1956, 1st Ex. Sess., No. 158, p. 224, §5; Acts 1982, No. 82-622, p. 1177, §1.)