HOUSE BILL No. 4080


     January 28, 1999, Introduced by Reps. DeVuyst and Gilbert and referred to the Committee on Conservation and Outdoor
Recreation.


        A bill to amend 1994 PA 451, entitled

   "Natural resources and environmental protection act,"

   (MCL 324.101 to 324.90106) by adding part 618; and to repeal acts

   and parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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                         PART 618 HYDROCARBON POLICY

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           SEC. 61801.  AS USED IN THIS PART:

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           (A) "DEPARTMENT" MEANS THE DEPARTMENT OF ENVIRONMENTAL

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      QUALITY.

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           (B) "DIRECTOR" MEANS THE DIRECTOR OF THE DEPARTMENT.

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           (C) "OMBUDSMAN" MEANS THE HYDROCARBON OMBUDSMAN PROVIDED FOR

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      IN SECTION 61802.

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           SEC. 61802.  (1) THE OFFICE OF THE HYDROCARBON OMBUDSMAN IS

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      CREATED WITHIN THE DEPARTMENT.




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           (2) THE PRINCIPAL EXECUTIVE OFFICER OF THE OFFICE OF THE

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      HYDROCARBON OMBUDSMAN IS THE HYDROCARBON OMBUDSMAN.

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           (3) THE OMBUDSMAN SHALL BE APPOINTED BY THE DIRECTOR.  THE

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      OMBUDSMAN SHALL BE TRAINED OR KNOWLEDGEABLE IN OIL AND GAS

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      DRILLING AND EXTRACTION, SHALL BE FAMILIAR WITH THE ENVIRONMENTAL

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      DECISION-MAKING PROCESSES OF STATE AGENCIES, AND SHALL HAVE

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      EXPERIENCE IN LIAISON WITH LOCAL UNITS OF GOVERNMENT AND THE

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      PUBLIC REGARDING OIL AND GAS MATTERS.

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           SEC. 61803.  THE OMBUDSMAN SHALL DO ALL OF THE FOLLOWING:

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           (A) SERVE AS A FACILITATOR BETWEEN THE STATE AND LOCAL UNITS

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      OF GOVERNMENT REGARDING OIL AND GAS DEVELOPMENT.

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           (B) PROVIDE INFORMATION TO LOCAL UNITS OF GOVERNMENT RELATED

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      TO OIL AND GAS DEVELOPMENT INCLUDING ALL OF THE FOLLOWING:

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           (i) SAFETY REQUIREMENTS AND EMERGENCY REPORTING PROCEDURES.

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           (ii) OIL AND GAS EXPLORATION.

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           (iii) DRILLING.

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           (iv) PERMITTING.

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           (v) HYDROGEN SULFIDE MANAGEMENT.

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           (vi) SURVEILLANCE.

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           (vii) ENFORCEMENT.

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           (viii) LEASES.

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           (ix) POOLING.

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           (x) DEPARTMENT RULES, ORDERS, AND STANDARDS.

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           (C) ESTABLISH A NOTIFICATION PROCESS WHEREBY THE SUPERVISOR

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      OF WELLS NOTIFIES LOCAL UNITS OF GOVERNMENT OF DRILLING PERMITS.







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           (D) ORGANIZE AN ANNUAL HYDROCARBON POLICY CONFERENCE

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      SPONSORED BY THE DEPARTMENT AND THE DEPARTMENT OF NATURAL

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      RESOURCES FOR LOCAL UNITS OF GOVERNMENT AND CONCERNED CITIZENS.

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           (E) ESTABLISH A PARTNERSHIP WITH THE OIL AND GAS INDUSTRY

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      DEPARTMENT AT WESTERN MICHIGAN UNIVERSITY.

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           (F) PREPARE AND SUBMIT TO THE LEGISLATURE AN ANNUAL REPORT

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      FOR THE PREVIOUS YEAR THAT INCLUDES, AT A MINIMUM, ALL OF THE

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      FOLLOWING:

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           (i) A GENERAL OVERVIEW OF THE STATUS OF HYDROCARBON DEVELOP-

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      MENT ACTIVITY.

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           (ii) THE NUMBER OF PERMITS ISSUED AND WELLS DRILLED.

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           (iii) THE OCCURRENCE OF ACCIDENTS.

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           (iv) THE NUMBER OF VIOLATIONS IDENTIFIED IN ENFORCEMENT

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      ACTIONS AND A DESCRIPTION OF THE NATURE OF THE VIOLATIONS.

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           SEC. 61804.  ALL AGENCIES OF STATE GOVERNMENT SHALL COOPER-

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      ATE FULLY WITH THE OMBUDSMAN AND SHALL ASSIST THE OMBUDSMAN IN

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      THE PERFORMANCE OF HIS OR HER DUTIES AND RESPONSIBILITIES UNDER

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      THIS PART.

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           SEC. 61805.  THE DEPARTMENT SHALL ESTABLISH PROCEDURES FOR

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      APPROVING THE BUDGET OF THE OFFICE, FOR EXPENDING FUNDS, AND FOR

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      THE EMPLOYMENT OF ANY PERSONNEL OF THE OMBUDSMAN.

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           SEC. 61806.  THIS PART IS REPEALED UPON THE EXPIRATION OF 4

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      YEARS AFTER ITS EFFECTIVE DATE.











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