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November Monthly Report

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

OGCC Secretary Update – January 2023

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, January 7, 2023.

January 2023 Secretary Update

Current Items:

Monthly Production and Sales for October 2022
Docket No. CC-2022-OGR-01-002, Application for Integration
2023 Legislature convenes
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

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

Docket No. CC-2022-OGR-01-002, Application for Integration
The Evidentiary Hearing will be held next Thursday, January 12, 2023. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage.

2023 Legislature convenes
The 2023 Legislature convenes Monday, January 9, 2023. I will continue to keep the Commission updated on the progress of the Oil and Gas Act Modernization bill. We will also continue to keep the webpage for the Proposed Statutory changes for title 47, chapter 3 updated as we move forward.

Injection Well Update
On November 3, 2022, EPA Region 10 issued a Class II Disposal Well Permit to Snake River Oil and Gas, LLC and approved an associated Aquifer Exemption for the Willow Sand in Willow Field. The permit took effect December 19, 2022, at 12:01 AM. The documents can be viewed on the EPA Region 10 web page here. The department has not discussed a specific timeline with the operator for bringing the injection well to an active status, but Snake River has indicated that it could be as long as 12 to 18 months.

Field Status
• Drilling operations are complete for the Irvin 1-19 and Barlow 3-14 wells in Harmon Field. Testing and completion operations commenced the week of November 28th and are ongoing. Both wells have been designated as confidential under Idaho Code § 47-327.
• On December 15th, 2022, the department declared the Kauffman 1-9 well inactive per the requirements set forth in IDAPA 20.07.02.501.01 https://adminrules.idaho.gov/rules/current/20/200702.pdf. Production has not been reported on that well since October 2018. The well record has been updated and all documents can be viewed on the well file page: https://ogcc.idaho.gov/well-files/uswn-11-075-20027-kauffman-1-9/. Snake River performed a Mechanical Integrity Test on the Kauffman 1-9 well on December 16, 2022. The well surpassed the minimum guidelines provided by the department.

News Article(s) of Interest
None this month.

Current Prices

Natural Gas (HH)* $3.75 MMBtu.   01/04/23 (44.9% / $3.05 decrease since last month)
NGL (EIA) $7.59 MMBtu.  12/21/22 (8.6% / $0.71 decrease since last month)
Utah Sweet Crude $70.46 bbl.   12/30/22 (3.0% / $2.06 increase since last month)
WTI $72.84 bbl.   12/01/22 (10.2% / $8.38 decrease since last month)

 

* Gas prices for the month of December were generally much higher in the western United States, with peaks in the $45.00-$50.00 range per MMBtu. The market has since adjusted and prices are back down. We will not know the impact of these spikes on Idaho production and sales until the operator provides sales data, which is due for December on February 14th, 2023, per Idaho Code.

October Monthly Report

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

OGCC Secretary Update – December 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, December 3, 2022.

December 2022 Secretary Update

Current Items:

Monthly Production and Sales for September 2022
Third Quarter Report 2022
Docket No. CC-2022-OGR-01-002, Application for Integration
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

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

Third Quarter Report 2022
The Third Quarter 2022 report to the Commission is included here. (this is a corrected version sent out on Tuesday, December 6, 2022)

Docket No. CC-2022-OGR-01-002, Application for Integration
An order on determining “just and reasonable” factors was sent out on November 10, 2022. The Evidentiary Hearing will be held on Thursday, January 12, 2023. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage.

Injection Well Update
On November 3, 2022, EPA Region 10 issued a Class II Disposal Well Permit to Snake River Oil and Gas, LLC and approved an associated Aquifer Exemption for the Willow Sand in Willow Field. The permit takes effect December 19, 2022, at 12:01 AM. The documents can be viewed on the EPA Region 10 web page here.

Field Status
Drilling operations are complete for the Irvin 1-19 and Barlow 3-14 wells in Harmon Field. Testing and completion operations are scheduled to commence the week of November 28th. Both wells have been designated as confidential under Idaho Code § 47-327.

