OGCC Secretary Update – February 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, February 4, 2022.

February 2022 Secretary Update

Current Items:
February OGCC Meeting
Proposed Legislation Idaho Code 47-3
Injection Well Update
Federal Orphaned Well Funding
Field Status
News Article(s) of Interest
Current Prices

February OGCC Meeting
The first regular OGCC meeting of 2022 will be held on Tuesday, February 15, 2022, at the Idaho Department of Lands Office, Garnet Conference Room, 300 N. 6th St., Suite 103, Boise, Idaho. The meeting will begin at 1:30pm and will be conducted in-person and have a teleconference option. More information on the OGCC meetings can be found at https://ogcc.idaho.gov/commission-meetings/

Proposed Legislation Idaho Code 47-3
The Department received oral comments from the OGCC at the January 5, 2022 special meeting and received three written comments on the second draft text. The Department will be reviewing those comments and working on a third draft text to present to the OGCC at the February 15, 2022 regular meeting. More information on this can be found at https://ogcc.idaho.gov/rules-and-statutes/47-3-changes/

Injection Well Update
The Department published the following information on the OGCC website on January 14, 2022:
The comment period for the application ends on February 28, 2022. IDL will be providing comments on the technical aspects of the application. The Commission will not be providing comments on the application.
The EPA has regulatory authority over the class II injection program in Idaho. This is because IDWR asked EPA to accept primacy in 2017.

Federal Orphaned Well Funding
In coordination with the Interstate Oil and Gas Compact Commission and the U.S. Department of the Interior, the Biden administration announced over $1 Billion in funding for orphaned well remediation. Biden Administration Announces $1.15 Billion for States to Create Jobs Cleaning Up Orphaned Oil and Gas Wells | U.S. Department of the Interior
Idaho is fortunate to have an active operator who is maintaining responsibility and bonding for our oil and gas wells. As a result we did not need to request federal dollars from this bill.
Here is a summary of the bill:
• ~$500 million will be provided to 26 states that have orphaned wells.
• The 26 states requesting funds have listed ~129,000 wells in total.
• Those states that requested these funds will be monitored by the DOI for efficiencies throughout the process.
The Department of Interior stated that the number may be closer to two-million wells. When I asked about the difference between state data and the DOI estimates the representative was unable to provide an explanation beyond confirming her estimates.

Field Status
The Barlow #2-14, Fallon #1-11, and Dutch Lane #1-13 wells are drilled with production casing completed in Payette County. Testing of the wells is ongoing.
Sometimes a In Idaho, flaring is allowed during well testing for a total of 14 days. These 14 days do not have to be consecutive.

News Article(s) of Interest
Colorado stands alone as it initiates plan to make the leasing of state land for oil & gas contingent on greenhouse gas emissions in the vicinity.

Idaho Power files more petitions seeking access to private land

Potential lithium source in Idaho geothermal

Current Prices

Natural Gas $6.44 mmbtu. 02/02/22  (69.9% / $2.65 increase since last month)
NGL $11.70 mmbtu. 02/02/22 (15.4% / $1.56 increase since last month)
Utah Sweet Crude $78.46 bbl. 02/02/22   (19% / $12.55 increase since last month)
WTI $78.85 bbl.  02/04/22  (16.6% / $13.11 increase since last month)

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