Category: Uncategorized

The December 2023 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

James Thum, Oil and Gas Program Manager

This update was sent to the Commission on Tuesday, February 20, 2024.

February 2024 Secretary Update

Current Items:
February OGCC regular meeting
BLM Updates to Fluid Mineral Leasing Process
Injection Well Status
Field Status
News Article(s) of Interest
Current Prices

February OGCC regular meeting
The first regular meeting of the Commission for 2024 will be held on Tuesday, February 20, 2024 @ 1:30pm (MT). Due to the Legislature being in session, the meeting will be held at Boise City Council Chambers, Boise City Hall, 3rd Floor, 150 N. Capitol Blvd. More information will be posted on the OGCC website on the Commission Meetings page.

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
On January 29, 2024, Snake River Oil & Gas LLC submitted a request to extend the Inactive status and plugging deadline for the Kauffman #1-9 well in Willow Field, Payette County to continue workover operations in an attempt to re-establish production from the LT completion. On January 31, 2024, the Department granted a 90-day extension until May 1, 2024. Copies of the request and the Department reply have been posted on the Kauffman 1-9 well file page.

A request to extend the Inactive status and plugging deadline of the ML Investments #1-11 well in Willow Field, Payette County was submitted by Snake River Oil & Gas LLC to the Department February 8, 2024. The Department is currently evaluating this request, which is posted on the ML Investments 1-11 well file page.

News Article(s) of Interest
Rig count down, majors plan to cut 2024 spending: https://www.reuters.com/business/energy/us-drillers-cut-oil-gas-rigs-first-time-three-weeks-baker-hughes-2024-02-02/

Appeals court considers whether to let stand Alaska’s Willow oil project: https://apnews.com/article/alaska-willow-oil-appeals-f99e8c0d0b565dae3520ff436a5ebd51

New Mexico advances geothermal energy bills:

Current Prices

NW Natural Gas(EIA)	$2.20 MMBtu	2/9/2024	(38% / $1.38 decrease since previous month)
NGL (EIA)	$6.53 MMBtu	2/9/2024	(3% / $0.22 decrease since previous month)
WTI	$76.67 bbl	2/9/2024	(1.8% / $1.38 increase since previous month)

James Thum, Oil and Gas Program Manager

This update was sent to the Commission on Tuesday, January 23, 2024.

January 2024 Secretary Update

Current Items:
Mick Thomas heads to Utah
Field Status
News Article(s) of Interest
Current Prices

Mick Thomas heads to Utah
Mick Thomas, IDL’s Division Administrator over Minerals, Navigable Waters, Oil & Gas and Secretary to the Oil and Gas Conservation Commission, accepted a position leading the State of Utah’s Oil, Gas, and Mining Division. Mick will oversee the regulation of mining coal, minerals, oil, and natural gas in Utah. His first day was January 8, 2024.
For any questions on oil and gas related matters, please contact James Thum, IDL Oil and Gas Program Manager.

Field Status
Snake River Oil & Gas LLC re-started workover operations for a modified gas lift January 4, 2024 for the Kauffman #1-9 well prior to the January 31, 2024 plugging deadline. The ML Investments #1-11 well, which was declared inactive by the Department August 15, 2023, has a plugging deadline of February 15, 2024.

As of December 1, 2023 Payette County production averaged 8.65 million cubic feet of gas per day (MMCFGD), 116.5 barrels of condensate per day (BCD), and 27 barrels of water per day (BWD). Natural Gas Liquids (NGLs) from Highway 30 averaged 7084 gallons per day (GPD). These volumes are about average based on historical production figures for western Idaho.

News Article(s) of Interest
Oil’s Mega Acquisition Spree May Not Be Over:
https://oilprice.com/Energy/Energy-General/Oils-Mega-Acquisition-Spree-Might-Not-Be-Over-Yet.html

What Themes Will Dominate Oil Markets in 2024?
https://www.rigzone.com/news/wire/what_themes_will_dominate_global_oil_market_in_2024-11-jan-2024-175350-article/

Industry Claims BLM withholding priority oil & gas tracts in Wyoming:
https://capcity.news/community/energy-community/2024/01/19/industry-blm-is-withholding-priority-oil-and-gas-tracts-in-wyoming/

Current Prices

NW Natural Gas (EIA)	$3.58 MMBtu	1/22/2024	(No change since last month)
NGL (EIA)	$6.85 MMBtu	1/22/2024	(1% / $0.07 decrease since last month))
WTI	$75.29 bbl	1/22/2024	(7.9% / $5.51 increase since last month)

The November 2023 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

The October 2023 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

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, December 8, 2023.

December 2023 Secretary Update

Current Items:

Third Quarter Commission Report
Docket No. CC-2023-OGR-01-001, Application for Integration
Field Status
News Article(s) of Interest
Current Prices

Third Quarter Commission Report
The Quarterly Report to the Commission for the 3rd quarter 2023 is included as an attachment to the Secretary Update. Please feel free to reach out to James Thum or me with any questions you have. We’re happy to discuss.

