Alabama Administrative Code Title 400 - STATE OIL AND GAS BOARD OF ALABAMA
The Alabama Administrative Code, Title 400, is entirely dedicated to the State Oil and Gas Board of Alabama. This Board is a crucial regulatory agency with the statutory mandate to manage and oversee all aspects of oil and gas exploration, production, and conservation within the state.
The primary mission of the State Oil and Gas Board of Alabama, and therefore the focus of its administrative rules, is to:
Prevent Waste and Promote Conservation: This is the overarching goal. The Board defines "waste" broadly, encompassing inefficient drilling, storage, and production practices, as well as the pollution of fresh water supplies and unnecessary surface loss of oil or gas. The rules are designed to ensure the maximum efficient recovery of petroleum resources.
Protect the Environment: A significant aspect of the Board's regulations involves preventing environmental harm from oil and gas operations, particularly the pollution of fresh water by oil, gas, saltwater, or other contaminants. This includes rules for drilling, casing, plugging wells, and waste fluid disposal.
Ensure Correlative Rights of Owners: The Board works to protect the rights and opportunities of all owners of oil and gas in a common reservoir, preventing disproportionate withdrawals or undue drainage between different land tracts.
Regulate All Phases of Oil and Gas Operations: The rules cover the entire lifecycle of an oil and gas well, from initial permitting to abandonment and site restoration.
Key areas detailed within Title 400 include:
Onshore Land Operations (Chapter 400-1): This comprehensive chapter covers the vast majority of oil and gas activities on land. It includes rules for:
Permitting of Wells: Requirements for obtaining permits to drill, complete, convert, operate, or produce wells, including bonding requirements (e.g., Chapter 400-1-2-.03 specifies bond amounts based on well depth).
Drilling: Standards for well casing, cementing, drilling fluids, deviation tests, and blowout prevention.
Producing Operations: Regulations for efficient production, gas-oil ratios, well completion, and maintenance.
Safety and Environmental Protection: Rules on fire prevention, pit construction, disposal of saltwater and other waste fluids, and restoration of drilling locations.
Reporting Requirements: Mandates for filing logs, drilling records, production reports, and other operational data.
Identification: Rules for identifying ownership of wells, leases, and facilities.
Submerged Offshore Lands Operations (Chapter 400-2): Specific rules tailored to drilling, producing, and pipeline operations in Alabama's submerged offshore lands. This includes regulations for plugging exploratory holes.
Coalbed Methane Gas Operations (Chapter 400-3): Dedicated rules for the permitting, drilling, and production of coalbed methane gas, recognizing the unique aspects of this resource.
Class II Injection Control Operations (Chapter 400-4): Regulations for Class II injection wells, which are used primarily for the enhanced recovery of oil and gas or for the disposal of fluids associated with oil and gas production. These are regulated under the federal Safe Drinking Water Act and state rules.
Underground Storage of Gas in Reservoirs (Chapter 400-5) and Solution-Mined Cavities (Chapter 400-6): Rules governing the safe and efficient underground storage of natural gas.
Practice and Procedure and Forced Integration or Forced Pooling (Chapter 400-7): This chapter outlines the formal procedures for hearings conducted by the Board, including notice requirements, evidence, and orders. It also covers the legal mechanisms for "forced pooling" or "forced integration," which allows for the compulsory pooling of small tracts to form a drilling unit when voluntary agreements cannot be reached, ensuring efficient development of a common reservoir.
Geologic Storage of Carbon Dioxide (Chapter 400-8): A more recent addition, this chapter specifically governs the geologic storage or sequestration of carbon dioxide, demonstrating the Board's adaptation to new energy technologies and environmental concerns.
The Board is composed of three members appointed by the Governor, and the State Geologist serves as the State Oil and Gas Supervisor, responsible for enforcing the Board's rules.
In essence, Alabama Administrative Code Title 400 provides the comprehensive legal and operational framework for the State Oil and Gas Board of Alabama to ensure the responsible, efficient, and environmentally sound development of the state's petroleum resources.
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