Section R. 460.855 - JurisdictionRule 5.
(1) The jurisdiction of this commission, according to Act No. 9 of the Public Acts of 1929, over all gas wells and over the production of gas from such wells shall begin at the time the production or preparation for production is started and shall continue and remain with the commission until production is abandoned. The operations of drilling, deepening, plugging and abandoning, and in fact all underground work on gas wells, is under the jurisdiction of the supervisors of wells of the department of conservation. (Refer to the rules of the department of conservation covering the drilling, deepening and plugging of wells for natural dry gas.)(2) Any gas well shall be considered as producing or preparing for production at such time as an application for a well connection permit has been filed with the commission, but in case connection with a line to take gas from any well for any purpose is made before an application for a well connection permit is filed, the commission's jurisdiction over such well shall begin when work of installing connections is started.(3) During the period that gas wells are under the supervision of the commission it shall be the duty of the chief engineer, directly or through his authorized representatives: (a) To enforce such rules as the commission may adopt to carry out the requirements of said act.(b) To inspect the maintenance and operations of all gas wells with a view to preventing waste of gas, damage to gas producing strata or formation, or injury to life or property, and to issue in accordance with the natural gas acts, necessary instructions to guard against and prevent such waste, damage or injury.(c) To determine the percentage of the open flow capacity of any gas well which may be utilized when in his opinion such action is necessary to protect the gas producing formation; and to specify the time and method for determining the open flow capacities of wells.(d) To regularly gather data and compile statistics showing production of gas from all wells, fields or pools, and the value of the gas produced.Mich. Admin. Code R. 460.855