Bill Text: MI HB4943 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Environmental protection; air pollution; geological carbon sequestration; regulate. Amends 1994 PA 451 (MCL 324.101 - 324.90106) by adding secs. 62715, 62717, 62719, 62721, 62723, 62725, 62727, 62729, 62731, 62733, 62735, 62737, 62739, 62741 & 62743. TIE BAR WITH: HB 4942'13
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-09-10 - Printed Bill Filed 09/05/2013 [HB4943 Detail]
Download: Michigan-2013-HB4943-Introduced.html
HOUSE BILL No. 4943
September 4, 2013, Introduced by Rep. Geiss and referred to the Committee on Energy and Technology.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
(MCL 324.101 to 324.90106) by adding sections 62715, 62717, 62719,
62721, 62723, 62725, 62727, 62729, 62731, 62733, 62735, 62737,
62739, 62741, and 62743.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 62715. (1) A sequestration project owner shall maintain
financial assurance during the sequestration operation and until
the department issues a certificate of completion of the
sequestration operation under section 62729.
(2) The financial assurance required under subsection (1)
shall meet all of the following requirements:
(a) Apply to all sequestration operations subject to the
sequestration order.
(b) Be in an amount determined by the department to be
sufficient to cover the cost to administer closure of the
sequestration project; to hire a third party to remove surface
buildings and equipment utilized in geologic sequestration; to
conduct postclosure monitoring; and to implement necessary
environmental protection measures, including any necessary
remediation of contamination of the soil, surface water, or
groundwater caused by the sequestration operation that violates the
sequestration order.
(c) Consist of an escrow account, cash, a certificate of
deposit, an irrevocable letter of credit, a surety bond, or any
combination thereof or of any other method satisfactory to the
department.
(3) Every 3 years, or as the department considers necessary, a
sequestration project owner shall adjust the amount of financial
assurance as determined by the department to ensure that it is
sufficient for the purposes of subsection (2)(b).
(4) If the sequestration project owner fails to maintain
financial assurance required under this section, the department may
order immediate suspension of the sequestration operation.
(5) The department shall waive financial assurance otherwise
required under this part to the extent it duplicates financial
assurance required by any federal agency.
Sec. 62717. (1) Before beginning the sequestration operation,
a sequestration project owner shall record a certified copy of the
sequestration order with the register of deeds of the county or
counties in which the sequestration project is to be located.
(2) The sequestration project owner shall notify the
department at least 30 days before beginning a sequestration
operation, and 5 business days before actual geologic sequestration
begins.
Sec. 62719. (1) A person may request the department to amend a
sequestration order to name the person as a new sequestration
project owner. The request shall be submitted to the department on
a form provided by the department. The request shall include an
organization report and other relevant information required by the
department. The request shall be verified in the same manner as a
pleading in a civil action. The department shall approve or deny
the request. The department shall approve the request and issue an
amended sequestration order if all of the following requirements
are met:
(a) The person submitting the request provides financial
assurance as required under section 62715.
(b) The person submitting the request accepts the conditions
of the existing sequestration order.
(c) If the department determines the current sequestration
project owner violated this part or the rules promulgated under
this part at the sequestration project involved in the transfer,
the current sequestration project owner has completed the necessary
corrective actions or the person submitting the request has entered
into a written consent agreement with the department to correct the
violation.
(2) The current sequestration project owner remains
responsible for the sequestration operation until an amended
sequestration order is approved under subsection (1).
(3) A sequestration order may be amended, for purposes other
than naming a new sequestration project owner, as follows:
(a) The sequestration project owner may submit to the
department a request to amend the sequestration order to address
anticipated changes in the sequestration project.
(b) The department may propose an amendment to a sequestration
order if the department determines that the findings made under
section 62713(1)(c), (d), or (e) no longer apply to the
sequestration project or sequestration operation or that the
sequestration operation is not adequately achieving geologic
sequestration.
