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 Monday, July 8, 2024.

July 2024 Secretary Update

Current Items:

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

IDAPA 20.07.02 Rulemaking Update
The Department submitted the Notice of Proposed Rulemaking to DFM on July 3, 2024. The public hearing on the proposed rule is tentatively scheduled for August 15th and the written comment period 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 at Fruitland City Hall. Information regarding this application can be found on the Docket No. CC-2024-OGR-01-001 hearing webpage.

Field Status / Injection Well Update
Several wells in the Harmon Field were turned on briefly in late-May, then shut-in again due to low product prices. In late-June prices had recovered sufficiently to allow Snake River to again re-start production but at a reduced rate. 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
EPA to review Texas injection well program: https://www.reuters.com/sustainability/climate-energy/us-epa-review-texas-oversight-oil-gas-wastewater-disposal-wells-2024-06-21/

US Rig Count drops again: https://www.okenergytoday.com/2024/06/us-and-oklahoma-see-more-oil-and-gas-rigs-pulled-out-of-the-patch/

EIA raises Henry Hub price forecast for 2024 and 2025: https://www.rigzone.com/news/usa_eia_boosts_henry_hub_price_forecast_for_2024_and_2025-02-jul-2024-177275-article/

BLM proposes Nevada land sale: BLM proposes 250-acre land sale to oil company (msn.com)

Current Prices

NW Natural Gas (EIA)	$1.56 / million Btu	7/3/2024	(18% / $0.24 increase since previous month)
NGL (EIA)	$7.08 / million Btu	7/3/2024	(0.7% / $0.05 increase since previous month)
WTI	$84.09 / bbl	7/3/2024	(6.5% / $5.13 increase since previous month)