April Monthly Report

The April 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

OGCC Secretary Update – June 2022

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 Sunday, June 12, 2022.

June 2022 Secretary Update

2022 First Quarter Commission Report (this was sent to the Commission on Tuesday, June 14, 2022)

Current Items:

Proposed Legislation Idaho Code 47-3
Monthly Production and Sales for March 2022
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
At the May 19th OGCC meeting the Commission approved the last substantive draft containing revisions of Idaho Code 47-3. Per the Commissions direction the department is working through this draft one final time to resolve any grammatical issues that may have been missed in prior drafts. No substantive changes will be made during this review.

The Commission is subject to the Executive Agency Legislation (EAL) Process through the Idaho Division of Financial Management. The EAL process is used to prepare statutory change for the 2023 Idaho Legislature. Ideas must be submitted by June 24, 2022 and proposed legislation must be received by August 12, 2022. With our statute changes approved by the Commission we are on track to meet these administrative guidelines.

More information can be found on the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage of the OGCC website.
Specific information regarding the EAL process can be found on the https://dfm.idaho.gov/executive-agency-legislation-process/ webpage of the DFM website.

Monthly Production and Sales for March 2022
The March 2022 monthly report is available. More reports can be found on the Monthly and Annual Reports page. April production and sales reports are due June 14th.

Injection Well Update
According to the operator, EPA Region 10 is continuing to evaluate all comments received on the Recommended Decision published in January 2022. The comment period closed March 30th. No further timeframes for a final decision on the aquifer exemption and Class II injection well permit are available at the present time.

Field Status
Snake River Oil & Gas is currently evaluating the technical data from the three new wells. Additional development opportunities may be identified as a result of this work. Production from all wells was shut-in from May 9th to perform scheduled maintenance at both the Little Willow gathering and Highway 30 processing facilities. Full production resumed the evening of May 23rd.

News Article(s) of Interest
Why is gasoline so high?
https://www.huffpost.com/entry/why-are-gas-prices-so-high_n_62a4f061e4b04a61734f6bed?utm_source=facebook&utm_medium=news_tab

EIA expects high refinery margins to contribute to increased fuel production this summer (to meet demand).
U.S. Energy Information Administration – EIA – Independent Statistics and Analysis

Current Prices

Natural Gas (EIA)  $9.46 MMBtu.      06/08/22  (14% / $1.16 increase since last month)
NGL (EIA)  $13.00 MMBtu.  06/08/22  (1.5% / $0.20 increase since last month)
Utah Sweet Crude  $109.61 bbl.    06/10/22 (10.2% / $11.17 increase since last month)
WTI $118.98 bbl. 06/10/22 (7.1% / $8.49 increase since last month)

(green indicates prices increase since last update, red indicates decline)

March Monthly Report

The March 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

Idaho Code title 47, chapter 3 – Proposed Statutory Changes

The Department will be presenting a sixth draft text for a vote to the Commission at the May 19, 2022 regular meeting. No written comment period will be done but oral public comments will be accepted at the Commission meeting. Sign-ups are required, please see the OGCC Agenda for more information.

More information can be found here: https://ogcc.idaho.gov/rules-and-statutes/47-3-changes/

OGCC Secretary Update – May 2022

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 Friday, May 6, 2022.

May 2022 Secretary Update

Current Items:
Proposed Legislation Idaho Code 47-3
OGCC Regular Meeting
New Commissioner from Payette County
Upcoming IOGCC Meeting
Injection Well Update
Field Status
Monthly Production and Sales for February 2022
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
At the April meeting the Commission discussed final changes to Idaho Code 47-3. The department has followed the recommendations of the Commission and will present a draft for vote at the May meeting.
More information can be found on the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage of the OGCC website.

OGCC Regular Meeting
The May regular meeting of the OGCC was rescheduled and will be held Thursday, May 19, 2022 @ 1:30pm. More information can be found on the Commission Meetings page of the OGCC website.

