March 2015 landowner oil and gas newsletter available
A brief summary of articles from the March 2015 newsletter.
August 4, 2015 - Author: Curtis Talley Jr., Michigan State University Extension
The March 2015 issue of the landowner oil and gas newsletter is now available online under MSU Extension resources.
Information in the March Issue
- A lease bonus of $14,375 Per Acre?
- Supervisor of Wells Instruction for Oil and Gas Development in High Population Density Areas
- Hydraulic fracturing integrated assessment is useful information for local officials
A brief summary of the articles:
A lease bonus of $14,375 Per Acre?
Despite crude oil May futures prices near $46 per barrel, Continental Resources paid $2.3 million for the rights to lease 160 acres to explore and develop acreage in the Bakken shale formation in North Dakota.
Supervisor of Wells Instruction for Oil and Gas Development in High Population Density Areas: Some residents and local leaders are concerned about impacts of oil and gas development near highly populated areas. As a response to these concerns, the Supervisor of Wells has issued Instruction 1-2015. The order defines a high population density site, notice to owners of structures nearby, groundwater monitoring and protection and other new requirements of oil and gas companies seeking drilling permits, including noise restrictions.
Hydraulic fracturing integrated assessment is useful information for local officials:
Michigan state laws greatly restrict local government authority to regulate oil and gas development, including fracking, through zoning and other ordinances. Those preemptions are not absolute, although the opportunities for local regulation of oil and gas development and fracking are limited. Before embarking on local regulation development, it is worthwhile for local officials to understand the state regulatory framework. The University of Michigan Graham Sustainability Institute recently published a draft report - the Hydraulic Fracturing in Michigan Integrated Assessment – that is an excellent resource for local officials wishing to better understand the issues and state policy alternatives. (The current version is a draft report and will likely be revised before the final document is published.)