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).