Michigan provisionally approves Great Lakes directional drilling procedures

Sept. 14, 2001
The Michigan Oil & Gas Association applauded proposed oil and gas leasing guidelines that include directional drilling under Lake Huron and Lake Michigan. The newly revealed procedures still await final approval by the Michigan Department of Natural Resources.

By the OGJ Online Staff

HOUSTON, Sept. 14 -- The Michigan Oil & Gas Association applauded proposed oil and gas leasing guidelines that include rules for directional drilling under Lake Huron and Lake Michigan.

The newly revealed procedures still await final approval by the Michigan Department of Natural Resources.

Frank L. Mortl, president of the Michigan Oil & Gas Association, said, "Despite intense political pressure ... Director K.L. Cool and the Natural Resources Commission made vital decisions based on overwhelming scientific evidence to support directional drilling. The evidence they reviewed concluded that directional drilling is a safe, environmentally sound and effective method to extract much-needed natural resources from beneath environmentally sensitive areas."

Michigan ceased leasing beneath the Great Lakes in 1997 to conduct a review of its leasing process. At the same time, the Michigan Environmental Science Board began a study of technical, environmental, and social issues associated with directional drilling.

The MESB concluded, "... that there is little to no risk of contamination to the Great Lakes bottom or waters through the releases directly above the bottomhole portion of directionally drilled wells into Niagaran Reef and deeper reservoirs."

Any contamination, said state government officials, would likely occur upland at the drill site. New procedures require a minimum 1,500-ft setback from the lakes for directional drilling.

The updated procedures have new provisions ensuring greater input from local interests, said the Michigan Department of Natural Resources. The state will study existing wells, pipelines, and access roads before granting a bottomland lease in the area; it will provide various lease application and local industry data to township or other local government agencies for approval; and it will take comment at a nearby public meeting on proposed leases and wells.

Cool said, "I also intend to ask our mineral staff to give priority to leases that can be accomplished from existing infrastructure."

The decision was not entirely popular, however. Former governor James J. Blanchard, who is running for reelection, called the decision "reckless and irresponsible."

He charged, "Today's decision violates the spirit of the 1986 ban on oil and gas drilling in the lakes agreed to by the Great Lakes Governors. This is an arrogant, back-door attempt by the current administration to please the oil and gas industry. It's almost certain that Michigan's next governor, regardless of party, will ban directional drilling of the Great Lakes."