AL HB467

Defines "horizontal well" as a well initially drilled vertically then turned and drilled at an angle of 75 degrees or greater from vertical.

Exempts horizontal wells drilled into oil reservoirs from acreage limitations applicable to other oil wells; the State Oil and Gas Board determines the size and configuration of drilling and drainage units for horizontal oil wells, with a maximum of 640 acres or one governmental section plus 10 percent tolerance.

Exempts offshore wells from acreage limitations for both oil and gas reservoirs; the State Oil and Gas Board determines the size and configuration of drilling and drainage units for offshore wells.

Allows the State Oil and Gas Board to establish larger shale natural gas and coalbed methane drainage units with multiple wells under specified conditions when a party demonstrates one well cannot efficiently and economically drain the entire unit.

Becomes effective on the first day of the third month following passage and approval by the Governor.