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OGCC Secretary Update
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 2.
Current Items:
OGCC Regular Meeting
Pipeline / Gathering Line
Class II Application
Impact of COVID-19 Response
Commissioner Love Resigns
News Article(s) of Interest
OGCC Regular Meeting
The next OGCC Regular Meeting will be held via teleconference on Wednesday, May 13, 2020. The meeting will begin at 1:00pm (MT). More details will follow soon.
Pipeline / Gathering Line
After a conversation with the operator this week we learned that the lines connecting the Fallon and Barlow wells to the Little Willow facility are installed, pressured tested and finished. Favorable weather allowed the lines to be completed on time and under budget. Clean up and reseeding are underway. The operator also shared that additional lines are being developed for a new collection facility.
Class II Application Considered Complete
The Department was notified this week that the Class II UIC permit is considered complete by the EPA.
In a letter from EPA region 10 to the operator, the EPA shared the following: “. . . the EPA has determined (the) application is complete. The EPA will now complete a technical review of (the) permit application to determine whether the information submitted can ensure the protection of underground sources of drinking water. Please note that the EPA may request additional information as necessary to clarify, modify or supplement previously submitted material. If such a request is made, it will not affect the completeness status of this application. . .”
The Department and the Commission will continue to monitor the application process.
Impact of COVID-19 Response
On Thursday, April 30 the Governors emergency proclamation expired, and was replace on May 1, 2020 by a Stay Healthy order and a four stage rebound plan. Please visit for further information.
IDL offices will serve the public on an appointment only basis, and staff will continue to work from home whenever possible.
It’s worth mentioning that our own Chris Gozzo was asked to help with the states COVID-19 response websites a few weeks ago. Chris has provided excellent assistance as webmaster for the states corona response sites and will continue to serve as the state returns to normal.
Commissioner Love Resigns
As you know, Renee Love has resigned from the Commission in order to run for the District 5B seat within the Idaho House of Representatives. The Department and the Commission is very appreciative of the guidance and technical support that Renee has provided since her appointment in summer of 2017. She is leaving under the best of terms and will be sorely missed. The Governor’s office will begin the process of finding a new Commission member soon.
News and Article(s) of Interest
Low oil prices could hurt renewable energy support:
https://www.forbes.com/sites/cherryreynard/2020/04/30/will-the-low-oil-price-dent-the-prospects-for-renewables/#7c398ccb14d8
Community group claims partial credit for COVID-19 response
LNG prices to remain weak:
Amidst global glut, U.S. natural gas prices are the strongest:
https://www.bnnbloomberg.ca/u-s-natural-gas-to-be-world-s-priciest-amid-virus-upheaval-1.1426247
Current hydrocarbon prices:
| Utah Sweet Crude | $5.76 bbl. | 4/29 |
| WTI | $19.69 bbl. | 5/1 |
| Natural Gas | $1.89 mcf. | 5/1 |
| NGPL* | -($0.75) mmbtu. | 4/29 |
OGCC Secretary Update
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, April 18.
Current Items:
Pipeline / Gathering Line
Impact of COVID-19 Response
Combined Division Update
News Article(s) of Interest
Pipeline / Gathering Line
The pipeline / gathering line system in Payette county is nearly complete. Our staff has visited the field during construction, and I drove out on April 10th to see workers grading dirt over the gathering line to the Fallon 1-10. Once testing is complete, we will be able to provide more information to the commission.
Impact of COVID-19 Response
The COVID-19 response and associated physical distancing has had an impact on the Mining and Oil & Gas industries in Idaho. The field continues to be shut in until commodity prices rebound. The most current prices for Oil & Gas are listed below.
| Utah Sweet Crude | $10.57 bbl. | 4/16 |
| WTI | $18.44 bbl. | 4/17 |
| Natural Gas | $1.75 mcf. | 4/17 |
| NGPL* | $4.84 mmbtu. | 1/31 |
*(most recent EIA NGPL data – current prices are likely lower)
Combined Division Update
Thanks to the integration of the mineral regulatory and public trust programs into the Oil & Gas division our staff is able to provide much needed support to the Resource Protection and Assistance Bureau. This support includes field work and inspection, streamlining our reclamation estimation process, and rulemaking assistance. This new Minerals, Public Trust, Oil & Gas Division will provide increased efficiencies and cost savings for the rest of CY2020 and FY2021. More to come.
News Article(s) of Interest
Field inspections confirmed no impact from March 31 quake
https://ogcc.idaho.gov/wp-content/uploads/4-10-20-Inspections-completed-no-problems-found-correction.pdf
Pioneer Resources CEO confirms Oil & Gas regulation is needed to sustain industry over long term
Oil nations reach deal for largest-ever production cut
Coronavirus muddies outlook for LNG exports
US Bankruptcy Court Approves $220 Million Sale of Alta Mesa Resources | Hart Energy
https://www.hartenergy.com/news/us-bankruptcy-court-approves-220-million-sale-alta-mesa-resources-186979
Trump tells aides he opposes cutting oil company royalties
Docket No. 20-0000-2000F Rulemaking
At the Oil and Gas Conservation Commission special meeting on February 18, 2020, the OGCC adopted the IDAPA 20.07.02 rules as temporary to be effective upon adjournment sine die of the 2020 legislative session in the event the Legislature did not approve the rules. The Legislature did not approve the pending rules, and the temporary rules became effective March 20, 2020. See the Docket No. 20-0000-2000F Rulemaking page for more information.