(c) Within 30 days after receiving a request to amend a
sequestration order, or when proposing an amendment under
subdivision (b), the department shall determine whether the
amendment would constitute a significant substantive change from
the conditions of the approved sequestration order.
(d) If the department determines that an amendment would
constitute a significant substantive change, the department shall
give notice and conduct an evidentiary hearing on the amendment as
provided under section 62711.
(e) If the department determines that the amendment would not
constitute a significant substantive change from the conditions of
the approved sequestration order, the department shall give written
notice of the determination to the clerk of each county, city,
township, and village in which any part of the sequestration
project is located. The department shall also publish notice of the
determination in a newspaper of general circulation in the county
or counties in which any part of the sequestration project is
located. Not more than 14 days after publication of the notice, the
department shall issue an order approving or denying a request for
an amendment and shall notify the sequestration project owner of
the decision.
(f) The department shall approve an amendment to a
sequestration order if the department determines that the amendment
meets the requirements of section 62713(1) with respect to the
underlying sequestration order.
(4) If the department denies a request to amend a
sequestration order under subsection (1) or (3), the department
order denying the request shall state the reasons for denial to the
sequestration project owner. The department shall provide a copy of
the order to the person requesting the amendment and, if different,
the sequestration project owner.
Sec. 62721. (1) A person who owns or has an ownership interest
in pore space or oil, gas, or minerals may file a petition
asserting that carbon dioxide injected pursuant to a sequestration
order has migrated out of the predicted carbon dioxide plume area
to occupy pore space in the person's subsurface property and
requesting that the sequestration order be amended to expand the
legal description of the lands comprising the carbon dioxide plume
area and the buffer zone accordingly.
(2) The department shall determine whether the petition is
administratively complete, subject to section 62707(6) and (7). If
the petition is administratively complete, not more than 30 days
after receipt of the petition, the department shall determine if
there is a reasonable basis for the petition and shall notify the
petitioner in writing of its determination. If there is a
reasonable basis for the petition, the department shall grant the
petitioner an evidentiary hearing on the petition. Otherwise, the
department shall deny the petition.
(3) An evidentiary hearing shall be held not more than 90 days
after the department notifies the petitioner under subsection (2)
that there is a reasonable basis for the petition. The department
shall publish notice of the evidentiary hearing in a newspaper of
general circulation in the county or counties in which the
sequestration project is located, and if there are operations for
the extraction of oil or gas from the pore space owned by the
petitioner into which the carbon dioxide plume is alleged to have
migrated, in an oil and gas industry publication that focuses on
this state. Publication shall occur not less than 45 days before
the date of the hearing. The department shall also mail copies of
the notice to the clerk of each county, city, township, and village
in which any part of the geologic sequestration project is to be
located.
(4) If the department determines, after the evidentiary
hearing, that carbon dioxide injected pursuant to a sequestration
order has migrated out of the approved carbon dioxide plume area to
occupy the petitioner's subsurface property, the department shall
grant the petition. Otherwise, the department shall deny the
petition. If the department grants the petition, both of the
following apply:
(a) The project owner shall acquire all of the necessary
rights to pore space or oil, gas, or minerals in the petitioner's
tract by title conveyance or other contractual arrangement, by
eminent domain as provided under section 62723, or as otherwise
allowed by statute.
(b) The department may order sequestration operations modified
or suspended until the project owner has acquired the rights
described in subdivision (a).
(5) The administrative remedy provided by this section is the
exclusive remedy available to a person who asserts that the carbon
dioxide plume is occupying the pore space in the person's
subsurface property located outside the boundary of an approved
carbon dioxide plume area.
Sec. 62723. (1) The legislature finds that geologic
sequestration results in long-term storage of CO2, thereby reducing
man-made CO2 emissions to the atmosphere and the attendant adverse
atmospheric effects of these emissions on natural resources, the
environment, and public health and safety. Consequently, a
sequestration project is a public use of property. The project
owner under a sequestration order may acquire any of the following
by exercise of power of eminent domain:
(a) Necessary rights to use the pore space or to the oil, gas,
or minerals in the sequestration zone.
