Update: Judge rules in favor of DNR in oil/gas leasing public trust case

by Cynthia Price
Legal News

An article in the August 2 issue of Grand Rapids Legal News detailed a recent trial concerning oil and gas leases. The grassroots organization Michigan Land Air Water Defense (MLAWD) sued the Michigan Department of Natural Resources (DNR), claiming that granting any kind of lease on preserved state land without assessing environmental impacts was a violation of the public trust. The DNR, through Assistant Attorney General Daniel Bock, asked for summary disposition, arguing that the case was not ripe for review, since that the leases granted were designated “non-developmental” and no harm was imminent.

Judge Amy McDowell of Barry County heard the trial July 29 and released her opinion August 12. She ruled to dismiss the case in agreement with the DNR’s position, although she added that, “A lease granted in any other category than ‘nondevelopmental’ could arguably pose a risk of actual or imminent harm subject to the language of the MEPA and creating an issue ripe for review by the court.”

Judge McDowell said her ruling did not apply to the Allegan State Game Area, only to the state land in Barry County.

When asked if MLAWD would appeal, its attorney James Olson said, “MLAWD is looking at all options as to how to proceed with the case to address the broader issues concerning state leasing and lack of any cumulative analysis at the point of leasing... valued state lands... For the moment, the summary disposition decision in our view did not decide all issues and claims in the case, is not a final decision, and so no appeal is necessary or required at this point in time. The parties have requested a scheduling conference with Judge McDowell to sort out what still needs to be decided, clarified, and how to proceed from here.”

In addition to cumulative impact, Olson pointed to the issue of definition of “non-development,” which he says precludes only “drilling units” and not associated disturbances of the surface.

An additional note of clarification: the GRLN article’s final paragraph referred to “Environmental Assessments now done before offering mineral rights for lease,” but should have made it clear that the practice of Environmental Assessment is done on federal lands through the Bureau of Land Management, not currently on state lands by DNR or any other Michigan authority.

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