SB0903, As Passed House, Sep, 22, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 903

 

 

April 20, 2016, Introduced by Senators CASPERSON, SCHMIDT and BOOHER and referred to the Committee on Natural Resources.

 

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 61703 and 61706 (MCL 324.61703 and 324.61706),

 

as added by 1995 PA 57.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 61703. Any interested lessee may file a verified petition

 

with the supervisor requesting an order for the unit operation of a

 

pool, pools, or parts of 1 or more pools. The petition shall

 

contain all of the following:

 

     (a) A description of the proposed unit area containing the

 

pool, pools, or parts of 1 or more pools to be so operated. ,

 

termed the unit area.

 

     (b) The names of all persons owning or having an interest in

 

oil and gas in the proposed unit area and the names of all surface


owners in the proposed unit area, as disclosed by the records in

 

the office of the register of deeds for the county in which the

 

unit area is situated, and their addresses, if known. If the

 

address of any person is unknown, the petition shall so

 

indicate.state that information.

 

     (c) A statement of the type of the operations contemplated in

 

order to effectuate the purposes of comply with this part.

 

     (d) A recommended plan of unitization applicable to the

 

proposed unit area which the petitioner considers fair, reasonable,

 

and equitable.

 

     (e) A verified statement indicating in detail what action the

 

petitioner has taken to contact and obtain the approval of all

 

persons of record owning or having an interest in oil and gas in

 

the proposed unit area who have not approved the proposed plan of

 

unitization. If the question of whether the plan for unit

 

operations has been approved as set forth provided for in section

 

61706 is to be considered at a supplemental hearing pursuant to

 

section 61707, this verified statement need not be part of the

 

petition and may be filed separately prior to the supplemental

 

hearing.

 

     Sec. 61706. An order of the supervisor providing for unit

 

operations shall not be declared or become effective until the

 

supervisor makes a finding, either in the order providing for unit

 

operations or in a supplemental order as provided in section 61707,

 

that the plan for unit operations has been approved in writing in 1

 

of the following ways:

 

     (a) By those persons who under the supervisor's order will be

 


required to pay at least 75% 51% of the costs of unit operation,

 

and also by those persons who under the supervisor's order will be

 

entitled to at least 75% 51% of the production from the unit area

 

or the proceeds of that production that will be credited to

 

interests that are free of cost, including, but not limited to,

 

royalties, overriding royalties, and production payments.

 

     (b) By those persons who under the supervisor's order will be

 

entitled to at least 75% of all production from the unit area or

 

the proceeds of that production, provided that among those persons

 

there must be persons who under the supervisor's order will be

 

entitled to at least 50% of the production from the unit area or

 

the proceeds of that production that will be credited to interests

 

that are free of cost, including, but not limited to, royalties,

 

overriding royalties, and production payments.

 

     (c) By those persons who under the supervisor's order will be

 

entitled to at least 90% 65% of all production from the unit area

 

or the proceeds of that production.