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E-M:/ COOL POSTPONES OCTOBER OIL AND GAS LEASE SALE



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Enviro-Mich message from "R. Jack" <yukon@ismi.net>
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>Date: Mon, 14 Jul 97 13:45:39 -0500
>From: turneys@dnrserver1.dnr.state.mi.us
>Subject: COOL POSTPONES OCTOBER OIL AND GAS LEASE SALE
>To: DNRWire@dnrserver1.dnr.state.mi.us
>Sender: owner-dnrwire@dnrserver1.dnr.state.mi.us
>
>FOR IMMEDIATE RELEASE
>11 JULY 97 
>CONTACT: Tim Roby, 517-373-1214
>
>COOL POSTPONES OCTOBER OIL AND GAS LEASE SALE
>
>LANSING--Michigan Department of Natural Resources Director K. Cool has 
>decided to postpone the October lease sale of mineral rights on state-owned 
>land.
>
>Cool said the DNR instead will embark on an informational campaign designed 
>to better inform state legislators and the general public about the 
>Department's management and oversight role in oil and gas activities on 
>state property. The plan, unveiled Thursday at the Natural Resources 
>Commission meeting in Monroe, was unanimously supported by the seven-member 
>board.
>
>"We are putting a hold on lease sales so we can bring everyone to the same 
>level of understanding about the positive changes we have implemented in 
>our oil and gas program over the past year," Cool said. "We need to clarify 
>misrepresentations and misinformation about the leasing program that has 
>recently occurred in the media and by others who have presented information
>to the House of Representatives." 
>
>The House recently passed a resolution requesting the DNR refrain from 
>conducting a fall lease sale pending legislative overview. 
>
>"The new lease document and leasing program was developed jointly by the 
>DNR Real Estate Division, the Michigan Oil and Gas Association, and the 
>Michigan United Conservation Clubs, all of whom have commended the progress 
>that has been made," Cool said. "This point obviously is not well 
>understood and was not shared with the Legislature. The DNR wasn't given
>a chance to respond to the resolution, so we will be formally asking the 
>chairman of the House Forestry and Minerals Committee, Rep. David Anthony, 
>for an opportunity to present our information and conduct field tours of 
>our oil and gas business on State Forest lands." 
>
>Cool stressed the postponement shouldn't be perceived as a glitch in the 
>lease program. The DNR's goal is to continue to lease oil and gas in a 
>sound, business-like manner to maximize the dollars returned to the Natural 
>Resources Trust Fund, he said.
>
>The DNR began aggressively auditing oil and gas companies in April 1996, 
>with the focus on Post Production Costs. Five companies were audited, and 
>the state collected almost $600,000 in discrepancies. 
>
>A second phase of audits began last fall on production and revenue, and a 
>final report is due later this summer. The Department has committed to a 
>third round of audits later this year.
>
>The DNR's lease program has been reviewed by Governor Engler, and Cool said 
>the Governor "understands the details of the changes we've made to the 
>program, and supports where we're going. We need an opportunity to explain 
>the new lease program and our management of oil and gas to the 
>Legislature."
>###
>
>

       ~~~~~~~~~~~~~~~~~~~~~~~~~~~
             Rita Jack     Hartland, MI
                 <yukon@ismi.net>
  "I have seen the enemy, and it is us." -Pogo
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


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