Senate Bill 174 Alabama 2026 Session

Summary

Primary Sponsor

Greg AlbrittonSenator

Republican

Session

2026 Regular Session

Title

Natural resources; conversion of oil and gas wells into alternative energy facilities authorized; lease of state lands for energy sources by Commissioner of Conservation expanded

Summary

The bill would let Alabama convert oil and gas wells into alternative energy facilities, allow pooling of energy rights under certain conditions, and expand state land leasing to include other energy sources.

What This Bill Does

The bill lets the State Oil and Gas Board approve converting oil/gas wells into alternative energy facilities and regulate their operation and abandonment. It allows the board to pool energy rights and requires consent from owners representing at least 66 2/3% of the resources, with compensation for nonconsenting owners. It expands the Commissioner of Conservation and Natural Resources' leasing authority to include energy sources such as geothermal, solar, and hydropower and allows modification of lease terms. If a facility stops producing energy for 12 months or more, the board can require plug and abandon; and once a conversion is approved, the facility is not considered inactive.

Who It Affects

• Oil and gas well owners and operators, and owners of alternative energy resources on their property (they could have wells converted, rights amalgamated, and must pursue consent with potential compensation and subject to board rules and fees).
• Coal mine operators and mineral owners located in the Blue Creek or Mary Lee seams or within 10 miles of a coal mine operation (they must provide written consent; consent cannot be unreasonably withheld or delayed).

Key Provisions

• Authorizes the State Oil and Gas Board to approve the development and operation of alternative energy facilities or the conversion of oil/gas wells and associated infrastructure into such facilities.
• Authorizes amalgamation (pooling) of alternative energy resource rights under certain conditions and requires consent from owners representing at least 66 2/3 percent, with compensation for nonconsenting owners.
• Requires alternative energy facility operators to follow board rules, actively obtain consent of energy resource owners, minimize surface impacts, and obtain written consent from coal mine operators/mineral owners within specified coal seams or near coal mines.
• Authorizes the board to set fees to cover its regulation of alternative energy facilities and directs those fees into the Board's special fund.
• Expands the lease authority to include exploration, development, and production of other energy sources (geothermal, solar, hydropower) and allows the Commissioner to modify lease renewal terms; clarifies conversions do not render the facility inactive and are exempt from certain lease-renewal processes.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Conservation & Natural Resources