James Thum, Oil and Gas Program Manager

This update was sent to the Commission on Friday, April 5, 2024.

April 2024 Secretary Update

Current Items:

IDAPA 20.07.02 Rulemaking Update
BLM Updates to Fluid Mineral Leasing Process
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

IDAPA 20.07.02 Rulemaking Update
The Notice of Intent to Promulgate Rules has been published in the April Administrative Bulletin on the Division of Financial Management webpage here: https://adminrules.idaho.gov/bulletin/2024/04.pdf Three public negotiated rulemaking meetings will be held this month on the 11th, 15th and 29th. More information on the details of the meetings, rulemaking, and documents are posted on the rulemaking webpage at: https://ogcc.idaho.gov/rulemaking/docket-20-0702-2401-oil-gas/

BLM Updates to Fluid Mineral Leasing Process
The public comment period for the BLM’s proposed revisions to the Onshore Oil and Gas Leasing Rule closed September 22, 2023. The BLM continues to analyze and review comments submitted before the September deadline and is expected to issue a final rule in the spring of 2024.

Injection Well Update
The Class II injection well permit issued by the EPA took effect December 19, 2022. No construction activities have commenced as of this date. The permit expires December 19, 2024.

Field Status
Efforts to re-establish production from the Kauffman #1-9 oil zone utilizing a gas lift procedure were unsuccessful and the well was plugged the week of March 18th. The Department has requested that pad reclamation occur by this summer. The Kauffman #1-34 well which has not produced since December 2022 was also plugged the same week. Planned workover operations for the ML Investments #1-11 well have been delayed and the rig was released. This well has a plugging deadline of December 19, 2024.

As of mid-March, Snake River Oil & Gas has shut-in all production in Idaho due to low natural gas prices.

News Article(s) of Interest
Court upholds 2022 Federal oil and gas lease sales

Colorado lawmakers reject proposed drilling ban on new wells after 2030

April 2, 2024 marks the sixty-first anniversary of the first meeting of the Idaho Oil and Gas Conservation Commission

Current Prices

NW Natural Gas (EIA)	$1.35 MMBtu	4/4/2024	(23% / $0.40 decrease since previous month)
NGL (EIA)	$7.28 MMBtu	4/4/2024	(10% / $0.65 increase since previous month)
WTI	$87.37 bbl	4/4/2024	(14% / $10.70 increase since previous month)