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June Monthly Report

The June 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

OGCC Secretary Update – August 2022

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 Friday, August 12, 2022.

August 2022 Secretary Update

Current Items:
August OGCC Regular Meeting
Monthly Production and Sales for May 2022/Revisions
Docket No. CC-2022-OGR-01-001, Application for Integration
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

August OGCC Regular Meeting
The next regularly scheduled OGCC meeting is Tuesday, August 16, 2022 @ 1:30pm (MT). More information can be found on the Commission Meetings webpage of the OGCC website.

Monthly Production and Sales for May 2022/Revisions
The May 2022 monthly report is now available. Also, revisions to the Monthly Reports from November 2021 through April 2022 are now posted on the Monthly Reports page. Please see the Monthly and Annual Reports page for more information. June 2022 reports are due to the state by August 15, 2022 (first business day after a weekend due date). Production data for the Fallon 1-11 will also be released this month.

Docket No. CC-2022-OGR-01-001, Application for Integration
The Department received an Application for Integration from Snake River Oil & Gas, LLC on July 22, 2022. The Department has scheduled the hearing to determine “just and reasonable” factors for September 8, 2022. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-001 hearing webpage.

Injection Well Update
The Department contacted EPA Region 10 on August 3rd regarding the status of the Class II Injection Well Application and Aquifer Exemption Recommended Decision. Our understanding is that they have completed their evaluation and responses to the comments received before the March 30, 2022 deadline and are working with the national office in Washington, DC to work towards a final decision.

Field Status
The Department received an Application for Permit to Drill (APD) from Snake River Oil and Gas for the proposed Irvin #1-19 on July 29, 2022. The 5500 PTD vertical test is located in Section 19, Township 8 North, Range 4 West in Payette County. The 640-acre unit was integrated under Order Number CC-2016-OGR-01-002. Public comments will be accepted until 5:00 PM Monday, August 22, 2022.

On August 4th, Chairman Coppersmith and Commissioner Riebe toured well and production facilities operated by Snake River Oil and Gas in Payette County. The tour included stops at:
• Active, shut-in, and reclaimed well sites
• The Little Willow Gathering Facility
• The Highway 30 Processing Facility
• Snake River Oil & Gas’s business office in New Plymouth
Both Snake River Oil & Gas and IDL staff were in attendance and available to answer questions from both commissioners regarding field operations.

News Article(s) of Interest
Eastern Wyoming one billion barrel oil discovery
https://www.oklahomaminerals.com/wyoming-million-barrel-oil-discovery

Clean energy infrastructure – fueled globally by fossil fuels – may slow due to cost of oil
https://www.mining.com/green-energy-development-affected-by-rise-in-oil-metal-prices-study/ 

Hydrogen for fuel is expected to grow 51% by 2031 with a U.S. value of $135 Billion. Idaho National Lab is working with Bloom Energy to produce green hydrogen at a record setting pace
Idaho National Lab and Bloom Energy Produce Hydrogen at Record-Setting Efficiencies | Business Wire

Current Prices

Natural Gas (EIA)  $7.89 MMBtu.  08/10/22 (40.1% / $2.26 increase since last month)
NGL (EIA)   $10.90 MMBtu.  08/10/22 (4.9% / $0.56 decrease since last month)
Utah Sweet Crude $84.54 bbl. 08/11/22 (9.0% / $8.39 decrease since last month)
WTI $94.87 bbl.  08/11/22 (12.3% / $12.91 decrease since last month)

 

Idaho Code title 47, chapter 3 – Proposed Statutory Changes

At the May 19, 2022 regular meeting, the Commission voted in favor of the sixth draft text to be presented during the 2023 legislative session. Department staff reviewed this draft for grammar and format. The Commission and Department fall under the Executive Agency Legislative System (EALS) guidelines. Following these guidelines, the Department completed and submitted the EALS Legislative Idea Form on June 23, 2022. The Department submitted the Statement of Purpose/Fiscal Impact form along with the final text Friday afternoon, August 12, 2022.

More information can be found here: https://ogcc.idaho.gov/rules-and-statutes/47-3-changes/

Application for Permit to Drill (Irvin #1-19) Under Review – Accepting public comments

Snake River Oil & Gas, LLC submitted an application for permit to drill which is under review by the Department. The application and other information can be found on the Well Permit Applications page. The Department is accepting comments on this application through August 22, 2022. Comments can be submitted online on the Idaho Department of Lands Contact Us page or to comments@idl.idaho.gov

May Monthly Report and Revisions

The May 2022 monthly report is now available. Also, revisions to the Monthly Reports from November 2021 through April 2022 are now posted on the Monthly Reports page. Please see the Monthly and Annual Reports page for more information.

OGCC Secretary Update – July 2022

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, July 9, 2022.

July 2022 Secretary Update

Current Items:
Monthly Production and Sales for April 2022
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Monthly Production and Sales for April 2022
The April 2022 monthly report is available. More reports can be found on the Monthly and Annual Reports page. The Department will begin posting monthly production data for the Barlow #2-14 well in July. May production reports are due to be filed with the state by July 14, 2022.

