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Mick Thomas

Division Administrator – Minerals, Public Trust, and Oil & Gas

Secretary to the Oil & Gas Conservation Commission

This update was sent to the Commission on Saturday, July 25.

Current Items:
OGCC Regular Meeting
Application for Permit to Drill
Monthly Reports
News Article(s) of Interest
Current Prices

OGCC Regular Meeting
The next OGCC Regular Meeting will be held on Wednesday, August 5, 2020. The meeting will begin at 1:00pm (MT). More details can be found on the Commission Meetings page of the OGCC Website.

Application for Permit to Drill
The Department received an application for permit to drill submitted by Snake River Oil & Gas, LLC for a proposed Barlow #2-14 well. The application can be found on the Well Permit Applications page of the OGCC Website. The Department is accepting public comment on the application through August 5th.

Monthly Reports
The May monthly production and transportation reports have been posted on the Monthly & Annual Reports page of the OGCC Website.

News Article(s) of Interest
EIA: US petroleum demand to fully recover in 2021
https://www.eia.gov/todayinenergy/detail.php?id=44417

Federal Oil & Gas royalties down 50% – two billion USD – as a result of the COVID-19 response
https://www.argusmedia.com/en/news/2124781-us-energy-royalties-drop-2bn-during-pandemic

Oregon Land Use Board of Appeals reverses city decision to allow dredging for LNG port

Current Prices

Utah Sweet Crude	$31.77 bbl.	7/09
WTI	$41.24 bbl.	7/24
Natural Gas	$1.68 mcf.	7/22
NGL	$4.67 mmbtu.	7/22

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 5, 2020.

The May 2020 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

Mick Thomas

Division Administrator – Minerals, Public Trust, and Oil & Gas

Secretary to the Oil & Gas Conservation Commission

This update was sent to the Commission on Saturday, July 11.

Current Items:
Updated Guidance Documents Posted
IOGCC Annual Business Conference Council of Regulatory Officials
Update on Plugged and Abandoned Wells
News Article(s) of Interest
Current Prices

Updated Guidance Documents Posted
In order to provide greater transparency to the public, in February the Governor signed executive order 2020-02 TRANSPARENCY IN AGENCY GUIDANCE DOCUMENTS. The Minerals, Public Trust, and Oil & Gas Division has posted the OGCC guidance documents on our website at the following link: https://ogcc.idaho.gov/program-administration/
Additional IDL guidance documents are located here for your review:

IOGCC Annual Business Conference Council of Regulatory Officials
I once again chaired the CRO meeting for the IOGCC last week. In general, all Oil & Gas producing states and provinces are facing significant reductions in production as a result of decreased commodity prices. These states are also seeing significant reductions in their operational budgets that have resulted in furloughs and other reductions in staff. Many of the remaining staff are working remotely due to COVID-19 precautions.
Thankfully Idaho is fairing much better than our sister states. Our fiscally conservative policies in combination with our MPOG restructure has enabled us to reduce general fund usage while maintaining excellent customer service and protect our folks and their institutional knowledge. We will discuss the MPOG reorganization further at the August Commission meeting.

Update on Plugged and Abandoned Wells
Per the Operator, the White 1-10 and Korn 1-22 have been plugged and abandoned with reclamation activities completed. James followed up with the operator this week and found out that the remaining well pads may be kept per the surface owners request to be used otherwise. James is continuing to communicate with the Operator for updates.

News Article(s) of Interest
U.S. signs for first west coast LNG port. This port could open up Pacific markets to U.S. gas and LNG production. The Oregon Governor is opposed:
https://apnews.com/d05fcb3e818f8533c4473199d893df27

Current Prices

Utah Sweet Crude	$30.32 bbl.	7/09
WTI	$40.57 bbl.	7/10
Natural Gas	$1.82 mcf.	7/10
NGL	$4.43 mmbtu.	7/08

Mick Thomas

Division Administrator – Minerals, Public Trust, and Oil & Gas

Secretary to the Oil & Gas Conservation Commission

This update was sent to the Commission on Saturday, June 27.

Current Items:
Interstate Oil and Gas Compact Commission Virtual Summer Meeting
Class II Application
Monthly Reports
Commissioner Vacancy Update
News Article(s) of Interest
Current Prices

Interstate Oil and Gas Compact Commission Virtual Summer Meeting
As a result of the nationwide COVID-19 response and compliance with physical distancing, the IOGCC spring business meeting has been moved to a virtual format with meetings scheduled from June 29th to July 21st. . Attendance is free to the public, but registration is required.
In fall of 2018 I was appointed to chair the Counsel of Regulatory Officials which consist of all member state directors. I’ve worked closely with IOGCC staff in the planning and development of this online format and encourage each of you to sign up and participate in those meetings you are interested in. Please reach out to Jeanna Rui at 405-522-8383 or email Jeanna at jeanna.rui@iogcc.state.ok.us

Class II Application
Snake River Oil and Gas and the EPA have been in regular communication regarding the Class II Application – specifically the Aquifer Exemption request. The EPA has requested additional information and clarification from SROG by July 24th, 2020. This correspondence is available for your review if desired.

