Michigan Administrative Code
Department - Licensing and Regulatory Affairs
Public Service Commission
Production And Transmission Of Natural Gas
Section R. 460.857 - Waste prohibited and defined

(1) Natural gas shall not be produced, transmitted or distributed in the state of Michigan in such manner and under such conditions as to constitute waste.

(2) The term "waste" as used in these rules in addition to its ordinary meaning shall include (a) the permitting of any gas to wastefully burn, (b) the wasteful use of gas including the use of gas in its natural state in engines or pumps where its pressure is the main or direct operating force, unless such gas can be consumed after discharge from such engines or pumps for normal use for fuel purposes, (c) surface waste, which shall include the unnecessary blowing, release or escape of natural gas into the open air, and any unnecessary or excessive surface loss, including leakage, fire loss and loss or destruction incident to the manner of equipping, operating or producing of such well or wells, or by inefficient handling thereof, (d) underground waste, which shall include inefficient, excessive, or improper use or dissipation of the reservoir energy, including gas energy and water drive, of any pool; and the equipping, operating, or producing of any well or wells in such a manner as to reduce or tend to reduce the total quantity of gas ultimately recoverable from such pool, and the unreasonable damage to underground deposits from the operation, maintenance or production of gas; and (e) the intentional drowning with water of a gas stratum capable of producing gas (except that temporary drowning may become necessary as an exigency of drilling or repairing wells).