Note: This post was originally posted on April 12, 2023. Due to switching over to the updated website format, the post had to be re-posted. 

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 7, 2023.

April 2023 Secretary Update

Current Items:
Docket No. CC-2023-OGR-01-001, Application for Integration
2023 Legislature – Oil and Gas Statute
Payette County Commission Meeting
Oil and Gas Townhall
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Docket No. CC-2023-OGR-01-001, Application for Integration
The Department received an Application for Integration from Snake River Oil & Gas, LLC on January 23, 2023. The Department held the hearing to determine “just and reasonable” factors on Tuesday, March 14, 2023. The Administrator has 30 days from the hearing to provide a final order on “just and reasonable” factors and will meet that time requirement. More information for this application and hearing can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

2023 Legislature – Oil and Gas Statute
HB 120 – The revisions to the Idaho Oil and Gas Act – passed this session through both the house and the senate and is reported signed by the Governor on April 4th.
In both the house and the senate, the bill received bipartisan support.
• In the house the bill passed 62-6-2 with 56 republicans and six democrats voting yes, one republican and five democrats voting no, and two republicans not present.
• In the senate the bill passed 26-9 with 22 republicans and four democrats voting yes, six republicans and three democrats voting no.
The bill is on track to become law effective July 1, 2023. More details can be found at our OGCC website: Idaho Code title 47, chapter 3 – Proposed Statutory Changes | Oil & Gas Conservation Commission

Payette County Commission Meeting
I’ve been asked to discuss the revisions of the Idaho Oil and Gas Act with the Payette County Commissioners at their monthly meeting. The meeting is during the day on Monday, April 10, at 1:15 p.m. The meeting is at the Payette County Courthouse 1130 3rd Ave N, Payette.

Oil and Gas Townhall
On Wednesday, April 12, I will be holding an Oil and Gas Townhall meeting in Fruitland, Idaho to answer questions from the public on oil and gas related matters. The meeting will be from 6:30 p.m. until 7:30 p.m. at Fruitland City Hall, 200 S. Whitley Dr.

Injection Well Update
On November 3, 2022 EPA Region 10 issued a Class II Disposal Well Permit to Snake River Oil and Gas, LLC and approved an associated Aquifer Exemption for the Willow Sand in Willow Field. The permit took effect December 19, 2022 at 12:01 AM. Snake River has been in communication with EPA regarding the reservoir testing process as part of bringing the injection well online.

Field Status
Snake River Oil & Gas is currently replacing the older compressor unit at Little Willow with two smaller compressors which will be easier to maintain. At the same time, they are installing a larger slug catcher and pig launcher for the Harmon Gathering System at Little Willow.

Yes, the oil industry has some fascinating terminology for equipment.
• A slug catcher is a piece of static equipment in the form of a vessel or piping network. It contains sufficient buffer volume to handle the largest expected slug from the oil & gas pipeline systems or flowlines.
• A pig launcher is used with the wax removal balls used to clear pipelines of accumulated wax or other solids in a pipeline. The method of clearing pipelines is called “pigging” and is used in a number of long-distance operations in Idaho where material is transported via pipeline. Most commonly during cooler months when there is condensation or solidification in the line. The Idaho phosphate industry and oil & gas industry are just a couple of examples where this process is used. The benefits of the “pigging” process are simplicity, reliability, and ability to be done without bringing the pipeline offline during the process.

News Article(s) of Interest
Interior Department proposes conservation leases on public lands
https://www.reuters.com/world/us/us-wants-lease-public-lands-conservation-interior-dept-says-2023-03-30/

Major oil companies dominate $264 Million GOM lease sale
https://www.reuters.com/business/energy/us-kick-off-gulf-mexico-oil-drilling-rights-auction-2023-03-29/

Judge Rules BLM wrongfully halted oil & gas lease sales in North Dakota
https://www.inforum.com/news/north-dakota/judge-orders-quarterly-oil-and-gas-lease-sales-on-north-dakota-federal-land-to-resume

Current Prices

NW Natural Gas (EIA)	$3.61 MMBtu.	04/05/23	(41.7% / $1.90 decrease since last month)
NGL (EIA)	$7.36 MMBtu.	04/05/23	(17.9% / $1.45 decrease since last month)
WTI	$80.61 bbl.	04/05/23	(6.4% / $5.01 increase since last month)