HOUSE BILL No. 5254 October 8, 1997, Introduced by Reps. Alley and Kilpatrick and referred to the Committee on Conservation, Environment and Recreation. A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending sections 503 and 509 (MCL 324.503 and 324.509), sec- tion 503 as amended by 1996 PA 133. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 503. (1) The department shall protect and conserve the 2 natural resources of this state; provide and develop facilities 3 for outdoor recreation; prevent the destruction of timber and 4 other forest growth by fire or otherwise; promote the reforesting 5 of forest lands belonging to the state; prevent and guard against 6 the pollution of lakes and streams within the state and enforce 7 all laws provided for that purpose with all authority granted by 8 law; and foster and encourage the protecting and propagation of 9 game and fish. The department has the power and jurisdiction 10 over the management, control, and disposition of all land under 01371'97 a * JCB 2 1 the public domain, except for those lands under the public domain 2 that are managed by other state agencies to carry out their 3 assigned duties and responsibilities. On behalf of the people of 4 the state, the department may accept gifts and grants of land and 5 other property and may buy, sell, exchange, or condemn land and 6 other property, for any of the purposes contemplated by this 7 part. The department may accept funds, money, or grants for 8 development of salmon and steelhead trout fishing in this state 9 from the government of the United States, or any of its depart- 10 ments or agencies, pursuant to the anadromous fish conservation 11 act, Public Law 89-304, 16 U.S.C. 757a to 757g, and may use this 12 money in accordance with the terms and provisions of that act. 13 However, the acceptance and use of federal funds does not commit 14 state funds and does not place an obligation upon the legislature 15 to continue the purposes for which the funds are made available. 16 (2) The department may lease lands owned or controlled by 17it that have been designated for use for recreational purposes,18but only to responsible legal units, within this state, of19national or state recognized groups devoted principally to devel-20opment of character and citizenship training and physical fitness21of youth, the financial support of which is by voluntary public22subscriptions or contributions, and the property of which is23exempt from taxation under the laws of this state. The depart-24ment may lease land in the Porcupine mountain state park to third25parties for purposes as it considers desirable.THE DEPARTMENT 26 OR MAY GRANT CONCESSIONS ON LANDS OWNED OR CONTROLLED BY THE 27 DEPARTMENT TO ANY PERSON FOR ANY PURPOSE THAT THE DEPARTMENT 01371'97 a * 3 1 DETERMINES TO BE NECESSARY TO IMPLEMENT THIS PART. IN GRANTING A 2 CONCESSION, THE DEPARTMENT SHALL PROVIDE THAT EACH CONCESSION IS 3 AWARDED AT LEAST EVERY 7 YEARS BASED ON EXTENSION, RENEGOTIATION, 4 OR COMPETITIVE BIDDING. Any lease entered into under this subsec- 5 tion shall limit the purposes for which the leased land is to be 6 used and shall authorize the department to terminate the lease 7 upon a finding that the land is being used for purposes other 8 than those permitted in the lease. UNLESS OTHERWISE PROVIDED BY 9 LAW, MONEY RECEIVED FROM A LEASE OF TAX REVERTED LAND SHALL BE 10 CREDITED TO THE FUND PROVIDING FINANCIAL SUPPORT FOR THE MANAGE- 11 MENT OF THE LEASED LAND. MONEY RECEIVED FROM A LEASE OF ALL 12 OTHER LAND SHALL BE CREDITED TO THE FUND FROM WHICH THE LAND WAS 13 PURCHASED. HOWEVER, MONEY RECEIVED FROM PROGRAM-RELATED LEASES 14 ON THESE LANDS SHALL BE CREDITED TO THE FUND PROVIDING FINANCIAL 15 SUPPORT FOR THE MANAGEMENT OF THE LEASED LANDS. FOR LAND MANAGED 16 BY THE FOREST MANAGEMENT DIVISION OF THE DEPARTMENT OF NATURAL 17 RESOURCES, THAT FUND IS EITHER THE FOREST DEVELOPMENT FUND ESTAB- 18 LISHED PURSUANT TO PART 505 OR THE FOREST RECREATION FUND CREATED 19 IN PART 831. FOR LAND MANAGED BY THE WILDLIFE OR FISHERIES DIVI- 20 SION OF THE DEPARTMENT OF NATURAL RESOURCES, THAT FUND IS THE 21 GAME AND FISH PROTECTION FUND CREATED IN PART 435. 