(b) The right to use property and highway rights-of-way in
this state, but only to transport carbon dioxide by a pipeline or
pipelines, and to locate, lay, construct, maintain, and operate
those pipelines. The pipeline or pipelines shall be used
exclusively for the transmission, transportation, and distribution
of carbon dioxide within this state.
(2) Eminent domain under this section shall be exercised by
condemnation pursuant to the uniform condemnation procedures act,
1980 PA 87, MCL 213.51 to 213.75.
(3) Rights or interests a project owner acquires for a
sequestration project by title conveyance or other contractual
arrangement are not subject to the exercise of the power of eminent
domain under subsection (1) for a different sequestration project.
(4) This section does not alter any power of eminent domain
that exists under any other authority.
(5) None of the following may be taken by the exercise of the
power of eminent domain granted in this section:
(a) The right of an owner of oil, gas, or minerals or pore
space located above or below the sequestration zone to drill a well
into strata above or below the sequestration zone if that owner
complies with all of the applicable rules of the department.
(b) The right of the property owner to exercise interests in
property not acquired for the sequestration project within the
borders of the sequestration project.
(6) Any acquisition of property rights pursuant to this
section is a taking of private property for which just compensation
is due. Just compensation for property described in subsection
(1)(a) is an amount equal to the fair market value of the pore
space or of valuable oil, gas, and minerals contained within pore
space taken on the date of the exercise of eminent domain
authority. In the absence of a demonstration of an actual or
reasonably foreseeable alternate use, pore space within a
sequestration zone has no compensable value.
(7) An action under this part, or under any rule promulgated
or order issued pursuant to this part, does not cause a
sequestration project owner to be a common carrier or a public
utility for any purpose whatsoever, or to be subject to any duties,
obligations, or liabilities as a common carrier or public utility.
(8) The department and its employees are not necessary or
indispensable parties to any condemnation proceeding under this
section, and if named as a party or third party, upon motion, shall
be dismissed from the action at the expense of the party who names
the department or any employee. The department shall be awarded all
costs reasonably incurred to be dismissed from the action,
including attorney fees.
Sec. 62725. (1) A sequestration project owner shall do all of
the following:
(a) Provide a copy of the contingency plan included in the
petition for the sequestration order to each emergency management
coordinator having jurisdiction over the surface of the geographic
area constituting the sequestration project.
(b) Conduct the sequestration operation in accordance with the
approved sequestration order.
(c) Conduct monitoring of the sequestration operation in
accordance with the operations plan.
(2) Compliance with this part does not relieve a sequestration
project owner of the obligation to comply with all other applicable
state and federal law and, subject to section 62743(5) and (6),
local ordinances.
(3) A sequestration project owner shall monitor the
sequestration project for 20 years following permanent cessation of
subsurface injection of carbon dioxide. The department may reduce
the postclosure monitoring period upon request of the sequestration
project owner if the department determines that there is not a
significant risk that the sequestered carbon dioxide will endanger
natural resources, the environment, or public health and safety by
migrating outside the sequestration zone. The request shall be made
in writing not less than 6 months before the proposed postclosure
monitoring termination date and shall provide the department with
technical data and information demonstrating that additional
monitoring is not needed to ensure that there is not a significant
risk of endangering natural resources, the environment, or public
health and safety. The department shall give notice and conduct an
evidentiary hearing on the request as provided under section 62711.
Sec. 62727. (1) A sequestration project owner shall file a
biannual geologic sequestration report with the department on or
before March 15 and September 15 of each year of the sequestration
operation and postclosure monitoring period. The report due on or
before March 15 shall cover operations during the preceding July 1
to December 31. The report due on or before September 15 shall
cover operations during the preceding January 1 to June 30. The
geologic sequestration report shall contain all of the following:
(a) A description of the status of the sequestration project.
