Category: Uncategorized

The July 2021 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

Mick Thomas

Division Administrator – Minerals, Public Trust, and Oil & Gas

Secretary to the Oil & Gas Conservation Commission

This update was sent to the Commission on Saturday, September 11.

September 2021 Secretary Update

Current Items:
Proposed Legislation Idaho Code 47-3
Quarterly Report
Field Status
Injection Well Update
November OGCC meeting rescheduled
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
A webpage was created for the proposed legislation process and went live a couple of weeks ago. The page can be found on the OGCC website here: https://ogcc.idaho.gov/rules-and-statutes/47-3-changes/
Updates to the page will be made as the process evolves.

Quarterly Report
Attached is the 2nd quarter report for the Commission. James Thum has been vital in developing this information and keeping abreast of field activity this year. Please feel free to reach out to James with specific questions you may have.

Field Status
The field meeting with Nate Caldwell, SROG went well. SROG now has a store front in New Plymouth where they monitor the SCADA system data from Little Willow and Highway 30. The trailer at Hwy 30 is no longer on site. The full-time employee who monitors the system was the construction supervisor for the contractor who built the plant and lives less than a mile from the plant. He knows the system inside and out. Nate says the people in New Plymouth have treated them well and are thankful for their presence in the town since they source as much as they can locally and are willing to talk to local folks whenever they have questions about operations.

SROG has now installed proving loops at all the condensate meters on each well separator at Little Willow. This means that all the Coriolis meters can now be tested in place, under field conditions per BLM requirements. The next quarterly proving will occur in October and will be witnessed by BLM. Little Willow is no longer manned, and the gate is locked at all times when no one is on the premises.

The operator will have equipment in the area in September. This will enable Tracy Trust #3-2 plugging operations will be moved up the priority list of items to get completed.

Injection Well Update
The Department received an update from the operator. In response to an inquiry from the EPA, the Idaho State Historical Society found that no historic properties would be affected by proposed activities associated with a Class II Injection Well in the Willow Field area. The Department is not a party in the matter but continues to track information as it is received.

November OGCC meeting rescheduled
The next regular meeting of the OGCC was rescheduled from November 3, to Tuesday, November 16, 2021, at 2:30pm (MT). Information on OGCC meetings can be found on the Commission Meetings page: https://ogcc.idaho.gov/commission-meetings/

News Article(s) of Interest
Small Hydropower Proves to be an Ally for Rural Communities
https://www.idahofallsmagazine.com/2021/08/small-hydropower-proves-to-be

A record $100 million will be distributed to Idaho Schools in Fiscal Year 2023

Utah: Chevron Agrees on Framework to Join Hydrogen Joint Venture with Magnum Development and Mitsubishi Power (see attached).

Western US: Maintenance Cuts Production / Supply Availability to SW US (see attached).

Current Prices

Utah Sweet Crude	$58.84 bbl.	09/09/21
WTI	$69.58 bbl.	09/10/21
Natural Gas	$4.78 mmbtu.	09/08/21
NGL	$10.33 mmbtu.	09/08/21

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

 

Snake River Oil & Gas, LLC submitted an application for permit to drill which is under review by the Department. The application and other information can be found on the Well Permit Applications page. The Department is accepting comments on this application through September 27, 2021.

At the August 4th OGCC meeting, the Commission unanimously voted to direct the Department to investigate potential statutory changes.

One of the first steps in that process was the creation of a dedicated webpage to serve as a nexus for timelines, drafts, comments, and an explanation of the process. That page has been created and can be found at: Idaho Code title 47, chapter 3 – Proposed Statutory Changes | Oil & Gas Conservation Commission

The page will be built out as the process develops.

The June 2021 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

The evidentiary hearing for docket no. CC-2021-OGR-01-001 was completed yesterday. The record and recording of the hearing can be found on the OGCC website at https://ogcc.idaho.gov/administrative-hearings/docket-no-cc-2021-ogr-01-001-application-for-integration/

The department also held a public comment session via Zoom and in person at the Fruitland City Hall. There were no in person attendees, and one participant on Zoom who was unable to provide comment due to audio issues. The Administrator verbally extended the written public comment period to 5PM, August 13, 2021.