22 (3) When any sales of land are made by the department, the 23 deeds by which lands are conveyed may reserve all mineral, coal, 24 oil, and gas rights to the state, but shall not reserve the 25 rights to sand, gravel, clay, or other nonmetallic minerals. The 26 department shall also have the power to provide that all deeds 27 issued for lands along watercourses and streams shall contain a 01371'97 a * 4 1 clause reserving the right of ingress and egress over and across 2 the lands. Whenever an exchange of land is made, either with the 3 United States government, a corporation, or an individual, for 4 the purpose of consolidating the state forest reserves, the 5 department may issue deeds without reserving to the state the 6 mineral, coal, oil, and gas rights and the rights of ingress and 7 egress. The department may sell the limestone, sand, gravel, or 8 other nonmetallic minerals. However, the department shall not 9 sell a mineral or nonmetallic mineral right if the sale would 10 violate part 353,(sand dune protection and management) of Act11No. 451 of the Public Acts of 1994, being sections 324.35301 to12324.35326 of the Michigan Compiled Laws, orpart 637,(sand13dune mining) of Act No. 451 of the Public Acts of 1994, being14sections 324.63701 to 324.63714 of the Michigan Compiled Laws,15 or any other provision of law. The department may sell all 16 reserved mineral, coal, oil, and gas rights to such lands upon 17 terms and conditions as the department considers proper. The 18 owner of such lands as shown by the records shall be given prior- 19 ity in case the department authorizes any sale of such lands, 20 and, unless the landowner waives such rights, the department 21 shall not sell such rights to any other person. For the purpose 22 of this section, mineral rights do not include rights to sand, 23 gravel, clay, or other nonmetallic minerals. 24 (4) The department may enter into contracts for the sale of 25 the economic share of royalty interests it holds in hydrocarbons 26 produced from devonian or antrim shale qualifying for the 27 nonconventional fuel credit contained in section 29 of the 01371'97 a * 5 1 internal revenue code of 1986, 26 U.S.C. 29. However, in 2 entering into these contracts, the department shall assure that 3 revenues to the natural resources trust fund under these con- 4 tracts are not less than the revenues the natural resources trust 5 fund would have received if the contracts were not entered into. 6 The sale of the economic share of royalty interests under this 7 subsection may occur under contractual terms and conditions con- 8 sidered appropriate by the department and as approved by the 9 state administrative board. Funds received from the sale of the 10 economic share of royalty interests under this subsection shall 11 be transmitted to the state treasurer for deposit in the state 12 treasury as follows: 13 (a) Net proceeds allocable to the nonconventional fuel 14 credit contained in section 29 of the internal revenue code of 15 1986, 26 U.S.C. 29, under this subsection shall be credited to 16 the environmental protection fund created in section 503a. 17 (b) Proceeds related to the production of oil or gas from 18 devonian or antrim shale shall be credited to the natural 19 resources trust fund or other applicable fund as provided by 20 law. 21 (5) As used in subsection (4): 22 (a) "Natural resources trust fund" means the Michigan natu- 23 ral resources trust fund established in section 35 of article IX 24 of the state constitution of 1963 and provided for in 25 section 1902. 26 (b) "Net proceeds" means the total receipts received from 27 the sale of royalty interests under subsection (4) less costs 01371'97 a * 6 1 related to the sale. Costs may include, but are not limited to, 2 legal, financial advisory, geological or reserve studies, and 3 accounting services. 4 Sec. 509. (1) The department may require that a person 5 obtain a permit for the use of a state park.or a state forest6campground.The department may establish and collect fees for 7 permits to use state parks., state forest campgrounds, and spe-8cific state forest areas.The revenue realized by the department 9 from permit fees and concessions at state parks shall be credited 10 to a separate fund of the state treasury and shall be available 11 for appropriation to the department of natural resources for 12 improvement and maintenance of state parks.The permit fees for13state forest campgrounds shall be used for the operation, mainte-14nance, and development of state forest campgrounds. Any unex-15pended permit fees for state forest campgrounds, along with any16excess collections from prior fiscal years, shall be carried over17into subsequent fiscal years and shall be available for appropri-18ation for the operation, maintenance, and development of state19forest campgrounds.20 (2) The department may establish and collect fees for the 21 processing of applications for the use of state forests that 22 require extensive review. The fees shall cover the cost to the 23 department of processing the applications. MONEY RECEIVED PURSU- 24 ANT TO THIS SUBSECTION SHALL BE CREDITED TO THE FOREST DEVELOP- 25 MENT FUND ESTABLISHED PURSUANT TO PART 505. 26 Enacting section 1. This amendatory act does not take 27 effect unless Senate Bill No. _____ or House Bill No. _____ 01371'97 a * 7 1 (request no. 01371'97 *) of the 89th Legislature is enacted into 2 law. 01371'97 a * Final page. JCB