Bill Text: MI HB6582 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Environmental protection; air pollution; geological carbon sequestration; create. Amends 1994 PA 451 (MCL 324.101 - 324.90106) by adding secs. 62715, 62717, 62719, 62721, 62723, 62725, 62727, 62729, 62731, 62733, 62735, 62737, 62739, 62741, 62743 & 62745. TIE BAR WITH: HB 6581'10
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-12-02 - Printed Bill Filed 12/02/2010 [HB6582 Detail]
Download: Michigan-2009-HB6582-Introduced.html
HOUSE BILL No. 6582
December 1, 2010, Introduced by Reps. Geiss and Mayes and referred to the Committee on Energy and Technology.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
(MCL 324.101 to 324.90106) by adding sections 62715, 62717, 62719,
62721, 62723, 62725, 62727, 62729, 62731, 62733, 62735, 62737,
62739, 62741, 62743, and 62745.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 62715. (1) A sequestration project owner shall maintain
financial assurance during the sequestration operation and until
the department issues a certificate of completion of the
sequestration operation under section 62729.
(2) The financial assurance required under subsection (1)
shall meet all of the following requirements:
(a) Apply to all sequestration operations subject to the
sequestration order.
(b) Be in an amount determined by the department to be
sufficient to cover the cost to administer closure of the
sequestration project, and to hire a third party to remove surface
buildings and equipment utilized in geologic sequestration, to
conduct postclosure monitoring, and to implement necessary
environmental protection measures, including any necessary
remediation of contamination of the soil, surface water, or
groundwater caused by the sequestration operation that is in
violation of the sequestration order.
(c) Consist of escrow, cash, certificate of deposit,
irrevocable letter of credit, surety bond, or any combination
thereof; or any other method satisfactory to the department.
(3) Every 3 years, or as the department considers necessary, a
sequestration project owner shall adjust the amount of financial
assurance as determined by the department to ensure that it is
sufficient for the purposes of subsection (2)(b).
(4) If the sequestration project owner fails to maintain
financial assurance required under this section, the department may
order immediate suspension of the sequestration operation.
(5) The department shall waive financial assurance otherwise
required under this part to the extent it duplicates financial
assurance required by any federal agency.
Sec. 62717. (1) Before beginning the sequestration operation,
a sequestration project owner shall record a certified copy of the
sequestration order with the register of deeds of the county or
counties in which the sequestration project is to be located.
(2) The sequestration project owner shall notify the
department at least 30 days before beginning a sequestration
operation, and 5 business days before actual geologic sequestration
begins.
Sec. 62719. (1) A sequestration order may be amended to name a
new sequestration project owner with approval of the department as
follows:
(a) The person requesting to be the new sequestration project
owner shall submit to the department on forms provided by the
department a request to change the sequestration order and shall
provide the financial assurance required under section 62715.
(b) The person requesting to be the new sequestration project
owner shall accept the conditions of the existing sequestration
order and adhere to the requirements set forth in this part.
(c) If the current sequestration project owner is determined
by the department to be in violation of this part or the rules
promulgated under this part at the sequestration project involved
in the transfer, then the sequestration operation shall not be
conducted by the person requesting to be the new sequestration
project owner until the current sequestration project owner has
completed the necessary corrective actions or the person requesting
to be the new sequestration project owner has entered into a
written consent agreement with the department to correct all of the
violations.
(2) Pending the naming of a new sequestration project owner
under subsection (1), the current sequestration project owner
remains responsible for the sequestration operation.
(3) A sequestration order may be amended, for purposes other
than naming a new sequestration project owner, as follows:
(a) The sequestration project owner may submit to the
department a request to amend the sequestration order to address
anticipated changes in the sequestration project.
(b) The department may require a sequestration order to be
amended if the department determines that the sequestration project
or sequestration operation does not support the findings made for
the sequestration project pursuant to section 62713(1)(c), (d), or
(e), or that the sequestration operation is not adequately
achieving geologic sequestration.
