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The September 2023 monthly report and the second 2023 Biannual Well Test Report are now available. Please see the Monthly and Annual Reports page for more information.

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 10, 2023.

November 2023 Secretary Update

Current Items:
New Commissioner – Marc Haws
Docket No. CC-2023-OGR-01-001, Application for Integration
IOGCC Annual Conference
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

New Commissioner – Marc Haws
We are thankful that Marc Haws has accepted Governor Little’s appointment to the Commission. Marc’s first official action will be attending our November 14, 2023 meeting in person at the Capital. Marc’s background in law, as well as the fact that he is a SW Idaho native, should prove valuable moving forward. His bio has been uploaded and is viewable on our Commission website About the Commission | Oil & Gas Conservation Commission (idaho.gov)

Docket No. CC-2023-OGR-01-001, Application for Integration
The Department received an Application for Integration from Snake River Oil & Gas, LLC on January 23, 2023. More information for this application and hearings can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

IOGCC Annual Conference
The meeting was well-attended, with the most in-person participation since pre-Covid meetings. The main topics discussed included states seeking Class VI (carbon sequestration) primacy and the legal aspects of pore space rights. Five states reported seeking federal funding for the Methane Emissions Reduction Program (MERP). The Department of Interior was present for another question and answer session on the Orphan Well Formula Grant Guidance. On a personal note, John Baza, the Director of the Utah Division of Oil, Gas and Mining will be retiring in December. John has been extremely helpful in assisting the oil and gas program in Idaho, and was on the SOGRE review team in 2016. We wish him all the best in his future endeavors.

Injection Well Update
As of November 1, 2023 no operations have commenced to convert the DJS Properties #2-14 to a Class II injection well. The operator has until December 19, 2024 to commence injection operations, or apply to EPA Region 10 for an extension of the permit.

Field Status
Workover operations continue at the Kauffman #1-9 well in an attempt to re-establish oil production from the Lower Target (LT) zone. If unsuccessful, the well, which was declared Inactive in December 2022 is slated to be plugged and abandoned in January 2024. No other operational activities are scheduled by the operator in 2023. Annual inspections continue for wells and facilities in the Payette area. Twelve well and two facilities inspections have been completed in 2023.

News Article(s) of Interest
Expansion of Pacific Northwest natural gas pipeline gets go-ahead:

Alaska offers royalty-free lease terms in Cook Inlet:
https://www.adn.com/business-economy/energy/2023/10/23/alaska-offering-royalty-free-lease-terms-to-stimulate-cook-inlet-gas-development/

California enacts new greenhouse gas reporting requirements for businesses: https://www.stoelrivesenvironmentallawblog.com/laws-and-regulations/regulations/californias-new-climate-related-disclosure-laws/

Despite a nearly 100% increase in recent years, Idaho housing costs continues to be dwarfed by neighbor states, driving growth:
Study: Idahoans express concern about rapidly growing population, ag land loss

With a focus on transparency, Eavor Technologies takes the lead in scalable geothermal energy:
Capital Raise of $182 Million Confirms Eavor as the Leader in Scalable Geothermal – Eavor

Colorado’s new law granting regulatory authority to the counties gets put to use:
https://www.9news.com/article/news/local/arapahoe-county-oil-and-gas-regulations/73-1b3b4b8b-5962-4cf0-bcc3-01927d00eace

Current Prices

NW Natural Gas (EIA)	$2.70 MMBtu.	11/09/23	(34.3% / $0.69 increase since last month)
NGL (EIA)	$6.95 MMBtu.	11/08/23	(6.6% / $0.49 decrease since last month)
WTI	$75.74 bbl.	11/09/23	(8.0% / $6.57 decrease since last month)

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 7, 2023.

October 2023 Secretary Update

Current Items:
Docket No. CC-2023-OGR-01-001, Application for Integration
November OGCC Meeting
IOGCC Annual Conference
BLM Updates to Fluid Mineral Leasing Process
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Docket No. CC-2023-OGR-01-001, Application for Integration
The Department received an Application for Integration from Snake River Oil & Gas, LLC on January 23, 2023. More information for this application and hearings can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

November OGCC Meeting
The November regular meeting will be held on Tuesday, November 14, 2023. More information can be found on the Commission Meetings page on the OGCC website.

IOGCC Annual Conference
The 2023 Annual Conference is scheduled for October 16 through 18th in Park City, Utah. The meeting always includes a wide range of participants from federal and state oil and gas regulatory officials, industry representatives and non-governmental organizations. The Honorable Mark Gordon, Governor of Wyoming is expected to give the opening address this year. A tentative schedule is posted on the IOGCC web page.

BLM Updates to Fluid Mineral Leasing Process
The Governor’s Office of Species Conservation (OSC), Office of Energy and Mineral Resources (OEMR), and the Department of Lands (IDL) are coordinating comments to the Bureau of Land Management (BLM). These comments pertain to variances for fluid mineral leasing on federal lands involving Greater Sage-Grouse Habitat Management Areas. I’ve reviewed the alternatives provided and will meet with our state offices to discuss them on Thursday, October 12 to provide recommendations.

