January 30, 2014, Introduced by Reps. Pettalia and Nesbitt and referred to the Committee on Energy and Technology.
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 gaseous or liquid 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 gaseous or liquid 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
person now or
hereafter
exercising or claiming the right to
carry or transport
crude oil or petroleum, or any of the products thereof, or gaseous
or liquid substances, consisting primarily of carbon dioxide, that
will be put in storage or that have been or will be used to produce
hydrocarbons in secondary or enhanced recovery operations, 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 such gaseous or liquid
substances,
consisting primarily of carbon dioxide, or
now or
hereafter
engaging in the business of buying,
selling, or dealing
in crude oil or petroleum, or such gaseous or liquid substances,
consisting primarily of carbon dioxide, within the limits of this
state, shall 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
(2) Subsection (1) 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 Subject
to
subsection (2), the Michigan
public utilities service
commission,
hereinafter styled referred
to as the "commission," the
power
to may control, investigate, and regulate every
corporation,
association, or
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 gaseous
or liquid substances, consisting primarily of carbon dioxide, that
will be put in storage or that have been or will be used to produce
hydrocarbons in secondary or enhanced recovery operations, by or
through
pipe line or lines, for hire, compensation or otherwise. ,
or
now or hereafter exercising
(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 such gaseous
or liquid substances, consisting primarily of carbon dioxide.
(c) Engaging in the business of buying, selling, or dealing in
crude oil or petroleum or such gaseous or liquid substances,
consisting primarily of carbon dioxide, within the limits of this
state. :
Provided, however, That
(2) However, all corporations, associations, or persons who
are
producers, or refiners of crude oil
, or petroleum or such
gaseous or liquid substances, consisting primarily of carbon
dioxide, or who are operators of private trunk or gathering lines
or
other methods of conveying such those
products, where if the
nature
and extent of their business is private, and where if in
the
conduct
thereof no public interest is involved, are hereby
specifically
excepted and excluded from the terms of not subject to
this act.
Sec.
4. Every corporation, association, or person, now or
hereafter
claiming or exercising the right to
carry or transport
crude
oil or petroleum or any of the products thereof , or gaseous
or liquid substances, consisting primarily of carbon dioxide, that
will be put in storage or that have been or will be used to produce
hydrocarbons in secondary or enhanced recovery operations, by pipe
line or pipe lines, for hire, compensation, or otherwise, within
the limits of 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
such gaseous or liquid substances, consisting primarily of carbon
dioxide, shall be a common purchaser thereof, and shall purchase
all the petroleum or such gaseous or liquid substances, consisting
primarily of carbon dioxide, in the vicinity of, or which may be
reasonably reached by its pipe lines, or gathering branches,
without discrimination in favor of 1 producer or 1 person as
against another, and shall fully perform all the duties of a common
purchaser. ;
but if it shall be However,
if the corporation,
association,
or 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 petroleum or such gaseous or
liquid substances, consisting primarily of carbon dioxide, that is
produced in the vicinity, then it shall purchase, transport, or
store petroleum or such gaseous or liquid substances, consisting
primarily of carbon dioxide, from each person and producer 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 oil, such gaseous or liquid substances, consisting
primarily of carbon dioxide, or facilities as between producers or
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 its own
production and storage shall be treated as that of any other person
or producer.
Sec. 5. Every corporation, association, or person, now or
hereafter engaged in the business of carrying or transporting crude
oil or petroleum, or any of the products thereof, or gaseous or
liquid substances, consisting primarily of carbon dioxide, that
will be put in storage or that have been or will be used to produce
hydrocarbons in secondary or enhanced recovery operations, for hire
or compensation or otherwise, by pipe line or lines, within this
state,
shall be 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 any products thereof, or such
gaseous or liquid substances, consisting primarily of carbon
dioxide, that are in its possession or control, or in which it may
be 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. 5254.
(b) House Bill No. 5255.