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Note: This post was originally posted on March 31, 2023. Due to switching over to the updated website format, the post had to be re-posted. 

The Idaho Department of Lands (IDL) will hold a town hall meeting from 6:30 p.m. until 7:30 p.m. on April 12 at Fruitland City Hall, 200 S. Whitley Dr. in Fruitland.

Mick Thomas, IDL Division Administrator and Oil and Gas Conservation Commission Secretary, will give a short update regarding oil and gas activity in Payette County and then answer questions from the public.

Media Advisory 

Note: This post was originally posted on March 16, 2023. Due to switching over to the updated website format, the post had to be re-posted. 

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

Note: This post was originally posted on March 14, 2023. Due to switching over to the updated website format, the post had to be re-posted. 

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, March 11, 2023.

March 2023 Secretary Update

Current Items:

Docket No. CC-2022-OGR-01-002, Application for Integration
Docket No. CC-2023-OGR-01-001, Application for Integration
2023 Legislature – Oil and Gas Statute
Oil and Gas Townhall
Oil and Gas Financial Snapshot
Field Status
Commission 4th Quarter Report
News Article(s) of Interest
Current Prices

Docket No. CC-2022-OGR-01-002, Application for Integration
The order for this case was sent out on March 7, 2023. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage.

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. The Department has scheduled the hearing to determine “just and reasonable” factors for Tuesday, March 14, 2023. More information for this application and hearing can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

2023 Legislature – Oil and Gas Statute
On March 7, I presented H0120 to the House Resources and Conservation Committee. The Committee sent it to the floor with a do-pass recommendation. On Thursday March 9th the bill passed the house 62-6. Next step is to present the bill to the Senate Resource and Environment Committee.

Oil and Gas Townhall
On Wednesday, April 12, I will be holding an Oil and Gas Townhall in Fruitland, Idaho to answer questions from the public on oil and gas related matters. This is the first Townhall held since the covid pandemic began. The Townhall will be from 6:30PM to 7:30PM. Payette County resident are encouraged to attend.

Oil and Gas Financial Snapshot
      • Since taking ownership of the field SROG has paid ~$8 million in royalties. Most of that has been in 2021 and 2022.
      • Royalties have been paid to ~275 owners. These owners are mostly private, but the State of Idaho and the City of Fruitland have received royalties as well.
      • December 2022 royalties – $1.5MM.
      • Calendar year 2022 royalties paid – $5.3MM.
            o City of Fruitland royalties paid – $110K.
            o Individual (private) royalties paid – $4.9MM.
            o State of Idaho royalties paid – $240K.
      • Severance Taxes paid to the state of Idaho in CY2022 – $770K.
      • Salaries paid for the field in CY2022
            o Land services $450K
            o Field and plant personnel $620K
            o Combined $1.07MM.
      • Taxes paid to cities – ~$100K.

This data was provided by Snake River Oil & Gas.

Field Status
Production continues to be steady in the field. National infrastructure shortfalls have reduced natural gas supply to the northwest united states, creating a higher cost of natural gas in our region. Supplies from the Idaho operator are improving this situation. Severance tax for January and February 2023 totaled $163,694.

Commission 4th Quarter Report
Attached.

News Article(s) of Interest
Industry sues the city of Portland for essentially blockading domestic hydrocarbon exports. See link and attachment.
State of Montana, fuel industry sue Portland over city’s gas transport rules – OPB

Idaho Attorney General Labrador sues Biden administration to reverse WOTUS rule. See link and attachment.
Local News: AG Labrador Sues Biden Administration To Reverse WOTUS Rule (2/28/23) | Mountain Home News

Current Prices

Natural Gas (EIA NW US spot price)	$5.51 MMBtu.	03/09/23	(23.7% / $1.31 decrease since last month)
NGL (EIA)	$8.81 MMBtu.	03/08/22	(10.4% / $0.83 increase since last month)
WTI	$75.60 bbl.	03/09/22	(3.2% / $2.46 decrease since last month)

Note: This post was originally posted on February 15, 2023. Due to switching over to the updated website format, the post had to be re-posted. 

