40-20-1
Section 40-20-1 Definitions. For the purpose of this article, the following terms shall
have the respective meanings ascribed by this section: (1) DEPARTMENT. The state Department
of Revenue. (2) ANNUAL. The calendar year or the taxpayer's fiscal year, when permission is
obtained from the department to use a fiscal year as a tax period in lieu of a calendar year.
(3) VALUE. The sale price or market value at the mouth of the well. If the oil or gas is exchanged
for something other than cash, if there is no sale at the time of severance or if the relation
between the buyer and the seller is such that the consideration paid, if any, is not indicative
of the true value or market price, then the department shall determine the value of the oil
or gas subject to the tax hereinafter provided for, considering the sale price for cash of
oil or gas of like quality. (4) OIL. Crude petroleum oil and other hydrocarbons regardless
of gravity which are produced at the well in liquid form by ordinary...
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9-17-6
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 all other articles relating to the
conservation of oil and gas. (b) The board shall have the authority and it shall be its duty
to make such inquiries as it may think proper to determine whether or not waste, over which
it has jurisdiction, exists or is imminent. In the exercise of such power the board shall
have the authority to perform the following: (1) Collect data. (2) Make investigation and
inspection. (3) Examine properties, leases, papers, books, and records, including drilling
records, logs, and other geological and geophysical data. (4) Examine, check, test, and gauge
oil and gas wells, tanks, plants, processing facilities, structures, natural gas pipelines
and gathering lines, and storage and transportation equipment and facilities, and other modes...

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9-17-1
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. (2) DEVELOPED AREA or DEVELOPED UNIT. A drainage unit having a well completed thereon
which is capable of producing oil or gas in paying quantities; however, in the event it is
shown and the board finds that a part of any unit is nonproductive, then the developed part
of the unit shall include only that part found to be productive. (3) DRAINAGE OR PRODUCTION
UNIT. The area in a pool which may be drained efficiently and economically by one well. (4)
DRILLING UNIT. An administrative unit established by the board to provide and allow for the
drilling of a well. Prior to establishment of a field and drainage or production unit within
the field, the board may establish a drilling unit to allow for the drilling of a well in
search of oil and gas. (5) FIELD. The general area which is underlain or appears to be...

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9-17-12
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 in terms or effect that it will do the following:
(1) That it shall be necessary at any time for the producer from or the owner of, a tract
of land in the pool, or an interest associated therewith or derived therefrom, in order that
he or she may obtain the tract's just and equitable share or the just and equitable share
of the interest of the production of such pool, as the share is set forth in this section,
to drill and operate any well or wells on such tract in addition to the well or wells as can
without waste produce the share. (2) As to occasion net drainage from a tract or any interest
associated therewith or derived therefrom, unless there is drilled and operated upon the tract
a well or wells in addition to such well or wells thereon as can without waste...
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9-17-13
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 proposed drilling or production unit,
or when there are separately owned interests in all or a part of an established or proposed
drilling or production unit, or any combination of such, the persons owning the interests
therein may validly agree to integrate or pool the interests and to develop the interests
and associated lands as a drilling or production unit. Where, however, the owners have not
agreed to so integrate or pool the interests, the board shall, for the prevention of waste
or to avoid the drilling of unnecessary wells, require the persons owning such interests to
do so and to develop their interests and the associated lands as a drilling or production
unit. (b) The board, in order to prevent waste and avoid the drilling of unnecessary...
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9-17-80
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 by the application of energy extrinsic to the pool, including repressuring, cycling,
pressure maintenance, injection, or any other enhanced recovery methods of producing hydrocarbons
recognized by the oil and gas industry and approved by the board. (Acts 1957, No. 352, p.
461, §9; Act 2000-714, p. 1517, §1.)...
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9-17-132
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. The State Oil and Gas Board created in Section 9-17-3. (2) FUND. The Alabama
Coalbed Methane Gas Well Plugging Fund established in Section 9-17-133. (3) COALBED
METHANE GAS WELL. A well capable of producing occluded natural gas from a coalbed or coalbeds.
(4) PLUGGING FEE. The fee authorized by Section 9-17-137. (5) OPERATOR. Any person
who notifies the supervisor pursuant to Section 9-17-24 of such person's desire or
proposal to drill a coalbed methane gas well. (6) PERSON. Any natural person, firm, corporation,
association, partnership, joint venture, receiver, trustee, guardian, executor, administrator,
fiduciary, representative of any kind or any other group acting as a unit. (7) SUPERVISOR.
The state oil and gas supervisor. (Acts 1990, No. 90-635, p. 1164, §3.)...
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40-20-2
Section 40-20-2 Levy and amount of tax upon business of producing or severing oil or
gas from soil, etc., generally. (a)(1) There is hereby levied, to be collected hereafter,
as herein provided, annual privilege taxes upon every person engaging or continuing to engage
within the State of Alabama in the business of producing or severing oil or gas, as defined
herein, from the soil or the waters, or from beneath the soil or the waters, of the state
for sale, transport, storage, profit, or for use. The amount of such tax shall be measured
at the rate of eight percent of the gross value of the oil or gas at the point of production
except as provided in subsequent subdivisions of this subsection. 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 article, but shall be computed as a percentage of gross proceeds, as...
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9-17-82
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 pools or of any portion of a pool or combinations thereof within the field
is reasonably necessary to prevent waste, to increase the ultimate recovery of oil or gas,
to avoid the drilling of unnecessary wells, to allow the drilling of wells at optimum geologic
locations, and to protect the correlative rights of interested parties. (2) The proposed plan
for unit operations will increase the ultimate recovery of oil or gas by enhanced recovery
methods or any other method of cooperative development and operation calculated to increase
the ultimate recovery of oil or gas. (3) The estimated additional cost incident to conduction
of such operation will not exceed the value of the estimated additional recovery of oil or
gas. (Acts 1957, No. 352, p. 461, §2; Act 2000-714, p. 1517, §1.)...
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9-17-81
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 optimum geologic locations, and protect correlative
rights, the State Oil and Gas Board of Alabama upon its own motion may, or upon the petition
of any interested person shall, hold a hearing to consider the need for the operation as a
unit of an entire field or of any pool or pools or of any portion of a pool or combinations
thereof within a field for the production of oil or gas or both in order to increase the ultimate
recovery by enhanced recovery methods or any other method of cooperative development and operation
calculated to increase the ultimate recovery of oil or gas. (Acts 1957, No. 352, p. 461, §1;
Act 2000-714, p. 1517, §1.)...
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