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Oil and Gas Project
Coastal Drilling Update:
Will Congress Enact a Ban?
Increasing public opposition and tightened state restrictions have kept the energy industry from expanding
efforts to extract oil and gas from under the Great Lakes. Yet new shoreline wells could be drilled at any time
until the state or the federal government permanently ban directional drilling beneath the Lakes.
Congressman Bart Stupak (D-Menominee), who made his opposition to the practice a centerpiece of his
successful re-election campaign, has authored a bill banning it that has attracted 15 co-sponsors from six Great
Lakes states.
The state Department of Natural Resources, meanwhile, is conducting a review of state leasing policy,
which currently allows energy companies to pay for the rights to drill into oil and gas deposits under the Lakes.
Last spring, after coming under widespread criticism for leasing acreage along the coast of Manistee, the
DNR placed a moratorium on leasing Great Lakes bottomlands. The review, which is expected some time this
year, could either end further leasing of Great Lakes minerals or propose a revamped policy.
While the debate on these initiatives continues, Newstar Energy, which acquired the rights to 200 acres of
Great Lakes bottomlands before the moratorium went into effect, could at any time file for up to two new
drilling permits.
Department of Environmental Quality officials responsible for granting or denying well permits said they
would take extra precautions to make sure any new applications meet the current permitting standards. Those
include an expanded 1,500 foot setback from the water's edge, but do not rule out the possibility of issuing the
permits. State records indicate that since 1979 a total of thirteen Great Lakes wells have been drilled, two of
them by Newstar in 1997.
Last summer the Institute held public meetings in Muskegon and Manistee on Great Lakes drilling that
attracted more than 200 people and widespread press coverage. The Institute called for an indefinite
moratorium on leasing and drilling until a comprehensive planning process was established to protect the
Lakes and the coastline.
Since the state has not responded to this recommendation and is showing no signs of doing so, the Institute
has joined other prominent citizens groups like the Michigan Environmental Council and West Michigan
Environmental Action Council in supporting an all-out ban on Great Lakes drilling.
~H.V.
CONTACTS: Mindy Koch, DNR Real Estate Division, 517-373-1246; Hal Fitch, DEQ Geological Survey
Division, 517-334-6923; Julie Stoneman, Michigan Environmental Council, 517-487-9539; Hans Voss at the
Institute, 616-882-4723.
Take Action
Public officials need to hear from concerned citizens to have a mandate for ending drilling under the Great
Lakes. Contact Michigan's DNR Director K.L. Cool at P.O. Box 30828, Lansing, MI 48909-7948, Tel. 517-
373-2329, and Congressman Bart Stupak at 1410 Longworth Bldg., Wasington, DC 20515, Tel. 202-225-4735. |
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