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, September 9, 2023.

September 2023 Secretary Update

Current Items:

New Commissioner – Marg Chipman
Second Quarter Commission Report
Docket No. CC-2023-OGR-01-001, Application for Integration
September OGCC Meeting
BLM Updates to Fluid Mineral Leasing Process
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

New Commissioner – Marg Chipman
Governor Little has selected Marg Chipman of Weiser to fill the fourth commissioner role. Statute changes recommended by the Commission went into effect on July 1, 2023. Marg will fill the requirement to have a commissioner knowledgeable in land matters. Her first meeting will be our September meeting on Thursday, September 14. Marg has served as an OGCC commissioner before, and we welcome her experience and commitment to the residents of Idaho.

Second Quarter Commission Report
Attached is the 2023 Second Quarter Commission Report. Production was down as a result of suppressed commodity prices, which is a normal trend in the spring months.

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 hearings can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

September OGCC Meeting
The September 19, 2023 regular meeting has been cancelled. The Commission will hold a special meeting on September 14, 2023. More information can be found on the Commission Meetings page on the OGCC website.

BLM Updates to Fluid Mineral Leasing Process
The processes has not been updated for several decades and the link below outlines the goals well. Commissioners and the public are welcome to participate. Please visit https://www.blm.gov/onshore-oil-and-gas-leasing-rule to sign up and for additional information.

Injection Well Update
The Class II injection well permit was issued by the EPA November 3, 2022 and took effect December 19, 2022. There has been no progress from the operator on construction activities. Reservoir testing procedures are being considered for submission to EPA Region 10 for approval.

Field Status
As of July 2023, five of the permitted sixteen wells in the Payette area were producing, all from the Harmon Field area. All wells in the Willow Field area have been shut-in since January 2023. In July the production averaged 4.8 million cubic feet of gas per day, 88 barrels of condensate per day and 17 barrels of water per day. These numbers are higher than those reported in June. No drilling activities have been planned for the fourth quarter of 2023 as of this date. Additional information can be found in the attached Second Quarter Commission Report.

News Article(s) of Interest
US rig count down for 8th straight week: https://www.reuters.com/article/usa-rigs-baker-hughes/us-drillers-cut-oil-and-gas-rigs-for-eighth-week-in-a-row-baker-hughes-idUSL1N3AC2BO

US crude oil output back at pre-pandemic levels: https://www.reuters.com/markets/commodities/us-crude-output-rises-june-highest-since-feb-2020-eia-2023-08-31/

Biden administration cancels Alaska leases: https://www.adn.com/business-economy/energy/2023/09/06/biden-administration-cancels-state-owned-oil-leases-in-arctic-national-wildlife-refuge/

Current Prices

NW Natural Gas (EIA)	$2.57 MMBtu	09/06/23	(22.2% / $0.73 decrease since last month)
NGL (EIA)	$7.51 MMBtu.	09/06/23	(2.3% / $0.17 increase since last month)
WTI	$86.87 bbl.	09/07/23	(6.5% / $5.32 increase since last month)