HOUSE BILL No. 5118 October 2, 2001, Introduced by Reps. Shackleton, Allen, Mead, Vander Veen, Van Woerkom, Patterson, Bishop, Kowall and Meyer and referred to the Committee on Conservation and Outdoor Recreation. A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending sections 502, 32503, and 33938 (MCL 324.502, 324.32503, and 324.33938), section 502 as amended by 1998 PA 114 and sections 32503 and 33938 as added by 1995 PA 59, and by adding section 61505a. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 502. (1) The commission may promulgate rules, not 2 inconsistent with law, governing its organization and procedure. 3 (2) The department maypromulgateDO 1 OR MORE OF THE 4 FOLLOWING: 5 (A) PROMULGATE and enforce reasonable rules concerning the 6 use and occupancy of lands and property under its control in 7 accordance with section 504.; may provide04740'01 * JCB 2 1 (B) PROVIDE and develop facilities for outdoor recreation. 2; may conduct3 (C) CONDUCT investigations it considers necessary for the 4 proper administration of this part.; may remove5 (D) REMOVE and dispose of forest products as required for 6 the protection, reforestation, and proper development and conser- 7 vation of the lands and property under THE control of the 8 department.; and may require9 (E) REQUIRE the payment of a fee as provided by law for a 10 daily permit or other authorization that allows the person to 11 hunt and take waterfowl on a public hunting area managed and 12 developed for waterfowl. 13 (3)(2)Except as provided in subsection(3)(4), the 14 department may enter into contracts for the taking of coal, oil, 15 gas, and other mineral products from state owned lands, upon a 16 royalty basis or upon another basis, and upon the terms the 17 department considers just and equitable subject to section 502a. 18 This contract power includes authorization to enter into con- 19 tracts for the storage of gas or other mineral products in or 20 upon state owned lands, if the consent of the state agency having 21 jurisdiction and control of the state owned land is first 22 obtained. A contract permitted under this section for the taking 23 of coal, oil, gas, or metallic mineral products, or for the stor- 24 age of gas or other mineral products, is not valid unless the 25 contract is approved by the state administrative board. Money 26 received from a contract for the storage of gas or other mineral 27 products in or upon state lands shall be transmitted to the state 04740'01 * 3 1 treasurer for deposit in the general fund of the state to be used 2 for the purpose of defraying the expenses incurred in the admin- 3 istration of this act and other purposes provided by law. Other 4 money received from a contract permitted under this subsection, 5 except money received from lands acquired with money from the 6 game and fish protection fund created in section 43553, shall be 7 transmitted to the state treasurer for deposit in the Michigan 8 natural resources trust fund created in section 35 of article IX 9 of the state constitution of 1963 AND PROVIDED FOR IN PART 19. 