chigan is experiencing a veritable gold rush on recently located natural gas reserves in the Northern Lower Peninsula. This onslaught was launched by a May 2010 mineral rights auction that generated $178 million in revenue, which crushed the previous single-auction record of $23.6 million set in 1981. In fact, the May 2010 auction revenue nearly surpassed the $190 million in total auction revenue raised since the state first started selling the drilling rights in 1929.
While the discovery has precipitated a surge of interest from drilling companies, it has also caused considerable disquiet from communities and organizations concerned about the effects that large-scale natural gas drilling could have on our water and Michigan's other natural resources.
The potential gas reserves were found at depths of approximately 9,500 feet, which is much deeper than traditional methods of natural gas extraction can reach. Extracting natural gas from such a depth requires a process called horizontal drilling coupled with multi-stage hydraulic fracturing - also known as hydro-fracking, or simply fracking.
The fracking process involves pumping large volumes of water, sand, and chemicals into gas wells at high pressure to create fractures through which the gas can flow. Many of the states that have utilized the method of drilling have reported significant environmental problems as a result - primarily air and groundwater pollution and drinking water contamination. For more information, check out these fact sheets.