Bill Text: MI HB5111 | 2009-2010 | 95th Legislature | Introduced

---

Bill Title: Natural resources; gas and oil; restrictions on drilling of oil and gas wells in residential areas; provide for. Amends secs. 61506 & 61506b of 1994 PA 451 (MCL 324.61506 & 324.61506b) & adds sec. 61506d.

Spectrum: Partisan Bill (Democrat 13-0)

Status: (Introduced - Dead) 2009-06-18 - Printed Bill Filed 06/18/2009 [HB5111 Detail]

Download: Michigan-2009-HB5111-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5111

 

June 17, 2009, Introduced by Reps. Slavens, Geiss, Liss, Robert Jones, Bledsoe, Angerer, Kennedy, Womack, Slezak, Constan, Switalski, Durhal and Barnett and referred to the Committee on Great Lakes and Environment.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 61506 and 61506b (MCL 324.61506 and

 

324.61506b), section 61506 as amended and section 61506b as added

 

by 1998 PA 303, and by adding section 61506d.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 61506. The supervisor shall prevent the waste prohibited

 

by this part. To that end, acting directly or through his or her

 

authorized representatives, the supervisor is specifically

 

empowered to may do all of the following:

 

     (a) To promulgate and enforce rules, issue orders and

 

instructions necessary to enforce the rules, and do whatever may be

 

necessary with respect to the subject matter stated in this part to

 

implement this part, whether or not indicated, specified, or

 

enumerated in this or any other section of this part.

 

     (b) To collect data to make inspections, studies, and

 

investigations; to examine properties, leases, papers, books, and

 

records as necessary to the purposes of this part; to examine,

 

check, and test and gauge oil and gas wells and tanks, plants,

 

refineries, and all means and modes of transportation and

 

equipment; to hold hearings; and to provide for the keeping of

 

records and making of reports, and for the checking of the accuracy

 

of the records and reports.

 

     (c) To require the locating, drilling, deepening, redrilling

 

or reopening, casing, sealing, operating, and plugging of wells

 

drilled for oil and gas or for secondary recovery projects, or

 

wells for the disposal of salt water, brine, or other oil field

 

wastes, to be done in such manner and by such means as to prevent

 

the escape of oil or gas out of 1 stratum into another, or of water

 

or brines into oil or gas strata; to prevent pollution of, damage

 

to, or destruction of fresh water supplies, including inland lakes

 

and streams and the Great Lakes and connecting waters, and valuable

 

brines by oil, gas, or other waters, to prevent the escape of oil,

 

gas, or water into workable coal or other mineral deposits; to

 

require the disposal of salt water and brines and oily wastes

 

produced incidental to oil and gas operations in a manner and by

 

methods and means so that unnecessary damage or danger to or

 

destruction of surface or underground resources, to neighboring

 

properties or rights, or to life does not result.

 

     (d) To require reports and maps showing locations of all wells

 

subject to this part, and the keeping and filing of logs, well

 

samples, and drilling, testing, and operating records or reports.

 

All well data and samples furnished to the supervisor as required

 

in this part, upon written request of the owner of the well, shall

 

be held confidential for 90 days after the completion of drilling

 

and shall not be open to public inspection except by written

 

consent of the owner.

 

     (e) To prevent the drowning by water of any stratum or part of

 

the stratum capable of producing oil or gas, or both oil and gas,

 

and to prevent the premature and irregular encroachment of water,

 

or any other kind of water encroachment, that reduces or tends to

 

reduce the total ultimate recovery of oil or gas, or both oil or

 

gas, from any pool.

 

     (f) To prevent fires or explosions.

 

     (g) To prevent blow-outs, seepage, and caving in the sense

 

that the conditions indicated by such terms are generally

 

understood in the oil business.

 

     (h) To regulate the mechanical, physical, and chemical

 

treatment of wells.

