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, May 2.

Current Items:
OGCC Regular Meeting
Pipeline / Gathering Line
Class II Application
Impact of COVID-19 Response
Commissioner Love Resigns
News Article(s) of Interest

OGCC Regular Meeting
The next OGCC Regular Meeting will be held via teleconference on Wednesday, May 13, 2020. The meeting will begin at 1:00pm (MT). More details will follow soon.

Pipeline / Gathering Line
After a conversation with the operator this week we learned that the lines connecting the Fallon and Barlow wells to the Little Willow facility are installed, pressured tested and finished. Favorable weather allowed the lines to be completed on time and under budget. Clean up and reseeding are underway. The operator also shared that additional lines are being developed for a new collection facility.

Class II Application Considered Complete
The Department was notified this week that the Class II UIC permit is considered complete by the EPA.
In a letter from EPA region 10 to the operator, the EPA shared the following: “. . . the EPA has determined (the) application is complete. The EPA will now complete a technical review of (the) permit application to determine whether the information submitted can ensure the protection of underground sources of drinking water. Please note that the EPA may request additional information as necessary to clarify, modify or supplement previously submitted material. If such a request is made, it will not affect the completeness status of this application. . .”
The Department and the Commission will continue to monitor the application process.

Impact of COVID-19 Response
On Thursday, April 30 the Governors emergency proclamation expired, and was replace on May 1, 2020 by a Stay Healthy order and a four stage rebound plan. Please visit https://rebound.idaho.gov/advisory-committee/ for further information.
IDL offices will serve the public on an appointment only basis, and staff will continue to work from home whenever possible.
It’s worth mentioning that our own Chris Gozzo was asked to help with the states COVID-19 response websites a few weeks ago. Chris has provided excellent assistance as webmaster for the states corona response sites and will continue to serve as the state returns to normal.

Commissioner Love Resigns
As you know, Renee Love has resigned from the Commission in order to run for the District 5B seat within the Idaho House of Representatives. The Department and the Commission is very appreciative of the guidance and technical support that Renee has provided since her appointment in summer of 2017. She is leaving under the best of terms and will be sorely missed. The Governor’s office will begin the process of finding a new Commission member soon.

News and Article(s) of Interest
Low oil prices could hurt renewable energy support:
https://www.forbes.com/sites/cherryreynard/2020/04/30/will-the-low-oil-price-dent-the-prospects-for-renewables/#7c398ccb14d8

Community group claims partial credit for COVID-19 response

LNG prices to remain weak:
https://www.spglobal.com/platts/en/market-insights/latest-news/natural-gas/042720-lng-prices-to-remain-weak-as-tough-decisions-loom-for-north-american-projects

Amidst global glut, U.S. natural gas prices are the strongest:
https://www.bnnbloomberg.ca/u-s-natural-gas-to-be-world-s-priciest-amid-virus-upheaval-1.1426247

Current hydrocarbon prices:

Utah Sweet Crude $5.76 bbl. 4/29
WTI $19.69 bbl. 5/1
Natural Gas $1.89 mcf. 5/1
NGPL* -($0.75) mmbtu. 4/29