(a) All oil or gas produced, all leases in production, including mineral rights in producing properties, and all oil or gas under the ground on producing properties within the State of Alabama shall be exempt from all ad valorem taxes now levied or hereafter levied by the State of Alabama or by any county or municipality. No additional assessment shall be added to the surface value of such lands by the presence of oil or gas thereunder or its production therefrom.
(b) For the purpose of this article, the area of a lease or leases, including oil and gas rights considered to be in production, or the area of any other producing property considered to be in production, shall include an oil or gas drilling unit as established by the State Oil and Gas Board of Alabama and shall be exempt from ad valorem taxation because of production from any one well.
Structure Code of Alabama
Title 40 - Revenue and Taxation.
Article 1 - Privilege Tax on Production.
Section 40-20-1 - Definitions.
Section 40-20-5 - When Reports to Be Filed; Payments to Accompany Reports.
Section 40-20-7 - Deduction of Appropriation for Expenses of Department.
Section 40-20-11 - Enjoining Violation of Article.
Section 40-20-12 - Exemption From Ad Valorem Taxes.
Section 40-20-13 - Collection and Disbursement of Additional Taxes.
Section 40-20-14 - Credits Against Tax for Manufacturers of Direct Reduced Iron.