{"id":2971,"date":"2016-12-29T16:36:11","date_gmt":"2016-12-29T21:36:11","guid":{"rendered":"http:\/\/www.respectmyplanet.org\/publications\/?p=2971"},"modified":"2025-12-05T11:33:30","modified_gmt":"2025-12-05T16:33:30","slug":"michigan-oil-gas-monthly-december-2016","status":"publish","type":"post","link":"https:\/\/www.respectmyplanet.org\/publications\/michigan\/michigan-oil-gas-monthly-december-2016","title":{"rendered":"Michigan Oil & Gas Monthly – December 2016"},"content":{"rendered":"\n

The lead story in RMP’s December 2016 Michigan Oil & Gas Monthly is the MDEQ’s Office of Oil, Gas & Minerals (OOGM) funding woes.  But first, it should be noted that the MDEQ announced plugging instructions for the Word of Faith 16-27 on December 19, 2016 which means the well does not look like it’s going to become a long term producer.  RMP predicted last month the possible potential of the well producing oil for years to come but this latest bit of news dashes that prediction for the well to be an oil producer.   RMP will file a Freedom of Information Act request for the initial production report to get the numbers as soon as they’re available.  The public must wait 90 days subsequent to the completion of testing before requesting information.  Now on to RMP’s lead story for December 2016…<\/p>\n\n\n\n

\"michigan_state_budget_office\"<\/a>
RMP follows Michigan’s budget & legislative process very closely to understand where your tax dollars are going and why. RMP’s research philosophy is the same with energy as it is with everything else: follow the money.<\/figcaption><\/figure>\n\n\n\n

The OOGM’s funding has taken a big hit in the past two years with the decline of oil & gas prices.  The OOGM\u2019s funding is a function of oil & gas sold to market in Michigan.  We have seen entire countries whose funding is singularly tied to oil & gas production take massive<\/p>\n\n\n\n\n\n\n\n

revenue hits over the past couple years; Russia and Venezuela are two of the most remarkable examples that come to mind in 2015 & 2016.  The OOGM is no different on a micro scale as its funding is tied singularly to market value of oil & gas.  This article will detail the situation of the OOGM\u2019s funding woes and how the OOGM needed $4 million dollars of funding from the Michigan General Fund in Governor Snyder\u2019s 2017 budget for the first time since 2002.<\/p>\n\n\n\n

Budget 2017 Funding Woes at the MDEQ\u2019s Office of Oil & Gas Management (OOGM)<\/h1>\n\n\n\n

RMP is not the only group in Michigan that doesn\u2019t have any money, the OOGM is feeling the pinch right now too.  I have a day job to pay for RMP\u2019s web hosting, stamps, and envelopes to run this 501(c)3 non-profit organization.  The OOGM, however, does not.  Overseeing and providing surveillance of Michigan\u2019s oil & gas infrastructure and protecting Michigan\u2019s freshwater is<\/strong><\/em> the OOGM\u2019s day job.  And, it takes funding for the OOGM to do their work.  Their work is critical to protecting Michigan\u2019s freshwater and RMP has always supported our MDEQ even when we challenge them and consider ourselves auditors of their work.  RMP understands & supports the OOGM\u2019s important role in protecting Michigan\u2019s natural resources.<\/p>\n\n\n\n

The OOGM is funded as a function of oil & gas sold to market in Michigan.  Before going into the specifics of the OOGM let\u2019s consider the MDEQ\u2019s 2017 budget as a whole for the entire State of Michigan.  Amy Epkey<\/a>, Michigan\u2019s Administration Deputy Director, sent an email message to all MDEQ staff explaining the plan for Michigan\u2019s 2017 budget earlier this year.  She stated that the 2017 MDEQ budget Governor Snyder would recommend to the legislature would total $513.5 million and would include five key pillars:<\/p>\n\n\n\n

Michigan\u2019s 2017 DEQ Budget Pillars<\/h2>\n\n\n\n
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  1. Flint<\/strong> – $1.5 million for DEQ staff and laboratory costs associated with the response efforts in Flint, and $3.9 million for water connection services for the City to stay on the Detroit water system from October 2016 to December 2016.<\/li>\n\n\n\n
  2. Drinking Water Revolving Fund<\/strong> \u2013 $2.95 million additional funding is included in the budget bringing the total general fund amount to $5 million for the Drinking Water Revolving Fund Program to leverage federal funding and support low-interest loans to communities for infrastructure improvements.<\/li>\n\n\n\n
  3. Office of Oil, Gas, and Minerals<\/strong> – $4 million of one time general funds is included to offset reduced revenue within the Office of Oil, Gas, and Minerals due to low oil and gas prices.<\/li>\n\n\n\n
  4. Refined Petroleum Fund<\/strong> – $1.5 million is recommended for the refined petroleum fund as a reallocation from the Michigan Department of Agriculture and Rural Development to direct remediation activities of the DEQ.<\/li>\n\n\n\n
  5. Clean Michigan Initiative Bonds<\/strong> – $16.4 million from the Clean Michigan Initiative bond is included to support response activities at high priority sites and to address contaminated sediments in the Rouge River and Detroit River<\/li>\n<\/ol>\n\n\n\n

    In addition, a 2016 supplemental budget bill was introduced for Flint which included $63.3 million for the DEQ for the following areas:<\/p>\n\n\n\n

    2016 Budget<\/strong><\/p>\n\n\n\n