Injection Well Update
According to the operator, EPA Region 10 is continuing to evaluate all comments received on the Recommended Decision published in January 2022. The comment period closed March 30th. No further timeframes for a final decision on the aquifer exemption and Class II injection well permit are available at this time.

Field Status
Snake River Oil & Gas has concluded well construction operations in the Fruitland area for the 2021-2022 drilling campaign and is currently evaluating the technical data from the three new wells. Additional development opportunities may be identified as a result of this work. Production from all wells was shut-in from May 9th to the evening of May 23rd. This shut-n was needed to perform scheduled maintenance at both the Little Willow gathering and Highway 30 processing facilities. Full production resumed the evening of May 23rd.

News Article(s) of Interest
New York Denies Permit for Bitcoin-Mining Power Plant due to emissions threshold
New York Denies Permit for Bitcoin-Mining Power Plant (governing.com)

Supreme Court: EPA Lacks Authority to Cap CO2 From Existing Power Plants
https://www.electric.coop/supreme-court-epa-lacks-authority-to-cap-co2-from-existing-power-plants

US raises $22 million from Western oil and gas auctions
https://www.reuters.com/business/energy/us-raises-22-mln-western-oil-gas-auctions-2022-06-30/

Natural gas oversupply continues leading to additional price drops
https://www.cnbc.com/2022/06/30/natural-gas-drops-10percent-on-track-for-worst-month-in-more-than-three-years.html

How Do Graphene Nanoparticles Reduce Oil Viscosity?
https://www.azom.com/news.aspx?newsID=59322

Biden tells oil refiners: Produce more gas, fewer profits
https://ksltv.com/496191/biden-tells-oil-refiners-produce-more-gas-fewer-profits/

Current  Prices

Natural Gas (EIA) $5.63 MMBtu. 07/06/22 (40.5% / $3.83 decrease since last month)
NGL (EIA) $11.46 MMBtu. 07/06/22 (11.9% / $1.54 decrease since last month)
Utah Sweet Crude $92.93 bbl.  07/08/22 (15.2% / $16.68 decrease since last month)
WTI $104.78 bbl. 07/08/22 (11.9% / $14.20 decrease since last month)

April Monthly Report

The April 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

OGCC Secretary Update – June 2022

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 Sunday, June 12, 2022.

June 2022 Secretary Update

2022 First Quarter Commission Report (this was sent to the Commission on Tuesday, June 14, 2022)

Current Items:

Proposed Legislation Idaho Code 47-3
Monthly Production and Sales for March 2022
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
At the May 19th OGCC meeting the Commission approved the last substantive draft containing revisions of Idaho Code 47-3. Per the Commissions direction the department is working through this draft one final time to resolve any grammatical issues that may have been missed in prior drafts. No substantive changes will be made during this review.

The Commission is subject to the Executive Agency Legislation (EAL) Process through the Idaho Division of Financial Management. The EAL process is used to prepare statutory change for the 2023 Idaho Legislature. Ideas must be submitted by June 24, 2022 and proposed legislation must be received by August 12, 2022. With our statute changes approved by the Commission we are on track to meet these administrative guidelines.

More information can be found on the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage of the OGCC website.
Specific information regarding the EAL process can be found on the https://dfm.idaho.gov/executive-agency-legislation-process/ webpage of the DFM website.

Monthly Production and Sales for March 2022
The March 2022 monthly report is available. More reports can be found on the Monthly and Annual Reports page. April production and sales reports are due June 14th.

Injection Well Update
According to the operator, EPA Region 10 is continuing to evaluate all comments received on the Recommended Decision published in January 2022. The comment period closed March 30th. No further timeframes for a final decision on the aquifer exemption and Class II injection well permit are available at the present time.

Field Status
Snake River Oil & Gas is currently evaluating the technical data from the three new wells. Additional development opportunities may be identified as a result of this work. Production from all wells was shut-in from May 9th to perform scheduled maintenance at both the Little Willow gathering and Highway 30 processing facilities. Full production resumed the evening of May 23rd.

News Article(s) of Interest
Why is gasoline so high?
https://www.huffpost.com/entry/why-are-gas-prices-so-high_n_62a4f061e4b04a61734f6bed?utm_source=facebook&utm_medium=news_tab

EIA expects high refinery margins to contribute to increased fuel production this summer (to meet demand).
U.S. Energy Information Administration – EIA – Independent Statistics and Analysis

Current Prices

Natural Gas (EIA)  $9.46 MMBtu.      06/08/22  (14% / $1.16 increase since last month)
NGL (EIA)  $13.00 MMBtu.  06/08/22  (1.5% / $0.20 increase since last month)
Utah Sweet Crude  $109.61 bbl.    06/10/22 (10.2% / $11.17 increase since last month)
WTI $118.98 bbl. 06/10/22 (7.1% / $8.49 increase since last month)

(green indicates prices increase since last update, red indicates decline)

March Monthly Report

The March 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

Idaho Code title 47, chapter 3 – Proposed Statutory Changes

The Department will be presenting a sixth draft text for a vote to the Commission at the May 19, 2022 regular meeting. No written comment period will be done but oral public comments will be accepted at the Commission meeting. Sign-ups are required, please see the OGCC Agenda for more information.

More information can be found here: https://ogcc.idaho.gov/rules-and-statutes/47-3-changes/