Michigan Lt. Gov. Signs Bills Cutting Taxes For Oil Drilling

LANSING, Mich. (AP) - Michigan's Lt. Gov. Brian Calley has signed legislation aimed at encouraging a type of oil drilling using carbon dioxide.

The new laws lower taxes for drilling projects involving carbon dioxide, a process that has divided environmental groups. The technique involves using carbon dioxide to push oil from wells that otherwise is unrecoverable.

The new laws also allow oil and gas companies to construct carbon dioxide pipelines and expand their authority to build them on private property.

Calley says the legislation is a "wise use" of Michigan's natural resources that "benefits consumers and our economy."

The Sierra Club's Michigan chapter says tax breaks shouldn't be given to the oil industry and warns expanded drilling will hurt the environment.