Docket No. CC-2023-OGR-01-001, Application for Integration
The Department issued its order for the Integration application from Snake River Oil & Gas, LLC that was submitted 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.

Field Status
Snake River continues to perform a modified gas lift workover on the Kauffman #1-9 LT zone in an attempt to bring this well back to production prior to the January 31, 2024 plugging deadline. Initial attempts to swab liquids from the well bore were unsuccessful and the operator is assessing the next steps. Production in western Idaho was curtailed during the 3rd quarter due to lower product prices, but recent increases have allow Snake River to ramp up production to take advantage of higher prices.

News Article(s) of Interest
Saudi Arabia may wage oil market share war against US: https://markets.businessinsider.com/news/commodities/oil-outlook-saudi-arabia-opec-production-us-share-crude-supply-2023-12

BLM re-starts oil and gas lease auctions in Wyoming: https://www.reuters.com/business/energy/us-kicks-off-spate-oil-gas-auctions-just-cop28-gets-underway-2023-11-28/

New Google geothermal project kicks off in Nevada: https://apnews.com/article/geothermal-energy-heat-renewable-power-climate-5c97f86e62263d3a63d7c92c40f1330d

Current Prices

NW Natural Gas (EIA)	$3.58 MMBtu.	12/08/23	(32.5% / $0.88 increase since last month)
NGL (EIA)	$6.92 MMBtu.	12/08/23	(0.4% / $0.03 decrease since last month)
WTI	$69.78 bbl.	12/08/23	(7.9% / $5.96 decrease since last month)

The September 2023 monthly report and the second 2023 Biannual Well Test Report are now available. Please see the Monthly and Annual Reports page for more information.

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, November 10, 2023.

November 2023 Secretary Update

Current Items:
New Commissioner – Marc Haws
Docket No. CC-2023-OGR-01-001, Application for Integration
IOGCC Annual Conference
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

New Commissioner – Marc Haws
We are thankful that Marc Haws has accepted Governor Little’s appointment to the Commission. Marc’s first official action will be attending our November 14, 2023 meeting in person at the Capital. Marc’s background in law, as well as the fact that he is a SW Idaho native, should prove valuable moving forward. His bio has been uploaded and is viewable on our Commission website About the Commission | Oil & Gas Conservation Commission (idaho.gov)

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.

IOGCC Annual Conference
The meeting was well-attended, with the most in-person participation since pre-Covid meetings. The main topics discussed included states seeking Class VI (carbon sequestration) primacy and the legal aspects of pore space rights. Five states reported seeking federal funding for the Methane Emissions Reduction Program (MERP). The Department of Interior was present for another question and answer session on the Orphan Well Formula Grant Guidance. On a personal note, John Baza, the Director of the Utah Division of Oil, Gas and Mining will be retiring in December. John has been extremely helpful in assisting the oil and gas program in Idaho, and was on the SOGRE review team in 2016. We wish him all the best in his future endeavors.

Injection Well Update
As of November 1, 2023 no operations have commenced to convert the DJS Properties #2-14 to a Class II injection well. The operator has until December 19, 2024 to commence injection operations, or apply to EPA Region 10 for an extension of the permit.

Field Status
Workover operations continue at the Kauffman #1-9 well in an attempt to re-establish oil production from the Lower Target (LT) zone. If unsuccessful, the well, which was declared Inactive in December 2022 is slated to be plugged and abandoned in January 2024. No other operational activities are scheduled by the operator in 2023. Annual inspections continue for wells and facilities in the Payette area. Twelve well and two facilities inspections have been completed in 2023.

News Article(s) of Interest
Expansion of Pacific Northwest natural gas pipeline gets go-ahead:

Alaska offers royalty-free lease terms in Cook Inlet:
https://www.adn.com/business-economy/energy/2023/10/23/alaska-offering-royalty-free-lease-terms-to-stimulate-cook-inlet-gas-development/

California enacts new greenhouse gas reporting requirements for businesses: https://www.stoelrivesenvironmentallawblog.com/laws-and-regulations/regulations/californias-new-climate-related-disclosure-laws/

Despite a nearly 100% increase in recent years, Idaho housing costs continues to be dwarfed by neighbor states, driving growth:
Study: Idahoans express concern about rapidly growing population, ag land loss

With a focus on transparency, Eavor Technologies takes the lead in scalable geothermal energy:
Capital Raise of $182 Million Confirms Eavor as the Leader in Scalable Geothermal – Eavor

Colorado’s new law granting regulatory authority to the counties gets put to use:
https://www.9news.com/article/news/local/arapahoe-county-oil-and-gas-regulations/73-1b3b4b8b-5962-4cf0-bcc3-01927d00eace

Current Prices

NW Natural Gas (EIA)	$2.70 MMBtu.	11/09/23	(34.3% / $0.69 increase since last month)
NGL (EIA)	$6.95 MMBtu.	11/08/23	(6.6% / $0.49 decrease since last month)
WTI	$75.74 bbl.	11/09/23	(8.0% / $6.57 decrease since last month)

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)

The August 2023 monthly report is now available. Please see the Monthly and Annual Reports page for more information.