SB366 Summary

• Amends Alabama Code Sections 9-17-1 and 9-17-12 to add "horizontal well" definition as a well initially drilled vertically then turned at an angle of 75 degrees or greater from vertical.

• Exempts horizontal wells drilled in oil reservoirs from standard acreage limitations; board shall determine size and configuration of drilling units and drainage or production units for horizontal oil wells up to a maximum of 640 acres or one governmental section plus 10 percent tolerance.

• Exempts offshore wells from standard acreage limitations; board shall determine size and configuration of drilling units and drainage or production units for all offshore wells regardless of reservoir type.

• Establishes specific spacing requirements for shale natural gas reservoirs (320 acres maximum for vertical wells, 640 acres for horizontal wells) and coalbed methane reservoirs (80-acre units with board discretion to allow a second well upon demonstrated evidence).

• Effective on the first day of the third month following passage and approval by the Governor.