(c) Within 30 days after receiving a request to amend a
sequestration order, or upon a determination by the department
under subdivision (b), the department shall determine whether the
amendment would constitute a significant substantive change from
the conditions of the approved sequestration order.
(d) If the department determines that the amendment would
constitute a significant substantive change, then notice shall be
given and an evidentiary hearing on the proposed amendment
conducted in the same manner as provided under section 62711.
(e) If the department determines that the request for
amendment does not constitute a significant substantive change from
the conditions of the approved sequestration order, the department
shall provide written notice of the determination to the county and
to the city or township and, if applicable, village where the
sequestration project is located. The department shall also give
notice of the determination by publication in a newspaper of
general circulation in the county or counties where the
sequestration project is located. The department shall issue a
decision on the amendment not more than 14 days after publication
of the notice and shall notify the sequestration project owner of
the decision.
(4) The department shall approve an amended sequestration
order if the department determines that the amendments meet the
requirements of section 62713(1) with respect to the underlying
sequestration order.
(5) If the department denies a request to amend a
sequestration order under subsection (1) or (2), the department
shall state the reasons for denial in an order provided to the
sequestration project owner.
Sec. 62721. (1) A person who owns or has an ownership interest in
pore space or oil, gas, or minerals may file a petition asserting that
carbon dioxide injected pursuant to a sequestration order has migrated
out of the predicted carbon dioxide plume area to occupy pore space in
the person's subsurface property and requesting that the sequestration
order be amended to expand the legal description of the lands
comprising the carbon dioxide plume area and the buffer zone to
include the petitioner's lands.
(2) The department shall determine whether the petition is
administratively complete, subject to section 62707(6) and (7). If the
petition is administratively complete, not more than 30 days after
receipt of the petition, the department shall determine if there is a
reasonable basis for the petition and shall notify the petitioner in
writing of its determination. If there is a reasonable basis for the
petition, the department shall grant the petitioner an evidentiary
hearing on the issue. Otherwise, the department shall deny the
petition.
(3) An evidentiary hearing under subsection (2) shall be held not
more than 90 days after the petition is granted. The department shall
provide for a notice of the evidentiary hearing to be published in a
newspaper of general circulation in the county or counties in which
the sequestration project is to be located and in an oil and gas
industry publication if there are operations for the extraction of oil
or gas from the pore space owned by the petitioner into which the
carbon dioxide plume is alleged to have migrated. Publication shall
occur not less than 45 days before the date of the hearing. The
department shall also mail copies of the notice to the county clerk
and the clerk of the city or the township and, if applicable, village
where the geologic sequestration project is to be located.
(4) If the department determines, after the evidentiary hearing,
that carbon dioxide injected pursuant to a sequestration order has
migrated out of the carbon dioxide plume area, as initially approved,
to occupy the petitioner's subsurface property, the department shall
grant the petition. Otherwise, the department shall deny the petition.
If the department grants the petition, both of the following apply:
(a) The project owner shall acquire all of the necessary rights
to pore space or oil, gas, or minerals in the petitioner's tract by
title conveyance or other contractual arrangement, by eminent domain
as provided under section 62723, or as otherwise allowed by statute.
(b) The department may order sequestration operations modified or
suspended until the project owner has acquired the rights described in
subdivision (a).
(5) The administrative remedy provided by this section is the
exclusive remedy available to a person who asserts that the carbon
dioxide plume is occupying the pore space in the person's subsurface
property located outside the boundary of a carbon dioxide plume area,
as initially approved.
Sec. 62723. (1) Geologic sequestration results in long-term
storage of CO2, thereby reducing man-made CO2 emissions to the
atmosphere and the attendant adverse atmospheric effects of these
emissions on natural resources, the environment, and public health
and safety. Consequently, a sequestration project is a public use of
property. Upon issuance of a sequestration order, the sequestration
project owner is granted the right of condemnation by eminent domain
to acquire the following:
(a) Necessary rights to use of the pore space or to oil, gas, or
minerals in the sequestration zone.