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, February 10, 2023.

February 2023 Secretary Update

Current Items:

OGCC Regular Meeting
Monthly Production and Sales for November 2022
Docket No. CC-2022-OGR-01-002, Application for Integration
Docket No. CC-2023-OGR-01-001, Application for Integration
2023 Legislature – Oil and Gas Statute
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

OGCC Regular Meeting
The next regular meeting of the Oil and Gas Conservation Commission will be held on Tuesday, February 21, 2023 at 1:30pm. Due to the Legislature being in session, the meeting will be held in Boise City Council Chambers at Boise City Hall. More information can be found on the Commission Meetings page.

Monthly Production and Sales for November 2022
The November 2022 and December 2022 monthly reports are now available and posted. Please see the Monthly and Annual Reports page for more information. NOTE: Henry Hub gas prices are down over 60% in two months, over a $4.00 drop per MMBtu.

Docket No. CC-2022-OGR-01-002, Application for Integration
The order for this case will be sent out next week. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage.

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. The Department has scheduled the hearing to determine “just and reasonable” factors for Tuesday, March 14, 2023. More information for this application and hearing can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

2023 Legislature – Oil and Gas Statute
On Thursday, February 9, 2023, I introduced the Commissions revisions to Idaho Code 47-3 to the Idaho House Resource and Conservation Committee. There were no questions after my introduction, and the Committee unanimously recommended the bill be introduced. The next step is for the RS containing our changes to be assigned a bill number and read on the floor. There is a link to additional information on our Commission website. https://legislature.idaho.gov/resources/howabillbecomesalaw/
We will also continue to keep the webpage for the Proposed Statutory changes for title 47, chapter 3 updated as we move forward.

Injection Well Update
On November 3, 2022 EPA Region 10 issued a Class II Disposal Well Permit to Snake River Oil and Gas, LLC and approved an associated Aquifer Exemption for the Willow Sand in Willow Field. The permit took effect December 19, 2022 at 12:01 AM. The documents can be viewed on the EPA Region 10 web page here. The department has not discussed a specific timeline with the operator for bringing the injection well to an active status, but Snake River has indicated that it could be as long as 12 to 18 months.

Field Status
Drilling operations are complete for the Irvin 1-19 and Barlow 3-14 wells in Harmon Field. Testing and completion operations commenced the week of November 28th and were completed in mid-January. Both wells have been designated as confidential under Idaho Code § 47-327.

News Article(s) of Interest
Risch, Crapo, Lummis Reintroduce Legislation Defending American Energy and Mining Industries: https://www.risch.senate.gov/public/index.cfm/pressreleases?ID=2850DA61-C4C6-40D6-ABC0-E26BADCAC894

City of Fruitland Idaho denies leasing agreement: (attached)

Current Prices

Natural Gas (HH)*	$2.42 MMBtu.	02/08/23	(35.5% / $1.33 decrease since last month)
NGL (EIA)	$7.98 MMBtu.	02/08/22	(5.1% / $0.39 increase since last month)
Utah Sweet Crude	$68.67 bbl.	02/09/22	(2.5% / $1.79 decrease since last month)
WTI	$78.06 bbl.	02/09/22	(10.2% / $5.22 increase since last month)

Note: This post was originally posted on February 10, 2023. Due to switching over to the updated website format, the post had to be re-posted. 

The December 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

The November 2022 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, January 7, 2023.

January 2023 Secretary Update

Current Items:

Monthly Production and Sales for October 2022
Docket No. CC-2022-OGR-01-002, Application for Integration
2023 Legislature convenes
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Monthly Production and Sales for October 2022
The October 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

Docket No. CC-2022-OGR-01-002, Application for Integration
The Evidentiary Hearing will be held next Thursday, January 12, 2023. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage.

2023 Legislature convenes
The 2023 Legislature convenes Monday, January 9, 2023. I will continue to keep the Commission updated on the progress of the Oil and Gas Act Modernization bill. We will also continue to keep the webpage for the Proposed Statutory changes for title 47, chapter 3 updated as we move forward.

