Bill Text: MI HB6504 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Natural resources; gas and oil; petroleum pipelines; provide for construction permits and operating permits. Amends secs. 2a, 2b & 3 of 1929 PA 16 (MCL 483.2a et seq.). TIE BAR WITH: HB 6498'10, HB 6499'10, HB 6500'10, HB 6501'10, HB 6502'10, HB 6503'10, HB 6505'10, HB 6506'10, HB 6507'10
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-10-06 - Printed Bill Filed 09/30/2010 [HB6504 Detail]
Download: Michigan-2009-HB6504-Introduced.html
HOUSE BILL No. 6504
September 29, 2010, Introduced by Rep. Roberts and referred to the Committee on Great Lakes and Environment.
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 sections 2a, 2b, and 3 (MCL 483.2a, 483.2b, and 483.3),
sections 2a and 2b as added by 1997 PA 125.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
2a. (1) As used in this section and section 2b act:
(a) "Commission" means the Michigan public service commission.
(b) (a)
"Person" means an
individual, partnership,
corporation, association, governmental entity, or other legal
entity.
(c) (b)
"Pipeline" means a
pipeline used or to be used to
transport crude oil or petroleum.
(2) A person who is conducting survey work for a proposed
pipeline under this act shall notify all affected property owners
in writing before a survey crew enters the owner's property.
(3) Any offer to a landowner for an easement for the purpose
of locating, constructing, maintaining, operating, and transporting
crude oil or petroleum pipelines on agricultural property in this
state shall include all of the following information:
(a) The anticipated physical impact of pipeline construction
on the landowner's property.
(b) Written assurance that any agricultural drainage tile that
is damaged or removed during the construction or repair of a
pipeline will be repaired or replaced to preconstruction working
condition. As used in this subdivision, "drainage tile" includes
any surface or subsurface system by which the movement of water is
redirected.
(c) Written assurance that topsoil that is disturbed due to
construction or repair of a pipeline is properly separated and
replaced. As used in this subdivision, "topsoil" means surface soil
that is presumed to be fertile as distinguished from subsoil.
(d) The method by which property will be appraised.
(e) For property used to produce crops prior to construction
of a pipeline, an estimate of the value of the loss of the
productivity based on the historic yield of the site before
construction of a pipeline. The agricultural property owner shall
provide historic crop yield values upon request.
(f) That payment will be made for all damages incurred after
construction of the pipeline due to the pipeline owner's or
operator's entry upon the property to exercise easement rights,
except that the owner or operator of the pipeline is allowed to
maintain a clear right-of-way without further compensation being
due to the landowner.
(g) That the landowner has rights under the uniform
condemnation
procedures act, 1980 PA 87, MCL 213.51 to 213.77
213.75, and a copy of the act.
to the landowner.
Sec. 2b. (1) Beginning on the effective date of the amendatory
act that added this subsection, the commission shall ensure that
the siting of a pipeline in this state is not likely to adversely
impact public health, safety, or welfare or the environment.
(2) A person that intends to construct a pipeline in this
state shall submit an application to the commission containing the
information required by the commission.
(3) The commission shall approve a construction permit under
this section if the commission determines all of the following:
(a) The pipeline will be constructed in compliance with this
act and the rules promulgated under this act.
(b) The operation of the pipeline in the location proposed in
the application will not pose a threat to public health, safety, or
welfare or to the environment.
(4) A pipeline company shall make a good-faith effort to
minimize the physical impact and economic damage that result from
the construction and repair of a pipeline.
Sec.
3. (1) There is hereby granted to and vested in the
Michigan public utilities commission, hereinafter styled the
"commission,"
the power to The commission
may control, investigate,
and
regulate 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, 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 now or hereafter engaging in the
business of buying, selling or dealing in crude oil or petroleum
within
the limits of this state. : Provided, however, That all
corporations,
associations, or persons who are producers, or
refiners
of crude oil, or petroleum, or operators of private trunk
or
gathering lines or other methods of conveying such products,
where
the nature and extent of their business is private, and where
in
the conduct thereof no public interest is involved, are hereby
specifically
excepted and excluded from the terms of this act.
(2) A person shall not operate a pipeline in this state unless
the person is in possession of an operating permit issued by the
commission.
(3) A person that wishes to receive an operating permit from
the commission shall submit to the commission an application
containing the information required by the commission.
(4) The commission shall approve an operating permit under
this section if the commission determines all of the following:
(a) The pipeline will be operated in compliance with this act
and the rules promulgated under this act.
(b) The operation of the pipeline will not pose a threat to
public health, safety, or welfare or to the environment.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 6507(request no.
07455'10).
(b) Senate Bill No.____ or House Bill No. 6506(request no.
07456'10).
(c) Senate Bill No.____ or House Bill No. 6503(request no.
07457'10).
(d) Senate Bill No.____ or House Bill No. 6502(request no.
07461'10).
(e) Senate Bill No.____ or House Bill No. 6498(request no.
07464'10).
(f) Senate Bill No.____ or House Bill No. 6499(request no.
07465'10).
(g) Senate Bill No.____ or House Bill No. 6505(request no.
07467'10).
(h) Senate Bill No.____ or House Bill No. 6500(request no.
07468'10).
(i) Senate Bill No.____ or House Bill No. 6501(request no.
07480'10).
