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 Saturday, June 10, 2023.

June 2023 Secretary Update

Current Items:

Docket No. CC-2023-OGR-01-001, Application for Integration
IOGCC Business Meeting
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices
2023 Q1 Commission Report (Attached)

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. More information for this application and hearing can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

IOGCC Business Meeting
Eight states are in the process of seeking Class VI primacy for Carbon Capture and Underground Storage (CCUS) from EPA. Most states have begun spending their initial $25MM federal grants for funding of orphan well plugging. Still some uncertainty and concerns with federal reporting benchmarks and timeframes for the next funding phase.

Alberta Canada now has a requirement for every active company to spend a certain percentage of their annual operating expenditures for well closure and reclamation work to maintain their active standing as an operator. Several states are interested in pursuing similar programs.

There was good discussion for public outreach processes used by various states and provinces for orphan well plugging. Town Halls were found not to be as productive as it tended to attract the same groups of people. Social media, fair booths and pamphlet distributions were being used by most states. The 2023 annual meeting will be held in Park City Utah October 16 through 18.

Big thanks to James Thum for representing the Commission at our IOGCC business meeting in Oklahoma City. I was unable to attend since the IOGCC meeting overlapped the IDL spring leadership meeting. Very thankful for his experience and willingness to step up whenever asked!

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. Snake River has been in communication with EPA regarding the reservoir testing process as part of bringing the injection well online.

Field Status
All wells in Willow Field have been shut-in since the beginning of 2023. Currently the only production in western Idaho comes from Harmon Field. As of June 1, 2023 seven of the seventeen active well permits are producing.

News Article(s) of Interest
Oil Prices Climb As U.S. Rig Count Sees Another Double-Digit Decline | OilPrice.com
https://oilprice.com/Energy/Energy-General/Oil-Prices-Climb-As-US-Rig-Count-Sees-Another-Double-Digit-Decline.html

New Mexico Imposes oil and gas moratorium on state land near schools
https://apnews.com/article/new-mexico-oil-gas-moratorium-schools-pollution-e68db29ad2c2c184b6e7949cbce3fbe2

US crude March output hits three-year high as Texas production grows, EIA says
https://www.reuters.com/business/energy/us-crude-output-rises-march-highest-since-march-2020-eia-2023-05-31/

Current Prices

NW Natural Gas (EIA)	$2.02 MMBtu.	06/08/23	(57.8% / $0.74 increase since last month)
NGL (EIA)	$5.76 MMBtu.	06/07/23	(11.2% / $0.73 decrease since last month)
WTI	$71.28 bbl.	06/08/23	(3.9% / $2.68 increase since last month)