Mick Thomas

Division Administrator – Minerals, Public Trust, and Oil & Gas

Secretary to the Oil & Gas Conservation Commission

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

August 2021 Secretary Update

Current Items:
Proposed Legislation Idaho Code 47-3
Commission Leadership
Field Status
Injection Well Update
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
At the OGCC regular meeting this past week, the OGCC voted unanimously to recommend that the Department begin the statutory revision process. In response the Department is developing a timeline to evaluate potential revisions. We hope to have a page on the OGCC website dedicated to this in the coming week.

Commission Leadership
Our annual election for the Chair and Vice-chair occurs each August. This past week the Commission chose to retain Betty Coppersmith as Chairman, and elected Ray Hinchcliff as Vice-chairman. The Vice-chair position was previously held by County Commissioner Marc Shigeta who will remain on the OGCC as a Commissioner. Both votes were unanimous.

Field Status
The PUC and possibly the BLM are planning to be in the field for inspections in late August. The Department plans to provide our inspections during that time as well.

Injection Well Update
The operator has shared there is a delay in the Class II review process. This is a result of an EPA request of the Idaho State Historic Preservation Office. The EPA is seeking confirmation from SHPO that the current DJS #2-14 well area does not have historical significance. Guidelines for significance can be found on SHPO’s website –

News Article(s) of Interest
Shrinking crude reserve and limited capacity in the northwest push Idaho gas prices 61 cents above the national average.

(Also see attached “gas price excerpt”).
COMMENT: As some of you know I moved my oldest daughter from the St. Louis area back to Boise last weekend. Gas in STL was ~$2.75 / gallon. We saw a significant increase crossing from Nebraska into Wyoming.

The Oil and Gas Leasing Pause Has Minimal Impact
https://www.nrdc.org/experts/josh-axelrod/report-oil-and-gas-leasing-pause-has-minimal-impact

BLM Seeks Agency Remand in Oil and Gas Lease Sales (see attached “BLM Seeks…”).

Renewables overtake coal, but natural gas still dominates as the nation’s power generator
https://whyy.org/articles/renewables-overtake-coal-but-natural-gas-still-dominates-as-the-nations-power-generator/

Current Prices

Utah Sweet Crude	$61.26 bbl.	08/03/21
WTI	$67.97 bbl.	08/06/21
Natural Gas	$4.12 mmbtu.	08/04/21
NGL	$9.64 mmbtu.	08/04/21

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

The May 2021 monthly report is now available. Please see the Monthly and Annual Reports page for more information. 

Mick Thomas

Division Administrator – Minerals, Public Trust, and Oil & Gas

Secretary to the Oil & Gas Conservation Commission

This update was sent to the Commission on Thursday, July 8.

July 2021 Secretary Update

Current Items:
August OGCC meeting
Field Status
Injection Well Update
News Article(s) of Interest
Current Prices

August OGCC Meeting
The next regularly scheduled meeting of the OGCC is scheduled for Wednesday, August 4, 2021 @ 1:00pm (MT). More information can be found on the Commission Meetings page on the OGCC website. https://ogcc.idaho.gov/commission-meetings/

Field Status
Annual fall inspections will be scheduled in September/October to take advantage of cooler temperatures. The operator continues to provide timely production reports to the Department. The latest reports are available on the OGCC website.
https://ogcc.idaho.gov/monthly-and-annual-reports/

Injection Well Update
The operator continues to work with the EPA to meet permit requirements. The Commission and the Department are ready to offer information to parties if requested.
Most recently the EPA notified the operator that they will coordinate with the State Historical Preservation Office in Idaho to determine if there are potential effects to consider.

News Article(s) of Interest
US LNG – A world of benefits beyond price
https://www.forbes.com/sites/thebakersinstitute/2021/06/24/us-lng-a-world-of-benefits-beyond-price/?sh=557f81a51e9c

Federal judge blocks Biden’s pause on new oil, gas leases

Current Prices

Utah Sweet Crude	$62.90 bbl.	07/08/21
WTI	$73.23 bbl.	07/08/21
Natural Gas	$3.60 mmbtu.	07/07/21
NGL	$9.37 mmbtu.	07/07/21

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

The April 2021 monthly report is now available. Please see the Monthly and Annual Reports page for more information.