September 18, 2008, Introduced by Senators SCHAUER, JACOBS, THOMAS, GLEASON, SWITALSKI and PRUSI and referred to the Committee on Natural Resources and Environmental Affairs.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending section 502 (MCL 324.502), as amended by 2004 PA 587.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 502. (1) The commission may promulgate rules, not
inconsistent with law, governing its organization and procedure.
(2) The department may do 1 or more of the following:
(a) Promulgate and enforce reasonable rules concerning the use
and occupancy of lands and property under its control in accordance
with section 504.
(b) Provide and develop facilities for outdoor recreation.
(c) Conduct investigations it considers necessary for the
proper administration of this part.
(d) Remove and dispose of forest products as required for the
protection, reforestation, and proper development and conservation
of the lands and property under the control of the department.
(e) Require the payment of a fee as provided by law for a
daily
permit or other authorization that allows the a person
to
hunt and take waterfowl on a public hunting area managed and
developed for waterfowl.
(3)
Except as provided in subsection Subject to subsections(4)
and (7) and section 502a, the department may enter into contracts
for the taking of coal, oil, gas, and other mineral products from
state owned lands, upon a royalty basis or upon another basis, and
upon
the terms the department considers just and equitable. subject
to
section 502a. This contract power
includes authorization to
enter into contracts for the storage of gas or other mineral
products in or upon state owned lands, if the consent of the state
agency having jurisdiction and control of the state owned land is
first obtained. A contract permitted under this section for the
taking of coal, oil, gas, or metallic mineral products, or for the
storage of gas or other mineral products, is not valid unless the
contract is approved by the state administrative board.
(4) A contract for the taking of oil or gas from state owned
lands shall provide that the lessee pay annual rent during each
year of the primary lease term, including extensions thereof.
Annual rental payments shall be the greater of $5.00 or an amount
calculated at the following rate per acre:
(a) $2.00 for the first year.
(b) $5.00 for the second year.
(c) $10.00 for the third year.
(d) $15.00 for the fourth year.
(e) $20.00 for the fifth year.
(f) $25.00 for the sixth year.
(g) $30.00 for the seventh year.
(5) If an oil or gas well produces in paying quantities and
royalties are paid to the department, the lessee's obligation to
pay rent under subsection (4) is abated, but only on the leased
premises situated within the established oil or gas development
unit or drilling unit. At the department's option, rent may be
abated in accordance with specific terms contained within a
unitization agreement that has been approved in writing by the
department.
(6) Money received from a contract for the storage of gas or
other mineral products in or upon state lands shall be transmitted
to the state treasurer for deposit in the general fund of the state
to be used for the purpose of defraying the expenses incurred in
the administration of this act and other purposes provided by law.
Other money received from a contract permitted under this
subsection, except money received from lands acquired with money
from the former game and fish protection fund or the game and fish
protection account of the Michigan conservation and recreation
legacy fund provided for in section 2010, shall be transmitted to
the state treasurer for deposit in the Michigan natural resources
trust fund created in section 35 of article IX of the state
constitution of 1963 and provided for in part 19. However, the
money received from the payment of service charges by a person
using areas managed for waterfowl shall be credited to the game and
fish protection account of the Michigan conservation and recreation
legacy fund provided for in section 2010 and used only for the
purposes provided by law. Money received from bonuses, rentals,
delayed rentals, royalties, and the direct sale of resources,
including forest resources, from lands acquired with money from the
former game and fish protection fund or the game and fish
protection account of the Michigan conservation and recreation
legacy fund provided for in section 2010 shall be credited to the
Michigan game and fish protection trust fund established in section
41 of article IX of the state constitution of 1963 and provided for
in part 437, except as otherwise provided by law.
(7) (4)
The department shall not enter into
a contract that
allows drilling operations beneath the lake bottomlands of the
Great Lakes, the connected bays or harbors of the Great Lakes, or
the connecting waterways as defined in section 32301, for the
exploration or production of oil or gas.
(8) (5)
This section does not permit a
contract for the taking
of gravel, sand, coal, oil, gas, or other metallic mineral products
that does not comply with applicable local ordinances and state
law.