Bill Text: MI HB5274 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Natural resources; gas and oil; regulations for carbon dioxide pipelines; provide for. Amends title & secs. 1, 3, 4 & 5 of 1929 PA 16 (MCL 483.1 et seq.). TIE BAR WITH: HB 4885'13, HB 5254'14, HB 5255'14
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2014-04-17 - Assigned Pa 85'14 With Immediate Effect [HB5274 Detail]
Download: Michigan-2013-HB5274-Engrossed.html
HB-5274, As Passed Senate, March 18, 2014
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 5274
A bill to amend 1929 PA 16, entitled
"An act to regulate the business of carrying or transporting,
buying, selling or dealing in crude oil or petroleum or its
products, through pipe lines; to authorize the use of public
highways and the condemnation of private property; to regulate the
purchase and storage of crude oil or petroleum; to provide for the
control and regulation of all corporations, associations and
persons engaged in such business, by the Michigan public utilities
commission; to define the powers and duties of the commission in
relation thereto; and to prescribe penalties for violations of the
provisions hereof,"
by amending the title and sections 1, 3, 4, and 5 (MCL 483.1,
483.3, 483.4, and 483.5).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to regulate the business of carrying or transporting,
buying, selling, or dealing in crude oil or petroleum or its
products, or certain substances consisting primarily of carbon
dioxide through pipe lines; to authorize the use of public highways
and the condemnation of private property; to regulate the purchase
and storage of crude oil or petroleum or certain substances
consisting primarily of carbon dioxide; to provide for the control
and regulation of all corporations, associations, and persons
engaged
in such business, by the Michigan public utilities service
commission; to define the powers and duties of the commission in
relation
thereto; and to prescribe penalties. for violations of the
provisions
hereof.
Sec.
1. (1) Every corporation, association or As used in this
act:
(a) "Carbon dioxide substance" means a gaseous or liquid
substance, consisting primarily of carbon dioxide, that will be put
in storage or that has been or will be used to produce hydrocarbons
in a secondary or enhanced recovery operation.
(b) "Commission" means the Michigan public service commission.
(c) "Person" means an individual, partnership, corporation,
association, governmental entity, or other legal entity.
(2)
A person now or hereafter exercising
or claiming the right
to carry or transport crude oil or petroleum, or any of the
products thereof, or carbon dioxide substances, by or through pipe
line
or lines, for hire, compensation or otherwise, or now or
hereafter
exercising or claiming the right to
engage in the
business of piping, transporting, or storing crude oil or
petroleum, or any of the products thereof, or carbon dioxide
substances,
or now or hereafter engaging in
the business of buying,
selling, or
dealing in crude oil or petroleum
, or carbon dioxide
substances
within the limits of this state,
shall does not have or
possess
the right to conduct or engage in said the business or
operations,
in whole or in part, as above described, or have or
possess the right to locate, maintain, or operate the necessary
pipe
lines, fixtures, and equipment thereunto belonging to,
or used
in
connection therewith, concerning the said business of carrying,
transporting
or storing crude oil or petroleum as aforesaid, with
that business on, over, along, across, through, in or under any
present or future highway, or part thereof, or elsewhere, within
this state, or have or possess the right of eminent domain, or any
other
right, or rights, concerning said the business
or operations,
in
whole or in part, except as authorized by and subject to the
provisions
of this act. ,
except, further, and only such right or
rights
as may already exist which are
(3) Subsection (2) does not apply to a right that exists on
March 27, 1929 and is valid, vested, and incapable of revocation by
any law of this state or of the United States.
Sec.
3. (1) There is hereby granted to and vested in the
Michigan
public utilities commission, hereinafter styled the
"commission,"
Subject to subsection (2),
the commission is granted
the
power to control, investigate, and regulate every corporation,
association
or a person
, now or hereafter exercising doing any of
the following:
(a) Exercising or claiming the right to carry or transport
crude oil or petroleum, or any of the products thereof, or carbon
dioxide substances, by or through pipe line or lines, for hire,
compensation, or
otherwise , or now or hereafter exercising within
this state.
(b) Exercising or claiming the right to engage in the business
of piping, transporting, or storing crude oil or petroleum, or any
of
the products thereof, or now or hereafter engaging carbon
dioxide substances within this state.
(c) Engaging in the business of buying, selling, or dealing in
crude
oil or petroleum or carbon
dioxide substances within the
limits
of this state. :
Provided, however, That all corporations,
associations,
or persons who are producers,
(2)
Producers or refiners of crude oil , or petroleum
, or
carbon dioxide substances or operators of private trunk or
gathering
lines or other methods of conveying such those products,
where
are not subject to this act if
the nature and extent of their
business
is private , and where
in the conduct thereof no public
interest
is involved , are hereby specifically excepted and
excluded
from the terms of this act.in
the conduct of the business.
Sec.
4. Every corporation, association or person, now or
hereafter
A person claiming or exercising the right to carry or
transport crude oil or petroleum, or any of the products thereof,
or carbon dioxide substances, by pipe line or pipe lines, for hire,
compensation,
or otherwise, within the limits of in this state, as
owner, lessee, licensee, or by virtue of any other right or claim,
or
now engaged or hereafter engaging in the business of purchasing
or
storing crude oil or petroleum , or
carbon dioxide substances
shall
be is a common purchaser thereof. ,
and The person shall
purchase all the crude oil or petroleum or carbon dioxide
substances in the vicinity of, or which may be reasonably reached
by its pipe lines, or gathering branches, without discrimination in
favor
of 1 any producer or 1 other person as against
another, and
shall
fully perform all the duties of a common purchaser. ;
but if
it
shall be However, if the person
is unable to perform the same,
or
be duties of a common
purchaser or is legally excused from
purchasing, transporting, or storing all of the crude oil or
petroleum or carbon dioxide substances produced in the vicinity,
then it shall purchase, transport, or store crude oil or petroleum
or
carbon dioxide substances from each person
and producer or other
person
ratably, in proportion to the average
daily production. ,
and
such common purchasers are hereby expressly prohibited from
discriminating
A common purchaser shall not
discriminate in price
or amount for like grades of crude oil or petroleum or carbon
dioxide substances or facilities as between producers or other
persons. ;
and in the event it is likewise a producer, it is hereby
prohibited
from discriminating If a
common purchaser is also a
producer, it shall not discriminate in favor of its own production,
or
storage, or any production or storage in which it may be is
interested directly or indirectly in whole or in part, and shall
treat
its own production and storage shall
be treated as like that
of
any other person or producer
or other person.
Sec.
5. Every corporation, association or person, now or
hereafter
A person engaged in the business of carrying or
transporting crude oil or petroleum, or any of the products
thereof, or carbon dioxide substances, for hire or compensation or
otherwise,
by pipe line or lines, within this state, shall be is a
common
carrier thereof as at common law.
, and no such Such a
common
carrier shall not allow or be guilty of commit any
unjust or
unlawful discrimination, directly or indirectly, in favor of the
carriage, transportation, storage, or delivery of any crude, stock,
or storage oil, or petroleum, or any products thereof, or carbon
dioxide substances that are in its possession or control, or in
which
it may be the common
carrier is interested, directly or
indirectly.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 97th Legislature are
enacted into law:
(a) House Bill No. 4885.
(b) House Bill No. 5254.
(c) House Bill No. 5255.
