The State Oil and Gas Board of Alabama is a regulatory agency that promotes conservation and protection of the environment.
The board enforces the state rules and regulations through oversight of oil and gas exploration, drilling, operation, and production, Class II injection wells, and underground storage of gas in reservoirs in Alabama.
The Oil and Gas Board of Alabama Administrative Code 400-3-2-.01 thru 400-3-9.01 defines the regulations process for coalbed methane gas regulations and operations including the permit requirement. Any owner/operator that plans to operate, drill in search of oil or gas, plug, drill a class II injection well or convert to a class II for enhanced recovery or salt water disposal must first obtain a permit.
To obtain a Coalbed Methane Gas Operations Blanket Bond Permit or a Single Well Bond Permit for the purpose of commencement of “drilling, competing, converting operating, or producing any coalbed methane gas well or Class II injection well, including production facilities, injection facilities, pipelines, and other equipment associated with such wells “(400-3-2-.03) the following is required:
Obtain a surety bond in the amount as follows for the number and depth of wells:
Multiple Wells: Measured Depth (ft) - Amount of bond required:
Single Wells: Measured Depth (ft) - Amount of bond required:
The premium that you pay for an Alabama Coalbed Methane Gas Operations Blanket Bond or a Single Well Bond is dependent on credit and the depth of the well(s).
The first traces of natural gas were discovered in the counties of Morgan and Blount Alabama during the late 1880’s.
The cities of Huntsville and Hazel Green used natural gas in 1902.
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