New Commissioner from Payette County
Idaho Code 47-314(1)(a) requires that one of the members of the OGCC be a county commissioner from an oil and gas producing county in Idaho. This opening has been filled by Jennifer Riebe. Ms. Riebe is the District 2 Payette County Commissioner and has begun onboarding to the OGCC. She will be attending the May 19th meeting as an OGCC Commissioner. We appreciate Ms. Riebe’s commitment to Payette county and the state of Idaho.

Upcoming IOGCC Meeting
Idaho is a full member of the Interstate Oil & Gas Compact Commission (IOGCC). The IOGCC May business meeting will be held May 14-17, 2022 in Oklahoma City Oklahoma. James and I will be attending the business meeting as well as the annual State Inspector’s Forum that coincides with the business meeting. For those interested in hearing some of the topics of primary concern to state regulators, the Council of Regulatory Officials session includes a “state’s roundtable which can be heard via Zoom. Registration instructions can be found on the IOGCC website here: https://iogcc.ok.gov/2022-annual-business-meeting-1. Commissioners are encouraged to listen in.

Injection Well Update
The EPA comment period closed 3/30/2022. The Dept. of Lands submitted comments regarding the proposed well integrity evaluation procedures in the Recommended Decision. EPA Region 10 is evaluating each comment received and has not provided additional information regarding a timeframe for a decision. IDL staff plans to meet with members of the Ground Water Protection Council (GWPC) during the IOGCC meeting to discuss the technical aspects of the EPA Recommendation.

Field Status
Snake River Oil & Gas continues to evaluate potential well locations in the Fruitland area for the 2021-2022 drilling campaign. The Department has completed inspections of all wells in both Harmon and Willow fields. Two minor issues were brought to the attention of the operator and have subsequently been remedied. IDL will follow up with confirmation inspections in the next 7 to 10 days.

Monthly Production and Sales for February 2022
February Monthly Report | Oil & Gas Conservation Commission (idaho.gov)

News Article(s) of Interest
Bipartisan public lands mapping bill becomes law
https://www.kpvi.com/news/regional_news/bipartisan-public-lands-mapping-bill-becomes-law/article_905eb3e0-3a67-5367-8173-0b4dfff2050e.html (original link no longer works)

Risch, King Bill to Modernize Public Land Mapping Heads to President’s Desk – Press Releases – James E Risch, U.S. Senator for Idaho (senate.gov) (this link was added to this post to replace the broken link above)

Biden overhauls federal oil and gas leasing program — Here’s what it means
https://www.washingtonexaminer.com/policy/how-federal-oil-and-gas-leasing-works

Current Prices

Natural Gas $8.30 MMBtu. 05/04/22 (32.8% / $2.05 increase since last month)
NGL $12.80 MMBtu. 05/04/22 (3% / $0.37 increase since last month)
Utah Sweet Crude $98.44 bbl. 05/06/22 (13.9% / $12.03 increase since last month)
WTI $110.49 bbl. 05/06/22 (13% / $12.73 increase since last month)

(green indicates prices increase since last update, red indicates decline)

February Monthly Report

The February 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

OGCC Secretary Update – April 2022

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 Friday, April 8, 2022.

The staff and I would like to share our condolences with the family and friends of OGCC Commissioner Marc Shigeta. Marc served as an OGCC Commissioner for five years and as our vice-chair for four years. He will be dearly missed.

April 2022 Secretary Update

Current Items:
Proposed Legislation Idaho Code 47-3
OGCC Special Meeting
2022 Legislative Session
Injection Well Update
Field Status
Monthly production and sales for January 2022
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
A public comment session was held on Wednesday, March 16, 2022 from 5:00pm – 7:00pm (MT) in Fruitland, ID. This was an opportunity for the public to provide oral comment before the Department on the fourth draft text. Approximately ten members of the public attended the meeting, most of whom presented comments. The Department has created a fifth draft text to present to the OGCC at the special meeting next week.
More information can be found on the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage of the OGCC website.

