Category: Uncategorized

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, March 4, 2022.

March 2022 Secretary Update

2021 Fourth Quarter Commission Report (this was sent to the Commission on Saturday, March 5th)

Current Items:

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

Proposed Legislation Idaho Code 47-3
The Department considered comments received via written comment and from the Commission and public at the February 15, 2022 regular meeting on the third draft text and is working on the fourth draft text.

The Department will be holding a public comment session on Wednesday, March 16, 2022 from 5:00pm – 7:00pm (MT) at the Fruitland City Hall, 200 S Whitley Dr, Fruitland, ID 83619. This is an opportunity for the public to provide oral comment before the Department on the fourth draft text which will be available next week. There will be no written comment period for this fourth draft and no teleconference or 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. There are a few individuals who have signed up and we are looking forward to hearing from mineral interest owners and residents in the field.

More information can be found on the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage.

Injection Well Update
The Department listened to the EPA hearing held on Friday, February 18, 2022 regarding the Class II well application. Eight public comments were given over a 50-minute timespan. The written comment period was extended to March 30, 2022.

Field Status
Snake River Oil + Gas continues its operational activity for several wells in the Western Snake River Basin:

• Fallon 1-10 (Harmon Field): well cementing completed in January, well turned to production 2/8/2022.
• Barlow 2-14 (Harmon Field: drilling operations completed; well is designated confidential per Idaho Code § 47-327. Information will be ready for release in April 2022, log information October 2022.
• Fallon 1-11 (Harmon Field): drilling operations completed; well is designated confidential per Idaho Code § 47-327. Information will be ready for release in May 2022, log information November 2022.
• Dutch Lane 1-13 (Harmon Field): drilling operations completed; well is designated confidential per Idaho Code § 47-327. Information will be ready for release in July 2022, log information January 2023.
• Tracy Trust 3-2 (Hamilton Field): This well was drilled and completed by Bridge Energy in 2010 but never produced. Final plugging operations will commence in the next 3- to 4 weeks.

News Article(s) of Interest
Oil driller invests in carbon-capture pipeline for Midwest

(note: carbon sequestration via injection wells is currently illegal in Idaho)

His climate push stalled, Biden looks to infrastructure law
https://www.eenews.net/articles/his-climate-push-stalled-biden-looks-to-infrastructure-law/

Chemical Hazard Reporting & Planning Enforcement Actions by EPA Region 10 in 2021 | US EPA
(note: insertion of this article was requested by an Idaho resident)

Current Prices

Natural Gas	$4.65 mmbtu.	03/02/22	(27.8% / $1.79 decrease since last month)
NGL	$12.39 mmbtu.	03/02/22	(5.9% / $0.69 increase since last month)
Utah Sweet Crude	$100.80 bbl.	03/02/22	(28.5% / $22.34 increase since last month)
WTI	$114.95 bbl.	03/04/22	(45.8% / $36.10 increase since last month)

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

A public comment session will be held on Wednesday, March 16, 2022 from 5:00pm – 7:00pm (MT) at the Fruitland City Hall, 200 S Whitley Dr, Fruitland, ID 83619. This is an opportunity for the public to provide oral comment before the Department on the fourth draft text which will be available next week (week of March 7th). 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. If no sign-ups are received, the public comment session will be canceled.

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

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

The third draft text of proposed statutory changes has been posted to the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage.  The third draft text will be presented to the Commission at the February 15, 2022 regular meeting for the Commission to provide oral comment. The Commission will also accept public comment at the meeting (see OGCC meeting agenda for sign-up requirements) and will accept written comment on the third draft text from February 15- February 22, 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, February 4, 2022.

February 2022 Secretary Update

Current Items:
February OGCC Meeting
Proposed Legislation Idaho Code 47-3
Injection Well Update
Federal Orphaned Well Funding
Field Status
News Article(s) of Interest
Current Prices

February OGCC Meeting
The first regular OGCC meeting of 2022 will be held on Tuesday, February 15, 2022, at the Idaho Department of Lands Office, Garnet Conference Room, 300 N. 6th St., Suite 103, Boise, Idaho. The meeting will begin at 1:30pm and will be conducted in-person and have a teleconference option. More information on the OGCC meetings can be found at https://ogcc.idaho.gov/commission-meetings/