Monthly Reports
The April monthly production and transportation reports have been posted to the Commission website: https://ogcc.idaho.gov/monthly-and-annual-reports/. Production for the month was near zero with no liquids produced or sold and only a small amount of natural gas. This was in line with decreased production nationally from most of the smaller fields.

Commissioner Vacancy Update
The Governor’s office is continuing to develop and review a list of commissioner candidates in light of Renee Loves resignation. With the amount of energy being placed on other issues we are not certain if that appointment will happen before the August OGCC meeting. I’ll continue to keep you updated.

News Article(s) of Interest
Crude refining capacity increases incrementally to new record:
https://www.reuters.com/article/us-refineries-capacity/u-s-crude-oil-refining-capacity-nears-19-million-bpd-u-s-eia-idUSKBN23W09T

Liquified Natural Gas takes major hit as a result of the COVID response:
https://www.eia.gov/todayinenergy/detail.php?id=44196

Natural Gas is the best solution for clean affordable energy as Americans tighten their belts during the COVID response:
https://news.bloomberglaw.com/environment-and-energy/insight-municipal-natural-gas-bans-hurt-american-consumers

State of Oregon and environmental groups appeal court decision in favor of LNG development:
https://www.gjsentinel.com/news/western_colorado/state-of-oregon-others-appeal-jordan-cove-decision-in-court/article_6dfbb9f4-acc7-11ea-9c8c-c3974d5b5d45.html

Current Prices

Utah Sweet Crude	$29.42 bbl. (?)	6/26
WTI	$38.17 bbl. (?)	6/26
Natural Gas	$1.58 mcf. (?)	6/24
NGL	$4.43 mmbtu. (?)	6/24

 

The April 2020 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

Mick Thomas

Division Administrator – Minerals, Public Trust, and Oil & Gas

Secretary to the Oil & Gas Conservation Commission

This update was sent to the Commission on Saturday, June 13.

Current Items:
Pipeline / Gathering Line
Class II Application
COVID-19 Response
News Article(s) of Interest

Pipeline / Gathering Line
No major update on the Pipeline / Gathering Line infrastructure. I spoke with the operator this week and learned a short segment still needs to be installed, but the main lines linking the wells to the plant have been finished and tested.

Class II Application
On Wednesday the EPA provided comments on SROG’s UIC application and requested additional information. The Operator is working with the Idaho Geological Survey to provide the request information. As a reminder, per Idaho Code the IGS is the lead state agency in the dissemination of geologic and mineral data for Idaho and has a strong understanding of the regional geology in the Payette Field. https://legislature.idaho.gov/statutesrules/idstat/Title47/T47CH2/SECT47-201/

COVID-19 Response
As of this email we have moved into stage four of the Governors rebound Idaho plan.
Many of the Division staff are returning to the office in the next few weeks. As of July 1st we plan on everyone either being back in the office or having a telecommuting arrangement in place that provides a hybrid office / remote work schedule.

News Article(s) of Interest
US shale producers begin restoring output as oil prices turn higher
https://www.reuters.com/article/us-global-oil-shale-resumption/u-s-shale-producers-begin-restoring-output-as-oil-prices-turn-higher-idUSKBN2392UG?il=0

US EPA moves to curb a state’s ability to deny permits for energy projects
https://www.reuters.com/article/usa-epa-water-energy/us-epa-moves-to-curb-state-powers-to-deny-permits-for-energy-projects-idUSL1N2DE0ZE

Renewable energy overtakes coal, still lags far behind oil and natural gas
https://www.forbes.com/sites/rrapier/2020/05/31/renewables-overtake-coal-but-lag-far-behind-oil-and-natural-gas/#5d1499633ffd

Current Prices

Utah Sweet Crude	$27.04 bbl.	6/11
WTI	$36.50 bbl.	6/11
Natural Gas	$1.75 mcf.	6/12
NGL	$4.60 mmbtu.	6/10

 

Mick Thomas

Division Administrator – Minerals, Public Trust, and Oil & Gas

Secretary to the Oil & Gas Conservation Commission

This update was sent to the Commission on Saturday, May 30.