OGCC Special Meeting
A special meeting of the OGCC will be held next Tuesday, April 12, 2022 @ 2:30pm. This special meeting is for the OGCC to discuss Proposed Legislation for Idaho Code 47-3. More information can be found on the Commission Meetings page of the OGCC website.

2022 Legislative Session
For the first time since 2019 the Idaho Legislature approved the rules chapters. This means that the Commission will not have to go through omnibus rulemaking this year and a number of special meetings and agenda items can now be avoided. Non-fee rules became effective on March 31, 2022 and fee rules became effective March 18, 2022.

Injection Well Update
The comment period for the Class II injection well permit ended on March 30, 2022. The Dept. of Lands submitted comments specifically in regard to the proposed well integrity evaluation procedures in the Recommended Decision. No additional announcements have been made by EPA Region 10 for a timeframe moving forward.
More information can be found on the EPA region 10 website Public Notice: Proposed Aquifer Exemption and UIC Class II Permit for Willow Gas Field in Idaho | US EPA

Field Status
Snake River Oil & Gas has concluded well construction operations in the Fruitland area for the 2021-2022 drilling campaign. The Department has made inspections of all wells and is working with the operator as they complete necessary reporting for the wells as required in Idaho Code § 47-424.

Monthly production and sales for January 2022
There have been some request for production and sales volume to be shared in this update. The Department tracks and provides this on the OGCC website. That page is found here:
2022.01_MonthlyOGReports_Redacted_PTS.pdf (idaho.gov)

News Article(s) of Interest
Black Mesa Energy, and oil and gas production company, is working with Idaho Power to develop a power purchase agreement for a solar facility to meet Micron’s renewable energy goal.
Idaho utility launches renewable energy program with 40-MW solar project (solarpowerworldonline.com)

The state of Washington to preserve 10,000 acres of trees to sell as carbon credits to polluters
https://www.yakimaherald.com/news/northwest/wa-to-preserve-10-000-acres-of-trees-to-sell-as-carbon-credits-to-polluters/article_5b92c9e4-8bf2-562f-bcd1-3ebf577ad506.html

Geothermal Plants Could Be a Future Source of Lithium
https://www.extremetech.com/extreme/333385-geothermal-plants-could-be-a-future-source-of-lithium

Fire at Exxon Refinery in Montana Shuts Down Some Units
https://www.rigzone.com/news/fire_at_exxon_refinery_in_montana_shuts_down_some_units-28-mar-2022-168417-article/

Current Prices

Natural Gas $6.25 mmbtu.   04/06/22 (34.4% / $1.60 increase since last month)
NGL $12.43 mmbtu. 04/06/22 (0.3% / $0.04 increase since last month)
Utah Sweet Crude $86.43 bbl.  04/08/22 (14.3% / $14.37 decrease since last month)
WTI $97.76 bbl. 04/08/22 (15% / $17.19 decrease since last month)

(green indicates prices increase since last update, red indicates decline)

Idaho Code title 47, chapter 3 – Proposed Statutory Changes

The Department will be presenting a fifth draft text to the Commission at the April 12, 2022 special meeting. No public comments will be accepted and there will not be a written comment period on this fifth draft text. The Commission will be taking votes on specific sections of the statute (see OGCC Agenda).

January Monthly Report

The January 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

Idaho Code title 47, chapter 3 – Proposed Statutory Changes

The fourth draft text has been posted and the Department will receive oral comments from the public at the Wednesday, March 16, 2022 public comment session to be held  from 5:00pm – 7:00pm (MT) at the Fruitland City Hall, 200 S Whitley Dr, Fruitland, ID 83619. There will be no written comment period for this fourth draft and no teleconference nor Zoom option to attend the session. This is an in-person public comment session only. In order to provide comments, advanced sign-up is required no later than Monday, March 14, 2022 at 5:00pm (MT). Notify comments@idl.idaho.gov to sign up.

More information can be found on here: https://ogcc.idaho.gov/rules-and-statutes/47-3-changes/