Alabama's law lets the State Oil and Gas Board approve certain deep-well energy facilities and lets the conservation commissioner lease state lands for energy uses.
The board may approve facilities using wells at least 5,000 feet deep, including conversions of existing oil or gas wells. Operators must meet consent, fee, financial security, and other requirements.
The commissioner may lease state lands for energy uses such as geothermal, solar, and hydropower projects, and may change renewal or extension terms for leases.
The State Oil and Gas Board may approve alternative energy facilities and conversions of existing oil or gas wells. Covered resources include geothermal energy and other forms of energy generation, capture, and storage, including some hydropower. The definition excludes on-site building heating and cooling systems; the law also excludes hydropower projects under federal licensing jurisdiction. The board must provide notice and hold a public hearing before approving a facility or conversion. An alternative energy well must extend at least 5,000 feet below the surface. Applicants must pay fees set by board rule and provide financial security for the proposed uses. Operators must make a good faith effort to obtain owners' consent and must obtain consent from owners of at least two-thirds of the facility's energy resources. After notice and a public hearing, the board may pool resources owned by nonconsenting owners. If it orders pooling, the operator must compensate those owners on terms the board finds fair and reasonable. For a facility within 10 miles of a coal mine, the operator must get written consent from the mine operator and mineral owner; consent cannot be unreasonably withheld or delayed. Operators must make commercially reasonable efforts to limit harm to those owners' surface land use. The law takes effect immediately. If a facility stops producing alternative energy for 12 months or more, the board must require it to be plugged and abandoned.
The Commissioner of Conservation and Natural Resources may lease state lands for energy sources and related uses, and may change lease renewal or extension terms. This applies to lands or interests under the Department of Conservation and Natural Resources' jurisdiction. Covered uses include generating, capturing, storing, and transmitting geothermal, solar, and hydropower energy. For an existing lease, the commissioner's actions and negotiations over renewal or extension terms are exempt from Section 9-17-65. The commissioner may not sell the land. The law takes effect immediately.
No hearings or votes scheduled.