(b) The right to use of property and rights-of-way of highways in
this state, but only for the purpose of transporting carbon dioxide by
a pipeline or pipelines, and for locating, laying, constructing,
maintaining, and operating such pipelines. The pipeline or pipelines
shall be used exclusively for the transmission, transportation, and
distribution of carbon dioxide within this state.
(2) Condemnation by eminent domain under this section shall be
exercised under the procedures of the uniform condemnation procedures
act of 1980, 1980 PA 87, MCL 213.51 to 213.75.
(3) Rights or interests acquired for a sequestration project by a
sequestration project owner by title conveyance or other contractual
arrangement are not subject to the exercise of the right of eminent
domain authorized by subsection (1) for a different sequestration
project.
(4) This section does not alter any power of eminent domain that
may exist under any other authority.
(5) None of the following may be taken by the exercise of the
right of eminent domain granted in this section:
(a) The right of an owner of oil, gas, or minerals or pore space
located above or below the sequestration zone to drill a well into
strata above or below the sequestration zone if that person complies
with all of the applicable rules and regulations of the department.
(b) The right to exercise interests in property not acquired for
the sequestration project within the borders of the sequestration
project by the owner of such property.
(6) Any acquisition of property rights pursuant to this section
shall be considered a taking of private property for which just
compensation is due. Just compensation for property described in
subsection (1)(a) shall be an amount equal to the fair market value of
the pore space or of valuable oil, gas, and minerals contained within
pore space taken on the date of the exercise of eminent domain
authority. In the absence of a demonstration of an actual or
reasonably foreseeable alternate use, pore space within a
sequestration facility has no compensable value.
(7) An action taken under the provisions of this part, or under
any rule promulgated or order issued pursuant to this part, does not
cause a sequestration project owner to be a common carrier or a public
utility for any purpose whatsoever, or to be subject to any duties,
obligations, or liabilities as a common carrier or public utility.
(8) The department and its employees are neither necessary nor
indispensable parties to any eminent domain proceeding, and if named
as a party or third party, have an absolute right to be dismissed from
the action at the expense of the party who names the department or any
employee. The department shall be awarded all costs reasonably
incurred to be dismissed from the action, including attorney fees.
Sec. 62725. (1) A sequestration project owner shall do all of
the following:
(a) Provide a copy of the contingency plan provided in a
petition for a sequestration order to each emergency management
coordinator having jurisdiction over the surface of the geographic
area constituting the sequestration project.
(b) Conduct the sequestration operation in accordance with the
approved sequestration order.
(c) Conduct monitoring of the sequestration operation in
accordance with the provisions of the plan of operations.
(2) Compliance with the provisions of this part does not
relieve a sequestration project owner of the obligation to comply
with all other applicable state and federal law and, subject to
section 62743(5) and (6), local ordinances.
(3) The postclosure monitoring period shall be 20 years
following permanent cessation of subsurface injection of carbon
dioxide for a sequestration project. The department may reduce the
postclosure monitoring period upon request by the sequestration
project owner if the department determines that there is not a
significant risk that the sequestered carbon dioxide will endanger
natural resources, the environment, or public health and safety by
migrating outside the sequestration zone. The request shall be made
in writing not less than 6 months before the proposed postclosure
monitoring termination date and shall provide the department with
technical data and information demonstrating that additional
monitoring is not needed to ensure that there is no significant
potential for endangerment of natural resources, the environment,
or public health and safety. Notice shall be given and an
evidentiary hearing on the request shall be conducted in the same
manner as provided under section 62711.
Sec. 62727. (1) A sequestration project owner shall file with
the department a biannual geologic sequestration report on or
before March 15 and September 15 of each year, during the period
the sequestration operation and during the postclosure monitoring
period. The geologic sequestration report shall contain all of the
following:
(a) A description of the status of the sequestration project.
