SB0903, As Passed House, Sep, 22, 2016
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.