OGCC Secretary Update – August 2024

Shannon Chollett

Division Administrator – Minerals, Navigable Waters, and Oil & Gas

Secretary to the Oil & Gas Conservation Commission

This update was sent to the Commission on Thursday, August 8, 2024.

Current Items:
August OGCC regular meeting
IDAPA 20.07.02 Rulemaking Update
Docket No. CC-2024-OGR-01-001, Application for Spacing
Field Status / Injection Well Update
News Article(s) of Interest
Current Prices

August OGCC regular meeting
The third regular meeting of the OGCC will be held on Tuesday, August 20, 2024 at 1:30pm (MT). The meeting will be held at the State Capitol, House Hearing Room, (EW42), Lower Level, East Wing, 700 W. Jefferson Street, Boise, Idaho. More information will be available on the OGCC website on the Commission Meetings page at https://ogcc.idaho.gov/commission-meetings/

IDAPA 20.07.02 Rulemaking Update
The Notice of Proposed Rulemaking was published in the Administrative Bulletin on Wednesday, August 7, 2024. The public hearing on the proposed rule is scheduled for August 15th and will be held at the Idaho Department of Lands Boise Staff Office. The written comment period is scheduled for August 7-28. More information on the details of the meetings, rulemaking, and documents are posted on the rulemaking webpage at: https://ogcc.idaho.gov/rulemaking/docket-20-0702-2401-oil-gas/

Docket No. CC-2024-OGR-01-001, Application for Spacing
On April 29, 2024, Snake River Oil and Gas, LLC filed an Application for Spacing with the Department in the Harmon Field area. This case was referred to the Office of Administrative Hearings (OAH). The hearing was held on June 13, 2024 and the Final Order was issued on July 17, 2024. Information regarding this application can be found on the hearing page at https://ogcc.idaho.gov/administrative-hearings/docket-no-cc-2024-ogr-01-001-application-for-spacing/

Field Status / Injection Well Update
Malheur Ventures has spudded a 5500-foot oil and gas exploration test in Malheur County, Oregon approximately 15 miles west of the Harmon Field in Idaho. According to information provided by the Oregon Department of Geology and Mineral Industries (DOGAMI), the application was received September 13, 2023 and the permit approved June 13, 2024.

As of late-June, six of seven wells in Harmon Field have been returned to production, along with one well in Willow Field. During the first six months of 2024, western Idaho production has averaged 2.8 million cubic feet of gas, 39 barrels of condensate and 2,682 gallons of natural gas liquids (NGLs) per day, along with 12 barrels of water.

The Class II injection well permit issued by the EPA took effect December 19, 2022. No construction activities have commenced as of this date. The permit expires December 19, 2024.

News Article(s) of Interest
July 11, 2024 – Marathon reaches settlement in pollution case with EPA:
https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/071124-marathon-oil-pays-2415-million-to-settle-pollution-case-with-us-epa-doj

June 28, 2024 – SCOTUS strikes down Chevron doctrine:
https://www.scotusblog.com/2024/06/supreme-court-strikes-down-chevron-curtailing-power-of-federal-agencies/

July 13, 2024 – Payette County considers oil & gas rule revisions: https://www.argusobserver.com/independent/payette-county-considers-changing-oil-and-gas-rules/article_dfcf6c58-3e11-11ef-a7f7-6bfb12f0a86f.html?utm_medium=social&utm_source=email&utm_campaign=user-share

August 3, 2024 – Railroad Commissioner seek flexibility in plugging grants:

Current Prices

NW Natural Gas (EIA) $1.04 / million Btu         7/3/2024             (33.3% / $0.52 decrease since previous month)
NGL (EIA)                            $6.64 / million Btu         8/8/2024             (6.2% / $0.44 decrease since previous month)
WTI $76.68 / bbl                       7/3/2024             (8.8% / $7.41 decrease since previous month)