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 (4) Subject to
subsections (4) and (6) 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 assign the state at least a 1/6 royalty interest. In
addition, such a contract shall assign the state a working interest
share under which the state shall actively participate with the
lessee in the exploration for and production of oil or gas and
retain at least 1/3 of the profits or product produced, free of all
costs, including any royalty. The contract shall provide for the
indemnification of the state from any liability arising out of the
exploration for or production of oil or gas.
(5) 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, subsection
(3) 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 except as follows:
(a) 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.
(b) 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.
(c) Money received from a working interest in a contract for
the taking of oil or gas as described in subsection (4) shall be
deposited in the renewable energy fund created in the renewable
energy fund act.
(6) (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.
(7) (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.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No.____ (request no.
07849'08) of the 94th Legislature is enacted into law.