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 Sunday, June 12, 2022.

June 2022 Secretary Update

2022 First Quarter Commission Report (this was sent to the Commission on Tuesday, June 14, 2022)

Current Items:

Proposed Legislation Idaho Code 47-3
Monthly Production and Sales for March 2022
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
At the May 19th OGCC meeting the Commission approved the last substantive draft containing revisions of Idaho Code 47-3. Per the Commissions direction the department is working through this draft one final time to resolve any grammatical issues that may have been missed in prior drafts. No substantive changes will be made during this review.

The Commission is subject to the Executive Agency Legislation (EAL) Process through the Idaho Division of Financial Management. The EAL process is used to prepare statutory change for the 2023 Idaho Legislature. Ideas must be submitted by June 24, 2022 and proposed legislation must be received by August 12, 2022. With our statute changes approved by the Commission we are on track to meet these administrative guidelines.

More information can be found on the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage of the OGCC website.
Specific information regarding the EAL process can be found on the webpage of the DFM website.

Monthly Production and Sales for March 2022
The March 2022 monthly report is available. More reports can be found on the Monthly and Annual Reports page. April production and sales reports are due June 14th.

Injection Well Update
According to the operator, EPA Region 10 is continuing to evaluate all comments received on the Recommended Decision published in January 2022. The comment period closed March 30th. No further timeframes for a final decision on the aquifer exemption and Class II injection well permit are available at the present time.

Field Status
Snake River Oil & Gas is currently evaluating the technical data from the three new wells. Additional development opportunities may be identified as a result of this work. Production from all wells was shut-in from May 9th to perform scheduled maintenance at both the Little Willow gathering and Highway 30 processing facilities. Full production resumed the evening of May 23rd.

News Article(s) of Interest
Why is gasoline so high?
https://www.huffpost.com/entry/why-are-gas-prices-so-high_n_62a4f061e4b04a61734f6bed?utm_source=facebook&utm_medium=news_tab

EIA expects high refinery margins to contribute to increased fuel production this summer (to meet demand).
U.S. Energy Information Administration – EIA – Independent Statistics and Analysis

Current Prices

Natural Gas (EIA)	$9.46 MMBtu.	06/08/22	(14% / $1.16 increase since last month)
NGL (EIA)	$13.00 MMBtu.	06/08/22	(1.5% / $0.20 increase since last month)
Utah Sweet Crude	$109.61 bbl.	06/10/22	(10.2% / $11.17 increase since last month)
WTI	$118.98 bbl.	06/10/22	(7.1% / $8.49 increase since last month)

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