<html>

<head>
<meta name="bill" content="HB4694">
<meta name="title" content="Summary As Introduced (12/2/2015)">
<meta http-equiv="Content-Type" content="text/html; charset=windows-1252">
<meta name="Generator" content="Microsoft Word 15 (filtered)">
<title>HB4694 - Summary As Introduced (12/2/2015)</title>


</head>

<body lang="EN-US" link="blue" vlink="#954F72"><img src="/halogo.gif" width="158" height="120">

<div>

<p><b>KARST GEOLOGY:  PROHIBIT </b></p>

<p><b>DISPOSAL OR STORAGE IN INJECTION WELL </b></p>



<p><b>House Bill 4694 as introduced</b></p>

<p><b>Sponsor:  Rep. Jason M. Sheppard</b></p>

<p><b>Committee:  Energy Policy</b></p>

<p><b>Complete to 12-2-15</b></p>



<p style='text-align:justify'><b>SUMMARY: </b></p>



<p style='margin-left:.5in;text-align:justify'><a name="StartText"></a>The bill would prohibit the Supervisor of Wells from issuing
a permit for drilling, or authorizing the use of, an injection well for
disposal or storage within an area of Karst geology that is located within 25
miles of the Great Lakes or their connecting waterways.</p>



<p style='margin-left:.5in;text-align:justify'>The bill adds a
new section to Part 615, entitled &quot;Supervisor of Wells.&quot;  Part 615 is
within a subchapter of the Natural Resources and Environmental Protection Act
that pertains to the regulation of oil and gas wells (MCL 324.61505b, proposed). 
The act defines &quot;Supervisor of Wells&quot; to mean the Department of
Environmental Quality.  The prohibition would apply notwithstanding any other
provision of Part 615 or rules promulgated under it.</p>



<p style='text-align:justify'><b>FISCAL IMPACT:</b> </p>



<p style='margin-left:.5in;text-align:justify'>House Bill 4694
would have an indeterminable fiscal impact on the Department of Environmental
Quality.&nbsp; It is unknown at present how many permits to drill would be
outlawed if HB 4694 becomes law.&nbsp; The purview of the bill regulates a
certain topography and it is unclear how many potential wells are or would be
located in an areas that qualify as karst geology. &nbsp;Permits to drill range
from $300 to $5000.  This bill would have no fiscal impact on local units of
government.</p>



<p style='text-align:justify'><b>BACKGROUND INFORMATION:</b> </p>



<p style='margin-left:.5in;text-align:justify'>&quot;Karst
geology&quot; refers to a type of landscape, or terrain, made up of solid rock,
but rock that dissolves in water, such as limestone.  Karsts therefore resemble
Swiss cheese, with holes that can range in size from small holes to underground
caves and caverns, and often develop sinkholes like those seen in Florida.  Due
to their porous nature, karst areas do not offer the same natural filtration
system of soil and rock to clean contaminants from surface water as it soaks
into the ground that other geologic topographies have.  Because of this, water
can move through karst areas rapidly.  Thus, water from any source that flows
into a karst can quickly flow to other water sources with the potential to
compromise aquifers (a major source of drinking water).</p>

<p style='text-align:justify'>                                                                                        Legislative
Analyst:   <a name="Analyst"></a>Susan Stutzky</p>

<p style='text-align:justify'>                                                                                                Fiscal
Analyst:   Austin Scott</p>

<div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>



</div>

<p style='text-align:justify'><span style='font-size:10.0pt;
font-family:"Arial","sans-serif"'>&#9632;</span><span style='font-size:10.0pt'>
This analysis was prepared by nonpartisan House Fiscal Agency staff for use by
House members in their deliberations, and does not constitute an official
statement of legislative intent.</span></p>

</div>

</body>

</html>