Mick Thomas

Division Administrator – Minerals, Navigable Waters, and Oil & Gas

Secretary to the Oil & Gas Conservation Commission

This update was sent to the Commission on Saturday, October 7, 2023.

October 2023 Secretary Update

Current Items:
Docket No. CC-2023-OGR-01-001, Application for Integration
November OGCC Meeting
IOGCC Annual Conference
BLM Updates to Fluid Mineral Leasing Process
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Docket No. CC-2023-OGR-01-001, Application for Integration
The Department received an Application for Integration from Snake River Oil & Gas, LLC on January 23, 2023. More information for this application and hearings can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

November OGCC Meeting
The November regular meeting will be held on Tuesday, November 14, 2023. More information can be found on the Commission Meetings page on the OGCC website.

IOGCC Annual Conference
The 2023 Annual Conference is scheduled for October 16 through 18th in Park City, Utah. The meeting always includes a wide range of participants from federal and state oil and gas regulatory officials, industry representatives and non-governmental organizations. The Honorable Mark Gordon, Governor of Wyoming is expected to give the opening address this year. A tentative schedule is posted on the IOGCC web page.

BLM Updates to Fluid Mineral Leasing Process
The Governor’s Office of Species Conservation (OSC), Office of Energy and Mineral Resources (OEMR), and the Department of Lands (IDL) are coordinating comments to the Bureau of Land Management (BLM). These comments pertain to variances for fluid mineral leasing on federal lands involving Greater Sage-Grouse Habitat Management Areas. I’ve reviewed the alternatives provided and will meet with our state offices to discuss them on Thursday, October 12 to provide recommendations.

Injection Well Update
The Class II injection well permit was issued by the EPA November 3, 2022 and took effect December 19, 2022. The operator is evaluating costs to convert the DJS Properties #2-14 to the injection well.
If the conversion is not completed and injection commenced by December 19, 2024 the operator must plug and abandon the well and the permit will expire. Alternatively, the operator may request that EPA grant an extension and outline the reasons for the extension to the EPA Director.
More information can be found on the EPA site: UIC Class II Final Permit for Willow Gas Field, Payette County, Idaho – ID2D001A – November 2022 (epa.gov)

Field Status
On September 22nd the Department conducted an annual inspection of the Highway 30 Gas Processing Facility. Participating in the inspection were staff from IDL’s Southwest office and employees of Snake River Oil & Gas. A final inspection report was submitted to the operator September 25, 2023. Twelve wells remain on the annual inspection schedule. It is expected that they will be completed within the first two weeks of October.

News Article(s) of Interest
Top shale plays expect third straight month of production decline: https://www.reuters.com/markets/commodities/us-oil-output-top-shale-regions-set-fall-october-eia-2023-09-18/

Oil prices rise after week of steep loses: https://www.reuters.com/business/energy/oil-track-sharpest-weekly-decline-since-march-2023-10-06/

Wyoming passes on federal funds: https://wyofile.com/wyoming-passes-on-federal-funds-to-voluntarily-close-oil-and-gas-wells/#:~:text=Featured%20Top%20Story-,Wyoming%20passes%20up%20federal%20funds%20to%20voluntarily%20close%20oil%20and,prevent%20errant%20methane%20gas%20emissions

The above article will likely be a topic of discussion later this month at the Interstate Oil & Gas Compact Commission annual conference.

Current Prices

NW Natural Gas (EIA)	$2.01 MMBtu.	09/06/23	(21.8% / $0.56 decrease since last month)
NGL (EIA)	$7.44 MMBtu.	09/06/23	(0.9% / $0.07 decrease since last month)
WTI	$82.31 bbl.	09/07/23	(5.2% / $4.56 decrease since last month)