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 Saturday, August 5, 2023.

August 2023 Secretary Update

Current Items:
Docket No. CC-2023-OGR-01-001, Application for Integration
August OGCC Regular Meeting
BLM Updates to Fluid Mineral Leasing Process
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. More information for this application and hearings can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

August OGCC Regular Meeting
Rescheduled to September 19, 2023 at 2:00 PM MT. This is to allow the Governor’s office additional time to finalize selection of two new commissioners. The Governor’s office has been working diligently through the process.

BLM Updates to Fluid Mineral Leasing Process
The Bureau of Land Management (BLM) is seeking public comment on the Onshore Oil & Gas Leasing Rule. This will be the first comprehensive update to the fed’s onshore oil and gas regulatory framework in decades. The goal is more comprehensive regulations that will provide more consideration to cultural sites, tribal lands, and habitat. The new rule could also increase tax revenue and update bonding requirements.

Over the next month there will be a series of informational meeting both virtually and in person. The Department will participate in the next informational meeting and report the information back to the Commission.

Commissioners and the public are welcome to participate as well. Please visit https://www.blm.gov/onshore-oil-and-gas-leasing-rule to sign up and for additional information.

Injection Well Update
There has been no progress from the operator on construction activities due to economic factors. Reservoir testing procedures are being considered for submission to EPA Region 10 for approval.

Field Status
The Department met with the operator to discuss facilities and pipeline infrastructure updates, field production status, well plugging status, and Class II injection well progress. Because the operator has curtailed production in recent months due to low product prices, they have used the down-time to perform seasonal maintenance and clean-up activities as needed after recent facilities installations. In June the production averaged 2.5 million cubic feet of gas per day, 35 barrels of condensate per day and 15 barrels of water per day from three wells in Harmon Field.

The Department has been working with the operator to finalize status on the Kauffman #1-9 well. On August 2, 2023 we provided notice to the operator that the well must be plugged and abandoned on or before January 31, 2024. This is required under IDAPA 20.07.02.501.01, which mandates a well be declared inactive after 24 months of non-production. Well inspections by IDL staff show the well is stable but has been partially dismantled by the operator. The operator has fourteen days from the date of the letter to request an appeal to the Commission.

News Article(s) of Interest
California is apparently a Dillon State like Idaho: California High Court Blocks County Oil Well Ban

Current Prices

NW Natural Gas (EIA)	$3.30 MMBtu.	08/04/23	(63.3% / $1.28 increase since last month)
NGL (EIA)	$7.34 MMBtu.	08/02/23	(27.0% / $1.54 increase since last month)
WTI	$81.55 bbl.	08/03/23	(13.6% / $9.79 increase since last month)