Schmude Oil, Inc. v. Department of Environmental Quality
Court of Appeals of Michigan
856 N.W.2d 84 (Mich. Ct. App. 2014)
In 1980, the State of Michigan enacted into law a development plan for private properties within a state forest. The plan created a limited development region, as well as a non-development region in which drilling was prohibited. Schmude Oil, Inc. and others (plaintiffs) leased oil and gas rights on private property in the state forest in 2006. The plaintiffs filed applications for drilling permits in the non-development region. The Department of Environmental Quality (DEQ) (defendant) denied the plaintiffs’ applications. The plaintiffs appealed to the Ingham Circuit Court, which affirmed the denials. The plaintiffs appealed again, alleging an unconstitutional taking of their private properties.
Rule of Law
Holding and Reasoning (Per curiam)
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