(b) An update of the contingency plan. The sequestration
project owner shall provide a copy of the update to the emergency
management coordinator.
(c) A report of monitoring results for the preceding 6-month
period.
(d) A report of the total tons of carbon dioxide injected into
the sequestration zone for each month of the preceding 6-month
period.
(e) A list of all sequestration wells plugged and abandoned
during the preceding 6-month period.
(f) A list of all sequestration wells drilled during the
preceding 6-month period.
(g) A list of all sequestration wells granted temporary
abandoned status under part 625 during the preceding 6-month
period.
(h) A list of the notifications under subsection (2) for the
preceding calendar year.
(2) A sequestration project owner shall notify the department
within 8 hours of learning of any incident, act of nature, or
violation of a permit standard or condition at a sequestration
project that endangers or has a significant risk to endanger
natural resources, the environment, or public health and safety.
(3) The sequestration project owner shall preserve records
upon which the geologic sequestration reports under subsection (1)
are based for 3 years. The project owner shall preserve records
upon which notifications under subsection (2) are based until the
end of the postclosure monitoring period. Records described in this
subsection shall be made available to the department upon request.
Sec. 62729. (1) At the end of the postclosure monitoring
period, the department shall inspect the sequestration project and
provide notice and hold a public hearing, in the same manner as
provided under section 62711, on the question of issuing a
certificate of completion of the sequestration operation. The
department shall issue a certificate of completion of the
sequestration operation upon a showing by the sequestration project
owner of all of the following:
(a) There is not a significant risk that the sequestered
substance will endanger natural resources, the environment, or
public health and safety by migrating outside of the sequestration
zone.
(b) The sequestration operation has not resulted in any
ongoing conditions requiring correction or remediation.
(c) All wells that are part of the sequestration project have
been properly plugged and abandoned.
(d) All surface facilities associated with the sequestration
project have been removed, all underground pipelines have been
removed or capped, and the land has been restored to as near its
original contours as is reasonably practical, except as otherwise
approved by the department in response to a written request by the
operator.
(2) The department shall publish a copy of the entire
certificate of completion in a newspaper of general circulation in
the county or counties where the sequestration project is located.
Sec. 62731. (1) After a certificate of completion of the
sequestration operation is issued, all of the following apply:
(a) Subject to subsection (2), the sequestration project owner
is immune from liability in any civil or administrative action for
any damage caused by the sequestration operation to persons,
property, natural resources, the environment, or public health and
safety occurring after the date of issuance of the certificate of
completion.
(b) Any remaining financial assurance shall be released.
(c) The sequestration remediation fund created in section
62735 is intended to be the sole source of public funding for
correction or remediation of conditions caused by the sequestration
operation.
(2) Notwithstanding any other provision of this part, a
sequestration project owner is liable for any damage from the
sequestration operation that is proximately caused by either of the
following committed by or on behalf of the sequestration project
owner:
(a) Gross negligence.
(b) Intentional concealment or misrepresentation of material
facts.
(3) Damages or injunctive relief shall not be awarded to a
private claimant for a claim of nuisance or trespass related to the
injection into or presence in the sequestration zone of carbon
dioxide, or from the release of carbon dioxide from the
sequestration zone, unless, subject to subsection (1), the
plaintiff has incurred harm in addition to mere occupation of
subsurface property, the surface, or airspace above the surface.
Sec. 62733. (1) After a sequestration order becomes effective,
the department shall assess a sequestration project owner a
sequestration surveillance fee of not more than 15 cents per ton of
carbon dioxide injected into the sequestration zone, but not less
than $50,000.00, for each calendar year in which carbon dioxide is
injected into the sequestration zone. The surveillance fee rate
shall be calculated each year as follows:
(a) The department shall calculate an adjusted appropriation
by deducting any unexpended money in the fund at the close of the
prior fiscal year from the amount appropriated for the current
fiscal year for surveillance, monitoring, administration, and
enforcement of this part.