(b) An update of the contingency plan. The sequestration
project owner shall provide a copy of the update to the emergency
management coordinator.
(c) A report of monitoring results for the preceding period.
(d) A report of the total tons of carbon dioxide injected into
the sequestration zone for each month of the preceding period.
(e) A list of all sequestration wells plugged and abandoned
during the preceding period.
(f) A list of all sequestration wells drilled during the
preceding period.
(g) A list of all sequestration wells granted temporary
abandoned status under part 625 during the preceding period.
(h) A list of the notifications under subsection (2) for the
preceding calendar year.
(2) A sequestration project owner shall notify the department
within 8 hours of learning of any incident, act of nature, or
exceedance of a permit standard or condition at a sequestration
project that endangers or has a significant risk to endanger
natural resources, the environment, or public health and safety.
(3) Records upon which the geologic sequestration reports are
based shall be preserved by the sequestration project owner for 3
years. However, records upon which notifications under subsection
(2) are based shall be preserved by the project owner until the end
of the postclosure monitoring period. Records described in this
subsection shall be made available to the department upon request.
Sec. 62729. (1) At the end of the postclosure monitoring
period, the department shall inspect the sequestration project and
provide notice and hold a public hearing in the same manner as
required under section 62709 on the question of issuing a
certificate of completion of the sequestration operation. The
department shall issue a certificate of completion of the
sequestration operation upon a showing by the sequestration project
owner of all of the following:
(a) There is not a significant risk that the sequestered
substance will endanger natural resources, the environment, or
public health and safety by migrating outside of the sequestration
zone.
(b) The sequestration operation has not resulted in any
ongoing conditions requiring correction or remediation.
(c) All wells that are part of the sequestration project have
been properly plugged and abandoned.
(d) All surface facilities associated with the sequestration
project have been removed, all underground pipelines removed or
capped, and the land restored to as near its original contours as
is reasonably practical, except as otherwise approved by the
department pursuant to a written request by the operator.
(2) The department shall publish a full copy of the
certificate of completion in a newspaper of local distribution in
the area where the sequestration project is located.
Sec. 62731. (1) Upon the issuance of the certificate of
completion of the sequestration operation:
(a) Subject to subsection (2), the sequestration project owner
is immune from liability in any civil or administrative action for
any damage caused by the sequestration operation to persons,
property, natural resources, the environment, or public health and
safety occurring after the date of issuance of the certificate of
completion.
(b) Any remaining financial assurance shall be released.
(c) The sequestration remediation fund created in section
62735 shall be solely utilized for correction or remediation of
conditions caused by the sequestration operation.
(2) Notwithstanding any other provision of this part, a
sequestration project owner is liable for any damage from the
sequestration operation that is proximately caused by either of the
following committed by or on behalf of the sequestration project
owner:
(a) Gross negligence.
(b) Intentional concealment or misrepresentation of material
facts.
(3) Damages or injunctive relief shall not be awarded to a
private claimant for a claim of nuisance or trespass related to the
injection into or presence in the sequestration zone of carbon
dioxide, or from the release of carbon dioxide from the
sequestration zone, unless, subject to subsection (1), the
plaintiff has incurred harm in addition to mere occupation of
subsurface property, the surface, or airspace above the surface.
Sec. 62733. (1) After a sequestration order becomes effective,
the department shall assess a sequestration project owner a
sequestration surveillance fee of not more than 15 cents per ton of
sequestered substance injected during the previous calendar year,
as reported under section 62727(1)(d), but not less than
$50,000.00, for each calendar year in which the sequestration
operation is ongoing. Surveillance fees collected under this
section shall be forwarded to the state treasurer for deposit in
the sequestration administration fund created in subsection (6).
The surveillance fee rate shall be calculated each year as follows:
(a) The department shall calculate the adjusted appropriation
by deducting any unexpended money in the fund at the close of the
prior fiscal year from the amount appropriated for the current
fiscal year for surveillance, monitoring, administration, and
enforcement of this part.