News Article(s) of Interest
USFS starts pilot project to transition to an electric fleet of field vehicles
The Forest Service Is Leaning into Electric Vehicles – Outside Online

NASA cancels greenhouse gas monitoring satellite due to cost
https://apnews.com/article/space-exploration-science-south-america-business-pollution-c3b6ea27eed442bbf9b57d310f7255c2

Current Prices

Natural Gas (HH)  $6.80 MMBtu. 11/30/22 (50.7% / $2.29 increase since last month)
NGL (EIA) $8.30 MMBtu. 11/30/22 (6.5% / $0.58 decrease since last month)
Utah Sweet Crude $68.40 bbl.  12/01/22 (12.7% / $9.97 decrease since last month)
WTI $81.22 bbl. 12/01/22 (17.1% / $16.81 decrease since last month)

September Monthly Report

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

OGCC Secretary Update – November 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, November 4, 2022.

November 2022 Secretary Update

Current Items:

Injection Well Update
Monthly Production and Sales for August 2022
Docket No. CC-2022-OGR-01-002, Application for Integration
November 15, 2022 – Regular OGCC Meeting
Field Status
Interstate Oil and Gas Compact Commission Annual Conference
Current Prices

Injection Well Update
On November 3, 2022, the Environmental Protection Agency (EPA) issued a final Class II-Disposal Well Permit and Aquifer Exemption, ID-2D001-A, to Snake River Oil and Gas, LLC. This permit is for the DJS Properties #2-14 well which will be effective December 19, 2022 at 12:01AM. Please visit the Commission website for further information. https://ogcc.idaho.gov/epa-issues-class-ii-disposal-well-permit-and-aquifer-exemption-id-2d001-a-to-snake-river-oil-and-gas-llc/
The next step for the operator is to rework the well and bring it into compliance with the requirements set out in the permit. This will likely involve bringing in a work over rig as well as completing a number of test and logs of the wellbore. Depending on scheduling the well could be operational sometime in 2023.

Monthly Production and Sales for August 2022
The August 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.
In the first four months of fiscal year 2023 the operator Snake River Oil and Gas has provided over $200,000 in total severance tax to the state of Idaho.

Docket No. CC-2022-OGR-01-002, Application for Integration
The Department held the hearing to determine “just and reasonable” factors on October 13, 2022. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage. The hearing officer has 30 days to provide an order determining “just and reasonable” factors.

November 15, 2022 – Regular OGCC Meeting
The next regularly scheduled meeting of the OGCC will be held on Tuesday, November 15, 2022 @ 1:30pm (MT). More information can be found on the Commission Meetings page.

Field Status
The operator commenced drilling of the Barlow 3-14 earlier this week. James Thum was on site to witness and ensure operations were within guidelines.

Interstate Oil and Gas Compact Commission Annual Conference
The IOGCC held their national conference in Baltimore on October 16-18 2022. Major topics included ways for member states to standardize additional revenue streams for each state. These include carbon capture, helium recovery and storage, geothermal development, and liquid mineral recovery from existing and former hydrocarbon wells. I’m happy to discuss further if you would like.

Current Prices

Natural Gas (EIA)  $4.51 MMBtu. 11/02/22 (25.6% / $1.55 decrease since last month)
NGL (EIA)      $8.88 MMBtu.  11/02/22 (~1% / $0.02 decrease since last month)
Utah Sweet Crude $78.37 bbl.  11/04/22 (~1% / $0.27 decrease since last month)
WTI $98.13 bbl. 11/04/22 (5.8% / $5.69 decrease since last month)

EPA Issues Class II-Disposal Well Permit and Aquifer Exemption, ID-2D001-A, to Snake River Oil and Gas, LLC

On November 3, 2022, the Environmental Protection Agency (EPA) issued a final Class II-Disposal Well Permit and Aquifer Exemption, ID-2D001-A, to Snake River Oil and Gas, LLC. This permit is for the DJS Properties #2-14 well which will be effective December 19, 2022 at 12:01AM. The EPA has posted the approval documents on their website here: https://www.epa.gov/uic/underground-injection-control-region-10-ak-id-or-and-wa 

More information on the DJS Properties #2-14 well can be found on the OGCC well file page.

August Monthly Report

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

OGCC Secretary Update – October 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, October 8, 2022.

