HOUSE BILL No. 4467


     March 14, 2001, Introduced by Reps. Dennis, Scranton, Kolb, Van Woerkom, Clark, Bogardus, Rich Brown, Woodward,
Schermesser, Callahan, Whitmer, Adamini, Lipsey, Williams, Wojno, Neumann, Rivet, Gieleghem, O'Neil, Murphy, Minore, Bovin,
Hansen, Quarles, Jamnick, Phillips, Waters, Mans, Zelenko, Thomas, Frank, Garza, Hardman, Basham, Clarke, Plakas, Woronchak,
Bob Brown, McConico, Jacobs, Schauer, Kilpatrick and Lemmons 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:

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

 2
      inconsistent with law, governing its organization and procedure.

 3
           (2) The department may  promulgate  DO 1 OR MORE OF THE

 4
      FOLLOWING:

 5
           (A) PROMULGATE and enforce reasonable rules concerning the

 6
      use and occupancy of lands and property under its control in

 7
      accordance with section 50.  ; may provide 




   00972'01                                                 JCB
                                              2

 1
           (B) PROVIDE and develop facilities for outdoor recreation.

 2
       ; may conduct 

 3
           (C) CONDUCT investigations it considers necessary for the

 4
      proper administration of this part.  ; may remove 

 5
           (D) REMOVE and dispose of forest products as required for

 6
      the protection, reforestation, and proper development and conser-

 7
      vation of the lands and property under control of the department.

 8
       ; and may require 

 9
           (E) REQUIRE the payment of a fee as provided by law for a

10
      daily permit or other authorization that allows the person to

11
      hunt and take waterfowl on a public hunting area managed and

12
      developed for waterfowl.

13
           (3)  (2)  Except as provided in subsection  (3)  (4),
   the

14
      department may enter into contracts for the taking of coal, oil,

15
      gas, and other mineral products from state owned lands, upon a

16
      royalty basis or upon another basis, and upon the terms the

17
      department considers just and equitable subject to section 502a.

18
      This contract power includes authorization to enter into con-

19
      tracts for the storage of gas or other mineral products in or

20
      upon state owned lands, if the consent of the state agency having

21
      jurisdiction and control of the state owned land is first

22
      obtained.  A contract permitted under this section for the taking

23
      of coal, oil, gas, or metallic mineral products, or for the stor-

24
      age of gas or other mineral products, is not valid unless the

25
      contract is approved by the state administrative board.  Money

26
      received from a contract for the storage of gas or other mineral

27
      products in or upon state lands shall be transmitted to the state



   00972'01                                    3

 1
      treasurer for deposit in the general fund of the state to be used

 2
      for the purpose of defraying the expenses incurred in the admin-

 3
      istration of this act and other purposes provided by law.  Other

 4
      money received from a contract permitted under this subsection,

 5
      except money received from lands acquired with money from the

 6
      game and fish protection fund created in section 43553, shall be

 7
      transmitted to the state treasurer for deposit in the Michigan

 8
      natural resources trust fund created in section 35 of article IX

 9
      of the state constitution of 1963 AND PROVIDED FOR IN PART 19.

10
      However, the money received from the payment of service charges

11
      by a person using areas managed for waterfowl shall be credited

12
      to the game and fish protection fund and used only for the pur-

13
      poses provided by law.  Money received from bonuses, rentals,

14
      delayed rentals, royalties, and the direct sale of resources,

15
      including forest resources, from lands acquired with money from

16
      the game and fish protection fund shall be credited to the game

17
      and fish protection trust fund created in section 43702, except

18
      as otherwise provided by law.

19
           (4)  (3)  The department shall not enter into a contract

20
      that permits drilling operations for the taking of oil or gas

21
      from the lake bottomlands of the Great Lakes or THE connecting or

22
      connected bays, harbors, or waterways  , unless all drilling

23
      operations originate from locations above and inland of the ordi-

24
      nary high-water mark  OF THE GREAT LAKES.  The department shall

25
      not enter into a contract for exploration of the lake bottomlands

26
      of the Great Lakes or THE connecting or connected bays, harbors,

27
      or waterways OF THE GREAT LAKES that permits drilling operations.



