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The July 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 Saturday, September 9, 2023.

September 2023 Secretary Update

Current Items:

New Commissioner – Marg Chipman
Second Quarter Commission Report
Docket No. CC-2023-OGR-01-001, Application for Integration
September OGCC Meeting
BLM Updates to Fluid Mineral Leasing Process
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

New Commissioner – Marg Chipman
Governor Little has selected Marg Chipman of Weiser to fill the fourth commissioner role. Statute changes recommended by the Commission went into effect on July 1, 2023. Marg will fill the requirement to have a commissioner knowledgeable in land matters. Her first meeting will be our September meeting on Thursday, September 14. Marg has served as an OGCC commissioner before, and we welcome her experience and commitment to the residents of Idaho.

Second Quarter Commission Report
Attached is the 2023 Second Quarter Commission Report. Production was down as a result of suppressed commodity prices, which is a normal trend in the spring months.

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.

September OGCC Meeting
The September 19, 2023 regular meeting has been cancelled. The Commission will hold a special meeting on September 14, 2023. More information can be found on the Commission Meetings page on the OGCC website.

BLM Updates to Fluid Mineral Leasing Process
The processes has not been updated for several decades and the link below outlines the goals well. Commissioners and the public are welcome to participate. Please visit https://www.blm.gov/onshore-oil-and-gas-leasing-rule to sign up and for additional information.

Injection Well Update
The Class II injection well permit was issued by the EPA November 3, 2022 and took effect December 19, 2022. There has been no progress from the operator on construction activities. Reservoir testing procedures are being considered for submission to EPA Region 10 for approval.

Field Status
As of July 2023, five of the permitted sixteen wells in the Payette area were producing, all from the Harmon Field area. All wells in the Willow Field area have been shut-in since January 2023. In July the production averaged 4.8 million cubic feet of gas per day, 88 barrels of condensate per day and 17 barrels of water per day. These numbers are higher than those reported in June. No drilling activities have been planned for the fourth quarter of 2023 as of this date. Additional information can be found in the attached Second Quarter Commission Report.

News Article(s) of Interest
US rig count down for 8th straight week: https://www.reuters.com/article/usa-rigs-baker-hughes/us-drillers-cut-oil-and-gas-rigs-for-eighth-week-in-a-row-baker-hughes-idUSL1N3AC2BO

US crude oil output back at pre-pandemic levels: https://www.reuters.com/markets/commodities/us-crude-output-rises-june-highest-since-feb-2020-eia-2023-08-31/

Biden administration cancels Alaska leases: https://www.adn.com/business-economy/energy/2023/09/06/biden-administration-cancels-state-owned-oil-leases-in-arctic-national-wildlife-refuge/

Current Prices

NW Natural Gas (EIA)	$2.57 MMBtu	09/06/23	(22.2% / $0.73 decrease since last month)
NGL (EIA)	$7.51 MMBtu.	09/06/23	(2.3% / $0.17 increase since last month)
WTI	$86.87 bbl.	09/07/23	(6.5% / $5.32 increase 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, August 5, 2023.

August 2023 Secretary Update

Current Items:
Docket No. CC-2023-OGR-01-001, Application for Integration
August OGCC Regular Meeting
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.

August OGCC Regular Meeting
Rescheduled to September 19, 2023 at 2:00 PM MT. This is to allow the Governor’s office additional time to finalize selection of two new commissioners. The Governor’s office has been working diligently through the process.

BLM Updates to Fluid Mineral Leasing Process
The Bureau of Land Management (BLM) is seeking public comment on the Onshore Oil & Gas Leasing Rule. This will be the first comprehensive update to the fed’s onshore oil and gas regulatory framework in decades. The goal is more comprehensive regulations that will provide more consideration to cultural sites, tribal lands, and habitat. The new rule could also increase tax revenue and update bonding requirements.

Over the next month there will be a series of informational meeting both virtually and in person. The Department will participate in the next informational meeting and report the information back to the Commission.

Commissioners and the public are welcome to participate as well. Please visit https://www.blm.gov/onshore-oil-and-gas-leasing-rule to sign up and for additional information.

Injection Well Update
There has been no progress from the operator on construction activities due to economic factors. Reservoir testing procedures are being considered for submission to EPA Region 10 for approval.