10 However, the money received from the payment of service charges 11 by a person using areas managed for waterfowl shall be credited 12 to the game and fish protection fund and used only for the pur- 13 poses provided by law. Money received from bonuses, rentals, 14 delayed rentals, royalties, and the direct sale of resources, 15 including forest resources, from lands acquired with money from 16 the game and fish protection fund shall be credited to the game 17 and fish protection trust fund created in section 43702, except 18 as otherwise provided by law. 19 (4)(3) TheBEGINNING ON THE EFFECTIVE DATE OF THE 2001 20 AMENDATORY ACT THAT AMENDED THIS SECTION, SUBJECT TO SECTIONS 21 32503 AND 61505A, THE department shall not enter into a contract 22 that permits drilling operations for the taking of oil or gas 23 from the lake bottomlands of the Great Lakes or THE connecting or 24 connected bays, harbors, or waterways, unless all drilling25operations originate from locations above and inland of the ordi-26nary high-water mark. TheOF THE GREAT LAKES. BEGINNING ON THE 27 EFFECTIVE DATE OF THE 2001 AMENDATORY ACT THAT AMENDED THIS 04740'01 * 4 1 SECTION, SUBJECT TO SECTIONS 32503 AND 61505A, THE department 2 shall not enter into a contract THAT PERMITS DRILLING OPERATIONS 3 for exploration of the lake bottomlands of the Great Lakes or THE 4 connecting or connected bays, harbors, or waterwaysthat permits5drilling operations unless all drilling operations originate from6locations above and inland of the ordinary high-water markOF 7 THE GREAT LAKES. 8 (5)(4)This section does not permit a contract for the 9 taking of gravel, sand, coal, oil, gas, or other metallic mineral 10 products that does not comply with applicable local ordinances 11 and state law. 12 Sec. 32503. (1) Except as otherwise provided in this sec- 13 tion, the department, after finding that the public trust in the 14 waters will not be impaired or substantially affected, may enter 15 into agreements pertaining to waters over and the filling in of 16 submerged patented lands, or to lease or deed unpatented lands, 17 after approval of the state administrative board. Quitclaim 18 deeds, leases, or agreements covering unpatented lands may be 19 issued or entered into by the department with any person, and 20 shall contain such terms, conditions, and requirements as the 21 department determines to be just and equitable and in conformance 22 with the public trust. The department shall reserve to the state 23 all mineral rights, including, but not limited to, coal, oil, 24 gas, sand, gravel, stone, and other materials or products located 25 or found in those lands, except where lands are occupied or to be 26 occupied for residential purposes at the time of conveyance. 04740'01 * 5 1 (2) A riparian owner shall obtain a permit from the 2 department before dredging or placing spoil or other materials on 3 bottomland. 4 (3)TheBEGINNING ON THE EFFECTIVE DATE OF THE 2001 AMEN- 5 DATORY ACT THAT AMENDED THIS SECTION, SUBJECT TO SUBSECTION (5), 6 THE department shall not enter into a lease or deed of unpatented 7 lands that permits drilling operations for the taking of oil or 8 gas., unless all drilling operations originate from locations9above and inland of the ordinary high-water mark. TheBEGINNING 10 ON THE EFFECTIVE DATE OF THE 2001 AMENDATORY ACT THAT AMENDED 11 THIS SECTION, SUBJECT TO SUBSECTION (5), THE department shall not 12 enter into a lease or deed of unpatented lands that permits 13 drilling for exploration purposes.unless the drilling opera-14tions originate from locations above and inland of the ordinary15high-water mark.16 (4) An agreement, lease, or deed entered into under this 17 part by the department with the United States shall be entered 18 into and executed pursuant to the property rights acquisition 19 act,Act No. 201 of the Public Acts of 1986, being section 3.25120to 3.262 of the Michigan Compiled Laws1986 PA 201, MCL 3.251 TO 21 3.262. 