HOUSE BILL No. 5227


     October 16, 2001, Introduced by Rep. DeWeese and referred to the Committee on Conservation and Outdoor Recreation.


        A bill to amend 1994 PA 451, entitled

   "Natural resources and environmental protection act,"

   by amending sections 502, 32503, and 33938 (MCL 324.502,

   324.32503, and 324.33938), section 502 as amended by 1998 PA 114

   and sections 32503 and 33938 as added by 1995 PA 59, and by

   adding section 61505a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 502.  (1) The commission may promulgate rules, not

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      inconsistent with law, governing its organization and procedure.

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           (2) The department may  promulgate  DO 1 OR MORE OF THE

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      FOLLOWING:

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           (A) PROMULGATE and enforce reasonable rules concerning the

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      use and occupancy of lands and property under its control in

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      accordance with section 504.  ; may provide




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           (B) PROVIDE and develop facilities for outdoor recreation.

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       ; may conduct

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           (C) CONDUCT investigations it considers necessary for the

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      proper administration of this part.  ; may remove

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           (D) REMOVE and dispose of forest products as required for

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      the protection, reforestation, and proper development and conser-

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      vation of the lands and property under control of the department.

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       ; and may require

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           (E) REQUIRE the payment of a fee as provided by law for a

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      daily permit or other authorization that allows the person to

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      hunt and take waterfowl on a public hunting area managed and

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      developed for waterfowl.

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           (3)  (2)  Except as provided in subsection  (3)  (4), the

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      department may enter into contracts for the taking of coal, oil,

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      gas, and other mineral products from state owned lands, upon a

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      royalty basis or upon another basis, and upon the terms the

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      department considers just and equitable subject to section 502a.

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      This contract power includes authorization to enter into con-

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      tracts for the storage of gas or other mineral products in or

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      upon state owned lands, if the consent of the state agency having

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      jurisdiction and control of the state owned land is first

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      obtained.  A contract permitted under this section for the taking

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      of coal, oil, gas, or metallic mineral products, or for the stor-

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      age of gas or other mineral products, is not valid unless the

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      contract is approved by the state administrative board.  Money

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      received from a contract for the storage of gas or other mineral

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      products in or upon state lands shall be transmitted to the state



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      treasurer for deposit in the general fund of the state to be used

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      for the purpose of defraying the expenses incurred in the admin-

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      istration of this act and other purposes provided by law.  Other

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      money received from a contract permitted under this subsection,

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      except money received from lands acquired with money from the

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      game and fish protection fund created in section 43553, shall be

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      transmitted to the state treasurer for deposit in the Michigan

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      natural resources trust fund created in section 35 of article IX

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      of the state constitution of 1963 AND PROVIDED FOR IN PART 19.

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      However, the money received from the payment of service charges

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      by a person using areas managed for waterfowl shall be credited

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      to the game and fish protection fund and used only for the pur-

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      poses provided by law.  Money received from bonuses, rentals,

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      delayed rentals, royalties, and the direct sale of resources,

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      including forest resources, from lands acquired with money from

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      the game and fish protection fund shall be credited to the game

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      and fish protection trust fund created in section 43702, except

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      as otherwise provided by law.

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           (4)  (3) The  BEGINNING ON THE EFFECTIVE DATE OF THE 2001

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      AMENDATORY ACT THAT AMENDED THIS SECTION, THE department shall

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      not enter into a contract that permits drilling operations for

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      the taking of oil or gas from the lake bottomlands of the Great

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      Lakes or THE connecting or connected bays, harbors, or waterways

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       , unless all drilling operations originate from locations above

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      and inland of the ordinary high-water mark.  The  OF THE GREAT

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      LAKES.  BEGINNING ON THE EFFECTIVE DATE OF THE 2001 AMENDATORY

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      ACT THAT AMENDED THIS SECTION, THE department shall not enter



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      into a contract for exploration of the lake bottomlands of the

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      Great Lakes or THE connecting or connected bays, harbors, or

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      waterways OF THE GREAT LAKES that permits drilling operations.

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       unless all drilling operations originate from locations above

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      and inland of the ordinary high-water mark.

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           (5)  (4)  This section does not permit a contract for the

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      taking of gravel, sand, coal, oil, gas, or other metallic mineral

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      products that does not comply with applicable local ordinances

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      and state law.

