Note: This post was originally posted on March 14, 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 Saturday, March 11, 2023.

March 2023 Secretary Update

Current Items:

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
Oil and Gas Townhall
Oil and Gas Financial Snapshot
Field Status
Commission 4th Quarter Report
News Article(s) of Interest
Current Prices

Docket No. CC-2022-OGR-01-002, Application for Integration
The order for this case was sent out on March 7, 2023. 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 March 7, I presented H0120 to the House Resources and Conservation Committee. The Committee sent it to the floor with a do-pass recommendation. On Thursday March 9th the bill passed the house 62-6. Next step is to present the bill to the Senate Resource and Environment Committee.

Oil and Gas Townhall
On Wednesday, April 12, I will be holding an Oil and Gas Townhall in Fruitland, Idaho to answer questions from the public on oil and gas related matters. This is the first Townhall held since the covid pandemic began. The Townhall will be from 6:30PM to 7:30PM. Payette County resident are encouraged to attend.

Oil and Gas Financial Snapshot
      • Since taking ownership of the field SROG has paid ~$8 million in royalties. Most of that has been in 2021 and 2022.
      • Royalties have been paid to ~275 owners. These owners are mostly private, but the State of Idaho and the City of Fruitland have received royalties as well.
      • December 2022 royalties – $1.5MM.
      • Calendar year 2022 royalties paid – $5.3MM.
            o City of Fruitland royalties paid – $110K.
            o Individual (private) royalties paid – $4.9MM.
            o State of Idaho royalties paid – $240K.
      • Severance Taxes paid to the state of Idaho in CY2022 – $770K.
      • Salaries paid for the field in CY2022
            o Land services $450K
            o Field and plant personnel $620K
            o Combined $1.07MM.
      • Taxes paid to cities – ~$100K.

This data was provided by Snake River Oil & Gas.

Field Status
Production continues to be steady in the field. National infrastructure shortfalls have reduced natural gas supply to the northwest united states, creating a higher cost of natural gas in our region. Supplies from the Idaho operator are improving this situation. Severance tax for January and February 2023 totaled $163,694.

Commission 4th Quarter Report
Attached.

News Article(s) of Interest
Industry sues the city of Portland for essentially blockading domestic hydrocarbon exports. See link and attachment.
State of Montana, fuel industry sue Portland over city’s gas transport rules – OPB

Idaho Attorney General Labrador sues Biden administration to reverse WOTUS rule. See link and attachment.
Local News: AG Labrador Sues Biden Administration To Reverse WOTUS Rule (2/28/23) | Mountain Home News

Current Prices

Natural Gas (EIA NW US spot price)	$5.51 MMBtu.	03/09/23	(23.7% / $1.31 decrease since last month)
NGL (EIA)	$8.81 MMBtu.	03/08/22	(10.4% / $0.83 increase since last month)
WTI	$75.60 bbl.	03/09/22	(3.2% / $2.46 decrease since last month)