OGCC Secretary Update – February 2023

Note: This post was originally posted on February 15, 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, February 10, 2023.

February 2023 Secretary Update

Current Items:

OGCC Regular Meeting
Monthly Production and Sales for November 2022
Docket No. CC-2022-OGR-01-002, Application for Integration
Docket No. CC-2023-OGR-01-001, Application for Integration
2023 Legislature – Oil and Gas Statute
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

OGCC Regular Meeting
The next regular meeting of the Oil and Gas Conservation Commission will be held on Tuesday, February 21, 2023 at 1:30pm. Due to the Legislature being in session, the meeting will be held in Boise City Council Chambers at Boise City Hall. More information can be found on the Commission Meetings page.

Monthly Production and Sales for November 2022
The November 2022 and December 2022 monthly reports are now available and posted. Please see the Monthly and Annual Reports page for more information. NOTE: Henry Hub gas prices are down over 60% in two months, over a $4.00 drop per MMBtu.

Docket No. CC-2022-OGR-01-002, Application for Integration
The order for this case will be sent out next week. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage.

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 has scheduled the hearing to determine “just and reasonable” factors for Tuesday, March 14, 2023. 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
On Thursday, February 9, 2023, I introduced the Commissions revisions to Idaho Code 47-3 to the Idaho House Resource and Conservation Committee. There were no questions after my introduction, and the Committee unanimously recommended the bill be introduced. The next step is for the RS containing our changes to be assigned a bill number and read on the floor. There is a link to additional information on our Commission website. https://legislature.idaho.gov/resources/howabillbecomesalaw/
We will also continue to keep the webpage for the Proposed Statutory changes for title 47, chapter 3 updated as we move forward.

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. The documents can be viewed on the EPA Region 10 web page here. The department has not discussed a specific timeline with the operator for bringing the injection well to an active status, but Snake River has indicated that it could be as long as 12 to 18 months.

Field Status
Drilling operations are complete for the Irvin 1-19 and Barlow 3-14 wells in Harmon Field. Testing and completion operations commenced the week of November 28th and were completed in mid-January. Both wells have been designated as confidential under Idaho Code § 47-327.

News Article(s) of Interest
Risch, Crapo, Lummis Reintroduce Legislation Defending American Energy and Mining Industries: https://www.risch.senate.gov/public/index.cfm/pressreleases?ID=2850DA61-C4C6-40D6-ABC0-E26BADCAC894

City of Fruitland Idaho denies leasing agreement: (attached)

Current Prices

Natural Gas (HH)*       $2.42 MMBtu.             02/08/23 (35.5% / $1.33 decrease since last month)
NGL (EIA) $7.98 MMBtu.             02/08/22 (5.1% / $0.39 increase since last month)
Utah Sweet Crude $68.67 bbl.                  02/09/22 (2.5% / $1.79 decrease since last month)
WTI $78.06 bbl.                  02/09/22 (10.2% / $5.22 increase since last month)