OGCC Secretary Update – April 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, April 8, 2022.

The staff and I would like to share our condolences with the family and friends of OGCC Commissioner Marc Shigeta. Marc served as an OGCC Commissioner for five years and as our vice-chair for four years. He will be dearly missed.

April 2022 Secretary Update

Current Items:
Proposed Legislation Idaho Code 47-3
OGCC Special Meeting
2022 Legislative Session
Injection Well Update
Field Status
Monthly production and sales for January 2022
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
A public comment session was held on Wednesday, March 16, 2022 from 5:00pm – 7:00pm (MT) in Fruitland, ID. This was an opportunity for the public to provide oral comment before the Department on the fourth draft text. Approximately ten members of the public attended the meeting, most of whom presented comments. The Department has created a fifth draft text to present to the OGCC at the special meeting next week.
More information can be found on the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage of the OGCC website.

OGCC Special Meeting
A special meeting of the OGCC will be held next Tuesday, April 12, 2022 @ 2:30pm. This special meeting is for the OGCC to discuss Proposed Legislation for Idaho Code 47-3. More information can be found on the Commission Meetings page of the OGCC website.

2022 Legislative Session
For the first time since 2019 the Idaho Legislature approved the rules chapters. This means that the Commission will not have to go through omnibus rulemaking this year and a number of special meetings and agenda items can now be avoided. Non-fee rules became effective on March 31, 2022 and fee rules became effective March 18, 2022.

Injection Well Update
The comment period for the Class II injection well permit ended on March 30, 2022. The Dept. of Lands submitted comments specifically in regard to the proposed well integrity evaluation procedures in the Recommended Decision. No additional announcements have been made by EPA Region 10 for a timeframe moving forward.
More information can be found on the EPA region 10 website Public Notice: Proposed Aquifer Exemption and UIC Class II Permit for Willow Gas Field in Idaho | US EPA

Field Status
Snake River Oil & Gas has concluded well construction operations in the Fruitland area for the 2021-2022 drilling campaign. The Department has made inspections of all wells and is working with the operator as they complete necessary reporting for the wells as required in Idaho Code § 47-424.

Monthly production and sales for January 2022
There have been some request for production and sales volume to be shared in this update. The Department tracks and provides this on the OGCC website. That page is found here:
2022.01_MonthlyOGReports_Redacted_PTS.pdf (idaho.gov)

News Article(s) of Interest
Black Mesa Energy, and oil and gas production company, is working with Idaho Power to develop a power purchase agreement for a solar facility to meet Micron’s renewable energy goal.
Idaho utility launches renewable energy program with 40-MW solar project (solarpowerworldonline.com)

The state of Washington to preserve 10,000 acres of trees to sell as carbon credits to polluters
https://www.yakimaherald.com/news/northwest/wa-to-preserve-10-000-acres-of-trees-to-sell-as-carbon-credits-to-polluters/article_5b92c9e4-8bf2-562f-bcd1-3ebf577ad506.html

Geothermal Plants Could Be a Future Source of Lithium
https://www.extremetech.com/extreme/333385-geothermal-plants-could-be-a-future-source-of-lithium

Fire at Exxon Refinery in Montana Shuts Down Some Units
https://www.rigzone.com/news/fire_at_exxon_refinery_in_montana_shuts_down_some_units-28-mar-2022-168417-article/

Current Prices

Natural Gas $6.25 mmbtu.   04/06/22 (34.4% / $1.60 increase since last month)
NGL $12.43 mmbtu. 04/06/22 (0.3% / $0.04 increase since last month)
Utah Sweet Crude $86.43 bbl.  04/08/22 (14.3% / $14.37 decrease since last month)
WTI $97.76 bbl. 04/08/22 (15% / $17.19 decrease since last month)

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