(b) The department shall determine the total tons of carbon
dioxide injected by all sequestration operations in this state in
the prior calendar year.
(c) The fee rate shall be the ratio, to the nearest 1/100 of
1%, of the adjusted appropriation as determined under subdivision
(a) to the total tons of sequestered substance as determined under
subdivision (b).
(2) The sequestration surveillance fee described in subsection
(1) is due by 30 days after the department sends written notice to
the sequestration project owner of the amount due.
(3) A fine equal to 2% of the amount due, or $1,000.00,
whichever is greater, shall be assessed against the sequestration
project owner for a sequestration surveillance fee that is not paid
when due, for each full month the payment is overdue. The
department may file an action in the circuit court for Ingham
county to collect the unpaid fee and penalty.
(4) If payment of the sequestration surveillance fee for a
sequestration project is overdue by more than 6 months, the
department may order the suspension of the sequestration operation
until the fee and all penalties are paid.
(5) Fines paid pursuant to this section shall be deposited in
the sequestration administration fund.
(6) The sequestration administration fund is created within
the state treasury. The state treasurer may receive money or other
assets from any source for deposit into the administration fund.
The state treasurer shall direct the investment of the
administration fund. The state treasurer shall credit to the
administration fund interest and earnings from administration fund
investments. Money in the administration fund at the close of the
fiscal year shall remain in the administration fund and shall not
lapse to the general fund. The department shall be the
administrator of the administration fund for auditing purposes.
(7) The department shall expend money from the sequestration
administration fund, upon appropriation, only for surveillance,
monitoring, administration, and enforcement of this part.
Sec. 62735. (1) The sequestration remediation fund is created
within the state treasury.
(2) Fees collected under subsection (5) shall be deposited in
the fund. The state treasurer may receive money or other assets
from any source for deposit into the sequestration remediation
fund. The state treasurer shall direct the investment of the
remediation fund. The state treasurer shall credit to the
remediation fund interest and earnings from remediation fund
investments. Money in the remediation fund at the close of the
fiscal year shall remain in the remediation fund and shall not
lapse to the general fund.
(3) The department shall be the administrator of the fund for
auditing purposes.
(4) The department shall expend money from the remediation
fund, upon appropriation, only for correction or remediation of
physical conditions caused by a sequestration operation that occur
after issuance of the certificate of completion of the
sequestration operation under section 62729. Such an appropriation
from the remediation fund is an appropriation for a public purpose.
(5) A sequestration project owner shall pay a fee for the
injection of each ton of a sequestered substance injected after a
sequestration order becomes effective. Fees collected under this
subsection shall be deposited in the remediation fund.
(6) As soon as practicable after the date of enactment of this
part, the department shall establish by rule the minimum and
maximum balance for the remediation fund, and the amount of the fee
required under subsection (5) to maintain a fund balance in that
range, after taking into account the following criteria:
(a) The estimated quantity of carbon dioxide to be injected
annually by all sequestration operations in the state.
(b) The likelihood of an incident resulting in liability.
(c) The likely dollar value of any damages relating to an
incident.
(d) Other factors relating to the risk of the sequestration
project.
(e) The effect of the fee on commercial and economic viability
of sequestration of carbon dioxide.
(7) The department shall review and if appropriate adjust the
minimum and maximum remediation fund balance at least every 5 years
to ensure that the levels comport with the potential need for
payments from the remediation fund.
(8) The geologic sequestration advisory board is created
within the department. The board shall consist of the following
members:
(a) The following members appointed by the governor:
(i) 1 member representing an organization of intrastate gas
pipeline operators.
(ii) 1 member that is a carbon sequestration researcher or
geologist.
(iii) 1 member representing an environmental protection
organization.
(b) The following members appointed by the senate majority
leader:
(i) 1 member representing the Michigan oil and gas industry.
(ii) 1 member who is an engineer specializing in carbon
sequestration.
(c) The following members appointed by the speaker of the
house of representatives:
(i) 1 member representing the natural gas storage industry.
