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 Friday, October 4, 2024.

Current Items:
October OGCC regular meeting held – Chairman Coppersmith resigns
IOGCC Annual Conference
IDAPA 20.07.02 Rulemaking Update
Docket No. CC-2024-OGR-01-002, Application for Integration
Field Status / Injection Well Update
News Article(s) of Interest
Current Prices

October OGCC regular meeting held – Chairman Coppersmith resigns
The third regular meeting of the OGCC was rescheduled to October 2, 2024. More information on the Commission meetings is available on the OGCC website on the Commission Meetings page at https://ogcc.idaho.gov/commission-meetings/ Chairman Coppersmith has resigned after serving on the Commission for five years. The Department would like to thank her for her dedication and leadership in her role as chairman, and we wish her the best in all her future endeavors.

IOGCC Annual Conference
The 2024 Interstate Oil and Gas Compact Commission (IOGCC) Annual Conference is October 28-30 in Colorado Springs. Division Administrator Shannon Chollett and Program Manager James Thum will be attending. Topics on the agenda include a discussion of the Supreme Court decision on the Chevron doctrine, updates from the US Department of Energy on the Methane Emissions Reduction Program (MERP) and improving communications between industry and state regulators. The complete agenda can be found on the IOGCC website.

IDAPA 20.07.02 Rulemaking Update
The Commission approved the Department to submit the Notice of Pending Rulemaking to the Division of Financial Management. This will go before the 2025 Legislature. 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-01-002, Application for Integration
On August 23, 2024, Snake River Oil and Gas, LLC filed an Application for Integration with the Department in the Harmon Field area. This matter was initially referred to the Office of Administrative Hearing. No objections to the integration request were filed by the September 26, 2024 deadline. Pursuant to Idaho Code § 47-328(3)(d) on a request from the applicant, the Administrator issued an order to rescind the appointment of the OAH and vacate the October 10, 2024 hearing. Further information regarding this application can be found on the hearing page at https://ogcc.idaho.gov/administrative-hearings/docket-no-cc-2024-ogr-01-002-application-for-integration/

Field Status / Injection Well Update
The Class II injection well permit issued by EPA Region 10 took effect December 19, 2022. On August 19, 2024 Snake River Oil & Gas LLC applied for a two-year extension on the permit, citing low gas prices and a resulting curtailment of production as reducing the need for an injection well since the time the permit was granted. On August 30, 2024 EPA granted a two-year extension to the permit. The new expiration date is December 19, 2026.

The Department has commenced its third and fourth quarter wells and facilities inspections. Shannon Chollett took a tour of some of the facilities and wells in September and briefly met with Snake River field staff at Little Willow Gathering Facility.

News Article(s) of Interest
Energy issues mostly passed over at debates: https://www.thecentersquare.com/national/article_9fb895c8-80c8-11ef-adc6-9f48121e07eb.html

Oil, gas execs predict Henry Hub natural gas price: https://www.rigzone.com/news/wire/oil_gas_execs_predict_henry_hub_natural_gas_price-04-oct-2024-178319-article/

What would a US frac’ing ban mean for oil prices? https://www.rigzone.com/news/what_would_a_usa_fracking_ban_mean_for_the_oil_price-30-sep-2024-178255-article/

Current Prices

NW Natural Gas (EIA)	$3.04 / million Btu	10/4/2024	(120% / $1.66 increase since previous month)
NGL (EIA)	$6.91 / million Btu	7/31/2024	(1.6% / $0.11 increase since previous month)
WTI	$74.33 / bbl	10/4/2024	(6% / $4.22 increase since previous month)