HB503 Alabama 2013 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2013

Title

Oil and Gas Board, oil sands, included in regulation of oil and gas, fees, Secs. 9-17-6, 9-17-24 am'd.

Summary

The bill broadens the Oil and Gas Board’s power to regulate oil sands in Alabama and creates new fees for drilling, fracturing coal groups, surface mining oil sands, and related operations, with revenue placed into a dedicated Board fund.

What This Bill Does

It adds oil sands to the board’s regulatory scope and allows the board to set fees for oil sands operations by rule. It establishes per-well and petition fees for drilling and public hearings, and sets fracturing fees for coal groups (up to $250 per stage, up to $750 per well, with coalbed methane stages counting as one group). It also requires acreage-based fees for surface mining of oil sands. All collected fees go into a dedicated State Oil and Gas Board Special Fund to cover the board’s expenses, with strict budget and non-transfer rules. The bill preserves and expands the board’s ability to regulate drilling and prevent waste, pollution, and other harms, including reporting, bonding, and meter requirements.

Who It Affects

• Oil and gas operators and drilling entities (including coalbed methane operators) who must pay the new fees and follow new reporting and regulatory requirements.
• The Alabama State Oil and Gas Board, the State Treasurer, and the State Comptroller, which would manage and disburse the new Special Fund used to cover board expenses.

Key Provisions

• Expands the board's authority to include regulation of oil sands and authorizes setting fees for oil sands operations by rule.
• Imposes a $300 drilling fee per well and a $150 filing fee for petitions requesting a public hearing; allows forma pauperis petitions with a separate process.
• Requires fracturing coal groups or geologic formations with fees not to exceed $250 per coal group per fracture stage, up to a $750 maximum per well; coalbed methane stages count as a single coal group.
• Requires notification and acreage-based fees for surface mining operations to recover oil from oil sands, with those fees set by board rule.
• All fees collected are deposited into the Alabama State Oil and Gas Board Special Fund, used to pay board expenses, and governed by budget and withdrawal restrictions (no transfer to the General Fund).
• The bill gives the board authority to implement and enforce regulations to prevent waste, pollution, and other issues related to oil and gas operations, including reporting and metering requirements.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Oil and Gas Board, State