Michigan Office of Administrative Hearings and Rules  
Administrative Rules Division (ARD)  
611 W. Ottawa Street  
Lansing, MI 48909  
Phone: 517-335-8658 Fax: 517-335-9512  
REQUEST FOR RULEMAKING (RFR)  
1. Department:  
Natural Resources  
2. Bureau:  
Office of Minerals Management  
3. Promulgation type:  
MCL 24.244 (1)  
4. Title of proposed rule set:  
Oil and Gas Leases on State Lands  
5. Rule numbers or rule set range of numbers:  
R 299.8101-299.8107  
6. Estimated time frame:  
3 months  
Name of person filling out RFR:  
Kirk Lapham  
E-mail of person filling out RFR:  
Phone number of person filling out RFR:  
517-284-6029  
Address of person filling out RFR:  
525 West Allegan St  
Lansing, MI 48909-7528  
7. Describe the general purpose of these rules, including any problems the changes are intended  
to address.  
The rules establish the process that the DNR uses to lease oil and gas mineral rights owned by the  
State of Michigan and managed by the DNR. As currently written, the rules require an in-person  
auction for the leasing of those mineral rights. Since the rules were last amended in 1981,  
technological advances have created the option of conducting these auctions online. The proposed  
changes will eliminate unnecessary regulations to allow greater flexibility to conduct the auctions  
in-person or online. The changes will also correct inaccuracies in the rules that result from  
statutory changes since the last time the rules were amended in 1981.  
8. Please cite the specific promulgation authority for the rules (i.e. department director,  
commission, board, etc.).  
The Department has the authority to promulgate these rules. MCL 324.502 and MCL 324.504.  
A. Please list all applicable statutory references (MCLs, Executive Orders, etc.).  
MCL 324.502 and MCL 324.504.  
B. Are the rules mandated by any applicable constitutional or statutory provision? If so, please  
explain.  
MCL 24.239  
RFR-Page 2  
MCL 324.502(2)(a) states that the DNR may “Promulgate and enforce reasonable rules  
concerning the use and occupancy of lands and property under its control in accordance with  
section 504.”  
MCL 324.504(1) states that the DNR “shall promulgate rules to protect and preserve lands and  
other property under its control from depredation, damage, or destruction or wrongful or improper  
use or occupancy.”  
9. Please describe the extent to which the rules conflict with or duplicate similar rules,  
compliance requirements, or other standards adopted at the state, regional, or federal level.  
The rules do not conflict with or duplicate other regulations.  
10. Is the subject matter of the rules currently contained in any guideline, handbook, manual,  
instructional bulletin, form with instructions, or operational memoranda?  
The subject matter is covered in the guidelines of the DNR’s auction catalog. There are forms  
prior, during and after the auction that contain the subject matter of the rules.  
11. Are the rules listed on the department’s annual regulatory plan as rules to be processed  
for the current year?  
Yes.  
12. Will the proposed rules be promulgated under Section 44 of the Administrative Procedures  
Act, 1969 PA 306, MCL 24.244, or under the full rulemaking process?  
MCL 24.244 (1)  
A. Explain why the rules are being promulgated under 24.244.  
These rules were last promulgated in 1981, therefore, the proposed amendments are only intended  
to make the rules conform to an amended statute, along with associated reorganization of the DNR  
both internally within the Department and through Executive Orders. Additionally, the proposed  
amendments will rescind rules that are obsolete and unnecessary to simplify the process and create  
greater flexibility for conducting auctions of DNR-managed oil and gas mineral rights.  
MCL 24.239