Proposed Legislation Idaho Code 47-3
The Department received oral comments from the OGCC at the January 5, 2022 special meeting and received three written comments on the second draft text. The Department will be reviewing those comments and working on a third draft text to present to the OGCC at the February 15, 2022 regular meeting. More information on this can be found at https://ogcc.idaho.gov/rules-and-statutes/47-3-changes/

Injection Well Update
The Department published the following information on the OGCC website on January 14, 2022:
https://ogcc.idaho.gov/epa-to-accept-comments-on-a-class-ii-injection-well-application-for-the-willow-field/
The comment period for the application ends on February 28, 2022. IDL will be providing comments on the technical aspects of the application. The Commission will not be providing comments on the application.
The EPA has regulatory authority over the class II injection program in Idaho. This is because IDWR asked EPA to accept primacy in 2017.

Federal Orphaned Well Funding
In coordination with the Interstate Oil and Gas Compact Commission and the U.S. Department of the Interior, the Biden administration announced over $1 Billion in funding for orphaned well remediation. Biden Administration Announces $1.15 Billion for States to Create Jobs Cleaning Up Orphaned Oil and Gas Wells | U.S. Department of the Interior
Idaho is fortunate to have an active operator who is maintaining responsibility and bonding for our oil and gas wells. As a result we did not need to request federal dollars from this bill.
Here is a summary of the bill:
• ~$500 million will be provided to 26 states that have orphaned wells.
• The 26 states requesting funds have listed ~129,000 wells in total.
• Those states that requested these funds will be monitored by the DOI for efficiencies throughout the process.
The Department of Interior stated that the number may be closer to two-million wells. When I asked about the difference between state data and the DOI estimates the representative was unable to provide an explanation beyond confirming her estimates.

Field Status
The Barlow #2-14, Fallon #1-11, and Dutch Lane #1-13 wells are drilled with production casing completed in Payette County. Testing of the wells is ongoing.
Sometimes a In Idaho, flaring is allowed during well testing for a total of 14 days. These 14 days do not have to be consecutive.

News Article(s) of Interest
Colorado stands alone as it initiates plan to make the leasing of state land for oil & gas contingent on greenhouse gas emissions in the vicinity.
https://energyoffice.colorado.gov/climate-energy/ghg-pollution-reduction-roadmap

Idaho Power files more petitions seeking access to private land
https://www.bakercityherald.com/news/local/idaho-power-files-more-petitions-seeking-access-to-private-land/article_4e6029e8-7ec8-11ec-873f-7b1376b078f3.html

Potential lithium source in Idaho geothermal
https://www.idahofallsmagazine.com/2022/01/its-in-the-water

Current Prices

Natural Gas	$6.44 mmbtu.	02/02/22	(69.9% / $2.65 increase since last month)
NGL	$11.70 mmbtu.	02/02/22	(15.4% / $1.56 increase since last month)
Utah Sweet Crude	$78.46 bbl.	02/02/22	(19% / $12.55 increase since last month)
WTI	$78.85 bbl.	02/04/22	(16.6% / $13.11 increase since last month)

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

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

The Environmental Protection Agency (EPA) is proposing to issue an Underground Injection Control (UIC) Permit authorizing Class II injection well DJS 2-14 at Willow Field in Payette County, Idaho. EPA is also proposing an Aquifer Exemption of the Willow Sands from status as an Underground Source of Drinking Water.

Beginning January 14, 2022, there will be a 45-day comment period. Please see the Notice for more information.

Persons wishing to comment must do so in writing by the close of the Public Comment period on February 28, 2022 March, 30, 2022 at 5:00 PM Mountain Time (MT) (comment period extended from February 28). Please submit all comments via email to osborne.evan@epa.gov. All comments must include:

1. The statement “Draft Permit Public Comment” or “Draft Aquifer Exemption Public Comment” in the subject line of the email,
2. The name, address, and telephone number of the person commenting (in the body of the email) and,
3. A concise statement and the relevant facts forming the basis for the comment.

The EPA has scheduled a public hearing on February 18, 2022, at 10:00 AM MT. The purpose of this meeting is to collect oral comments on the actions proposed by this notice. To attend the meeting, visit the EPA Region 10 UIC webpage https://www.epa.gov/uic/underground-injection-control-region-10-ak-id-or-and-wa the morning of the hearing where you will be provided direction on how to attend this remote meeting. EPA will post hearing details under the Public Notices section of this webpage.

The draft permit, fact sheet, and Aquifer Exemption record of decision can be downloaded from the internet at https://www.epa.gov/uic/underground-injection-control-region-10-ak-id-or-and-wa

Due to COVID-19, EPA cannot share any physical copies for review.