Injection Well Update
The Class II injection well permit was issued by the EPA November 3, 2022 and took effect December 19, 2022. The operator is evaluating costs to convert the DJS Properties #2-14 to the injection well.
If the conversion is not completed and injection commenced by December 19, 2024 the operator must plug and abandon the well and the permit will expire. Alternatively, the operator may request that EPA grant an extension and outline the reasons for the extension to the EPA Director.
More information can be found on the EPA site: UIC Class II Final Permit for Willow Gas Field, Payette County, Idaho – ID2D001A – November 2022 (epa.gov)

Field Status
On September 22nd the Department conducted an annual inspection of the Highway 30 Gas Processing Facility. Participating in the inspection were staff from IDL’s Southwest office and employees of Snake River Oil & Gas. A final inspection report was submitted to the operator September 25, 2023. Twelve wells remain on the annual inspection schedule. It is expected that they will be completed within the first two weeks of October.

News Article(s) of Interest
Top shale plays expect third straight month of production decline: https://www.reuters.com/markets/commodities/us-oil-output-top-shale-regions-set-fall-october-eia-2023-09-18/

Oil prices rise after week of steep loses: https://www.reuters.com/business/energy/oil-track-sharpest-weekly-decline-since-march-2023-10-06/

Wyoming passes on federal funds: https://wyofile.com/wyoming-passes-on-federal-funds-to-voluntarily-close-oil-and-gas-wells/#:~:text=Featured%20Top%20Story-,Wyoming%20passes%20up%20federal%20funds%20to%20voluntarily%20close%20oil%20and,prevent%20errant%20methane%20gas%20emissions

The above article will likely be a topic of discussion later this month at the Interstate Oil & Gas Compact Commission annual conference.

Current Prices

NW Natural Gas (EIA)	$2.01 MMBtu.	09/06/23	(21.8% / $0.56 decrease since last month)
NGL (EIA)	$7.44 MMBtu.	09/06/23	(0.9% / $0.07 decrease since last month)
WTI	$82.31 bbl.	09/07/23	(5.2% / $4.56 decrease since last month)

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

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

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, September 9, 2023.

September 2023 Secretary Update

Current Items:

New Commissioner – Marg Chipman
Second Quarter Commission Report
Docket No. CC-2023-OGR-01-001, Application for Integration
September OGCC Meeting
BLM Updates to Fluid Mineral Leasing Process
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

New Commissioner – Marg Chipman
Governor Little has selected Marg Chipman of Weiser to fill the fourth commissioner role. Statute changes recommended by the Commission went into effect on July 1, 2023. Marg will fill the requirement to have a commissioner knowledgeable in land matters. Her first meeting will be our September meeting on Thursday, September 14. Marg has served as an OGCC commissioner before, and we welcome her experience and commitment to the residents of Idaho.

Second Quarter Commission Report
Attached is the 2023 Second Quarter Commission Report. Production was down as a result of suppressed commodity prices, which is a normal trend in the spring months.

Docket No. CC-2023-OGR-01-001, Application for Integration
The Department received an Application for Integration from Snake River Oil & Gas, LLC on January 23, 2023. More information for this application and hearings can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

September OGCC Meeting
The September 19, 2023 regular meeting has been cancelled. The Commission will hold a special meeting on September 14, 2023. More information can be found on the Commission Meetings page on the OGCC website.

BLM Updates to Fluid Mineral Leasing Process
The processes has not been updated for several decades and the link below outlines the goals well. Commissioners and the public are welcome to participate. Please visit https://www.blm.gov/onshore-oil-and-gas-leasing-rule to sign up and for additional information.

Injection Well Update
The Class II injection well permit was issued by the EPA November 3, 2022 and took effect December 19, 2022. There has been no progress from the operator on construction activities. Reservoir testing procedures are being considered for submission to EPA Region 10 for approval.

Field Status
As of July 2023, five of the permitted sixteen wells in the Payette area were producing, all from the Harmon Field area. All wells in the Willow Field area have been shut-in since January 2023. In July the production averaged 4.8 million cubic feet of gas per day, 88 barrels of condensate per day and 17 barrels of water per day. These numbers are higher than those reported in June. No drilling activities have been planned for the fourth quarter of 2023 as of this date. Additional information can be found in the attached Second Quarter Commission Report.

News Article(s) of Interest
US rig count down for 8th straight week: https://www.reuters.com/article/usa-rigs-baker-hughes/us-drillers-cut-oil-and-gas-rigs-for-eighth-week-in-a-row-baker-hughes-idUSL1N3AC2BO

US crude oil output back at pre-pandemic levels: https://www.reuters.com/markets/commodities/us-crude-output-rises-june-highest-since-feb-2020-eia-2023-08-31/

Biden administration cancels Alaska leases: https://www.adn.com/business-economy/energy/2023/09/06/biden-administration-cancels-state-owned-oil-leases-in-arctic-national-wildlife-refuge/

Current Prices

NW Natural Gas (EIA)	$2.57 MMBtu	09/06/23	(22.2% / $0.73 decrease since last month)
NGL (EIA)	$7.51 MMBtu.	09/06/23	(2.3% / $0.17 increase since last month)
WTI	$86.87 bbl.	09/07/23	(6.5% / $5.32 increase since last month)

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, August 5, 2023.

