Section R. 299.4051 - DefinitionsRule 1. As used in these rules:
(a) "Bonus payment" means a payment by the lessee to the lessor at the time of leasing as part of the consideration for acquisition of a gas storage lease.(b) "Department" means the Michigan department of natural resources.(c) "Development lease" means a lease that allows the use of the surface of state lands for gas storage activities.(d) "Development plan" means a gas storage field plan that includes proposed locations for surface equipment, well locations, pipelines, and roads.(e) "Gas" (natural gas) means a naturally occurring mixture of hydrocarbon and nonhydrocarbon gases found in subsurface reservoirs, often in association with petroleum.(f) "Land" means any property description in which the state owns any gas storage rights.(g) "Lease" means a direct underground gas storage lease issued as the result of individual negotiations with the department.(h) "Lessee" means the person or entity that has the exclusive right under lease to store natural gas as shown in the records of the department.(i) "Lessor" means the director of the Michigan department of natural resources, or the directors designee, for the state of Michigan.(j) "Nondevelopment lease" means a lease that does not allow any use of the land surface for gas storage activities without separate authorization from the department.(k) "Nonleasable lands" means lands that will not be leased for gas storage purposes.(l) "Performance bond" means a surety bond, irrevocable letter of credit, certificate of deposit, or cash to guarantee that the lessee and the lessees heirs, executors, administrators, successors, and assigns shall faithfully perform the covenants, conditions, and agreements specified in the lease and in the laws and administrative rules of the state of Michigan.(m) "Qualified party" means an individual who is not less than the age of majority or a, co-partnership, corporation, or other legal entity that is qualified to do business in the state of Michigan.Mich. Admin. Code R. 299.4051
1990 AACS; 2018 MR 4, Eff. 2/9/2018