This report contains the results of an inventory of the peat resources of Michigan conducted as part of the DOE Peat Program. Approximately 200 deposits were sampled from the Upper Peninsula and from two counties in the Lower Peninsula; 1248 samples were collected and analyzed for selected energy-related properties. A reconnaissance survey was done in the Lower Peninsula to provide the most accurate estimate possible within project constraints. These results provide a solid foundation for subsequent inventories. The fuel-grade peat resource in Michigan is estimated to be approximately 1.64 billion tons, and to contain 26.2 quads (10/sup 15/ Btu) of energy. Approximately 46% of Michigan's fuel-grade resource occurs in the Upper Peninsula. The Lower Peninsula estimate was based on a smaller sampling of deposits and further study may reduce this resource estimate. The peat deposits in Michigan are generally small compared to those in Minnesota and Maine, but have proven to be suitable for utilization by the horticultural peat industry. A similar pattern of use of this material for energy production may occur in the future. According to DOE criteria for ash and calorific value, the peat materials in the Upper Peninsula are generally suited for energy use. There are differences in peat quality between geographic regions. The peat materials sampled from five counties in the more populated areas of the Lower Peninsula are more decomposed, contain more ash, and less energy. 33 refs.