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HB 4512

Businesses: other; orphaned well partnership program and fund; create for bitcoin mining. Amends secs. 61601, 61603 & 61604 of 1994 PA 451 (MCL 324.61601 et seq.) & adds secs. 61609, 61611, 61613, 61615, 61617, 61619 & 61621.

2025-2026 Regular Session Introduced by Will Bruck and 6 co-sponsors

Michigan creates an orphaned oil well partnership program and fund allowing bitcoin mining companies to develop abandoned wells for cryptocurrency operations and energy production.

re-referred to Committee on Communications and Technology
#businesses:other #financialinstitutions:other
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Bill Summary · HB 4512

Legislative bill overview

HB 4512 creates a new partnership program and dedicated fund in Michigan to allow bitcoin mining operations to utilize orphaned oil and gas wells for energy production. The bill amends Michigan's natural resources regulations to establish a framework for private companies to develop these wells as part of cryptocurrency mining ventures.

Why is this important

Orphaned wells—abandoned oil and gas sites lacking responsible owners—are environmental liabilities that cost states millions in remediation. This bill attempts to repurpose these sites for economic activity, potentially generating revenue while addressing environmental cleanup concerns. However, it specifically targets bitcoin mining, a highly energy-intensive and economically volatile industry, raising questions about whether this is the best use of remediation resources.

Potential points of contention

  • Environmental trade-offs: Bitcoin mining requires enormous electricity consumption; using orphaned wells for this purpose may prioritize private profit over comprehensive environmental remediation or renewable energy development
  • Financial viability: Bitcoin's volatile market value creates uncertainty about long-term project sustainability and whether promised revenues will materialize for the state
  • Alternative uses: Orphaned wells might be better suited for other energy solutions (geothermal, storage) or complete environmental restoration, but this bill locks them into cryptocurrency mining exclusively
  • Regulatory clarity: The bill's new sections lack publicly available details about profit-sharing, environmental standards, bonding requirements, and enforcement mechanisms

Compiled from official sources — confirm details with the bill’s official record.

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