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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 10, 2022.

September 2022 Secretary Update

Current Items:

Monthly Production and Sales for June 2022
Second Quarter Report 2022
Docket No. CC-2022-OGR-01-001, Application for Integration – Withdrawn
Docket No. CC-2022-OGR-01-002, Application for Integration
Amended Application for Permit to Drill (Irvin #1-19)
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Monthly Production and Sales for June 2022
The June 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information. The production data for the Fallon 1-11 is now available and is no longer redacted on the January thru May reports. July reports are due to the state by September 14, 2022. Production data for the Dutch Lane #1-13 well will be released once the July reports are ready to post.
Total revenue for July and August 2022 (YTD FY2023) from permit fees and severance tax was $71,544.

Second Quarter Report 2022
The Second Quarter Report 2022 report for the Commission is attached.

Docket No. CC-2022-OGR-01-001, Application for Integration – Withdrawn
Snake River Oil and Gas, LLC filed a notice of withdrawal of application for Docket No. CC-2022-OGR-01-001 on August 25, 2022. On August 30, 2022, the Oil and Gas Division Administrator sent out an order vacating the September 8, 2022 hearing and the application was dismissed. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-001 hearing webpage.

Docket No. CC-2022-OGR-01-002, Application for Integration
The Department received an Application for Integration from Snake River Oil & Gas, LLC on August 29, 2022. The Department has scheduled the hearing to determine “just and reasonable” factors for October 13, 2022. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-002 hearing webpage.

Amended Application for Permit to Drill – Irvin #1-19
Snake River Oil & Gas, LLC submitted an amended application for permit to drill. The comment period ended yesterday September 9, 2022. I approved the permit this morning and James sent to the operator. Documentation will be posted on our website early next week.

Application for Permit to Drill – Barlow #3-14
Snake River Oil & Gas, LLC submitted an application for permit to directionally drill the Barlow #3-14 to a proposed total measured depth of 5417 feet. The proposed well is designed to test Sand “C” which was not present in neither the Barlow #1-14 nor the Barlow #2-14 wells. The APD is posted on the well permit application page Well Permit Applications | Oil & Gas Conservation Commission (idaho.gov). Comments on the application will be accepted through September 21, 2022.

Injection Well Update
The Department contacted EPA Region 10 on August 3rd regarding the status of the Class II Injection Well Application and Aquifer Exemption Recommended Decision. Our understanding is that they have completed their evaluation and responses to the comments received before the March 30, 2022 deadline and are working with the national office in Washington, DC to work towards a final decision.

Field Status
Current activities are focused on site preparation for the proposed Irvin #1-19 and Barlow #3-14 wells. If approved, the proposed Barlow #3-14 will be drilled from the existing Barlow well pad to minimize surface disturbance.

News Article(s) of Interest
Biden increases royalty rates on oil & gas from 12.5% to 18.75% on new leases. First increase in 100 years.
Biden increases oil royalty rate and scales back lease sales on federal lands : NPR

Inflation reduction act promises $7,500 tax credit for the purchase of new electric vehicle.
https://americasmi.com/insights/us-inflation-reduction-act-mining-energy-industry-latin-america/

Ford and GM increase price on electric vehicles by $7,500
GM, Ford say electric vehicle price increases have nothing to do with Dem spending bill | Fox Business

Portland continues to blockade oil and gas exports to Asia
https://www.kgw.com/article/news/local/portland-enacts-fossil-fuel-terminal-restrictions/283-1aeb7918-9e8e-4eb0-82df-79cf50a923bc

Biden reverses Wyoming-to-Idaho gas pipeline approval
https://energynews.us/newsletter/biden-reverses-wyoming-to-idaho-gas-pipeline-approval/

Current Prices

Natural Gas (EIA)	$8.13 MMBtu.	09/07/22	(3.0% / $0.24 increase since last month)
NGL (EIA)	$10.72 MMBtu.	09/07/22	(1.7% / $0.18 decrease since last month)
Utah Sweet Crude	$77.07 bbl.	09/09/22	(8.84% / $7.47 decrease since last month)
WTI	$86.19 bbl.	09/09/22	(9.15% / $8.68 decrease since last month)

 

Bonus – Pictures from the August field tour with Commissioners Coppersmith and Riebe

The Department has approved the Irvin #1-19 application for permit to drill. More information can be found on the Well Permit Applications page or the Irvin #1-19 well file page.  

