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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, September 5.
Current Items:
FY2020 4th Quarter Update (April-June 2020)
Application for Permit to Drill
News Article(s) of Interest
Current Prices
FY2020 4th Quarter Update (April-June 2020)
April through June 2020 saw zero production in Idaho. The field remains shut in as a result of low prices, limited infrastructure, and high water disposal costs.
See 2020Q2 Attachment.
Application for Permit to Drill
The Department has completed the review for the Barlow #2-14 application for permit to drill. The Department provided our findings to the AG’s office for review and will respond to the applicant soon. Once the decision is sent to the applicant the response will be posted on the Well Permit Applications page of the OGCC Website.
News Article(s) of Interest
US oil production rebounded in June – driving prices down this summer.
https://www.reuters.com/article/us-usa-oil-output/u-s-oil-production-rose-to-10-4-million-bpd-in-june-eia-idUSKBN25R2AS
Colorado Oil & Gas Commission weighs historic changes to energy rules.
See E&E CO energy rules attachment.
Current Prices
| Utah Sweet Crude | $32.21 bbl. | 9/4 |
| WTI | $39.42 bbl. | 9/4 |
| Natural Gas | $2.19 mmbtu. | 9/2 |
| NGL | $5.11 mmbtu. | 9/2 |
Two Spacing Evidentiary Hearings completed in month of August
On August 13, 2020, a spacing evidentiary hearing and a public witness testimony session were completed for Docket No. CC-2020-OGR-01-001. Videos of both sessions can be found on the Docket No. CC-2020-OGR-01-001 hearing page. On August 27, 2020, a spacing evidentiary hearing and a public witness testimony session were completed for Docket No. CC-2020-OGR-01-002. Videos of both sessions can be found on the Docket No. CC-2020-OGR-01-002 hearing page.
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, August 21.
Current Items:
Class II Application
Application for Permit to Drill
Monthly Reports
News Article(s) of Interest
Current Prices
Class II Application
Snake River Oil and Gas provided additional information regarding their Class II application to the EPA on August 7th. Based on the timeline discussed this summer the EPA could have their review completed by late fall with a comment period this winter. Potential approval in the spring of 2021.
Application for Permit to Drill
The Department is nearly finished with the review of the Barlow 2-14 well application. Recommendations are being drafted and will be discussed next week.
The application can be found on the Commission website at: https://ogcc.idaho.gov/well-permit-applications/
Monthly Reports
In light of a dip in commodity prices and transportation cost production tapered off in FY2020. Below are the produced volumes:
| Date | Gas (MCF) | Condensate (BBL) | Oil (BBL) |
| 2019-07 | 91,728 | 2,019 | 0 |
| 2019-08 | 98,488 | 1,577 | 0 |
| 2019-09 | 75,874 | 1,381 | 0 |
| 2019-10 | 80,229 | 1,620 | 0 |
| 2019-11 | 69,801 | 1,311 | 0 |
| 2019-12 | 36,158 | 413 | 0 |
| 2020-01 | 21,960 | 266 | 0 |
| 2020-02 | 14,848 | 269 | 0 |
| 2020-03 | 14,203 | 237 | 0 |
| 2020-04 | 0 | 0 | 0 |
| 2020-05 | 0 | 0 | 0 |
| 2020-06 | 0 | 0 | 0 |
News Article(s) of Interest
2020 Great American Outdoors Act signed into law by President Trump enhances funding for national parks and monuments. The GAOA was co-sponsored by Idaho Representative Mike Simpson and received praise from the Idaho Conservation League:
https://www.kivitv.com/news/president-trump-signs-great-american-outdoors-act-into-law
The GAOA is funded by offshore oil and gas royalties:
https://www.oedigital.com/news/480709-trump-signs-law-to-fund-public-land-maintenance-with-offshore-oil-and-gas-royalties?utm_source=AOGDigital-ENews-2020-08-05&utm_medium=email&utm_campaign=OEGDigital-ENews
Oregon: Facebook stirs anger, abandons drilling gear on Oregon coast
https://martinsvillebulletin.com/news/national/facebook-stirs-anger-abandons-drilling-gear-on-oregon-coast/article_ec7be328-02e8-5409-90ec-5a54fdaa4b95.html
Current Prices
| Utah Sweet Crude | $33.28 bbl. | 8/20 |
| WTI | $42.27 bbl. | 8/20 |
| Natural Gas | $2.36 mmbtu. | 8/20 |
| NGL | $5.18 mmbtu. | 8/20 |
June Monthly Report
The June 2020 monthly report is now available. Please see the Monthly and Annual Reports 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, August 8.
Commissioners,
Not many updates since we held our quarterly meeting this week. See below.
Current Items:
Application for Permit to Drill
News Article(s) of Interest
Current Prices
Application for Permit to Drill
The comment period for the application for permit to drill submitted by Snake River Oil & Gas, LLC for a proposed Barlow #2-14 well ended this past Wednesday, August 5. The Department is preparing those comments for posting on Monday, August 10th on the Well Permit Applications page. The application is already posted.
News Article(s) of Interest
Office of Inspector General finds royalties paid by Idaho Oil & Gas operator on federal interests are accurate:
https://www.doioig.gov/sites/doioig.gov/files/InvestigativeSummary_SuspectedRoyaltiesFraudONRRID.pdf
NOTE: I have requested a copy of the full report and will share when it is received.
Increase in US LNG export projected in August
https://www.reuters.com/article/usa-lng-exports/u-s-lng-exports-set-to-rise-for-the-first-time-in-six-months-idUSL1N2F50YS
US LNG sector shows resilience during pandemic
https://www.reuters.com/article/us-united-states-lng-exports-graphic/record-u-s-lng-output-jump-lifts-exports-in-weak-market-idUSKCN24U1WX?il=0
Current Prices
| Utah Sweet Crude | $32.65 bbl. | 8/06 |
| WTI | $41.53 bbl. | 8/07 |
| Natural Gas | $2.25 mcf. | 8/07 |
| NGL | $5.00 mmbtu. | 8/05 |
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, 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
https://www.kdrv.com/content/news/Oregon-agency-delivers-setback-to-Jordan-Cove-terminal-project-571854201.html
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 |
Application for Permit to Drill (Barlow #2-14) Under Review
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.
May Monthly Report
The May 2020 monthly report is now available. Please see the Monthly and Annual Reports 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, 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: https://www.idl.idaho.gov/agency-guidance-documents/
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 |
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, 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. http://iogcc.ok.gov/Default.aspx?shortcut=2020agenda. 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 |