OGCC Secretary Update

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, April 18.

Current Items:
Pipeline / Gathering Line
Impact of COVID-19 Response
Combined Division Update
News Article(s) of Interest

Pipeline / Gathering Line
The pipeline / gathering line system in Payette county is nearly complete. Our staff has visited the field during construction, and I drove out on April 10th to see workers grading dirt over the gathering line to the Fallon 1-10. Once testing is complete, we will be able to provide more information to the commission.

Impact of COVID-19 Response
The COVID-19 response and associated physical distancing has had an impact on the Mining and Oil & Gas industries in Idaho. The field continues to be shut in until commodity prices rebound. The most current prices for Oil & Gas are listed below.

Utah Sweet Crude $10.57 bbl. 4/16
WTI $18.44 bbl. 4/17
Natural Gas $1.75 mcf. 4/17
NGPL* $4.84 mmbtu. 1/31

*(most recent EIA NGPL data – current prices are likely lower)

Combined Division Update
Thanks to the integration of the mineral regulatory and public trust programs into the Oil & Gas division our staff is able to provide much needed support to the Resource Protection and Assistance Bureau. This support includes field work and inspection, streamlining our reclamation estimation process, and rulemaking assistance. This new Minerals, Public Trust, Oil & Gas Division will provide increased efficiencies and cost savings for the rest of CY2020 and FY2021. More to come.

News Article(s) of Interest
Field inspections confirmed no impact from March 31 quake
https://ogcc.idaho.gov/wp-content/uploads/sites/3/4-10-20-Inspections-completed-no-problems-found-correction.pdf

Pioneer Resources CEO confirms Oil & Gas regulation is needed to sustain industry over long term

Oil nations reach deal for largest-ever production cut

Coronavirus muddies outlook for LNG exports

US Bankruptcy Court Approves $220 Million Sale of Alta Mesa Resources | Hart Energy
https://www.hartenergy.com/news/us-bankruptcy-court-approves-220-million-sale-alta-mesa-resources-186979

Trump tells aides he opposes cutting oil company royalties
https://www.bloomberg.com/amp/news/articles/2020-04-08/trump-tells-aides-he-opposes-cutting-oil-company-royalties