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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, December 6, 2024.

December 2024 Secretary Update

Current Items:
Third Quarter Commission Report
New look on the OGCC Website
IDAPA 20.07.02 Rulemaking Update
Field Status / Injection Well Update
News Article(s) of Interest
Current Prices

Third Quarter Commission Report
The 2024 Third Quarter Report to the Commission is included as an attachment to this update. Please feel free to reach out to me or James Thum if you have any questions.

New look on the OGCC Website
The OGCC website is undergoing some updates to help improve accessibility. The changes are expected to be mostly visual and the content and layout should remain the same. The updated website is expected to be pushed out during January 2025. If you experience any issues with the new launch, please let me or James Thum know.

IDAPA 20.07.02 Rulemaking Update
The Notice of Pending Rulemaking published in the Administrative Bulletin this past Wednesday. This will be submitted to the Senate Resources and Environment Committee and the House Resources and Conservation Committee in 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/

Field Status / Injection Well Update
October production numbers submitted this week by Snake River Oil & Gas indicate a slight uptick in production volumes from September to 3 million cubic feet of gas per day (MMCFGD) and 61 barrels of condensate per day (BCPD). Production is occurring from six wells – five in Harmon Field, one in Willow Field. An October inspection indicates no construction activity has commenced on the DJS Properties #2-14 Class II injection well. EPA Region 10 has extended the permit expiration date to December 19, 2026.

News Article(s) of Interest
Trump energy policy: Canadian oil patch has $24B shield against Trump tariffs – Bloomberg

Energy and Politics: House Republicans question DOE ban on LNG exports – The Center Square

Update on I-2066: Both sides prepare for legal battle over Washington voter Initiative 2066 on natural gas – The Center Square

Oil Price Report: Oil edges lower while OPEC+ delays supply hike – Bloomberg

Current Prices

NW Natural Gas (EIA)	$3.51 / million Btu	12/5/2024	(456% / $2.74 increase since previous month)
NGL (EIA)	$6.33 / million Btu	10/31/2024	(4.5% / $0.30 decrease since previous month)
WTI	$68.81 / bbl	12/5/2024	(5.3% / $3.88 decrease since previous month)

The October 2024 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

The September 2024 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

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, November 8, 2024.

Current Items:
November OGCC regular meeting cancelled
IOGCC Annual Conference
IDAPA 20.07.02 Rulemaking Update
Docket No. CC-2024-OGR-01-002, Application for Integration
Field Status
News Article(s) of Interest
Current Prices

November OGCC regular meeting cancelled
At the October 2, 2024 OGCC regular meeting, the Commission voted to cancel the November 19, 2024 regular meeting. The 2025 regular meeting schedule will be posted on the OGCC website soon.

IOGCC Annual Conference
The 2024 Interstate Oil and Gas Compact Commission (IOGCC) Annual Conference was last week in Colorado Springs. Division Administrator Shannon Chollett and Program Manager James Thum attended. The Honorable Mark Gordon, governor of Idaho’s neighboring producing state of Wyoming and the Honorable Mike Dunleavy, Governor of Alaska were in attendance and provided their perspectives on the state of the industry at the General Session. States provided updates on their efforts to plug orphaned wells and apply for Class VI primacy for carbon capture and underground storage (CCUS). Presentations were given on the Methane Emissions Reduction Program (MERP) and the pending pore space model legislation being crafted by the Legal and Regulatory Affairs Committee. The IOGCC Annual Business meeting will be held in May 2025 in Oklahoma City.

IDAPA 20.07.02 Rulemaking Update
The Department submitted the Notice of Pending Rulemaking to the Division of Financial Management this past week. It will be published in the December Administrative Bulletin and be presented to 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. The Order for Integration was sent out this past week and can be found on the hearing page. 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
Fall inspections of wells and facilities were completed the first week of October. Inspection reports are now posted on the well information page of the OGCC website. Production reports filed by Snake River Oil & Gas for the month of September shows a slight increase in gas production from the previous month. Six wells reported production averaging approximately 2.48 MMCFGD and 52 BCPD.

