AL
Alabama Senate Bill SB36

Alabama 2022 Regular Session

Alabama Senate Bill SB36 Compare Versions

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11 1 SB36
2-2 215758-3
2+2 215758-2
33 3 By Senators Albritton and Reed
44 4 RFD: Governmental Affairs
55 5 First Read: 11-JAN-22
66 6 PFD: 01/06/2022
77
8-Page 0 SB36
9-1 SB36
8+Page 0 1 SB36
109 2
1110 3
12-4 ENROLLED, An Act,
13-5 Relating to the State Oil and Gas Board; to amend
14-6 Sections 9-17-150 and 9-17-151 of the Code of Alabama 1975, to
15-7 further define gas to include certain additional gases for the
16-8 purpose of regulation of underground storage facilities by the
17-9 board; to further specify the authority of the board to
18-10 regulate the operation and abandonment of underground storage
19-11 facilities, including the authority to require a bond to
20-12 insure the performance of any duties relating to an
21-13 underground storage facility; and to authorize the board to
22-14 adopt rules providing fees to defray the expenses of the board
23-15 in regulating underground storage facilities.
24-16 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
25-17 Section 1. Sections 9-17-150 and 9-17-151 of the
26-18 Code of Alabama 1975, are amended to read as follows:
27-19 "§9-17-150.
28-20 "Unless the context otherwise requires, the
29-21 following words and terms defined in this section shall have
30-22 the following meanings when found in this article:
31-23 "(7) (1) CODE. The Code of Alabama 1975, as amended.
32-24 "(2) GAS. All natural gas, casinghead gas, carbon
33-25 oxides, ammonia, hydrogen, nitrogen, noble gases, and occluded
34-Page 1 SB36
35-1 natural gas found in coal beds, and all other hydrocarbons not
36-2 defined as oil in Section 9-17-1(3), except and not including
37-3 liquid petroleum gas.
38-4 "(6) (3) STATE OIL AND GAS BOARD or BOARD. The State
39-5 Oil and Gas Board of Alabama; and.
40-6 "(4) STORAGE FACILITY. Any underground reservoir
41-7 used or to be used for the underground storage of gas and all
42-8 surface and subsurface rights and appurtenances necessary or
43-9 useful in the operation of the facility for the underground
44-10 storage of gas, including any necessary or reasonable buffer
45-11 zone as designated by the board for the purpose of insuring
46-12 the safe operation of the storage of gas and to protect the
47-13 storage facility against pollution, invasion, and escape or
48-14 migration of gas therefrom, together with any and all
49-15 subsequent extensions thereof.
50-16 "(5) STORAGE OPERATOR. Any company, person,
51-17 corporation, partnership, limited partnership, association of
52-18 persons, municipality, association of municipalities, public
53-19 utility, gas district, or other entity, authorized by the
54-20 State Oil and Gas Board pursuant to Section 9-17-152 to
55-21 operate any storage facility as defined in this section.
56-22 "(3) (6) UNDERGROUND RESERVOIR. Any subsurface sand,
57-23 stratum, formation, aquifer, or cavity, cavern or void
58-24 (whether natural or artificially created), suitable for or
59-Page 2 SB36
60-1 capable of being made suitable for the injection and storage
61-2 of gas therein and the withdrawal of gas therefrom.
62-3 "(1) (7) UNDERGROUND STORAGE. Storage in an
63-4 underground reservoir.
64-5 "§9-17-151.
65-6 "(a) (1) The underground storage of gas which
66-7 promotes the conservation thereof, which permits the
67-8 accumulation of large quantities of gas in reserve for orderly
68-9 withdrawal in periods of peak demand, making gas more readily
69-10 available to commercial, industrial, or residential consumers,
70-11 or which provides more uniform withdrawal from various gas or
71-12 oil fields, is in the public interest and welfare of this
72-13 state, and is for a public purpose.
73-14 "(2) The underground storage of carbon oxides,
74-15 ammonia, hydrogen, nitrogen, and noble gases is in the public
75-16 interest and welfare of this state and is for a public
76-17 purpose.
77-18 "(b) The State Oil and Gas Board shall have
78-19 jurisdiction and authority over all persons and property
79-20 necessary to administer and enforce effectively the provisions
80-21 of this article concerning the underground storage of gas. In
81-22 exercising such jurisdiction and authority, the board shall
82-23 have and may exercise all powers and authorities granted to it
83-24 pursuant to Article 1 of this chapter with respect to holding
84-Page 3 SB36
85-1 hearings and promulgating adopting and enforcing rules,
11+4 ENGROSSED
12+5
13+6
14+7 A BILL
15+8 TO BE ENTITLED
16+9 AN ACT
17+10
18+11 Relating to the State Oil and Gas Board; to amend
19+12 Sections 9-17-150 and 9-17-151 of the Code of Alabama 1975, to
20+13 further define gas to include certain additional gases for the
21+14 purpose of regulation of underground storage facilities by the
22+15 board; to further specify the authority of the board to
23+16 regulate the operation and abandonment of underground storage
24+17 facilities, including the authority to require a bond to
25+18 insure the performance of any duties relating to an
26+19 underground storage facility; and to authorize the board to
27+20 adopt rules providing fees to defray the expenses of the board
28+21 in regulating underground storage facilities.
