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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.

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 4, 2022.

November 2022 Secretary Update

Current Items:

Injection Well Update
Monthly Production and Sales for August 2022
Docket No. CC-2022-OGR-01-002, Application for Integration
November 15, 2022 – Regular OGCC Meeting
Field Status
Interstate Oil and Gas Compact Commission Annual Conference
Current Prices

Injection Well Update
On November 3, 2022, the Environmental Protection Agency (EPA) issued a final Class II-Disposal Well Permit and Aquifer Exemption, ID-2D001-A, to Snake River Oil and Gas, LLC. This permit is for the DJS Properties #2-14 well which will be effective December 19, 2022 at 12:01AM. Please visit the Commission website for further information. https://ogcc.idaho.gov/epa-issues-class-ii-disposal-well-permit-and-aquifer-exemption-id-2d001-a-to-snake-river-oil-and-gas-llc/
The next step for the operator is to rework the well and bring it into compliance with the requirements set out in the permit. This will likely involve bringing in a work over rig as well as completing a number of test and logs of the wellbore. Depending on scheduling the well could be operational sometime in 2023.

Monthly Production and Sales for August 2022
The August 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.
In the first four months of fiscal year 2023 the operator Snake River Oil and Gas has provided over $200,000 in total severance tax to the state of Idaho.

Docket No. CC-2022-OGR-01-002, Application for Integration
The Department held the hearing to determine “just and reasonable” factors on October 13, 2022. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage. The hearing officer has 30 days to provide an order determining “just and reasonable” factors.

November 15, 2022 – Regular OGCC Meeting
The next regularly scheduled meeting of the OGCC will be held on Tuesday, November 15, 2022 @ 1:30pm (MT). More information can be found on the Commission Meetings page.

Field Status
The operator commenced drilling of the Barlow 3-14 earlier this week. James Thum was on site to witness and ensure operations were within guidelines.

Interstate Oil and Gas Compact Commission Annual Conference
The IOGCC held their national conference in Baltimore on October 16-18 2022. Major topics included ways for member states to standardize additional revenue streams for each state. These include carbon capture, helium recovery and storage, geothermal development, and liquid mineral recovery from existing and former hydrocarbon wells. I’m happy to discuss further if you would like.

Current Prices

Natural Gas (EIA)	$4.51 MMBtu.	11/02/22	(25.6% / $1.55 decrease since last month)
NGL (EIA)	$8.88 MMBtu.	11/02/22	(~1% / $0.02 decrease since last month)
Utah Sweet Crude	$78.37 bbl.	11/04/22	(~1% / $0.27 decrease since last month)
WTI	$98.13 bbl.	11/04/22	(5.8% / $5.69 decrease since last month)

On November 3, 2022, the Environmental Protection Agency (EPA) issued a final Class II-Disposal Well Permit and Aquifer Exemption, ID-2D001-A, to Snake River Oil and Gas, LLC. This permit is for the DJS Properties #2-14 well which will be effective December 19, 2022 at 12:01AM. The EPA has posted the approval documents on their website here: https://www.epa.gov/uic/underground-injection-control-region-10-ak-id-or-and-wa 

More information on the DJS Properties #2-14 well can be found on the OGCC well file page.

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