(b) The department shall determine the total tons of carbon
dioxide injected by all sequestration operations in this state in
the prior calendar year.
(c) The fee rate shall be the ratio, to the nearest 1/100 of
1%, of the adjusted appropriation as determined under subdivision
(a) to the total tons of sequestered substance as determined under
subdivision (b).
(2) The sequestration surveillance fee described in subsection
(1) is due by 30 days after the department sends written notice to
the sequestration project owner of the amount due.
(3) A fine equal to 2% of the amount due, or $1,000.00,
whichever is greater, shall be assessed against the sequestration
project owner for a sequestration surveillance fee that is not paid
when due, for each full month the payment is overdue. The
department may file an action in the circuit court for Ingham
county to collect the unpaid fee and fine.
(4) If payment of the sequestration surveillance fee for a
sequestration project is overdue by more than 6 months, the
department may order the suspension of the sequestration operation
until the fee and all fines are paid.
(5) Surveillance fees and fines paid pursuant to this section
shall be forwarded to the state treasurer for deposit in the
sequestration administration fund created in subsection (6).
(6) The sequestration administration fund is created within
the state treasury. The state treasurer may receive money or other
assets from any source for deposit into the sequestration
administration fund. The state treasurer shall direct the
investment of the sequestration administration fund. The state
treasurer shall credit to the sequestration administration fund
interest and earnings from sequestration administration fund
investments. Money in the sequestration administration fund at the
close of the fiscal year shall remain in the sequestration
administration fund and shall not lapse to the general fund. The
department shall be the administrator of the sequestration
administration fund for auditing purposes.
(7) The department shall expend money from the sequestration
administration fund, upon appropriation, only for surveillance,
monitoring, administration, and enforcement of this part.
Sec. 62735. (1) The sequestration remediation fund is created
within the state treasury.
(2) Fees collected under subsection (5) shall be deposited in
the sequestration remediation fund. The state treasurer may receive
money or other assets from any source for deposit into the
sequestration remediation fund. The state treasurer shall direct
the investment of the sequestration remediation fund. The state
treasurer shall credit to the sequestration remediation fund
interest and earnings from sequestration remediation fund
investments. Money in the sequestration remediation fund at the
close of the fiscal year shall remain in the sequestration
remediation fund and shall not lapse to the general fund.
(3) The department shall be the administrator of the
sequestration remediation fund for auditing purposes.
(4) The department shall expend money from the sequestration
remediation fund, upon appropriation, only for correction or
remediation of physical conditions caused by a sequestration
operation that occur after issuance of the certificate of
completion under section 62729. An appropriation under this
subsection is an appropriation for a public purpose.
(5) A sequestration project owner shall pay a fee for each ton
of a sequestered substance injected after a sequestration order
becomes effective. Fees collected under this subsection shall be
deposited in the sequestration remediation fund.
(6) As soon as practicable, the department shall establish by
rule the minimum and maximum balance for the sequestration
remediation fund, and the amount of the fee required under
subsection (5) to maintain a sequestration remediation fund balance
in that range, after taking into account the following criteria:
(a) The estimated quantity of carbon dioxide to be injected
annually by all sequestration operations in the state.
(b) The likelihood of an incident resulting in liability.
(c) The likely dollar value of any damages relating to an
incident.
(d) Other factors relating to the risk of sequestration
projects.
(e) The effect of the fee on commercial and economic viability
of sequestration of carbon dioxide.
(7) At least every 5 years, the department shall review and if
appropriate adjust the minimum and maximum sequestration
remediation fund balance to ensure that the balance is sufficient
to meet the potential need for payments from the remediation fund.
(8) The geologic sequestration advisory board is created
within the department. The board shall consist of the following
members:
(a) The following members appointed by the governor:
(i) A representative of an organization of intrastate gas
pipeline operators.
(ii) A carbon sequestration researcher or geologist.
(iii) A representative of an environmental protection
organization.
(b) The following members appointed by the senate majority
leader:
(i) A representative of the Michigan oil and gas industry.