22 (5) THE DEPARTMENT MAY ENTER INTO A LEASE OR DEED OF UNPAT- 23 ENTED LANDS THAT PERMITS DRILLING OPERATIONS FOR THE EXPLORATION 24 OR TAKING OF OIL OR GAS IF THE LEGISLATURE BY CONCURRENT RESOLU- 25 TION ADOPTED BY A MAJORITY OF MEMBERS ELECTED TO AND SERVING IN 26 EACH HOUSE OF THE LEGISLATURE DECLARES THERE TO BE A STATE ENERGY 27 EMERGENCY. HOWEVER, IF THE DEPARTMENT ENTERS INTO A LEASE OR 04740'01 * 6 1 DEED UNDER THIS SUBSECTION, THE DEPARTMENT SHALL REQUIRE THAT ALL 2 DRILLING OPERATIONS ORIGINATE FROM LOCATIONS ABOVE AND INLAND OF 3 THE ORDINARY HIGH-WATER MARK. 4 Sec. 33938. (1) A person shall not remove metallic miner- 5 als, marl, stone, rock, sand, gravel, or earth from or under the 6 beds of the Great Lakes or the bays and harbors connected with 7 the Great Lakes without first obtaining a written lease from the 8 department granting the right to take the material. 9 (2)ABEGINNING ON THE EFFECTIVE DATE OF THE 2001 AMENDA- 10 TORY ACT THAT AMENDED THIS SECTION, SUBJECT TO SECTIONS 32503 AND 11 61505A, A person shall not conduct drilling operations for the 12 removal of oil or gas from under the beds of the Great Lakes or 13 THE connecting or connected bays, harbors, or waterways, unless14all drilling operations originate from locations above and inland15of the ordinary high-water mark and are conducted pursuant to the16terms of a written lease obtained from the department. AOF THE 17 GREAT LAKES UNLESS THE DRILLING OPERATIONS BEGAN PRIOR TO THE 18 EFFECTIVE DATE OF THE 2001 AMENDATORY ACT THAT AMENDED THIS 19 SECTION. BEGINNING ON THE EFFECTIVE DATE OF THE 2001 AMENDATORY 20 ACT THAT AMENDED THIS SECTION, SUBJECT TO SECTIONS 32503 AND 21 61505A, A person shall not conduct drilling operations for the 22 purpose of exploring for oil and gas under the beds of the Great 23 Lakes or THE connecting or connected bays, harbors, or waterways 24, unless all drilling operations originate from locations above25and inland of the high-water markOF THE GREAT LAKES. 26 (3) A person who violates subsection (1) or (2) is liable to 27 this state for an amount equal to 3 times the value of the 04740'01 * 7 1 materials taken plus an amount equal to the cost of restoring the 2 waters, beds, bottomlands, adjacent uplands, or any natural 3 resource of the Great Lakes or THE connecting or connected bays, 4 harbors, or waterways OF THE GREAT LAKES that is damaged as a 5 result of the violation. 6 SEC. 61505A. (1) EXCEPT AS PROVIDED IN SUBSECTION (2), 7 BEGINNING ON THE EFFECTIVE DATE OF THIS SECTION, NOTWITHSTANDING 8 ANY OTHER PROVISION OF THIS PART OR THE RULES PROMULGATED UNDER 9 THIS PART, THE SUPERVISOR SHALL NOT ISSUE A PERMIT FOR DRILLING, 10 OR AUTHORIZE THE DRILLING OF, AN OIL OR GAS WELL, INCLUDING AN 11 EXPLORATORY WELL, THAT EXTENDS UNDER THE GREAT LAKES OR THE CON- 12 NECTING OR CONNECTED BAYS, HARBORS, OR WATERWAYS OF THE GREAT 13 LAKES. 14 (2) THE SUPERVISOR MAY ISSUE A PERMIT FOR DRILLING, OR MAY 15 AUTHORIZE THE DRILLING OF, AN OIL OR GAS WELL, INCLUDING AN 16 EXPLORATORY WELL THAT EXTENDS UNDER THE GREAT LAKES OR THE CON- 17 NECTING OR CONNECTED BAYS, HARBORS, OR WATERWAYS OF THE GREAT 18 LAKES IF THE LEGISLATURE BY CONCURRENT RESOLUTION ADOPTED BY A 19 MAJORITY OF MEMBERS ELECTED TO AND SERVING IN EACH HOUSE OF THE 20 LEGISLATURE DECLARES THERE TO BE A STATE ENERGY EMERGENCY. 21 HOWEVER, IF THE SUPERVISOR ISSUES A PERMIT OR AUTHORIZES THE 22 DRILLING OF AN OIL OR GAS WELL UNDER THIS SUBSECTION, THE SUPER- 23 VISOR SHALL REQUIRE THAT ALL DRILLING OPERATIONS ORIGINATE FROM 24 LOCATIONS ABOVE AND INLAND OF THE ORDINARY HIGH-WATER MARK OF THE 25 GREAT LAKES AS DESCRIBED IN SECTION 32502. 04740'01 * Final page. 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