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           Sec. 32503.  (1) Except as otherwise provided in this sec-

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      tion, the department, after finding that the public trust in the

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      waters will not be impaired or substantially affected, may enter

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      into agreements pertaining to waters over and the filling in of

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      submerged patented lands, or to lease or deed unpatented lands,

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      after approval of the state administrative board.  Quitclaim

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      deeds, leases, or agreements covering unpatented lands may be

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      issued or entered into by the department with any person, and

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      shall contain such terms, conditions, and requirements as the

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      department determines to be just and equitable and in conformance

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      with the public trust.  The department shall reserve to the state

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      all mineral rights, including, but not limited to, coal, oil,

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      gas, sand, gravel, stone, and other materials or products located

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      or found in those lands, except where lands are occupied or to be

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      occupied for residential purposes at the time of conveyance.

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           (2) A riparian owner shall obtain a permit from the depart-

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      ment before dredging or placing spoil or other materials on

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      bottomland.



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           (3)  The  BEGINNING ON THE EFFECTIVE DATE OF THE 2001

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      AMENDATORY ACT THAT AMENDED THIS SECTION, THE department shall

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      not enter into a lease or deed of unpatented lands that permits

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      drilling operations for the taking of oil or gas.  , unless all

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      drilling operations originate from locations above and inland of

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      the ordinary high-water mark.  The  BEGINNING ON THE EFFECTIVE

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      DATE OF THE 2001 AMENDATORY ACT THAT AMENDED THIS SECTION, THE

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      department shall not enter into a lease or deed of unpatented

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      lands that permits drilling for exploration purposes.  unless the

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      drilling operations originate from locations above and inland of

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      the ordinary high-water mark.

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           (4) An agreement, lease, or deed entered into under this

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      part by the department with the United States shall be entered

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      into and executed pursuant to the property rights acquisition

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      act,  Act No. 201 of the Public Acts of 1986, being section 3.251

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      to 3.262 of the Michigan Compiled Laws  1986 PA 201, MCL 3.251 TO

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      3.262.

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           Sec. 33938.  (1) A person shall not remove metallic miner-

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      als, marl, stone, rock, sand, gravel, or earth from or under the

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      beds of the Great Lakes or the bays and harbors connected with

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      the Great Lakes without first obtaining a written lease from the

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      department granting the right to take the material.

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           (2)  A  BEGINNING ON THE EFFECTIVE DATE OF THE 2001 AMENDA-

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      TORY ACT THAT AMENDED THIS SECTION, A person shall not conduct

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      drilling operations for the removal of oil or gas from under the

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      beds of the Great Lakes or THE connecting or connected bays,

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      harbors, or waterways  , unless all drilling operations originate



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      from locations above and inland of the ordinary high-water mark

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      and are conducted pursuant to the terms of a written lease

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      obtained from the department.  A  OF THE GREAT LAKES UNLESS THE

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      DRILLING OPERATIONS BEGAN PRIOR TO THE EFFECTIVE DATE OF THE 2001

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      AMENDATORY ACT THAT AMENDED THIS SECTION.  BEGINNING ON THE

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      EFFECTIVE DATE OF THE 2001 AMENDATORY ACT THAT AMENDED THIS SEC-

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      TION, A person shall not conduct drilling operations for the pur-

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      pose of exploring for oil and gas under the beds of the Great

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      Lakes or THE connecting or connected bays, harbors, or waterways

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       , unless all drilling operations originate from locations above

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      and inland of the high-water mark  OF THE GREAT LAKES.

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           (3) A person who violates subsection (1) or (2) is liable to

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      this state for an amount equal to 3 times the value of the mate-

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      rials taken plus an amount equal to the cost of restoring the

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      waters, beds, bottomlands, adjacent uplands, or any natural

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      resource of the Great Lakes or THE connecting or connected bays,

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      harbors, or waterways OF THE GREAT LAKES that is damaged as a

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      result of the violation.

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           SEC. 61505A.  BEGINNING ON THE EFFECTIVE DATE OF THIS SEC-

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      TION, NOTWITHSTANDING ANY OTHER PROVISION OF THIS PART OR THE

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      RULES PROMULGATED UNDER THIS PART, THE SUPERVISOR SHALL NOT ISSUE

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      A PERMIT FOR DRILLING, OR AUTHORIZE THE DRILLING OF, AN OIL OR

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      GAS WELL, INCLUDING AN EXPLORATORY WELL, THAT EXTENDS UNDER THE

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      GREAT LAKES OR THE CONNECTING OR CONNECTED BAYS, HARBORS, OR

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      WATERWAYS OF THE GREAT LAKES.







   05648'01          Final page.                            JCB