 

     (i) To regulate the secondary recovery methods of oil and gas,

 

including pulling or creating a vacuum and the introduction of gas,

 

air, water, and other substances into the producing formations.

 

     (j) To fix the spacing of wells and to regulate the production

 

from the wells.

 

     (k) To require the operation of wells with efficient gas-oil

 

ratios and to establish the ratios.

 

     (l) To require by written notice or citation immediate

 

suspension of any operation or practice and the prompt correction

 

of any condition found to exist that causes or results or threatens

 

to cause or result in waste.

 

     (m) To require, either generally or in or from particular

 

areas, certificates of clearance or tenders in connection with the

 

transportation of oil, gas, or any product of oil or gas.

 

     (n) To require identification of the ownership of oil and gas

 

producing leases, properties, and wells.

 

     (o) To promulgate rules or issue orders for the

 

classifications of wells as oil wells or gas wells; or wells

 

drilled, or to be drilled, for secondary recovery projects, or for

 

the disposal of salt water, brine, or other oil or gas field

 

wastes; or for the development of reservoirs for the storage of

 

liquid or gaseous hydrocarbons, or for other means of development,

 

extraction, or production of hydrocarbons.

 

     (p) To require the filing of an adequate surety, security, or

 

cash bonds of owners, producers, operators, or their authorized

 

representatives in such reasonable form, condition, term, and

 

amount as will ensure compliance with this part and with the rules

 

promulgated or orders issued under this part and to provide for the

 

release of the surety, security, or cash bonds.

 

     (q) To require the immediate suspension of drilling or other

 

well operations if there exists a threat to public health or

 

safety.

 

     (r) To require a person applying for a permit to drill and

 

operate any well regulated by this part to file a complete and

 

accurate written application on a form prescribed by the

 

supervisor.

 

     (s) To require the posting of safety signs and the

 

installation of fences, gates, or other safety measures if there

 

exists a threat to public health, safety, or property.

 

     (t) To prevent regular or recurring nuisance noise or regular

 

or recurring nuisance odor in the exploration for or development,

 

production, or handling of oil and gas. Oil and gas operations in

 

the vicinity of residential property shall comply with section

 

61506d.

 

     Sec. 61506b. (1) Except as provided in subsections (2) and

 

(3), beginning on the effective date of this section, the

 

supervisor shall not issue a permit for or authorize the drilling

 

of an oil or gas well if both either of the following apply

 

applies:

 

     (a) The well is located within 450 feet of the boundary of

 

property containing a residential building .(b) The residential

 

building is located in a city or township with a population of

 

70,000 or more.

 

     (b) The city, village, or township where the well is located

 

has determined that the well poses a threat to public health or

 

safety.

 

     (2) The supervisor may grant a waiver from the requirement of

 

subsection (1)(a) if the clerk of the city, village, or township in

 

which the proposed well is located has been notified of the

 

application for a permit for the proposed well and if either of the

 

following conditions is met:

 

     (a) The owner or All of the owners of property containing all

 

residential buildings whose property boundaries are located within

 

450 feet of the proposed well give written consent.

 

     (b) The supervisor determines, pursuant to a public hearing

 

held before the waiver is granted, that the proposed well location

 

will not cause waste and there is no reasonable alternative for the

 

location of the well that will allow the oil and gas rights holder

 

to develop the oil and gas.

 

     (3) Subsection (1) does not apply to a well utilized for the

 

injection, withdrawal, and observation of the storage of natural

 

gas pursuant to this part.

 

     Sec. 61506d. Noise from the exploration for or development,

 

production, or handling of oil or gas in the vicinity of

 

residential property shall comply with all of the following:

 

     (a) Between the hours of 7 a.m. and 7 p.m., noise levels shall

 

not exceed 55 decibels as measured from the boundary of any

 

residential property.

 

     (b) Between the hours of 7 p.m. and 7 a.m., noise levels shall

 

not exceed 50 decibels as measured from the boundary of any

 

residential property.