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, February 6.

Current Items:
2021 Legislative Session
Field Status
Injection Well Update
Quarterly Update
News Article(s) of Interest
Current Prices
Bonus Item

2021 Legislative Session
At the October 2020 meeting the Commission voted to adopt the proposed fee rule as the pending rule for IDPA 20.07.02 Rules Governing Conservation of Oil and Natural Gas in the State of Idaho and authorized the Department to submit a Notice of Adoption of Pending Rule consistent with that adoption.

The pending fee rule for IDAPA 20.07.02 is still pending approval of the 2021 Idaho Legislature. It has been approved by the germane committees and still needs to be approved by a concurrent resolution to become a final rule

If there is no concurrent resolution approving the pending fee rules, then IDAPA 20.07.02 will expire at the end of the 2021 legislative session (because the current rule is a temporary rule). The risk of this happening is the reason the adoption of the 20.07.02 temp rules is on the agenda for the February meeting. This will ensure that IDAPA 20.07.02 remains in effect.

Field Status
As of mid-December 2020, five wells in Willow Field were returned to production for the first time since being shut-in in mid-March of 2020. In addition, the Barlow 1-14 commenced production which marks the first production from the Harmon Field since its 2018 discovery. Production from the six wells averaged 4 million cubic feet of gas per day (MMCFGD), 42 barrels of condensate per day (BCPD) and 6 barrels of water per day (BWPD). Additional wells are expected to be brought back on-line in the next few months.

Injection Well Update
The EPA district 10 legal team has forwarded the operator application to their general counsel in D.C. Anticipated response from EPA Headquarters should be provided back to district 10 by late March or sooner.

Quarterly Update
Monthly production and sales volume reports for the 4th quarter of 2020 are due to be filed by February 14, 2021. Once those are received, the Department will send the final report to the Commission before the end of the month. Additional items of interest: Energy Transport LLC of Ontario Oregon reported to the Department that they have sold their transloading vehicles and equipment to Carson Oil of Portland Oregon as of December 2020. The 2020 Annual Well Report for Idaho has been submitted and is now posted on the Oil & Gas webpage under the Monthly & Annual Reports page:
https://ogcc.idaho.gov/monthly-and-annual-reports/

News Article(s) of Interest
The dark side of green energy and its threat to the nation’s environment
https://www.deseret.com/utah/2021/1/30/22249311/why-green-energy-isnt-so-green-and-poses-harm-to-the-environment-hazardous-waste-utah-china-solar

Western states say Biden oil halt is crushing blow to economy
https://news.bloomberglaw.com/environment-and-energy/western-states-say-biden-oil-halt-is-crushing-blow-to-economy

More oil and gas companies leaning into renewable energy tech
https://www.worldoil.com/news/2021/1/26/more-oil-and-gas-companies-leaning-into-renewable-energy-tech

Oil companies lock in drilling, challenging Biden on climate
https://www.sltrib.com/news/environment/2021/01/11/oil-companies-lock/

Current Prices

Utah Sweet Crude $46.93 bbl. 02/04/21
WTI $56.89 bbl. 02/05/21
Natural Gas $2.91 mmbtu. 02/04/21
NGL $7.51 mmbtu. 02/04/21

 

Green indicates price increase since last secretary update
Red indicates price decrease since last secretary update

On a personal note – Let me introduce Cooper George Washington Thomas, a.k.a. “Cooper”. Born on December 6 2020 Cooper was brought home yesterday February 5th.
Big thanks to Commissioner Miller (and his dog Rex) for the opportunity to bring him into our family!