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Timeline of the Pigeon River Hydrocarbon Development
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April 12, 1974 -- In a second startling decision involving the Corwith 1-22 well application, the Natural
Resources Commission rejects Frederick Abood's findings in the Michigan Oil case and refuses to allow the
DNR to issue a drilling permit.
May 9, 1974 -- The Natural Resources Commission formally votes to refuse the drilling permit for the
Corwith 1-22 well. Attorney General Frank Kelley provides a legal basis for issuing the permit denial.
May 10, 1974 --DNR Director Gazlay establishes the citizen-led Pigeon River Advisory Council.
June 11, 1974 --Michigan Oil files suit to reverse the Natural Resources Commission's decision, claiming its
property rights have been violated, and urges the court to issue an order for the permit to be approved.
July 10, 1974 -- John Hood is elected the first chairman of the Pigeon River Country Advisory Council.
September 6, 1974 -- Shell, Amoco, and Nomeco issue the first draft of a unique business agreement that
limits drilling to 27,000 acres in the southern third of the Pigeon River Country State Forest. Under the
unitized agreement, Shell Oil will operate and manage the entire oil field on behalf of itself, the other two
major producers, and private mineral owners. Revenues and expenses will be divided.
The agreement says Shell will operate under the management plan set out by the DNR. It is designed to
minimize environmental damage by eliminating competitive drilling and the need for each company to install
its own pipelines, roads, and production facilities.
December 1974 --Together with Shell, Amoco, and Nomeco, the DNR introduces the renamed Pigeon River
Country State Forest: APlan of Development for Hydrocarbon Resources, which calls for developing
"significant reserves of hydrocarbons, now in short supply." The plan would require stricter measures than
usual -- most notably, producers would have to conduct an environmental assessment and have it approved by
the DNR before development could proceed.
January 15, 1975 --The industry's plan for unitized development is put before the Natural Resources
Commission for the first time. The Commission directs that public hearings be held on the unitization
agreement and the Plan of Development for Hydrocarbon Resources.
January 15, 1975 --Howard A. Tanner is appointed director of the DNR, succeeding Gene Gazlay.
February 1975 --DNR Director Tanner directs his staff to begin preparing an Environmental Impact
Statement for the Pigeon River Country State Forest, with an emphasis on the effects of oil and gas
development. Jack Bails, Mr. Tanner's executive assistant, organizes an interdivisional task force to develop
the EIS.
February 24, 1975 --The Pigeon River Country Association publicly opposes the hydrocarbon development
plan, saying it "does not adequately protect the surface values."
March 1975 --An aerial survey by Bob Strong, the DNR wildlife biologist in Gaylord, indicates that the elk
population in the Pigeon River County numbers 170 to 180 animals.
June 4, 1975 --In a ruling affirming the DNR's authority to protect environmentally sensitive regions from
oil and gas development, Ingham County Circuit Court Judge Thomas L. Brown finds that "there was a
legitimate regulatory purpose in denying Michigan Oil the permit to drill" the Corwith 1-22 well, and there is
no taking of private property. Judge Brown rules that the denial of the permit to drill "could validly be based
partially or entirely upon ecological considerations."
August 28, 1975 --During a meeting of the Natural Resources Commission in Traverse City, a revised
unitization agreement and a newer draft of the hydrocarbon development plan, which calls for limiting drilling
in the southern portion of the forest, are put before the commissioners. Both documents are reviewed by the
newly formed Pigeon River Country Advisory Council and the Michigan Environmental Review Board.
The Commissioners also consider a letter from Gov. Milliken, who urges that a no-drill boundary be
established in the Pigeon River Country State Forest, with a noise reduction goal of 45 decibels at 1,500 feet.
"I strongly urge the Commission to draw hard and fast lines at some point to assure that portions of the Pigeon
River Country State Forest, particularly areas that have not yet been disrupted, will be free from drilling," the
Governor said. "Just as I believe there should not be drilling on the waters of the Great Lakes, I believe steps
should be taken to ban drilling in portions of Michigan's unique wilderness and other land resources."
September 1975 --Gov. Milliken, at the request of the Michigan Environmental Review Board, asks the
Natural Resources Commission to submit the Environmental Impact Statement to the Michigan Environmental
Review Board.
October 15, 1975 --DNR Director Howard Tanner orders final preparation of the Environmental Impact
Statement, with particular attention paid to effects of drilling only in the southern third of the Pigeon River
Country State Forest.
October 1975 --Thomas L. Washington, executive director of Michigan United Conservation Clubs,
announces that the group's Board of Directors has adopted a policy "supporting rigidly controlled oil and gas
drilling in the Pigeon River Country State Forest," and that royalties should be invested in purchasing private
land within the forest.
December 15, 1975 --The Environmental Impact Statement is completed, and made public. The DNR staff,
taking a cue from MUCC, recommends for the first time that royalties be invested in purchasing private
inholdings and expanding the forest.
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