(ii) 1 member who is an actuary.
(d) The following ex officio members:
(i) The director of the department or his or her designee.
(ii) The manager of the operations and wholesale market
division, or a successor division, of the Michigan public service
commission.
(iii) The state treasurer or his or her designee, as a nonvoting
member.
(9) The members first appointed to the board shall be
appointed within 30 days after the effective date of this section.
Members of the board shall serve for terms of 4 years or until a
successor is appointed, whichever is later, except that the member
first appointed under subsection (8)(a)(ii) shall serve for 1 year,
the members first appointed under subsection (8)(b)(i) and (c)(i)
shall serve for 2 years, and the members first appointed under
subsection (8)(b)(ii) and (c)(ii) shall serve for 3 years. If a
vacancy occurs on the board, the vacancy shall be filled by
appointment for the unexpired term in the same manner as the
original appointment. The officer appointing a member of the board
may remove the member for incompetency, dereliction of duty,
malfeasance, misfeasance, or nonfeasance in office, or any other
good cause.
(10) The first meeting of the board shall be called by the
director of the department. At the first meeting, the board shall
elect from among its members a chairperson and other officers as it
considers necessary or appropriate. After the first meeting, the
board shall meet at least annually, or more frequently at the call
of the chairperson or if requested by 2 or more members. A majority
of the members of the board constitute a quorum for the transaction
of business at a meeting of the board. A majority of the members
present and serving are required for official action of the board.
(11) The business that the board may perform shall be
conducted at a public meeting of the board held in compliance with
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. A writing
prepared, owned, used, in the possession of, or retained by the
board in the performance of an official function is subject to the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(12) Members of the board shall serve without compensation.
However, members of the board may be reimbursed for their actual
and necessary expenses incurred in the performance of their
official duties as members of the board.
(13) The board shall make recommendations to the department on
all of the following:
(a) The fees to be established under this section.
(b) Establishment of a minimum and maximum sequestration
remediation fund balance.
(c) Management of the remediation fund.
(14) The department shall consider the recommendations of the
board and shall explain the reasons in writing if recommendations
of the board are not adopted.
Sec. 62737. (1) This part does not apply to the use of carbon
dioxide as a part of or in conjunction with any secondary recovery
project approved by the department under part 615 or part 617, or
both, and any consequential geologic sequestration, if the primary
purpose of the project is secondary oil or gas recovery.
(2) The department may promulgate rules to allow conversion or
expansion of an existing secondary recovery project approved under
part 615 or part 617, or both, into a sequestration project. Upon
approval of such a conversion or expansion of a secondary recovery
project, the provisions of this part apply to the project.
Sec. 62739. (1) If the department determines that a
sequestration project owner has violated this part, a rule
promulgated under this part, or a sequestration order issued under
this part, the department shall require the sequestration project
owner to correct the violation.
(2) If the department determines that the sequestration
project owner has violated this part, a rule promulgated under this
part, or an order issued under this part, and that the violation is
endangering or has a significant potential to endanger natural
resources, the environment, or public health and safety, the
department shall serve notice by registered mail or in person of
this determination, in writing, to the project owner and to any
surety executing a bond filed with the department by the project
owner. The notice shall specify actions necessary to remediate the
violation. If the project owner and surety fail to take the actions
described in the notice of determination as soon as practicable but
not later than 30 days after the date of service, the department
may enter into and upon any private or public property necessary to
reach the site of the sequestration project, and take actions
necessary to remediate the violation, and the project owner and
surety are jointly and severally liable for all expenses incurred
by the department. The project owner or surety shall pay within 30
days any claim submitted by the department listing the expenses
incurred to remediate the violation. If a claim is not paid within
that time, the department may bring suit against the project owner
or surety, jointly or severally, for the collection of the claim in
any court of competent jurisdiction. A person challenging the
recovery of costs under this subsection has the burden of
establishing that the costs were not reasonably incurred under the
circumstances that existed at the time the costs were incurred.
