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, September 10, 2022.

September 2022 Secretary Update

Current Items:

Monthly Production and Sales for June 2022
Second Quarter Report 2022
Docket No. CC-2022-OGR-01-001, Application for Integration – Withdrawn
Docket No. CC-2022-OGR-01-002, Application for Integration
Amended Application for Permit to Drill (Irvin #1-19)
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Monthly Production and Sales for June 2022
The June 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information. The production data for the Fallon 1-11 is now available and is no longer redacted on the January thru May reports. July reports are due to the state by September 14, 2022. Production data for the Dutch Lane #1-13 well will be released once the July reports are ready to post.
Total revenue for July and August 2022 (YTD FY2023) from permit fees and severance tax was $71,544.

Second Quarter Report 2022
The Second Quarter Report 2022 report for the Commission is attached.

Docket No. CC-2022-OGR-01-001, Application for Integration – Withdrawn
Snake River Oil and Gas, LLC filed a notice of withdrawal of application for Docket No. CC-2022-OGR-01-001 on August 25, 2022. On August 30, 2022, the Oil and Gas Division Administrator sent out an order vacating the September 8, 2022 hearing and the application was dismissed. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-001 hearing webpage.

Docket No. CC-2022-OGR-01-002, Application for Integration
The Department received an Application for Integration from Snake River Oil & Gas, LLC on August 29, 2022. The Department has scheduled the hearing to determine “just and reasonable” factors for October 13, 2022. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage.

Amended Application for Permit to Drill – Irvin #1-19
Snake River Oil & Gas, LLC submitted an amended application for permit to drill. The comment period ended yesterday September 9, 2022. I approved the permit this morning and James sent to the operator. Documentation will be posted on our website early next week.

Application for Permit to Drill – Barlow #3-14
Snake River Oil & Gas, LLC submitted an application for permit to directionally drill the Barlow #3-14 to a proposed total measured depth of 5417 feet. The proposed well is designed to test Sand “C” which was not present in neither the Barlow #1-14 nor the Barlow #2-14 wells. The APD is posted on the well permit application page Well Permit Applications | Oil & Gas Conservation Commission (idaho.gov). Comments on the application will be accepted through September 21, 2022.

Injection Well Update
The Department contacted EPA Region 10 on August 3rd regarding the status of the Class II Injection Well Application and Aquifer Exemption Recommended Decision. Our understanding is that they have completed their evaluation and responses to the comments received before the March 30, 2022 deadline and are working with the national office in Washington, DC to work towards a final decision.

Field Status
Current activities are focused on site preparation for the proposed Irvin #1-19 and Barlow #3-14 wells. If approved, the proposed Barlow #3-14 will be drilled from the existing Barlow well pad to minimize surface disturbance.

News Article(s) of Interest
Biden increases royalty rates on oil & gas from 12.5% to 18.75% on new leases. First increase in 100 years.
Biden increases oil royalty rate and scales back lease sales on federal lands : NPR

Inflation reduction act promises $7,500 tax credit for the purchase of new electric vehicle.
https://americasmi.com/insights/us-inflation-reduction-act-mining-energy-industry-latin-america/

Ford and GM increase price on electric vehicles by $7,500
GM, Ford say electric vehicle price increases have nothing to do with Dem spending bill | Fox Business

Portland continues to blockade oil and gas exports to Asia
https://www.kgw.com/article/news/local/portland-enacts-fossil-fuel-terminal-restrictions/283-1aeb7918-9e8e-4eb0-82df-79cf50a923bc

Biden reverses Wyoming-to-Idaho gas pipeline approval
https://energynews.us/newsletter/biden-reverses-wyoming-to-idaho-gas-pipeline-approval/

Current Prices

Natural Gas (EIA)	$8.13 MMBtu.	09/07/22	(3.0% / $0.24 increase since last month)
NGL (EIA)	$10.72 MMBtu.	09/07/22	(1.7% / $0.18 decrease since last month)
Utah Sweet Crude	$77.07 bbl.	09/09/22	(8.84% / $7.47 decrease since last month)
WTI	$86.19 bbl.	09/09/22	(9.15% / $8.68 decrease since last month)

 

Bonus – Pictures from the August field tour with Commissioners Coppersmith and Riebe