News Article(s) of Interest
Energy and the election: Washington state ballot initiative I-2066 repealing restrictions on natural gas usage is passing by a narrow margin.

Energy and the election, part 2: Potential passage of ballot initiative I-2066 in Washington may fuel other groups looking to protect natural gas.
Refinery closures in California will likely affect gasoline prices across the west.

Orphaned well plugging: Louisiana auditor flags gaps in oversight for orphaned oil and gas wells.

Employment: Texas oil and gas industry continues to add jobs.

Current Prices

NW Natural Gas (EIA)	$0.77 / million Btu	11/7//2024	(75% / $2.27 decrease since previous month)
NGL (EIA)	$6.63 / million Btu	8/31/2024	(4.2% / $0.29 decrease since previous month)
WTI	$72.69 / bbl	11/7//2024	(2.2% / $1.64 decrease since previous month)

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)

The revised August 2024 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

The July 2024 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

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, September 6, 2024.

Current Items:
August OGCC regular meeting cancelled and rescheduled
IDAPA 20.07.02 Rulemaking Update
Docket No. CC-2024-OGR-01-002, Application for Integration
2024 Second Quarter Commission Report
Field Status / Injection Well Update
News Article(s) of Interest
Current Prices

August OGCC regular meeting cancelled and rescheduled
The third regular meeting of the OGCC was cancelled due to not having a quorum. A regular meeting to reschedule that will now be held on Wednesday October 2, 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 Idaho. More information will be available on the OGCC website on the Commission Meetings page at https://ogcc.idaho.gov/commission-meetings/

IDAPA 20.07.02 Rulemaking Update
The Notice of Proposed Rulemaking was published in the Administrative Bulletin on Wednesday, August 7, 2024. The public hearing on the proposed rule was held on August 15th and the written comment period ended August 28th. No oral or written comments were received. The Pending Rule will be presented to the OGCC at the October 2, 2024 regular 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-01-002, 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. 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/

2024 Second Quarter Commission Report
The 2024 Second Quarter Commission Report is included as an attachment to the Secretary Update. Please feel free to reach out to me if you have any questions.

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. The permit is set to expire December 19, 2024.

The Malheur Ventures Wilcox #1-14, drilled in Malheur County, Oregon fifteen miles west of Harmon Field is reported to have been plugged and abandoned after reaching a total depth of around 4000 feet. No other information is available at this time.

News Article(s) of Interest
Alaska Oil, Gas Rule Draws Lawsuit Alleging Agency Overreach: https://news.bloomberglaw.com/litigation/rule-limiting-alaska-oil-gas-development-targeted-in-new-suit
Oil Markets on a Rollercoaster Ride: https://www.rigzone.com/news/oil_markets_have_been_on_a_rollercoaster_ride-05-sep-2024-178003-article/
Texas Oil and Gas Production Reaches Record in July: https://www.thecentersquare.com/texas/article_0ac5a9c6-6005-11ef-8956-8bccc8275a3b.html
Lawsuit Seeks to Stop Federal Rule on Oil, Gas Exploration: https://www.thecentersquare.com/national/article_ff39d93e-660c-11ef-8fca-f779664f33c0.html
US Oil and Gas Industry Continues to Reduce Methane Emissions: https://www.thecentersquare.com/national/article_2033f3b4-6652-11ef-9536-fb89eb3ea71d.html

Current Prices

NW Natural Gas (EIA)	$1.38 / million Btu	9/5/2024	(32.7% / $0.34 increase since previous month)
NGL (EIA)	$6.80 / million Btu	6/30/2024	(2.4% / $0.16 increase since previous month)
WTI	$70.11 / bbl	9/5/2024	(8.5% / $6.57 decrease since previous month)

The June 2024 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

Informational Bulletin regarding a public hearing for the proposed rule for IDAPA 20.07.02, Rules Governing the Conservation of Oil and Natural Gas in the State of Idaho that will be held on Thursday, August 15, 2024 at 1:00pm (MT). The hearing will be held at the Idaho Department of Lands Boise Staff Office. 

More information on this rulemaking can be found at https://ogcc.idaho.gov/rulemaking/docket-20-0702-2401-oil-gas/