February Monthly Report
The February 2020 monthly report is now available. Please see the Monthly and Annual Reports page for more information.
Updated Department Response Following Earthquake
OGCC Secretary Update
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 Friday, April 3.
Current Items:
Pipeline / Gathering Line
Class II Application
Impact of COVID-19 Response
Challis Earthquake 03/31/2020
News Article(s) of Interest
Pipeline / Gathering Line
Pipeline construction continues. Initial pressure test between the Little Willow facility and the Barlow well are being conducted currently.
Class II Application
No update from the last email. The Class II approval has been delayed as a result of the COVID-19 response. The technical review of the application has already been completed. The department continues to monitor the application / approval process and will update the Commission as it develops.
Impact of COVID-19 Response
Shelter-in-place guidance continues to be followed at all IDL offices. Each office is closed to the public, but staff are available by appointment. While MPOG staff are not required to work in the office there is solid work being done with field inspections, RBDMS, and many mineral specific projects beyond Oil & Gas.
Challis Earthquake 03/31/2020
As you know, there was a significant seismic event in Central Idaho on Tuesday evening. Immediately after the quake Snake River Oil and Gas (as well as mine operators across the state) began a series of inspections of facilities, lines, and other structures in order to evaluate the impact of the quake. The Minerals, Public Trust, and Oil & Gas division coordinated with operators and state and local agencies in the evaluation. There are no reported issues associated with the quake.
The Idaho Geological Survey had teams on site in Central Idaho by Thursday morning. IDL staff inspected the Payette field wells and operations yesterday as well. We have confirmed there are not leaks or other issues with wells or facilities. I’ve included a pdf of the update email I sent out yesterday (PDF). Please feel free to contact me if you would like more information.
News Article(s) of Interest
E&E – 3 ways coronavirus is upending the oil industry (PDF.)
U.S. pressing ahead with oil, gas lease sales
https://www.reuters.com/article/global-oil-usa-leases-idAFL1N2BG1NN
Court clears way for rollback of Obama-era fracking policy
Alta Mesa bankruptcy settlement approaching agreement
https://news.bloomberglaw.com/bankruptcy-law/alta-mesa-agrees-to-100-million-less-with-220-million-sale
Department Response Following Earthquake
CC-2020-OGR-01-001 – Response Deadline Continued
Due to the ongoing state of emergency related to the COVID-19 virus, the Oil & Gas Division Administrator has continued the deadline for submitting responses and prehearing motions for Docket No. CC-2020-OGR-01-001. Please see the Order Continuing Objection, Response, and Prehearing Motion Deadline or the Administrative Hearings page for more information.
OGCC Secretary Update
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, March 21.
Current Items:
Pipeline / Gathering Line
Field Status
Class II Application
Impact of COVID-19 Response
News Article(s) of Interest
Pipeline / Gathering Line
The Division is in regular communication with the operator regarding pipeline construction. Currently pipeline construction is ahead of schedule due to favorable weather and very few delays. The operator anticipates pressure testing could commence as soon as next month. I want to commend Program Manager James Thum for his communication with the operator and keeping the Division updated.
Field Status
While the pipeline / gathering line construction continues, the operator has made the decision to shut in the field effective March 20th. This is due to depressed oil and gas prices, and also the undulation of business operations due to COVID-19. The plants in the Payette field will also be shut down. Field staff will continue to be on site to provide security and ensure safety in the near term, and to bring operations back online when the market stabilizes.
Class II Application
The Class II approval process is moving forward but may be delayed due to the impact on federal agencies from the COVID-19 response. The technical review of the application has already been completed but staffing and workload shifts at the EPA’s office could take the approval date into fall 2020. The department continues to monitor the application / approval process and will update the Commission as it develops.
Impact of COVID-19 Response
The Governor’s office in cooperation with State and Local Agencies has provided excellent direction over the past two weeks. The IDL was prepared with an updated COOP (Continuance Of Operation Plan) going into this response, so only minor adjustments were needed to follow the directions given (primarily regarding remote work policies).
The Mineral, Public Trust, and Oil & Gas Division took steps last year to ensure our staff had the capacity to work remotely. Because of this preparation we were able to act quickly in following new recommendations while maintaining full operational status. Whether staff are working remotely or coming in, they are following the directions given by the Governor’s office and the Director. Please feel free to contact me if you have questions.
News Article(s) of Interest
Alta Mesa’s buyer backpedals as financing dries up:
https://rigzone.com/news/alta_mesas_buyer_backpedals_as_financing_dries_up-12-mar-2020-161360-article/
Saudi Arabia increases oil output to record high:
see attached pdf: SLTrib record high
Oregon: US panel approves pipeline, natural gas terminal in Oregon:
Colorado: Federal judge tosses forced pooling oil lawsuit:
see attached pdf: E&E CO pooling
January Monthly Report
The January 2020 monthly report is now available. Please see the Monthly and Annual Reports page for more information.