(3) This section does not require a surety to make payments in
excess of its obligations under the applicable surety instrument.
(4) A finding of significant endangerment under this section
does not provide a basis for a finding of an imminent and
substantial endangerment or a similar finding under any other
provision of law.
(5) If the department finds that emergency action is required
to protect natural resources, the environment, or public health and
safety, the department may issue an emergency order without a
hearing to require a sequestration project owner to suspend the
sequestration operation or to take other corrective actions. An
emergency order shall remain in force and effect for not more than
21 days.
(6) If a sequestration project owner fails to comply with an
order under subsection (1), the department may request the attorney
general to commence a civil action for appropriate relief,
including a permanent or temporary injunction, for a violation of
this part, a rule promulgated under this part, or an order issued
under this part. An action under this subsection may be brought in
the circuit court for the county of Ingham or for the county in
which the defendant is located, resides, or is doing business. The
court has jurisdiction to restrain the violation and to require
compliance. In addition to any other relief granted under this
section, the court may impose a civil fine of not less than
$2,500.00, and the court may award reasonable attorney fees and
costs to the prevailing party. The maximum fine imposed by the
court shall be not more than $25,000.00 per day of violation.
(7) The attorney general may file a civil suit in a court of
competent jurisdiction to recover, in addition to a fine under
subsection (6), the full value of the injuries done to the natural
resources of this state and the costs of surveillance and
enforcement by the state resulting from the violation.
(8) A civil fine or other civil award imposed under this
section is payable to this state and shall be credited to the
general fund. The fine constitutes a lien on any property, of any
nature or kind, owned by the defendant.
Sec. 62741. A person who intentionally makes a false
statement, representation, or certification in a petition for a
sequestration project under this part or in a notice or report
required under this part or under a sequestration order is guilty
of a felony and may be imprisoned for not more than 2 years and
shall be fined not less than $2,500.00 or more than $25,000.00 for
each violation.
Sec. 62743. (1) The department has jurisdiction and authority
over all persons and property necessary to administer and enforce
effectively the provisions of this part.
(2) The department may promulgate rules and issue orders as
may be necessary to carry out the purposes of this part.
(3) The department may enter at all reasonable times in or
upon a sequestration project subject to this part for the purpose
of inspecting and investigating operating records, sequestration
wells, and facilities of a sequestration project. The department
shall conduct such an inspection and investigation at least
annually.
(4) The department may enter into cooperative agreements with
the federal government or other state governments or state
government entities for the purpose of regulating sequestration
projects that extend beyond state regulatory authority under this
part.
(5) A local unit of government shall not enact, maintain, or
enforce an ordinance, regulation, or resolution that duplicates,
contradicts, exceeds, or conflicts with a provision of this part,
except that an ordinance may regulate aboveground elements of the
sequestration operation or sequestration project to protect public
health and safety.
(6) A sequestration operation or sequestration project that
has been approved by a sequestration project order is not subject
to an ordinance adopted under the Michigan zoning enabling act,
2006 PA 110, MCL 125.3101 to 125.3702.
(7) A carbon dioxide injection project designed to gather data
or as a pilot or feasibility study of geologic sequestration that
injects not more than 2,000,000 tons of carbon dioxide is not
subject to this part, if the owner or operator of the project
complies with all applicable provisions of part 615 and part 625,
as appropriate, and pursuant to those parts, obtains the approval
of the department for construction and operation of the project.
The project may at any time be considered for conversion into a
sequestration project subject to this part, on a prospective basis,
upon filing a petition pursuant to section 62707.
Sec. 62745. This part shall be construed liberally to
effectuate the legislative intent and the purposes as complete and
independent authority for the performance of each and every act and
thing authorized by this part, and all powers granted shall be
broadly interpreted to effectuate the intent and purposes and not
as a limitation of powers.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6581(request no.
05367'09 *) of the 95th Legislature is enacted into law.