Current Items:
Interstate Oil & Gas Compact Commission Business Meeting
Spacing Application Received
IDL Offices now open
Quarterly Report (Q1) 2020
News Article(s) of Interest
Current Prices

IOGCC Business Meeting
Due to the COVID-19 response, the IOGCC annual business meeting was canceled in early May and has been rescheduled for June 29 – June 21 using a virtual format. This enables the material and discussion to reach a far broader audience and will provide greater flexibility for attendees. As chairman of the Council of Regulatory Officials (CRO) I’m working regularly with IOGCC staff to coordinate the agenda and test meeting delivery options. If you would like to see the agenda or participate virtually please let me know, or visit . Attendance is free since we are a member state.

Spacing Application Received
On Tuesday, May 26, 2020, the Department received an application from Snake River Oil & Gas, LLC for a spacing order consisting of the SE ¼ of Section 10, the SW ¼ of Section 11, the NW ¼ of Section 14, and the NE ¼ of Section 15, Township 8 North, Range 5 West, Boise Meridian, Payette County, Idaho.
The application and other supplemental information are posted to the OGCC Website on the Administrative Hearings page under Docket No. CC-2020-OGR-01-002.
Note: as of this email the multiple state websites including the Commission and the IDL pages are not functioning. Please check back at a later time. I.T. may have the problems resolved soon.

Some IDL offices now open
As the state moves out of the COVID-19 response some IDL offices have reopened to the public. The Idaho Division of Human Resources is providing guidance to agencies on reopening protocols. Each agency will provide a complete reopening plan to the Governor’s office and Idaho DHR before June 13th. We hope that all IDL offices will be back to full staff by the end of June. More information can be found at the DHR website:

Quarterly Report (Q1) 2020
Field activity continues to be impacted by commodity prices.

News Article(s) of Interest
Alta Mesa Liquidation Plan Approved

Oversupply of hydrocarbon liquids could decrease this summer:
https://www.reuters.com/article/global-oil-kemp/rpt-column-recovering-oil-demand-could-drive-market-into-deficit-by-july-kemp-idUSL8N2CX4ZE

Current Prices

Utah Sweet Crude	$23.51 bbl.	5/29
WTI	$35.19 bbl.	5/29
Natural Gas	$1.85 mcf.	5/29
NGL	$4.36 mmbtu.	5/27

The March 2020 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

Mick Thomas

Division Administrator – Minerals, Public Trust, and Oil & Gas

Secretary to the Oil & Gas Conservation Commission

This update was sent to the Commission on Saturday, May 16.

Current Items:
Pipeline / Gathering Lines
Class II Application
Impact of COVID-19 Response
Open Commissioner Position
Idaho Data Explorer Restored
News Article(s) of Interest

Commissioners,

Not a lot to report since our meeting Wednesday. For those on this email who were not listening in on the meeting I’ll review a few of the topics discussed.

Pipeline / Gathering Lines
The pipelines and gathering lines are installed and pressure tested for the Fallon and Barlow wells.

Class II Application
The EPA is reviewing the Class II UIC permit application and should have a decision before the end of the calendar year.

Impact of COVID-19 Response
In keeping with state guidance, the IDL offices are still following work from home protocols. As we move through the phases of reopening more staff will return to work as needed.

Open Commissioner Position
The Governor’s office will take the lead on this. While it is an important position to fill, the COVID-19 response is still taking a lot of resources. As long as we have a quorum of three commissioners, we can hold meetings and vote.

Idaho Data Explorer Restored
Some of you may have seen that the data transfer between RBDMS and Data Explorer was not functioning last week. This was a result of a firewall migration by IT. Chris Gozzo and James Thum worked to resolve the issues and the site is operating correctly now. Please follow the below link to see well information for Idaho. Use Chrome as the browser, as the map does not work in Microsoft browsers.
http://welldata.ogcc.idaho.gov/

News Article(s) of Interest
Pipeline regulator overrides Washington States attempt to increase regulation on pipelines.
PHMSA Strikes Down Washington’s Crude Shipping Requirements

States ask Trump administration to pay laid off oil workers to plug abandoned wells.
https://www.reuters.com/article/us-global-oil-usa-wells/states-ask-trump-administration-to-pay-laid-off-oil-workers-to-plug-abandoned-wells-idUSKBN22I2KA

EPA releases summary of Input on Oil and Gas Extraction Wastewater Management Practices Under the Clean Water Act.
https://www.epa.gov/eg/study-oil-and-gas-extraction-wastewater-management

Utah’s oil industry crumbling under coronavirus pressure.
https://www.ksl.com/article/46749673/utahs-oil-industry-crumbling-under-coronavirus-pressure

Exxon reports historic loss, closes 75% of Permian rigs

Utah Sweet Crude	$18.26 bbl.	5/14
WTI	$29.65 bbl.	5/15
Natural Gas	$1.64 mcf.	5/14
NGL	-($0.75) mmbtu.	4/29 (No update available since last update)