October 2022 Secretary Update

Current Items:

Severance Tax Update
Monthly Production and Sales for July 2022
Docket No. CC-2022-OGR-01-002, Application for Integration
Approved Amended Application for Permit to Drill (Irvin #1-19)
Approved Application for Permit to Drill (Barlow #3-14)
Injection Well Update
Field Status
Interstate Oil and Gas Compact Commission Annual Conference
News Article(s) of Interest
Current Prices

Severance Tax Update
July, August, and September 2023 revenue into the Oil & Gas Conservation (OGC) fund was nearly $110K. Of this amount, $103K was received as a distribution from the Idaho Tax Commission for the OGC funds portion of Idaho’s oil & gas severance tax.

Monthly Production and Sales for July 2022
The July 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information. August reports are required to be filed with the state no later than Friday, October 14, 2022.
As a reminder, Natural Gas Liquids produced in Idaho are shipped via rail to facilities in Kansas, our Condensate is transported via truck to plants in Wyoming, and Idaho’s Natural Gas production is added to the Williams gas pipeline at a terminal in Payette County.

Docket No. CC-2022-OGR-01-002, Application for Integration
The Department will be holding the hearing to determine “just and reasonable” factors on October 13, 2022. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage.

Approved Amended Application for Permit to Drill (Irvin #1-19)
The Department has approved the Irvin #1-19 application for permit to drill September 10, 2022. More information can be found on the Well Permit Applications page or the Irvin #1-19 well file page.

Approved Application for Permit to Drill (Barlow #3-14)
The Department has approved the Barlow #3-14 application for permit to drill September 27, 2022. More information can be found on the Well Permit Applications page or the Barlow #3-14 well file page.

Injection Well Update
The Department continues to monitor the injection well application being processed by the EPA. Public comment review was completed by EPA region 10 staff in July 2022 with a recommendation to approve the permit.
When that review was completed by region 10 the application package was shared with EPA headquarters in Washington DC where it is currently under additional review.

Field Status
Pad preparation and well cellar construction has been completed for both the Irvin #1-19 and Barlow #3-14 wells. The Irvin #1-19 is expected to spud the week of October 2, 2022 and will take approximately 10 days to drill. The Barlow #3-14 will follow once drilling operations have been completed on the Irvin well. Snake River is in the process of installing storage tanks on the Fallon #1-10 and Dutch Lane #1-13 well pads to hold produced water from the wells.
As required under Idaho Code § 47-315(9) the Department has completed annual inspections for the wells in the Willow Field area. Facilities inspections and wells in the Harmon Field area will be completed during the month of October.

Interstate Oil and Gas Compact Commission Annual Conference
I will be attending the Interstate Oil and Gas Compact Commission Annual Conference in Baltimore Maryland from October 15 to October 18. The bulk of this year’s agenda will entail funding for addressing orphaned wells (Idaho has no orphaned wells) and the continued transition to additional energy sources to compliment oil & gas production.

News Article(s) of Interest
Idaho Oil & Gas Leader speaks at Payette Luncheon
https://www.argusobserver.com/business/oil-and-gas-leader-speaks-at-payette-chamber-luncheon/article_bc119786-33a1-11ed-9662-0b40c508831f.html?utm_medium=social&utm_source=email&utm_campaign=user-share

OPEC to restrict oil production
https://www.deseret.com/utah/2022/10/6/23391074/opec-cuts-oil-production-new-gas-price-hikes-will-congress-take-action-nopec-joe-biden

Flush with cash, EPA could toughen methane rules | E&E News
https://www.eenews.net/articles/flush-with-cash-epa-could-toughen-methane-rules/

How does permitting for clean energy infrastructure work
https://www.brookings.edu/research/how-does-permitting-for-clean-energy-infrastructure-work/

Current Prices

Natural Gas (EIA)    $6.06 MMBtu.     10/05/22 (25.5% / $2.07 decrease since last month)
NGL (EIA)       $8.90 MMBtu.       10/05/22 (17.0% / $1.82 decrease since last month)
Utah Sweet Crude  $78.65 bbl.       10/07/22 (2.0% / $1.58 increase since last month)
WTI $98.13 bbl.    10/07/22 (12.2% / $11.94 increase since last month)

Application for permit to drill approved – Barlow #3-14

The Department has approved the Barlow #3-14 application for permit to drill. More information can be found on the Well Permit Applications page or the Barlow #3-14 well file page.