29+22 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
30+23 Section 1. Sections 9-17-150 and 9-17-151 of the
31+24 Code of Alabama 1975, are amended to read as follows:
32+25 "§9-17-150.
33+Page 1 1 "Unless the context otherwise requires, the
34+2 following words and terms defined in this section shall have
35+3 the following meanings when found in this article:
36+4 "(7) (1) CODE. The Code of Alabama 1975, as amended.
37+5 "(2) GAS. All natural gas, casinghead gas, carbon
38+6 oxides, ammonia, hydrogen, nitrogen, noble gases, and occluded
39+7 natural gas found in coal beds, and all other hydrocarbons not
40+8 defined as oil in Section 9-17-1(3), except and not including
41+9 liquid petroleum gas.
42+10 "(6) (3) STATE OIL AND GAS BOARD or BOARD. The State
43+11 Oil and Gas Board of Alabama; and.
44+12 "(4) STORAGE FACILITY. Any underground reservoir
45+13 used or to be used for the underground storage of gas and all
46+14 surface and subsurface rights and appurtenances necessary or
47+15 useful in the operation of the facility for the underground
48+16 storage of gas, including any necessary or reasonable buffer
49+17 zone as designated by the board for the purpose of insuring
50+18 the safe operation of the storage of gas and to protect the
51+19 storage facility against pollution, invasion, and escape or
52+20 migration of gas therefrom, together with any and all
53+21 subsequent extensions thereof.
54+22 "(5) STORAGE OPERATOR. Any company, person,
55+23 corporation, partnership, limited partnership, association of
56+24 persons, municipality, association of municipalities, public
57+25 utility, gas district, or other entity, authorized by the
58+26 State Oil and Gas Board pursuant to Section 9-17-152 to
59+27 operate any storage facility as defined in this section.
60+Page 2 1 "(3) (6) UNDERGROUND RESERVOIR. Any subsurface sand,
61+2 stratum, formation, aquifer, or cavity, cavern or void
62+3 (whether natural or artificially created), suitable for or
63+4 capable of being made suitable for the injection and storage
64+5 of gas therein and the withdrawal of gas therefrom.
65+6 "(1) (7) UNDERGROUND STORAGE. Storage in an
66+7 underground reservoir.
67+8 "§9-17-151.
68+9 "(a) (1) The underground storage of gas which
69+10 promotes the conservation thereof, which permits the
70+11 accumulation of large quantities of gas in reserve for orderly
71+12 withdrawal in periods of peak demand, making gas more readily
72+13 available to commercial, industrial, or residential consumers,
73+14 or which provides more uniform withdrawal from various gas or
74+15 oil fields, is in the public interest and welfare of this
75+16 state, and is for a public purpose.
76+17 "(2) The underground storage of carbon oxides,
77+18 ammonia, hydrogen, nitrogen, and noble gases is in the public
78+19 interest and welfare of this state and is for a public
79+20 purpose.
80+21 "(b) The State Oil and Gas Board shall have
81+22 jurisdiction and authority over all persons and property
82+23 necessary to administer and enforce effectively the provisions
83+24 of this article concerning the underground storage of gas. In
84+25 exercising such jurisdiction and authority, the board shall
85+26 have and may exercise all powers and authorities granted to it
86+27 pursuant to Article 1 of this chapter with respect to holding
87+Page 3 1 hearings and promulgating adopting and enforcing rules,
8688 2 regulations, and orders.
8789 3 "(c) In addition to any other authority of the
8890 4 board, the board shall have jurisdiction and authority to
8991 5 regulate the operation and abandonment of underground storage
9092 6 facilities. The board may require reasonable bond, with good
9193 7 and sufficient surety, or other financial security approved by
9294 8 the board, conditioned on compliance with any rules or orders
9395 9 of the board relating to underground storage facilities,
9496 10 including the abandonment of underground storage facilities.
9597 11 "(d) The board may adopt rules providing fees and
9698 12 charges to defray expenses of the board in the regulation of
9799 13 the operation and abandonment of underground storage
98100 14 facilities. "
99101 15 Section 2. This act shall become effective on the
100102 16 first day of the third month following its passage and
101103 17 approval by the Governor, or its otherwise becoming law.
102-Page 4 SB36
103-1
104+Page 4 1
104105 2
105-3
106-4
107-President and Presiding Officer of the Senate
108-
109-5
110-6 Speaker of the House of Representatives
111-SB367
112-8 Senate 01-FEB-22
113-9 I hereby certify that the within Act originated in and passed
114-10 the Senate, as amended.
115-11
116-12 Patrick Harris,
117-13 Secretary.
106+3 Senate
107+Read for the first time and referred to the Senate4
108+committee on Governmental Affairs.................5 1.1-JAN-22
109+ 6
110+Read for the second time and placed on the calen-7
111+dar 1 amendment..................................8 1.8-JAN-22
112+ 9
113+Read for the third time and passed as amended ....10 0.1-FEB-22
114+Yeas 3111
115+12 Nays 0
116+13
118117 14
119-15
120-16
121-17 House of Representatives
122-18 Passed: 15-FEB-22
123-19
124-20
125-21 By: Senator Albritton
118+15 Patrick Harris,
119+16 Secretary.
120+17
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