   00972'01
                                   4

 1
       unless all drilling operations originate from locations above

 2
      and inland of the ordinary high-water mark. 

 3
           (5)  (4)  This section does not permit a contract for the

 4
      taking of gravel, sand, coal, oil, gas, or other metallic mineral

 5
      products that does not comply with applicable local ordinances

 6
      and state law.

 7
           Sec. 32503.  (1) Except as otherwise provided in this sec-

 8
      tion, the department, after finding that the public trust in the

 9
      waters will not be impaired or substantially affected, may enter

10
      into agreements pertaining to waters over and the filling in of

11
      submerged patented lands, or to lease or deed unpatented lands,

12
      after approval of the state administrative board.  Quitclaim

13
      deeds, leases, or agreements covering unpatented lands may be

14
      issued or entered into by the department with any person, and

15
      shall contain such terms, conditions, and requirements as the

16
      department determines to be just and equitable and in conformance

17
      with the public trust.  The department shall reserve to the state

18
      all mineral rights, including, but not limited to, coal, oil,

19
      gas, sand, gravel, stone, and other materials or products located

20
      or found in those lands, except where lands are occupied or to be

21
      occupied for residential purposes at the time of conveyance.

22
           (2) A riparian owner shall obtain a permit from the depart-

23
      ment before dredging or placing spoil or other materials on

24
      bottomland.

25
           (3) The department shall not enter into a lease or deed of

26
      unpatented lands that permits drilling operations for the taking

27
      of oil or gas.  , unless all drilling operations originate from



   00972'01
                                   5

 1
      locations above and inland of the ordinary high-water mark.  The

 2
      department shall not enter into a lease or deed of unpatented

 3
      lands that permits drilling for exploration purposes.  unless the

 4
      drilling operations originate from locations above and inland of

 5
      the ordinary high-water mark. 

 6
           (4) An agreement, lease, or deed entered into under this

 7
      part by the department with the United States shall be entered

 8
      into and executed pursuant to the property rights acquisition

 9
      act,  Act No. 201 of the Public Acts of 1986, being section 3.251

10
      to 3.262 of the Michigan Compiled Laws  1986 PA 201, MCL 3.251 TO

11
      3.262.

12
           Sec. 33938.  (1) A person shall not remove metallic miner-

13
      als, marl, stone, rock, sand, gravel, or earth from or under the

14
      beds of the Great Lakes or the bays and harbors connected with

15
      the Great Lakes without first obtaining a written lease from the

16
      department granting the right to take the material.

17
           (2) A person shall not conduct drilling operations for the

18
      removal of oil or gas from under the beds of the Great Lakes or

19
      THE connecting or connected bays, harbors, or waterways  , unless

20
      all drilling operations originate from locations above and inland

21
      of the ordinary high-water mark and are conducted pursuant to the

22
      terms of a written lease obtained from the department  OF THE

23
      GREAT LAKES.  A person shall not conduct drilling operations for

24
      the purpose of exploring for oil and gas under the beds of the

25
      Great Lakes or THE connecting or connected bays, harbors, or

26
      waterways  , unless all drilling operations originate from





   00972'01
                                   6

 1
      locations above and inland of the high-water mark  OF THE GREAT

 2
      LAKES.

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

 4
      this state for an amount equal to 3 times the value of the mate-

 5
      rials taken plus an amount equal to the cost of restoring the

 6
      waters, beds, bottomlands, adjacent uplands, or any natural

 7
      resource of the Great Lakes or THE connecting or connected bays,

 8
      harbors, or waterways OF THE GREAT LAKES that is damaged as a

 9
      result of the violation.

10
           SEC. 61505A.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS

11
      PART OR THE RULES PROMULGATED UNDER THIS PART, THE SUPERVISOR

12
      SHALL NOT ISSUE A PERMIT FOR DRILLING, OR AUTHORIZE THE DRILLING

13
      OF, AN OIL OR GAS WELL, INCLUDING AN EXPLORATORY WELL, THAT

14
      EXTENDS UNDER THE GREAT LAKES OR THE CONNECTING OR CONNECTED

15
      BAYS, HARBORS, OR WATERWAYS OF THE GREAT LAKES.



























   00972'01          Final page.                            JCB