Title 9 — Title 9

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 …

This article may be cited as the Alabama Propane Education and Research Act of 2009. History: (Act 2009-580, p. 1707, §1.)

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 and harvesting crops, including also feeding, breeding, and management of livestock and poultry; tillage; husbandry; or farmin…

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 the retail marketers in promoting and stimulating through research, education, marketing, and other methods, the increased and efficien…

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 industry be permitted by referendum to levy upon itself an assessment to be used to promote the industry through consumer education, safety and …

(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 on the question of whether to levy upon themselves an assessment. The referendum shall be conducted on a statewide b…

(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. Vacancies in the unfinished terms of council members shall be filled in the same manner as were the original ap…

(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 be sufficient to cover the cost of plans and programs developed by the council. The assessment may not be greater than on…

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 from violating any provisions of this article. If the council prevails in an action for compliance under this section, a court…

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 may any provision of this article be interpreted as establishing an agreement to pass along to consumers the cost of the assessment pro…

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 laws of the State of Alabama. History: (Act 2009-580, p. 1707, §10.)

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 …

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 a…

The Legislature finds and declares that the following facts are true and correct: (1) The 109th Congress of the United States of America enacted into law Public Law 109-432, Division C, Title I, (43 U.S.C. § 1331 note), commonly known as the “Gulf of Mexico Energy Security Act of…

It is the intent of the Legislature, by the passage of this article, to require that all federal funds made available to the state through Public Law 109-432, Division C, Title I, (43 U.S.C. § 1331 note), and administered by the Alabama Department of Conservation and Natural Reso…

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 this article is to prevent such waste and to protect correlative rights. History: (Acts 1945, No. 1, p. 1, §1; Acts 1969, No. 1033, p. 1916, §…

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 …

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 a…

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 …

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 injection well as defined in the Federal Safe Drinking Water Act, 42 U.S.C. § 300f et seq., before commencing the drilling of any such well, sh…

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…

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 Alabam…

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…

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…

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. History: (Act 2018-75, §3.)

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 Sectio…

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 wh…

(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 with a check, or mailed separately at or near the time the check is mailed. (2) DIVISION ORDER. A contract between the interest o…

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 to the extent there is a conflict with the definitions contained herein, the following definitions shall apply for the purpose…

(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) Th…

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. History: (Acts 1945, No. 1, p. 1, §6.)

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 cha…

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 …

(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…

Development and Production - Lands of Department of Conservation and Natural Resources. (a) 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 Cons…

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 l…

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 navi…

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 Conservati…

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…

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 Conservation and Natural Resources shall obtain written, sealed competitive b…

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 for the necessary legal advertisements for such sales. History: (Acts 1963, No. 529, p…

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 charge to be based upon the cost of printing, handling and mailing by the Department of Conservation and Natural Resources. Hi…

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 be the property of the department or institution to which said lands belong or in which said department or institution sh…

No such revenues shall be expended from such funds unless and to the extent appropriated by law. History: (Acts 1956, 1st Ex. Sess., No. 158, p. 224, §8.)

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 or or…

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 boar…

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 enh…

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 upo…

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 …

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 the area embraced, termed the unit area, and a description of the pool or pools or portions thereof affected and lying within…