(ii) An engineer specializing in carbon sequestration.
(c) The following members appointed by the speaker of the
house of representatives:
(i) A representative of the natural gas storage industry.
(ii) An actuary.
(d) The following ex officio members:
(i) The director of the department or his or her designee.
(ii) The manager of the operations and wholesale market
division, or a successor division, of the Michigan public service
commission.
(iii) The state treasurer or his or her designee, as a nonvoting
member.
(9) The members first appointed to the geologic sequestration
advisory board shall be appointed within 30 days after the
effective date of this section. Members of the board shall serve
for terms of 4 years or until a successor is appointed, whichever
is later, except that the member first appointed under subsection
(8)(a)(ii) shall serve for 1 year, the members first appointed under
subsection (8)(b)(i) and (c)(i) shall serve for 2 years, and the
members first appointed under subsection (8)(b)(ii) and (c)(ii) shall
serve for 3 years. If a vacancy occurs on the board, the vacancy
shall be filled by appointment for the unexpired term in the same
manner as the original appointment. The officer appointing a member
of the board may remove the member for incompetency, dereliction of
duty, malfeasance, misfeasance, or nonfeasance in office, or any
other good cause.
(10) The first meeting of the geologic sequestration advisory
board shall be called by the director of the department. At the
first meeting, the board shall elect from among its members a
chairperson and other officers as it considers necessary or
appropriate. After the first meeting, the board shall meet at least
annually, or more frequently at the call of the chairperson or if
requested by 2 or more members. A majority of the members of the
board constitute a quorum for the transaction of business at a
meeting of the board. A majority of the members present and serving
are required for official action of the board.
(11) The business that the geologic sequestration advisory
board performs shall be conducted at a public meeting of the board
held in compliance with the open meetings act, 1976 PA 267, MCL
15.261 to 15.275. A writing prepared, owned, used, in the
possession of, or retained by the board in the performance of an
official function is subject to the freedom of information act,
1976 PA 442, MCL 15.231 to 15.246.
(12) Members of the geologic sequestration advisory board
shall serve without compensation. However, members of the board may
be reimbursed for their actual and necessary expenses incurred in
the performance of their official duties as members of the board.
(13) The geologic sequestration advisory board shall make
recommendations to the department on all of the following:
(a) The fees to be established under this section.
(b) The minimum and maximum sequestration remediation fund
balance.
(c) Management of the sequestration remediation fund.
(14) The department shall consider the recommendations of the
geologic sequestration advisory board and shall explain the reasons
in writing if recommendations of the board are not adopted.
Sec. 62737. (1) This part does not apply to the use of carbon
dioxide as a part of or in conjunction with any secondary recovery
project approved by the department under part 615 or part 617, or
both, and any consequential geologic sequestration, if the primary
purpose of the project is secondary oil or gas recovery.
(2) The department may promulgate rules to allow conversion or
expansion of an existing secondary recovery project approved under
part 615 or part 617, or both, into a sequestration project. Upon
approval of a conversion or expansion of a secondary recovery
project, this part applies to the project.
Sec. 62739. (1) If the department determines that a
sequestration project owner has violated this part, a rule
promulgated under this part, or a sequestration order issued under
this part, the department shall order the sequestration project
owner to correct the violation.
(2) If the department determines that the sequestration
project owner has violated this part, a rule promulgated under this
part, or an order issued under this part, and that the violation
endangers or creates a significant risk of endangering natural
resources, the environment, or public health and safety, the
department shall notify in writing the project owner and any surety
for a bond the project owner filed with the department. The notice
shall be served by registered mail or personal service. The notice
shall specify actions necessary to remediate the violation. If the
project owner and surety fail to take the actions described in the
notice as soon as practicable but not later than 30 days after the
date of service, the department may enter into and upon any private
or public property necessary to reach the site of the sequestration
project, and take actions necessary to remediate the violation. The
project owner and surety are jointly and severally liable for all
expenses incurred by the department for remediation under this
section. The project owner or surety shall pay within 30 days any
claim submitted by the department listing the expenses incurred to
remediate the violation. If a claim is not paid within that time,
the department may bring a suit to collect the claim against the
project owner or surety, jointly or severally, in any court of
competent jurisdiction. A person challenging the recovery of costs
under this subsection has the burden of establishing that the costs
were not reasonably incurred under the circumstances.
