The Michigan Court of Appeals says state regulators were correct to deny a drilling permit to developers who want to put oil wells on private land surrounded by a state forest.
The developers said the state should either grant the permit, or compensate them for their lost investment. They want to put 11 wells on private property surrounded by the Pigeon River Country State Forest in northern lower Michigan. The state Department of Environmental Quality said the wells were either in designated no-drill zones, or were too close to water.
“The takeaway from this decision is that you can’t drill an oil well just any old place in the state of Michigan,” said DEQ spokesman Brad Wurful. “There are some areas that are off limits.”
And the decision says since that was clear up front, the developers don’t get a payback from the state.
“What the court said was, everybody knew this beforehand going into this and it was clear,” Wurful said. “Nobody got surprised here. They simply wanted to do something that was not allowed and the court upheld that. We’re pretty pleased with the decision, obviously.”
The developers can file a new permit request with plans to use different technology, like directional drilling. They can also take their case to the Michigan Supreme Court.