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The April 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, June 10, 2023.

June 2023 Secretary Update

Current Items:

Docket No. CC-2023-OGR-01-001, Application for Integration
IOGCC Business Meeting
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices
2023 Q1 Commission Report (Attached)

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 hearing can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

IOGCC Business Meeting
Eight states are in the process of seeking Class VI primacy for Carbon Capture and Underground Storage (CCUS) from EPA. Most states have begun spending their initial $25MM federal grants for funding of orphan well plugging. Still some uncertainty and concerns with federal reporting benchmarks and timeframes for the next funding phase.

Alberta Canada now has a requirement for every active company to spend a certain percentage of their annual operating expenditures for well closure and reclamation work to maintain their active standing as an operator. Several states are interested in pursuing similar programs.

There was good discussion for public outreach processes used by various states and provinces for orphan well plugging. Town Halls were found not to be as productive as it tended to attract the same groups of people. Social media, fair booths and pamphlet distributions were being used by most states. The 2023 annual meeting will be held in Park City Utah October 16 through 18.

Big thanks to James Thum for representing the Commission at our IOGCC business meeting in Oklahoma City. I was unable to attend since the IOGCC meeting overlapped the IDL spring leadership meeting. Very thankful for his experience and willingness to step up whenever asked!

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. Snake River has been in communication with EPA regarding the reservoir testing process as part of bringing the injection well online.

Field Status
All wells in Willow Field have been shut-in since the beginning of 2023. Currently the only production in western Idaho comes from Harmon Field. As of June 1, 2023 seven of the seventeen active well permits are producing.

News Article(s) of Interest
Oil Prices Climb As U.S. Rig Count Sees Another Double-Digit Decline | OilPrice.com
https://oilprice.com/Energy/Energy-General/Oil-Prices-Climb-As-US-Rig-Count-Sees-Another-Double-Digit-Decline.html

New Mexico Imposes oil and gas moratorium on state land near schools
https://apnews.com/article/new-mexico-oil-gas-moratorium-schools-pollution-e68db29ad2c2c184b6e7949cbce3fbe2

US crude March output hits three-year high as Texas production grows, EIA says
https://www.reuters.com/business/energy/us-crude-output-rises-march-highest-since-march-2020-eia-2023-05-31/

Current Prices

NW Natural Gas (EIA)	$2.02 MMBtu.	06/08/23	(57.8% / $0.74 increase since last month)
NGL (EIA)	$5.76 MMBtu.	06/07/23	(11.2% / $0.73 decrease since last month)
WTI	$71.28 bbl.	06/08/23	(3.9% / $2.68 increase since last month)

 

The March 2023 monthly report and the first Bi-Annual Well Test report for 2023 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, May 5, 2023.

May 2023 Secretary Update

Current Items:
OGCC Regular Meeting
Docket No. CC-2023-OGR-01-001, Application for Integration
Payette County Commission Meeting
Oil and Gas Townhall
Updated OGCC Website
IOGCC Business Meeting
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

OGCC Regular Meeting
The next regular meeting of the OGCC will be held on Tuesday, May 16, 2023 @ 1:30pm (MT). The meeting will be held at the State Capitol.

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 held a prehearing conference on May 2. During this conference parties asked for the ability to submit prehearing motions. This request was granted, and dates were set for the process. Once those motions are resolved we will schedule the Evidentiary Hearing. More information for this application and hearing can be found on the Docket No. CC-2023-OGR-01-001 hearing webpage.

Payette County Commission Meeting
The April 10 oil and gas presentation to the Payette County Commissioners went well. The County Commission is currently seeking opinion from experts outside the IDL in order to resolve questions.

Oil and Gas Townhall
The Townhall held on April 12 was a success, with a filled room of over 50 Payette County residents as well as the operator and Fruitland City Administrator. Those residents who spoke asked questions about oil & gas operations and the changes in the revised statute. Folks also asked about the differences between the state lease and the standard lease offered by the operator in integrations.

Updated OGCC Website
On May 2, a new version of the OGCC website was released. IDL Staff worked to get the new version more ADA compliant and include better graphics.

IOGCC Business Meeting
Occurs May 22-24, 2023 in Oklahoma City. A tentative schedule can be found here. James Thum will represent the Department in person while I zoom into the CRO and final business meeting.

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. Snake River has been in communication with EPA regarding the reservoir testing process as part of bringing the injection well online.

(Note: There is no update from the last Secretary Report. James Thum met with Bob Hatfield last week who provided the same information listed above from the April update.)

Field Status
The operator has installed produced water storage tanks at the Fallon #1-10 and Dutch Lane #1-13 well locations. The department has inspected both installations to ensure they meet the requirements of IDAPA 20.07.02. Spring maintenance is ongoing for many of the facilities in both Harmon and Willow fields.

