Bill > HB4512

This bill establishes an innovative "Abandoned Oil or Gas Well Bitcoin Mining Partnership Program" designed to address two challenges simultaneously: cleaning up abandoned oil and gas wells and generating revenue through bitcoin mining. The program allows private companies to bid for the right to use electricity from abandoned wells to mine bitcoin, in exchange for plugging the wells and performing environmental restoration. Participants must submit detailed bids including startup cost estimates, expected bitcoin production, and proof of financial responsibility. The supervisor of wells will select bidders based on their ability to successfully and safely mine bitcoin, the proposed timeline, and potential environmental and financial benefits. Program participants must obtain a bond, are limited to spending no more than three times the estimated plugging and restoration costs, and must provide annual updates on their progress. At the end of the mining period, participants may have the option to take legal ownership of the well if they have met certain financial obligations. The bill also ensures that sensitive business information submitted during the bidding process remains confidential and allows the supervisor to create implementing rules. This approach offers a creative solution to environmental cleanup by incentivizing private sector investment in remediating abandoned wells.

Business and Industry, Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4512