SB 174

This act: (1) authorizes the State Oil and Gas Board to authorize the operation of, including converting existing oil and gas wells into, alternative energy facilities that extend 5,000 feet or more below the land surface, subject to conditions; (2) requires facility operators to petition the board for authorization, pay fees and maintain financial security instruments for the facility's uses, and limit adverse surface impacts; (3) requires operators to make a good faith effort to obtain the consent of all owners of alternative energy resources within a facility, require consent from 66 and 2/3 of owners, and upon 66 and 2/3 of owners consenting, authorize the board to amalgamate all nonconsenting owners' resources into the facility for equitable compensation. This act also amends Section 9-17-60, Code of Alabama 1975, to: (1) add developing and producing energy sources and related uses to the purposes for which the Commissioner of Conservation and Natural Resources may lease state lands; and (2) authorize the commissioner to modify the renewal or extension terms of these leases.