HOUSE BILL No. 4801

June 20, 2017, Introduced by Reps. LaFave and Rendon and referred to the Committee on Transportation and Infrastructure.

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.

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 person to hunt

and take waterfowl on a public hunting area managed and developed

for waterfowl.

(3) Except as provided in ~~subsection (4),~~ subsections (4) and

(5), 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. 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~~ this state to be used ~~for the purpose of~~

~~defraying~~ to defray 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.

(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.

(5) A county road commission or municipality may request the

department to enter into an agreement authorizing the road

commission or municipality or its contractor to utilize a

previously established or existing nonmetallic mineral mining site

or establish a new nonmetallic mineral mining site for extraction

and processing of nonmetallic minerals such as sand, gravel,

cobbles, boulders, and clay from state-owned lands specified by the

county road commission or municipality and under the jurisdiction

and control of the department, for use on public road, street, or

highway projects, and to build and maintain a roadway, if

necessary, to access the nonmetallic mineral mining site. The

request shall be made on a form provided by the department and

accompanied by a processing fee. The department shall develop the

form within 60 days after the effective date of the amendatory act

that added this subsection and shall maintain a copy of the current

form on the department's website. The department shall establish

the processing fee so that revenue from processing fees does not

exceed the reasonable costs actually incurred by the department in

processing requests under this subsection. The department shall

enter the agreement within 30 days after receiving a complete

request form and processing fee. The agreement may require the

county road commission or municipality to erect and maintain

reasonable signage, fencing, and gates for the mining site. The

agreement may include a reclamation plan as proposed by the county

road commission or municipality. The department shall not charge a

royalty, rental, time consideration fee, or other fee under the

agreement. This subsection does not waive any requirements under

any other part of this act.

(6) ~~(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.