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, January 8, 2022.

January 2022 Secretary Update

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

Special OGCC Meetings
The Department held a special meeting for the Commission on December 16, 2021, in order for the Commission to choose to authorize one person to review substantive documents for filing with the court, and to make strategic litigation decisions on behalf of all commissioners, as the Commission, regarding CAIA v. Miller in consultation with the Commission’s attorneys of record, the Idaho Attorney General’s Office. The Commission chose Chairman Betty Coppersmith to take this role. An additional Commission meeting was held on January 5, 2022. More specific detail is provided below:

Proposed Legislation Idaho Code 47-3
In the month of December, the Department worked through comments received and created a second draft text. This draft text was presented to the Commission at the January 5, 2022 special meeting for the Commission. Public comment was not accepted at the meeting but written comments will be accepted on the second draft text from January 5- January 12, 2022. Please visit the OGCC website for more information.
Idaho Code title 47, chapter 3 – Proposed Statutory Changes | Oil & Gas Conservation Commission

The January 5, 2022 meeting lasted approximately five hours with a brief lunch. While comments were not accepted at the meeting It was open for telephonic and in person attendance.
The Commission discussed the proposed changes to Title 47, Chapter 3, Idaho code. The Commission evaluated the written and oral comments received and shared ideas on potential revisions.

Some of the main points discussed:
1. Make-up of the Commission: There was general consensus that the number of Commissioners will remain the same at five. The qualifications of the Commissioners were discussed as well. The Commission did support replacing the IDL Director with a different person to be selected by the Governor, however the qualifications of that person are still being evaluated.
2. Drilling Location and Well Spacing: Significant discussion was given to rewording Section 317 and Section 318, with the goal of simplifying the wording, providing more clarity, and being more consistent with other states.
3. The role of the Commission: The ability of the Commission to be more involved as a technical resource to the Department was discussed. Especially regarding the role of the Commission as an appellate body vs. hands-on technical expert in the hearing process.

The Department and AG’s office are working together to aggregate Commission comments and will provide an updated version of the of Title 47, Chapter 3, Idaho code soon.

Field Status
The Dutch Lane 1-13 on the eastern side of Harmon Field spudded December 18, 2021 and has reached a total depth of 4875’. Snake River Oil & Gas has designated this as a Confidential Well per Idaho Code § 47-327. Drilling operations for the season have been completed for the present, but some additional workover operations are planned for the next one to two months. Snake River will perform remedial cementing operations on the Fallon #1-10 in the next week in preparations for commencing production from the well.

Injection Well Update
Snake River Oil & Gas has reached out to the EPA Region 10 office at various times over the past several months regarding the status of their application. The most recent information indicates that they will possibly be making a proposed recommendation in the early part of 2022.

News Article(s) of Interest
Interior: US has twice as many abandoned oil and gas wells as previously thought | TheHill
Secretary Note: I have been tracking this legislation. A change in leadership at the federal level provided a massive influx of federal funding for O&G well plugging. Because of this increase many O&G producing states found additional orphaned wells, doubling the volume previously reported to the IOGCC as recently as September 2021. Idaho does not have any orphaned and abandoned O&G wells and therefore did not apply for these funds.

New York State: Natural gas bans are new front in effort to curb emissions

Colorado: Garfield County to continue oil and gas regulations economic impact study into new year
https://www.postindependent.com/news/garfield-county-to-continue-oil-and-gas-regulations-economic-impact-study-into-new-year/

Anti-government conspiracies create another challenge to addressing drought in the West
https://www.deseret.com/2022/1/3/22841583/anti-government-conspiracies-create-another-challenge-to-drought-in-the-west-bundy-colorado-river

Current Prices

Natural Gas	$3.79 mmbtu.	01/05/22	(no change since last month)
NGL	$10.14 mmbtu.	01/05/22	(9.3% / $0.94 increase since last month)
Utah Sweet Crude	$65.91 bbl.	01/07/22	(7.5% / $4.27 increase since last month)
WTI	$78.85 bbl.	01/07/22	(8.8% / $6.91 increase since last month)

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

The second draft text of proposed statutory changes has been posted to the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage. This draft text #2 will be presented at the January 5, 2022 special Commission meeting. The Commission will give oral comments but will not be accepting oral public comments on the second draft text. The Department will accept written comments from January 5 – January 12, 2022.

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