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Michigan gets control of 21 oil wells, $2.85 million in lawsuit settlement - MLive.com

LANSING, MI – Michigan state officials will take over control of 21 old oil wells in Ottawa and Ingham counties in a settlement with an oil and gas company.

Attorney General Dana Nessel said the state will also receive more than $2.85 million in civil fines and expected costs to plug the wells and clean up the sites. The state sued Fisher McCall Oil & Gas last year for failing to do so themselves.

Two of the old wells leaked oil, including one that spilled into a lake at Ottawa County’s Bend Park in April this year.

Crude Oil Bend Area

Crews work to remediate areas of Bend Area park, located at 9500 12th Ave. in Jenison, where several large puddles of suspected crude oil have been found. (Photo provided by the Ottawa County Parks and Recreation Department)

“This settlement takes these oil wells under state control for proper and responsible remediation and protects the health and safety of Michigan’s residents and natural resources,” Nessel said in a statement.

She said the financial burden for the cleanup will remain on the corporation that failed to maintain the wells, rather than falling to the taxpayers.

Details of the settlement include $2.1 million to plug the 21 wells; $400,000 to remediate the wells and related facilities; $102,095 to reimburse the state for the costs of responding to past oil leaks; $250,000 in civil fines; and, $51,627 in a forfeited bond with the Michigan Department of Environment, Great Lakes, and Energy.

According to the consent judgment, Fisher McCall disavows any interest and ownership in the wells and associated equipment left on the sites. Twenty of the well sites are in Ottawa County’s Georgetown and Tallmadge townships, with one in Ingham County’s White Oak Township.

Related: Michigan gets $32 million in federal cash to plug abandoned oil wells

Phil Roos, EGLE director, said those who profit from Michigan’s natural resources have a legal obligation to leave no long-term hazards and, in this case, those obligations were not fulfilled.

“This settlement sends a message that Michigan will aggressively pursue irresponsible parties when they fall short of their responsibility to protect Michiganders’ natural assets,” Roos said.

Improperly sealed well sites can leak contaminants into surface and groundwater, and methane and other greenhouse gases can also escape and contribute to climate change.

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