Field Status
The Department met with the operator to discuss facilities and pipeline infrastructure updates, field production status, well plugging status, and Class II injection well progress. Because the operator has curtailed production in recent months due to low product prices, they have used the down-time to perform seasonal maintenance and clean-up activities as needed after recent facilities installations. In June the production averaged 2.5 million cubic feet of gas per day, 35 barrels of condensate per day and 15 barrels of water per day from three wells in Harmon Field.

The Department has been working with the operator to finalize status on the Kauffman #1-9 well. On August 2, 2023 we provided notice to the operator that the well must be plugged and abandoned on or before January 31, 2024. This is required under IDAPA 20.07.02.501.01, which mandates a well be declared inactive after 24 months of non-production. Well inspections by IDL staff show the well is stable but has been partially dismantled by the operator. The operator has fourteen days from the date of the letter to request an appeal to the Commission.

News Article(s) of Interest
California is apparently a Dillon State like Idaho: California High Court Blocks County Oil Well Ban

Current Prices

NW Natural Gas (EIA)	$3.30 MMBtu.	08/04/23	(63.3% / $1.28 increase since last month)
NGL (EIA)	$7.34 MMBtu.	08/02/23	(27.0% / $1.54 increase since last month)
WTI	$81.55 bbl.	08/03/23	(13.6% / $9.79 increase since last month)

The June 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 Saturday, July 8, 2023.

July 2023 Secretary Update

Current Items:
Title 47, Chapter 3 – revised statute now in effect
Docket No. CC-2023-OGR-01-001, Application for Integration
New Commissioner Selection
Field Status
News Article(s) of Interest
Current Prices

Title 47, Chapter 3 – revised statute now in effect
The revised statute for Title 47, Chapter 3 took effect on July 1, 2023. The revised language is available on the Legislature website here: https://legislature.idaho.gov/statutesrules/idstat/Title47/T47CH3/

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. All documents, including my most recent June 30 order and notice of August hearing can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

New Commissioner Selection
The Governor’s office is actively working to replace former commissioners Classen and Miller. Replacements will be selected in time for the August meeting, if not sooner. I will keep the current commissioners updated as the process continues.

Field Status
Natural gas prices in the pacific northwest have dropped significantly over the past few months. The operator is evaluating production options to conserve the resource and protect mineral interest owners. The Department is monitoring production and sale price closely.

News Article(s) of Interest
Natural gas prices in the NW U.S. is among the lowest, while Electricity spot price is second highest in the U.S., in many cases 50% higher than other regions:
U.S. Energy Information Administration – EIA – Independent Statistics and Analysis

Idaho is in the top four states nationwide for in-state electricity production from renewable resources.
U.S. Energy Information Administration – EIA – Independent Statistics and Analysis

Current Prices

NW Natural Gas (EIA)	$2.02 MMBtu.	07/07/23	(no change since last month)
NGL (EIA)	$5.70 MMBtu.	07/06/23	(1% / $0.06 decrease since last month)
WTI	$71.76 bbl.	07/07/23	(0.7% / $0.48 increase since last month)

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

The April 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 Saturday, June 10, 2023.

June 2023 Secretary Update

Current Items:

Docket No. CC-2023-OGR-01-001, Application for Integration
IOGCC Business Meeting
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices
2023 Q1 Commission Report (Attached)

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 hearing can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

IOGCC Business Meeting
Eight states are in the process of seeking Class VI primacy for Carbon Capture and Underground Storage (CCUS) from EPA. Most states have begun spending their initial $25MM federal grants for funding of orphan well plugging. Still some uncertainty and concerns with federal reporting benchmarks and timeframes for the next funding phase.

Alberta Canada now has a requirement for every active company to spend a certain percentage of their annual operating expenditures for well closure and reclamation work to maintain their active standing as an operator. Several states are interested in pursuing similar programs.

There was good discussion for public outreach processes used by various states and provinces for orphan well plugging. Town Halls were found not to be as productive as it tended to attract the same groups of people. Social media, fair booths and pamphlet distributions were being used by most states. The 2023 annual meeting will be held in Park City Utah October 16 through 18.

Big thanks to James Thum for representing the Commission at our IOGCC business meeting in Oklahoma City. I was unable to attend since the IOGCC meeting overlapped the IDL spring leadership meeting. Very thankful for his experience and willingness to step up whenever asked!

Injection Well Update
On November 3, 2022 EPA Region 10 issued a Class II Disposal Well Permit to Snake River Oil and Gas, LLC and approved an associated Aquifer Exemption for the Willow Sand in Willow Field. The permit took effect December 19, 2022 at 12:01 AM. Snake River has been in communication with EPA regarding the reservoir testing process as part of bringing the injection well online.

