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The PowerPoint Presentation for the April 11 and April 15 negotiated rulemaking meetings on Draft Text #1 has been posted for IDAPA 20.07.02 Rules Governing Conservation of Oil and Natural Gas in the State of Idaho.

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

James Thum, Oil and Gas Program Manager

This update was sent to the Commission on Friday, April 5, 2024.

April 2024 Secretary Update

Current Items:

IDAPA 20.07.02 Rulemaking Update
BLM Updates to Fluid Mineral Leasing Process
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

IDAPA 20.07.02 Rulemaking Update
The Notice of Intent to Promulgate Rules has been published in the April Administrative Bulletin on the Division of Financial Management webpage here: https://adminrules.idaho.gov/bulletin/2024/04.pdf Three public negotiated rulemaking meetings will be held this month on the 11th, 15th and 29th. 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/

BLM Updates to Fluid Mineral Leasing Process
The public comment period for the BLM’s proposed revisions to the Onshore Oil and Gas Leasing Rule closed September 22, 2023. The BLM continues to analyze and review comments submitted before the September deadline and is expected to issue a final rule in the spring of 2024.

Injection Well Update
The Class II injection well permit issued by the EPA took effect December 19, 2022. No construction activities have commenced as of this date. The permit expires December 19, 2024.

Field Status
Efforts to re-establish production from the Kauffman #1-9 oil zone utilizing a gas lift procedure were unsuccessful and the well was plugged the week of March 18th. The Department has requested that pad reclamation occur by this summer. The Kauffman #1-34 well which has not produced since December 2022 was also plugged the same week. Planned workover operations for the ML Investments #1-11 well have been delayed and the rig was released. This well has a plugging deadline of December 19, 2024.

As of mid-March, Snake River Oil & Gas has shut-in all production in Idaho due to low natural gas prices.

News Article(s) of Interest
Court upholds 2022 Federal oil and gas lease sales

Colorado lawmakers reject proposed drilling ban on new wells after 2030

April 2, 2024 marks the sixty-first anniversary of the first meeting of the Idaho Oil and Gas Conservation Commission

Current Prices

NW Natural Gas (EIA)	$1.35 MMBtu	4/4/2024	(23% / $0.40 decrease since previous month)
NGL (EIA)	$7.28 MMBtu	4/4/2024	(10% / $0.65 increase since previous month)
WTI	$87.37 bbl	4/4/2024	(14% / $10.70 increase since previous month)

 

Informational Bulletin regarding Public Meetings on Draft Text #1 posted for IDAPA 20.07.02 Rules Governing Conservation of Oil and Natural Gas in the State of Idaho

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

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

James Thum, Oil and Gas Program Manager

This update was sent to the Commission on Friday, March 8, 2024.

March 2024 Secretary Update

Current Items:

IDAPA 20.07.02 Rulemaking Update
2023 Fourth Quarter Commission Report
BLM Updates to Fluid Mineral Leasing Process
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

IDAPA 20.07.02 Rulemaking Update
The webpage for IDAPA 20.07.02, Rules Governing Conservation of Oil and Natural Gas in the State of Idaho has been published and can be found here: https://ogcc.idaho.gov/rulemaking/docket-20-0702-2401-oil-gas/ . The Notice of Intent to Promulgate Rules will be published in the April Administrative Bulletin. A link to the notice will be added to the rulemaking page after it is published.

2023 Fourth Quarter Commission Report
The 2023 Fourth 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.

BLM Updates to Fluid Mineral Leasing Process
The public comment period for the BLM’s proposed revisions to the Onshore Oil and Gas Leasing Rule closed September 22, 2023. The BLM continues to analyze and review comments submitted before the September deadline and is expected to issue a final rule in the spring of 2024.

Injection Well Update
The Class II injection well permit issued by the EPA took effect December 19, 2022. No construction activities have commenced as of this date. The permit expires December 19, 2024.

Field Status
Operations on the Kauffman #1-9 well in Willow Field, Payette County to re-establish production with a more robust gas lift procedure commenced February 28, 2024. If production cannot be established, the well has a plugging deadline of May 1, 2024.

On February 22, 2024, the request to extend the inactive status of the ML Investments #1-11 well in Willow Field, Payette County was granted by the Department until December 19, 2024. The extension was granted to coincide with the permit expiration for the DJS Properties #2-14 Class II permit, since the EPA has designated the ML #1-11 for use as an observation/monitoring well for injection operations.

Snake River submitted a Sundry Notice and procedure March 4, 2024 for plugging the Kauffman #1-34 well in Willow Field. This well has only produced sporadically since late-2018. The Department approved the plugging procedure March 4, 2024.

News Article(s) of Interest
Northern Minnesota helium discovery may be North America’s largest

Reduced refinery activity puts upward pressure on gasoline and diesel prices

Natural gas prices surge after EQT announcement

Current Prices

NW Natural Gas (EIA)	$1.75 MMBtu	3/6/2024	(20% / $0.45 decrease since previous month)
NGL (EIA)	$6.63 MMBtu	3/6/2024	(2% / $0.10 increase since previous month)
WTI	$76.67 bbl	3/6/2024	(3.2% / $2.44 increase since previous month)

Don’t forget to turn your clocks forward one hour at 2:00 AM Sunday March 10th.