(3) This section does not require a surety to pay more than
its obligations under the applicable surety instrument.
(4) A finding of significant endangerment under this section
is not a basis for finding an imminent and substantial endangerment
or a similar finding under any other law.
(5) If the department finds that emergency action is required
to protect natural resources, the environment, or public health and
safety, the department may issue an emergency order without a
hearing to require a sequestration project owner to suspend the
sequestration operation or to take other corrective actions. An
emergency order shall remain in force and effect for not more than
21 days.
(6) If a sequestration project owner fails to comply with an
order under subsection (1), the department may request the attorney
general to bring a civil action for appropriate relief, including a
permanent or temporary injunction, for a violation of this part, a
rule promulgated under this part, or an order issued under this
part. An action under this subsection may be brought in the circuit
court for the county of Ingham or for the county in which the
defendant is located, resides, or is doing business. The court has
jurisdiction to restrain the violation and to require compliance.
In addition to any other relief granted under this section, the
court may impose a civil fine of not less than $2,500.00, and the
court may award reasonable attorney fees and costs to the
prevailing party. The maximum fine imposed by the court shall be
not more than $25,000.00 per day of violation.
(7) The attorney general may file a civil suit in a court of
competent jurisdiction to recover, in addition to a fine under
subsection (6), the full value of the injuries done to the natural
resources of this state and the costs of surveillance and
enforcement by this state resulting from the violation.
(8) A civil fine or other civil award imposed under this
section is payable to this state and shall be credited to the
general fund. The fine constitutes a lien on any property, of any
nature or kind, owned by the defendant.
Sec. 62741. A person who intentionally makes a false
statement, representation, or certification in a petition for a
sequestration project under this part or in a notice or report
required under this part or under a sequestration order is guilty
of a felony and may be imprisoned for not more than 2 years and
shall be fined not less than $2,500.00 or more than $25,000.00 for
each violation.
Sec. 62743. (1) The department has jurisdiction and authority
over all persons and property necessary to administer and enforce
this part.
(2) The department may promulgate rules and issue orders
necessary to carry out the purposes of this part.
(3) The department may enter at all reasonable times in or
upon a sequestration project subject to this part for the purpose
of inspecting and investigating operating records, sequestration
wells, and facilities of a sequestration project. The department
shall conduct an inspection and investigation at least annually.
(4) The department may enter into cooperative agreements with
the federal government or other state governments or state
government entities to regulate sequestration projects that extend
beyond state regulatory authority under this part.
(5) A local unit of government shall not adopt, maintain, or
enforce an ordinance, regulation, or resolution that duplicates,
contradicts, exceeds, or conflicts with a provision of this part,
except that an ordinance may regulate aboveground elements of the
sequestration operation or sequestration project to protect public
health and safety.
(6) A sequestration operation or sequestration project that
has been approved by a sequestration project order is not subject
to an ordinance adopted under the Michigan zoning enabling act,
2006 PA 110, MCL 125.3101 to 125.3702.
(7) A carbon dioxide injection project designed to gather data
or as a pilot or feasibility study of geologic sequestration that
injects not more than 2,000,000 tons of carbon dioxide is not
subject to this part, if the owner or operator of the project
complies with all applicable provisions of part 615 and part 625,
as appropriate, and pursuant to those parts, obtains the approval
of the department for construction and operation of the project.
The project may at any time be considered for conversion into a
sequestration project subject to this part, on a prospective basis,
upon filing a petition pursuant to section 62707.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4942 (request no.
02744'13) of the 97th Legislature is enacted into law.