News Article(s) of Interest
US rig count stable in April: https://www.ogj.com/drilling-production/article/14293089/baker-hughes-canadian-rig-count-falls-below-100

US Natural gas output sets new record in February: https://www.reuters.com/article/usa-oil-output/update-2-u-s-crude-output-fell-in-february-to-lowest-since-december-2022-eia-idUSL1N36V2DX

Current Prices

NW Natural Gas (EIA)	$1.28 MMBtu.	05/05/23	(64.5% / $2.33 decrease since last month)
NGL (EIA)	$6.49 MMBtu.	05/04/23	(11.8% / $0.87 decrease since last month)
WTI	$68.60 bbl.	05/03/23	(14.9% / $12.01 decrease since last month)

On May 2, 2023, the OGCC will be launching an updated website.  The new website will be more ADA compliant and include better graphics. If you experience issues with the new launch, please notify the Department through the “Contact Us” information at the top of the page.

Note: This post was originally posted on April 12, 2023. Due to switching over to the updated website format, the post had to be re-posted. 

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

Note: This post was originally posted on April 12, 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, April 7, 2023.

April 2023 Secretary Update

Current Items:
Docket No. CC-2023-OGR-01-001, Application for Integration
2023 Legislature – Oil and Gas Statute
Payette County Commission Meeting
Oil and Gas Townhall
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. The Department held the hearing to determine “just and reasonable” factors on Tuesday, March 14, 2023. The Administrator has 30 days from the hearing to provide a final order on “just and reasonable” factors and will meet that time requirement. 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
HB 120 – The revisions to the Idaho Oil and Gas Act – passed this session through both the house and the senate and is reported signed by the Governor on April 4th.
In both the house and the senate, the bill received bipartisan support.
• In the house the bill passed 62-6-2 with 56 republicans and six democrats voting yes, one republican and five democrats voting no, and two republicans not present.
• In the senate the bill passed 26-9 with 22 republicans and four democrats voting yes, six republicans and three democrats voting no.
The bill is on track to become law effective July 1, 2023. More details can be found at our OGCC website: Idaho Code title 47, chapter 3 – Proposed Statutory Changes | Oil & Gas Conservation Commission

Payette County Commission Meeting
I’ve been asked to discuss the revisions of the Idaho Oil and Gas Act with the Payette County Commissioners at their monthly meeting. The meeting is during the day on Monday, April 10, at 1:15 p.m. The meeting is at the Payette County Courthouse 1130 3rd Ave N, Payette.

Oil and Gas Townhall
On Wednesday, April 12, I will be holding an Oil and Gas Townhall meeting in Fruitland, Idaho to answer questions from the public on oil and gas related matters. The meeting will be from 6:30 p.m. until 7:30 p.m. at Fruitland City Hall, 200 S. Whitley Dr.

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. Snake River has been in communication with EPA regarding the reservoir testing process as part of bringing the injection well online.

Field Status
Snake River Oil & Gas is currently replacing the older compressor unit at Little Willow with two smaller compressors which will be easier to maintain. At the same time, they are installing a larger slug catcher and pig launcher for the Harmon Gathering System at Little Willow.

Yes, the oil industry has some fascinating terminology for equipment.
• A slug catcher is a piece of static equipment in the form of a vessel or piping network. It contains sufficient buffer volume to handle the largest expected slug from the oil & gas pipeline systems or flowlines.
• A pig launcher is used with the wax removal balls used to clear pipelines of accumulated wax or other solids in a pipeline. The method of clearing pipelines is called “pigging” and is used in a number of long-distance operations in Idaho where material is transported via pipeline. Most commonly during cooler months when there is condensation or solidification in the line. The Idaho phosphate industry and oil & gas industry are just a couple of examples where this process is used. The benefits of the “pigging” process are simplicity, reliability, and ability to be done without bringing the pipeline offline during the process.

News Article(s) of Interest
Interior Department proposes conservation leases on public lands
https://www.reuters.com/world/us/us-wants-lease-public-lands-conservation-interior-dept-says-2023-03-30/

Major oil companies dominate $264 Million GOM lease sale
https://www.reuters.com/business/energy/us-kick-off-gulf-mexico-oil-drilling-rights-auction-2023-03-29/

Judge Rules BLM wrongfully halted oil & gas lease sales in North Dakota
https://www.inforum.com/news/north-dakota/judge-orders-quarterly-oil-and-gas-lease-sales-on-north-dakota-federal-land-to-resume

Current Prices

NW Natural Gas (EIA)	$3.61 MMBtu.	04/05/23	(41.7% / $1.90 decrease since last month)
NGL (EIA)	$7.36 MMBtu.	04/05/23	(17.9% / $1.45 decrease since last month)
WTI	$80.61 bbl.	04/05/23	(6.4% / $5.01 increase since last month)

 

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)