James Thum, Oil and Gas Program Manager

This update was sent to the Commission on Friday, May 3, 2024.

May 2024 Secretary Update

Current Items:

May OGCC regular meeting
IDAPA 20.07.02 Rulemaking Update
Docket No. CC-2024-OGR-01-001, Application for Spacing
BLM Updates to Fluid Mineral Leasing Process
Field Status / Injection Well Update
News Article(s) of Interest
Current Prices

May OGCC regular meeting
The second regular meeting of the Commission for 2024 will be held on Tuesday, May 21, 2024 at 1:30pm (MT). The meeting will be held at the State Capitol, House Hearing Room, (EW42), Lower Level, East Wing, 700 W Jefferson Street, Boise. More information will be available on the OGCC website on the Commission Meetings page.

IDAPA 20.07.02 Rulemaking Update
Three public negotiated rulemaking meetings were completed in April. The meetings were attended by people both in person and remotely. The Department is currently working on a third draft text to present to the Commission at its May meeting. 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 & Gas, LLC filed an Application for Spacing with the Department in the Harmon Field area. Information regarding this application can be found on the Docket No. CC-2024-OGR-01-001 hearing webpage.

BLM Updates to Fluid Mineral Leasing Process
On April 12, the BLM issued its Final Rule for Onshore Oil and Gas Leasing. Highlights include revised processes to minimize conflicts with other uses, implementing updates to rental fees, minimum bids and royalty rates, and revising bond amounts for both leasing and operations. For reactions to the new rule, see links provided in the Articles of Interest section below.

Field Status / Injection Well Update
All production in western Idaho is currently shut-in due to low natural gas prices. Snake River is taking advantage of the downtime to convert all pneumatic controllers at wells and facilities to nitrogen-actuated from natural gas-actuated to comply with new 2024 EPA methane emissions requirements. 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
New BLM rule makes it costlier to drill on public lands:
https://apnews.com/article/oil-gas-drilling-public-lands-interior-climate-ffc88438d6f9c5d48e9a8fc7cffc749a

Price hikes for leasing lands could force industry out of Nevada:
https://thenevadaindependent.com/article/price-hikes-for-leasing-land-for-oil-gas-exploration-could-force-industry-out-of-nevada

American Petroleum Institute weighs in on final NEPA rule:
https://www.rigzone.com/news/api_has_its_say_on_nepa_phase_ii_final_rule-02-may-2024-176616-article/

USA Crude stocks increase more than 7 million barrels week-over-week:
https://www.rigzone.com/news/usa_crude_oil_stocks_jump_more_than_7mm_barrels_wow-02-may-2024-176609-article/

Current Prices

NW Natural Gas (EIA)	$1.29 MMBtu	5/2/2024	(4% / $0.06 decrease since previous month)
NGL (EIA)	$7.47 MMBtu	5/2/2024	(3% / $0.19 increase since previous month)
WTI	$80.59 bbl	5/2/2024	(8% / $6.78 decrease since previous month)