Page 151 - MFB State Annual Meeting 2018 -- RESOLUTIONS BOOK

43 Gas, oil and mineral royalties from state-owned land
44 and all severance taxes should be shared with local
45 units of government. Michigan Farm Bureau supports a
46 reasonable severance tax for gas, oil and precious
47 metals, with the priority focus of the funds to be in the
48 region where the commodity is removed.
49 We encourage MFB to explore alternative
50 distribution of Natural Resources Trust Funds.
51 Consideration should be given to maintaining and
52 improving parks, roads and wildlife habitat on existing
53 state lands.
54 Traditionally in Michigan, oil, gas and mineral owner's
55 1/8 interest was "free of costs." The working interest
56 owners and developers bore the expense from the
57 wellhead. Farm Bureau believes private royalty owners
58 should not be burdened with the deduction of post-
59 production costs even though the state has decided to
60 allow some post production cost deductions.
61 We oppose any deductions by the oil, gas and
62 mineral industries from a private lessor's share of
63 revenue unless it is expressly provided for in the
64 signed lease. If deductions take place, the lease must
65 contain the definition of the deduction, specific areas of
66 items eligible for deductions, a clear process enabling
67 the lessor to monitor deductions and a maximum
68 percentage of costs to be deducted.
69 We believe wellhead and point of severance means
70 the point at which the well is drilled or mineral is
71 extracted. When oil, gas and minerals are severed from
72 the ground, everything that occurs after severance is
73 the responsibility of the lessee.
74 We believe government agencies, Farm Credit
75 Services, local and state recording offices, and other
76 state and federal chartered financial institutions should
77 not be allowed to sever oil, gas and mineral rights from
78 surface rights when they resell land acquired through any
79 land transfer. Oil, gas and mineral rights that have been
80 severed at foreclosure should be returned or sold to the
81 surface property owner at fair market value.
82 We urge members to obtain information on oil, gas
83 and mineral leasing from Michigan State University
84 Extension offices or through MFB before signing a lease.
85 A checklist for oil, gas and mineral leases is available on
86 the MFB Web site.
87 We support rights of townships granted to them
88 under the Township Ordinance, PA 246 of 1945.
89 We support any change in a well’s use being re-
90 permitted before that use.
91 We support agricultural representation on the state
92 oil and gas advisory committee. 
State Policies – Page 65