Media Advisory for IDAPA 20.07.02 Rules Governing Conservation of Oil and Natural Gas in the State of Idaho

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

The December 2023 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

James Thum, Oil and Gas Program Manager

This update was sent to the Commission on Tuesday, February 20, 2024.

February 2024 Secretary Update

Current Items:
February OGCC regular meeting
BLM Updates to Fluid Mineral Leasing Process
Injection Well Status
Field Status
News Article(s) of Interest
Current Prices

February OGCC regular meeting
The first regular meeting of the Commission for 2024 will be held on Tuesday, February 20, 2024 @ 1:30pm (MT). Due to the Legislature being in session, the meeting will be held at Boise City Council Chambers, Boise City Hall, 3rd Floor, 150 N. Capitol Blvd. More information will be posted on the OGCC website on the Commission Meetings page.

BLM Updates to Fluid Mineral Leasing Process
The public comment period for the BLM’s proposed revisions to the Onshore Oil and Gas Leasing Rule closed September 22, 2023. The BLM continues to analyze and review comments submitted before the September deadline and is expected to issue a final rule in the spring of 2024.

Injection Well Update
The Class II injection well permit issued by the EPA took effect December 19, 2022. No construction activities have commenced as of this date. The permit expires December 19, 2024.

Field Status
On January 29, 2024, Snake River Oil & Gas LLC submitted a request to extend the Inactive status and plugging deadline for the Kauffman #1-9 well in Willow Field, Payette County to continue workover operations in an attempt to re-establish production from the LT completion. On January 31, 2024, the Department granted a 90-day extension until May 1, 2024. Copies of the request and the Department reply have been posted on the Kauffman 1-9 well file page.

A request to extend the Inactive status and plugging deadline of the ML Investments #1-11 well in Willow Field, Payette County was submitted by Snake River Oil & Gas LLC to the Department February 8, 2024. The Department is currently evaluating this request, which is posted on the ML Investments 1-11 well file page.

News Article(s) of Interest
Rig count down, majors plan to cut 2024 spending: https://www.reuters.com/business/energy/us-drillers-cut-oil-gas-rigs-first-time-three-weeks-baker-hughes-2024-02-02/

Appeals court considers whether to let stand Alaska’s Willow oil project: https://apnews.com/article/alaska-willow-oil-appeals-f99e8c0d0b565dae3520ff436a5ebd51

New Mexico advances geothermal energy bills:

Current Prices

NW Natural Gas(EIA)	$2.20 MMBtu	2/9/2024	(38% / $1.38 decrease since previous month)
NGL (EIA)	$6.53 MMBtu	2/9/2024	(3% / $0.22 decrease since previous month)
WTI	$76.67 bbl	2/9/2024	(1.8% / $1.38 increase since previous month)

James Thum, Oil and Gas Program Manager

This update was sent to the Commission on Tuesday, January 23, 2024.

January 2024 Secretary Update

Current Items:
Mick Thomas heads to Utah
Field Status
News Article(s) of Interest
Current Prices

Mick Thomas heads to Utah
Mick Thomas, IDL’s Division Administrator over Minerals, Navigable Waters, Oil & Gas and Secretary to the Oil and Gas Conservation Commission, accepted a position leading the State of Utah’s Oil, Gas, and Mining Division. Mick will oversee the regulation of mining coal, minerals, oil, and natural gas in Utah. His first day was January 8, 2024.
For any questions on oil and gas related matters, please contact James Thum, IDL Oil and Gas Program Manager.

Field Status
Snake River Oil & Gas LLC re-started workover operations for a modified gas lift January 4, 2024 for the Kauffman #1-9 well prior to the January 31, 2024 plugging deadline. The ML Investments #1-11 well, which was declared inactive by the Department August 15, 2023, has a plugging deadline of February 15, 2024.

As of December 1, 2023 Payette County production averaged 8.65 million cubic feet of gas per day (MMCFGD), 116.5 barrels of condensate per day (BCD), and 27 barrels of water per day (BWD). Natural Gas Liquids (NGLs) from Highway 30 averaged 7084 gallons per day (GPD). These volumes are about average based on historical production figures for western Idaho.

News Article(s) of Interest
Oil’s Mega Acquisition Spree May Not Be Over:
https://oilprice.com/Energy/Energy-General/Oils-Mega-Acquisition-Spree-Might-Not-Be-Over-Yet.html

What Themes Will Dominate Oil Markets in 2024?
https://www.rigzone.com/news/wire/what_themes_will_dominate_global_oil_market_in_2024-11-jan-2024-175350-article/

Industry Claims BLM withholding priority oil & gas tracts in Wyoming:
https://capcity.news/community/energy-community/2024/01/19/industry-blm-is-withholding-priority-oil-and-gas-tracts-in-wyoming/

Current Prices

NW Natural Gas (EIA)	$3.58 MMBtu	1/22/2024	(No change since last month)
NGL (EIA)	$6.85 MMBtu	1/22/2024	(1% / $0.07 decrease since last month))
WTI	$75.29 bbl	1/22/2024	(7.9% / $5.51 increase since last month)

The November 2023 monthly report is now available. Please see the Monthly and Annual Reports page for more information.