Field Status
All wells in Willow Field have been shut-in since the beginning of 2023. Currently the only production in western Idaho comes from Harmon Field. As of June 1, 2023 seven of the seventeen active well permits are producing.

News Article(s) of Interest
Oil Prices Climb As U.S. Rig Count Sees Another Double-Digit Decline | OilPrice.com
https://oilprice.com/Energy/Energy-General/Oil-Prices-Climb-As-US-Rig-Count-Sees-Another-Double-Digit-Decline.html

New Mexico Imposes oil and gas moratorium on state land near schools
https://apnews.com/article/new-mexico-oil-gas-moratorium-schools-pollution-e68db29ad2c2c184b6e7949cbce3fbe2

US crude March output hits three-year high as Texas production grows, EIA says
https://www.reuters.com/business/energy/us-crude-output-rises-march-highest-since-march-2020-eia-2023-05-31/

Current Prices

NW Natural Gas (EIA)	$2.02 MMBtu.	06/08/23	(57.8% / $0.74 increase since last month)
NGL (EIA)	$5.76 MMBtu.	06/07/23	(11.2% / $0.73 decrease since last month)
WTI	$71.28 bbl.	06/08/23	(3.9% / $2.68 increase since last month)

 

The March 2023 monthly report and the first Bi-Annual Well Test report for 2023 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, May 5, 2023.

May 2023 Secretary Update

Current Items:
OGCC Regular Meeting
Docket No. CC-2023-OGR-01-001, Application for Integration
Payette County Commission Meeting
Oil and Gas Townhall
Updated OGCC Website
IOGCC Business Meeting
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

OGCC Regular Meeting
The next regular meeting of the OGCC will be held on Tuesday, May 16, 2023 @ 1:30pm (MT). The meeting will be held at the State Capitol.

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. The Department held a prehearing conference on May 2. During this conference parties asked for the ability to submit prehearing motions. This request was granted, and dates were set for the process. Once those motions are resolved we will schedule the Evidentiary Hearing. More information for this application and hearing can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

Payette County Commission Meeting
The April 10 oil and gas presentation to the Payette County Commissioners went well. The County Commission is currently seeking opinion from experts outside the IDL in order to resolve questions.

Oil and Gas Townhall
The Townhall held on April 12 was a success, with a filled room of over 50 Payette County residents as well as the operator and Fruitland City Administrator. Those residents who spoke asked questions about oil & gas operations and the changes in the revised statute. Folks also asked about the differences between the state lease and the standard lease offered by the operator in integrations.

Updated OGCC Website
On May 2, a new version of the OGCC website was released. IDL Staff worked to get the new version more ADA compliant and include better graphics.

IOGCC Business Meeting
Occurs May 22-24, 2023 in Oklahoma City. A tentative schedule can be found here. James Thum will represent the Department in person while I zoom into the CRO and final business meeting.

Injection Well Update
On November 3, 2022 EPA Region 10 issued a Class II Disposal Well Permit to Snake River Oil and Gas, LLC and approved an associated Aquifer Exemption for the Willow Sand in Willow Field. The permit took effect December 19, 2022 at 12:01 AM. Snake River has been in communication with EPA regarding the reservoir testing process as part of bringing the injection well online.

(Note: There is no update from the last Secretary Report. James Thum met with Bob Hatfield last week who provided the same information listed above from the April update.)

Field Status
The operator has installed produced water storage tanks at the Fallon #1-10 and Dutch Lane #1-13 well locations. The department has inspected both installations to ensure they meet the requirements of IDAPA 20.07.02. Spring maintenance is ongoing for many of the facilities in both Harmon and Willow fields.

News Article(s) of Interest
US rig count stable in April: https://www.ogj.com/drilling-production/article/14293089/baker-hughes-canadian-rig-count-falls-below-100

US Natural gas output sets new record in February: https://www.reuters.com/article/usa-oil-output/update-2-u-s-crude-output-fell-in-february-to-lowest-since-december-2022-eia-idUSL1N36V2DX

Current Prices

NW Natural Gas (EIA)	$1.28 MMBtu.	05/05/23	(64.5% / $2.33 decrease since last month)
NGL (EIA)	$6.49 MMBtu.	05/04/23	(11.8% / $0.87 decrease since last month)
WTI	$68.60 bbl.	05/03/23	(14.9% / $12.01 decrease since last month)