The bill authorizes the State Oil and Gas Board to regulate alternative energy wells and associated operations, including the conversion of existing oil and gas wells into alternative energy facilities. It establishes a framework for the operation and abandonment of these facilities, requiring operators to adhere to specific conduct, obtain consent from resource owners, and compensate nonconsenting owners under certain conditions. The board is empowered to set fees to cover its regulatory expenses and to adopt rules for the administration of these provisions. Additionally, the bill amends Section 9-17-60 of the Code of Alabama 1975 to expand the leasing authority of the Commissioner of Conservation and Natural Resources to include energy sources and related uses, such as geothermal energy, solar energy, and hydropower.

Key insertions in the bill include the definitions of "alternative energy facility," "alternative energy well," and "alternative energy resources," as well as the addition of "energy sources and related uses" to the leasing authority of the Commissioner. The bill also allows for modifications to lease terms and clarifies that it does not affect existing provisions of Title 37 of the Code of Alabama. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 9-17-24
Engrossed: 9-17-24