Michigan Senate Bill SB0140

Michigan 2025-2026 Regular Session

• Introduced: 3/12/25
• Refer: 3/12/25

Caption

Natural resources: gas and oil; fee for monitoring, administration, and enforcement; increase. Amends sec. 61524 of 1994 PA 451 (MCL 324.61524).

Impact

If enacted, SB 0140 will modify existing legislation by establishing a more systematic approach to fee assessment, designed to allow the state to preemptively address funding shortfalls in the monitoring and enforcement of oil and gas regulations. Specifically, the bill establishes a threshold of $7 million for fund balance, beyond which fees may be adjusted. The bill clarifies the roles of various state departments in certifying estimates and appropriations, potentially leading to more efficient administration of funds.

Summary

Senate Bill 0140 aims to amend the Natural Resources and Environmental Protection Act by adjusting the fee structure for monitoring, surveillance, enforcement, and administration related to oil and gas production in Michigan. The bill proposes to introduce a fee levied on the gross cash market value of oil and gas produced within the state, with this fee not exceeding 2%. This change is intended to ensure that the state can adequately fund its oversight responsibilities associated with natural resource management, which has become increasingly essential given the larger volumes of production and the related environmental concerns.

Contention

Notable points of contention surrounding SB 0140 include concerns about the adequacy of the proposed fees in covering the actual costs of monitoring and enforcement. Critics argue that while increasing fees can contribute to revenue, they might not be enough to meet the growing demands of environmental protection, especially during periods of high production levels. Additionally, stakeholders in the oil and gas industry may express concerns regarding the financial burden of increased fees and the impacts this may have on overall production costs.