August 2023 Secretary Update

Current Items:
Docket No. CC-2023-OGR-01-001, Application for Integration
August OGCC Regular Meeting
BLM Updates to Fluid Mineral Leasing Process
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Docket No. CC-2023-OGR-01-001, Application for Integration
The Department received an Application for Integration from Snake River Oil & Gas, LLC on January 23, 2023. More information for this application and hearings can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

August OGCC Regular Meeting
Rescheduled to September 19, 2023 at 2:00 PM MT. This is to allow the Governor’s office additional time to finalize selection of two new commissioners. The Governor’s office has been working diligently through the process.

BLM Updates to Fluid Mineral Leasing Process
The Bureau of Land Management (BLM) is seeking public comment on the Onshore Oil & Gas Leasing Rule. This will be the first comprehensive update to the fed’s onshore oil and gas regulatory framework in decades. The goal is more comprehensive regulations that will provide more consideration to cultural sites, tribal lands, and habitat. The new rule could also increase tax revenue and update bonding requirements.

Over the next month there will be a series of informational meeting both virtually and in person. The Department will participate in the next informational meeting and report the information back to the Commission.

Commissioners and the public are welcome to participate as well. Please visit https://www.blm.gov/onshore-oil-and-gas-leasing-rule to sign up and for additional information.

Injection Well Update
There has been no progress from the operator on construction activities due to economic factors. Reservoir testing procedures are being considered for submission to EPA Region 10 for approval.

Field Status
The Department met with the operator to discuss facilities and pipeline infrastructure updates, field production status, well plugging status, and Class II injection well progress. Because the operator has curtailed production in recent months due to low product prices, they have used the down-time to perform seasonal maintenance and clean-up activities as needed after recent facilities installations. In June the production averaged 2.5 million cubic feet of gas per day, 35 barrels of condensate per day and 15 barrels of water per day from three wells in Harmon Field.

The Department has been working with the operator to finalize status on the Kauffman #1-9 well. On August 2, 2023 we provided notice to the operator that the well must be plugged and abandoned on or before January 31, 2024. This is required under IDAPA 20.07.02.501.01, which mandates a well be declared inactive after 24 months of non-production. Well inspections by IDL staff show the well is stable but has been partially dismantled by the operator. The operator has fourteen days from the date of the letter to request an appeal to the Commission.

News Article(s) of Interest
California is apparently a Dillon State like Idaho: California High Court Blocks County Oil Well Ban

Current Prices

NW Natural Gas (EIA)	$3.30 MMBtu.	08/04/23	(63.3% / $1.28 increase since last month)
NGL (EIA)	$7.34 MMBtu.	08/02/23	(27.0% / $1.54 increase since last month)
WTI	$81.55 bbl.	08/03/23	(13.6% / $9.79 increase since last month)

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

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, July 8, 2023.

July 2023 Secretary Update

Current Items:
Title 47, Chapter 3 – revised statute now in effect
Docket No. CC-2023-OGR-01-001, Application for Integration
New Commissioner Selection
Field Status
News Article(s) of Interest
Current Prices

Title 47, Chapter 3 – revised statute now in effect
The revised statute for Title 47, Chapter 3 took effect on July 1, 2023. The revised language is available on the Legislature website here: https://legislature.idaho.gov/statutesrules/idstat/Title47/T47CH3/

Docket No. CC-2023-OGR-01-001, Application for Integration
The Department received an Application for Integration from Snake River Oil & Gas, LLC on January 23, 2023. All documents, including my most recent June 30 order and notice of August hearing can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

New Commissioner Selection
The Governor’s office is actively working to replace former commissioners Classen and Miller. Replacements will be selected in time for the August meeting, if not sooner. I will keep the current commissioners updated as the process continues.

Field Status
Natural gas prices in the pacific northwest have dropped significantly over the past few months. The operator is evaluating production options to conserve the resource and protect mineral interest owners. The Department is monitoring production and sale price closely.

News Article(s) of Interest
Natural gas prices in the NW U.S. is among the lowest, while Electricity spot price is second highest in the U.S., in many cases 50% higher than other regions:
U.S. Energy Information Administration – EIA – Independent Statistics and Analysis

Idaho is in the top four states nationwide for in-state electricity production from renewable resources.
U.S. Energy Information Administration – EIA – Independent Statistics and Analysis

Current Prices

NW Natural Gas (EIA)	$2.02 MMBtu.	07/07/23	(no change since last month)
NGL (EIA)	$5.70 MMBtu.	07/06/23	(1% / $0.06 decrease since last month)
WTI	$71.76 bbl.	07/07/23	(0.7% / $0.48 increase since last month)

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