The bill amends section 61524 of the Natural Resources and Environmental Protection Act, originally established in 1994 and modified in 1998. It introduces a new fee structure for the monitoring, surveillance, enforcement, and administration of oil and gas production in Michigan. The fee is now set to not exceed 2% of the gross cash market value of oil and gas produced, an increase from the previous cap of 1%. The bill also specifies that the fee must be collected by the Department of Treasury in accordance with the provisions of the tax levied by 1929 PA 48.

Additionally, the bill outlines the process for calculating the fee, which includes annual certifications and estimates by the Department of Technology, Management, and Budget. It mandates that if the fund balance falls below $7,000,000, the fee will be set at 2% or an amount necessary to reach that balance by the end of the fiscal year. Conversely, if the fund balance is equal to or exceeds $7,000,000, the fee will be determined based on the ratio of the appropriation to the estimated total gross cash market value of oil and gas production. The proceeds from this fee are required to be forwarded to the state treasurer for deposit into the designated fund.

Statutes affected:
Senate Introduced Bill: 324.61524