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Strengthening Public Oversight of Oil & Gas Development
Since 1995 the Institute has led a statewide project, the Michigan Energy Reform Coalition, to increase
citizen oversight of oil and gas development in Michigan. The 1997 accomplishments include:
Keeping the Jordan Valley Off-Limits to Gas Drilling
Working side by side with Friends of the Jordan River Watershed, the Michigan Environmental Council,
and other MERC partners, the Institute helped convince Gov. John Engler to block natural gas development in
the Jordan Valley, one of the most beautiful natural areas in the Midwest.
Uncovering FinancialMismanagement by Energy Companies
Research by the Institute prompted the state to audit several of the leading oil and gas companies. The
audits found that industry executives wrongfully withheld millions of dollars in royalties and other payments
due to the state. Attorney General Frank Kelley sued Terra Energy, the largest producer of Antrim Shale natural
gas, to recover $2 million he said the company withheld from the state treasury. The Department of Natural
Resources now has barred Terra Energy from conducting new drilling operations on public land.
Protecting the Great Lakes Shoreline
The Institute's advocacy of improved drilling practices and strengthened state oversight helped prompt Gov.
Engler to seek scientific advice before allowing drilling to occur along the coasts of the Great Lakes. In August
the Institute recommended a land use plan to prevent oil and gas development in the most ecologically sensitive
regions, use existing drilling sites wherever possible, and invite local governments and residents to participate
in the planning process. The Michigan Environmental Science Board in October recommended a similar plan.
As the year ended, the Department of Natural Resources and the Department of Environmental Quality invited
the Institute, the Michigan Environmental Council, and three other environmental organizations to collaborate
with the state to prepare an ecosystem-based "hydrocarbon development plan" for the Great Lakes shoreline.
State Legislative Initiatives.
In December the state House of Representatives unanimously approved a package of bills to secure the
rights of mineral owners, increase their royalty payments, and protect environmentally sensitive public lands
from development. The bills, which were established with the help of research and recommendations from the
Institute, are likely to also be approved by the state Senate.
Communications in Support ofLand UsePolicy Reform
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Great Lakes Bulletin
Launched in January 1997, this quarterly magazine provides investigative reporting, news, and commentary about land use and economic issues facing northern Michigan and the state. It now has a circulation of 4,000 among Institute members, opinion leaders, lawmakers, public officials, and citizens. The Great Lakes Bulletin is helping to stimulate a dynamic civic discussion about how to intelligently respond to rapid growth and development and avoid excessive environmental and economic costs, and is emerging as an influential voice for the public interest in Michigan. |
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Public Meetings
The highest-profile 1997 forum sponsored by the Institute, focusing on the state's weakened conservation ethic,
was held in July at Northwestern Michigan College. Nearly 100 people came to hear the viewpoints of Don
Inman, who until he retired in June was the highest-ranking Department of Natural Resources official in the
Lower Peninsula. It was the first time a senior DNR official had publicly critiqued the Engler Administration's
environmental policies, and the event attracted considerable press attention.
Reporting by the GeneralMedia
Reports about Institute projects were published in 1997 by theAntrim County News,Benzie County Record
Patriot, Chicago Tribune, Christian Science Monitor, Detroit Free Press, Detroit News, Grand Rapids Press,
Lake Country Gazette, Leelanau Enterprise, Ludington Daily News, Manistee News Advocate, Detroit Metro
Times, Michigan Oil and Gas News, Muskegon Chronicle, New York Times, North Woods Call, Northern Express, Petoskey News Review, Planning and Zoning News, Traverse City Record Eagle, Traverse Magazine,
andUSA Today.
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