Injection Well Update
On November 3, 2022, EPA Region 10 issued a Class II Disposal Well Permit to Snake River Oil and Gas, LLC and approved an associated Aquifer Exemption for the Willow Sand in Willow Field. The permit took effect December 19, 2022, at 12:01 AM. The documents can be viewed on the EPA Region 10 web page here. The department has not discussed a specific timeline with the operator for bringing the injection well to an active status, but Snake River has indicated that it could be as long as 12 to 18 months.

Field Status
• Drilling operations are complete for the Irvin 1-19 and Barlow 3-14 wells in Harmon Field. Testing and completion operations commenced the week of November 28th and are ongoing. Both wells have been designated as confidential under Idaho Code § 47-327.
• On December 15th, 2022, the department declared the Kauffman 1-9 well inactive per the requirements set forth in IDAPA 20.07.02.501.01 https://adminrules.idaho.gov/rules/current/20/200702.pdf. Production has not been reported on that well since October 2018. The well record has been updated and all documents can be viewed on the well file page: https://ogcc.idaho.gov/well-files/uswn-11-075-20027-kauffman-1-9/. Snake River performed a Mechanical Integrity Test on the Kauffman 1-9 well on December 16, 2022. The well surpassed the minimum guidelines provided by the department.

News Article(s) of Interest
None this month.

Current Prices

Natural Gas (HH)*	$3.75 MMBtu.	01/04/23	(44.9% / $3.05 decrease since last month)
NGL (EIA)	$7.59 MMBtu.	12/21/22	(8.6% / $0.71 decrease since last month)
Utah Sweet Crude	$70.46 bbl.	12/30/22	(3.0% / $2.06 increase since last month)
WTI	$72.84 bbl.	12/01/22	(10.2% / $8.38 decrease since last month)

 

* Gas prices for the month of December were generally much higher in the western United States, with peaks in the $45.00-$50.00 range per MMBtu. The market has since adjusted and prices are back down. We will not know the impact of these spikes on Idaho production and sales until the operator provides sales data, which is due for December on February 14th, 2023, per Idaho Code.

The October 2022 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, December 3, 2022.

December 2022 Secretary Update

Current Items:

Monthly Production and Sales for September 2022
Third Quarter Report 2022
Docket No. CC-2022-OGR-01-002, Application for Integration
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Monthly Production and Sales for September 2022
The September 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

Third Quarter Report 2022
The Third Quarter 2022 report to the Commission is included here. (this is a corrected version sent out on Tuesday, December 6, 2022)

Docket No. CC-2022-OGR-01-002, Application for Integration
An order on determining “just and reasonable” factors was sent out on November 10, 2022. The Evidentiary Hearing will be held on Thursday, January 12, 2023. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage.

Injection Well Update
On November 3, 2022, EPA Region 10 issued a Class II Disposal Well Permit to Snake River Oil and Gas, LLC and approved an associated Aquifer Exemption for the Willow Sand in Willow Field. The permit takes effect December 19, 2022, at 12:01 AM. The documents can be viewed on the EPA Region 10 web page here.

Field Status
Drilling operations are complete for the Irvin 1-19 and Barlow 3-14 wells in Harmon Field. Testing and completion operations are scheduled to commence the week of November 28th. Both wells have been designated as confidential under Idaho Code § 47-327.

News Article(s) of Interest
USFS starts pilot project to transition to an electric fleet of field vehicles
The Forest Service Is Leaning into Electric Vehicles – Outside Online

NASA cancels greenhouse gas monitoring satellite due to cost
https://apnews.com/article/space-exploration-science-south-america-business-pollution-c3b6ea27eed442bbf9b57d310f7255c2

Current Prices

Natural Gas (HH)	$6.80 MMBtu.	11/30/22	(50.7% / $2.29 increase since last month)
NGL (EIA)	$8.30 MMBtu.	11/30/22	(6.5% / $0.58 decrease since last month)
Utah Sweet Crude	$68.40 bbl.	12/01/22	(12.7% / $9.97 decrease since last month)
WTI	$81.22 bbl.	12/01/22	(17.1% / $16.81 decrease since last month)

The September 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.