STATE OIL AND GAS BOARD OF ALABAMA Berry H. (Nick) Tew, Jr. State Geologist and Oil and Gas Supervisor Published by the GEOLOGICAL SURVEY OF ALABAMA for the STATE OIL AND GAS BOARD THE PETROLEUM INDUSTRY IN ALABAMA, 1999–2007 OIL AND GAS REPORT 3U by Douglas R. Hall and David E. Bolin with contributions by Eric V. St. Clair and Gary W. Crawford Tuscaloosa, Alabama 2009 STATE OIL AND GAS BOARD OF ALABAMA OIL AND GAS BOARD 420 Hackberry Lane James H. Griggs, Chairman P.O. Box 869999 Charles E. (Ward) Pearson, Vice Chairman Tuscaloosa, Alabama 35486-6999 Rebecca Wright Pritchett, Member Phone (205)349-2852 Berry H. (Nick) Tew, Jr., Secretary Fax (205)349-2861 S. Marvin Rogers, Counsel www.ogb.state.al.us Berry H. (Nick) Tew, Jr. Oil and Gas Supervisor August 1, 2009 The Honorable Bob Riley Governor of Alabama Montgomery, Alabama Dear Governor Riley: It is with pleasure that I make available to you this report entitled The Petroleum Industry in Alabama, 1999–2007, by Douglas R. Hall and David E. Bolin, which has been published as Oil and Gas Report 3U by the Geological Survey of Alabama. This report was prepared to supply the public and industry with information on the development of the petroleum industry in Alabama with special emphasis on exploration and production activities from 1999 through 2007. These data will be useful to landowners as well as individuals or companies planning property evaluation or oil and gas exploration programs in the state. Other data and information are available on the State Oil and Gas Board web site: http://www.ogb.state.al.us. Respectfully, Berry H. (Nick) Tew, Jr. State Geologist and Oil and Gas Supervisor Mobile Regional Office, 4173 Commanders Drive, Mobile, AL 36615-1421, Phone (251) 438-4848 CONTENTS Page Introduction ......................................................................................................................... 1 Historical overview .............................................................................................................. 1 State summary.............................................................................................................. 1 Conventional development............................................................................................ 3 Southwest Alabama Region.................................................................................... 3 Onshore............................................................................................................. 3 Offshore............................................................................................................. 4 Black Warrior Basin Region .................................................................................... 5 Appalachian Fold and Fault Region ........................................................................ 5 Tennessee Valley Region ....................................................................................... 6 Southeast Alabama Region .................................................................................... 6 Drilling and producing depths and records.............................................................. 7 Unconventional gas development................................................................................. 8 Coalbed methane.................................................................................................... 8 Shale gas ................................................................................................................ 9 Underground gas storage ............................................................................................. 9 Regional developments, 1999–2007 .................................................................................. 10 Southwest Alabama Region.................................................................................... 10 Black Warrior Basin Region .................................................................................... 11 Appalachian Fold and Fault Region ........................................................................ 12 Tennessee Valley Region ....................................................................................... 13 Piedmont Region..................................................................................................... 14 Southeast Alabama Region .................................................................................... 14 Exploration and production statistics and trends, 1999–2007 ............................................ 14 Drilling permits and footage .......................................................................................... 14 Permits .................................................................................................................... 14 Footage ................................................................................................................... 15 Fields, pools, and units ....................................................................................................... 15 Oil and gas production ........................................................................................................ 16 Producing wells ....................................................................................................... 16 Production volumes................................................................................................. 16 Gas production by well type .................................................................................... 16 Gas disposition........................................................................................................ 18 Gas production milestones...................................................................................... 18 National ranking ...................................................................................................... 19 Oil and gas revenues .................................................................................................... 19 Severance taxes ..................................................................................................... 19 Offshore revenues................................................................................................... 19 Trust Fund revenues ............................................................................................... 20 Combined contribution ............................................................................................ 20 Oil and Gas Board Online Resources................................................................................. 22 Web page organization ................................................................................................. 22 Navigation links............................................................................................................. 22 Activity report .......................................................................................................... 23 Hearings.................................................................................................................. 23 Databases ............................................................................................................... 24 Online maps ............................................................................................................ 26 ii CONTENTS—continued Page Other links ............................................................................................................... 27 State Oil and Gas Board ..................................................................................................... 28 History........................................................................................................................... 28 Critical role .................................................................................................................... 28 Mission statement ......................................................................................................... 29 Agency organization...................................................................................................... 29 General structure .................................................................................................... 29 Organizational changes, 1999–2007 ...................................................................... 29 Regulatory developments ............................................................................................. 31 History ..................................................................................................................... 31 General developments, 1999-2007......................................................................... 31 Legal issues—hydraulic fracturing of coalbeds....................................................... 31 State and National advisory boards and committees.................................................... 32 Significant accomplishments and initiatives, 1999–2007.............................................. 32 SMART Plan development and implementation ..................................................... 32 Personnel ................................................................................................................ 32 Geological Survey of Alabama/Oil and Gas Board web site ................................... 33 Document imaging projects..................................................................................... 33 Special studies .......................................................................................................