Natural resources: gas and oil; fee for monitoring, administration, and enforcement; increase. Amends sec. 61524 of 1994 PA 451 (MCL 324.61524).
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill increases a fee levied on oil and gas production in Michigan. The fee, currently capped at 2%, is based on the gross cash market value of the oil and gas produced and is intended to fund monitoring, surveillance, enforcement, and administration related to the natural resources department. The specific fee amount will fluctuate based on the fund's balance, aiming to accumulate to $7 million in the state treasury.
Key provisions
- A fee of 1% to 2% is levied on the gross cash market value of oil and gas produced in Michigan.
- The Department of Technology, Management, and Budget estimates annual oil and gas production and value.
- The Department of Treasury determines the annual fee based on the fund balance and appropriation.
- The fund aims to accumulate to $7 million annually.
- Excess funds in the fund are deducted from future appropriations.
- Proceeds are deposited into the state treasury.
- The fee will increase to 1% starting the second month after the 1998 amendments.
- The fee will remain at 1% for a 12-month period.
Who is affected
- Oil and gas producers in Michigan
- The Department of Technology, Management, and Budget
- The Department of Treasury
- The State Treasurer
- The State of Michigan
Notable changes
Bill text
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- Senate Introduced Bill
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