Alabama Oil And Gas Statutes

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Alabama Oil And Gas Statutes

 

The Alabama legislature enacted the Alabama oil and gas statutes in 1945.  (1945 Ala. Acts 1, approved May 22, 1945.)  The statutes are now codified in Sections 9-17-1 through 9-17-157 of the Code of Alabama (1975).  The current codification contains many additions to the original act.  The act creates a regulated approach to exploration, drilling, and production by:

 

Creating the State Oil and Gas Board of Alabama to oversee oil and gas operations in Alabama. (Ala. Code § 9-17-3 (1975).)

 

Prohibiting physical waste in Alabama oil and gas operations. (Ala. Code §§ 9-17-1(18), 9-17-2, 9-17-6 (1975).)

 

Protecting the  correlative rights of the owners of the oil and gas to produce their hydrocarbons. (Ala. Code §9-17-2 (1975).)

 

Authorizing the State Oil and Gas Board of Alabama to establish and to regulate drilling and production units. (Ala. Code § 9-17-12(b) (1975).)

 

Authorizing the State Oil and Gas Board of Alabama to enter “force-pooling” orders.  (Ala. Code § 9-17-13 (1975).)  The force-pooling order allows the operator to drill and produce the from a unit, whether or not the operator has oil and gas leases or agreements from all the owners of the minerals in the unit.

 

Authorizing the State Oil and Gas Board of Alabama to establish allowable production rates for wells. (Ala. Code § 9-17-6(c)(15) (Supp. 19901975).)

 

Authorizing the State Oil and Gas Board of Alabama to allow an entire field to be operated under a common unit plan in order to enhance the recovery of oil or gas by secondary recovery methods. (Ala. Code § 9-17-80 (1975).)

 

Copyright 2011 by Edward G, Hawkins. All rights reserved.