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 400-1-1-.01 thru 400-7-1-.23 defines the regulations process for oil and gas permits. The following is required for the Oil and Gas Single Well permit for the purpose of commencement of “drilling, competing, converting, operating, or producing any oil, gas, or Class II injection well, including production facilities, processing facilities, injection facilities, underground storage facilities in reservoirs, plants, pipelines, and other equipment associated with such well" (400-1-2-.03):
|Measured Depth (ft)||Amount of Bond Required|
|0 - 5,000||$5,000|
|5,001 – 10,000||$10,000|
|10,001 – 15,000||$15,000|
|15,001 – 20,000||$30,000|
|Greater than 20,000||$50,000|
The premium that you pay for an Alabama Oil and Gas Single Well Permit Surety Bond is dependent on credit and bond amount required.
Tax revenue made from oil and gas in Alabama is used for education and other state programs.
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