The State Oil and Gas Board of Alabama, is a regulatory agency that promotes protection and conservation of the environment. The board enforces the state rules and regulations through oversight of oil and gas drilling, operation, exploration, 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. Operators need to obtain a Oil and Gas Single Well permit to competing, drilling, opertating, converting, or producing any gas, oil or Class II injection wells, including injection facilities, underground storage facilities in reservoirs, production facilities, processing facilities, plants, pipelines, and other equipment associated with such well as well as other regulations found in the Alabam Code (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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