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 September 21, 2022. Comments can be submitted online on the Idaho Department of Lands Contact Us page or to comments@idl.idaho.gov

Snake River Oil and Gas, LLC filed a notice of withdrawal of application for Docket No. CC-2022-OGR-01-001 on August 25, 2022. On August 30, 2022, the Oil and Gas Division Administrator sent out an order vacating the September 8, 2022 hearing and the application was dismissed. Please see the Administrative Hearings page for more information.

Snake River Oil & Gas, LLC submitted an amended 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 September 9, 2022. Comments can be submitted online on the Idaho Department of Lands Contact Us page or to comments@idl.idaho.gov

The June 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, August 12, 2022.

August 2022 Secretary Update

Current Items:
August OGCC Regular Meeting
Monthly Production and Sales for May 2022/Revisions
Docket No. CC-2022-OGR-01-001, Application for Integration
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

August OGCC Regular Meeting
The next regularly scheduled OGCC meeting is Tuesday, August 16, 2022 @ 1:30pm (MT). More information can be found on the Commission Meetings webpage of the OGCC website.

Monthly Production and Sales for May 2022/Revisions
The May 2022 monthly report is now available. Also, revisions to the Monthly Reports from November 2021 through April 2022 are now posted on the Monthly Reports page. Please see the Monthly and Annual Reports page for more information. June 2022 reports are due to the state by August 15, 2022 (first business day after a weekend due date). Production data for the Fallon 1-11 will also be released this month.

Docket No. CC-2022-OGR-01-001, Application for Integration
The Department received an Application for Integration from Snake River Oil & Gas, LLC on July 22, 2022. The Department has scheduled the hearing to determine “just and reasonable” factors for September 8, 2022. More information for this application and hearing can be found on the Docket No. CC-2022-OGR-01-001 hearing webpage.

Injection Well Update
The Department contacted EPA Region 10 on August 3rd regarding the status of the Class II Injection Well Application and Aquifer Exemption Recommended Decision. Our understanding is that they have completed their evaluation and responses to the comments received before the March 30, 2022 deadline and are working with the national office in Washington, DC to work towards a final decision.

Field Status
The Department received an Application for Permit to Drill (APD) from Snake River Oil and Gas for the proposed Irvin #1-19 on July 29, 2022. The 5500 PTD vertical test is located in Section 19, Township 8 North, Range 4 West in Payette County. The 640-acre unit was integrated under Order Number CC-2016-OGR-01-002. Public comments will be accepted until 5:00 PM Monday, August 22, 2022.

On August 4th, Chairman Coppersmith and Commissioner Riebe toured well and production facilities operated by Snake River Oil and Gas in Payette County. The tour included stops at:
• Active, shut-in, and reclaimed well sites
• The Little Willow Gathering Facility
• The Highway 30 Processing Facility
• Snake River Oil & Gas’s business office in New Plymouth
Both Snake River Oil & Gas and IDL staff were in attendance and available to answer questions from both commissioners regarding field operations.

News Article(s) of Interest
Eastern Wyoming one billion barrel oil discovery
https://www.oklahomaminerals.com/wyoming-million-barrel-oil-discovery

Clean energy infrastructure – fueled globally by fossil fuels – may slow due to cost of oil
https://www.mining.com/green-energy-development-affected-by-rise-in-oil-metal-prices-study/ 

Hydrogen for fuel is expected to grow 51% by 2031 with a U.S. value of $135 Billion. Idaho National Lab is working with Bloom Energy to produce green hydrogen at a record setting pace
Idaho National Lab and Bloom Energy Produce Hydrogen at Record-Setting Efficiencies | Business Wire

Current Prices

Natural Gas (EIA)	$7.89 MMBtu.	08/10/22	(40.1% / $2.26 increase since last month)
NGL (EIA)	$10.90 MMBtu.	08/10/22	(4.9% / $0.56 decrease since last month)
Utah Sweet Crude	$84.54 bbl.	08/11/22	(9.0% / $8.39 decrease since last month)
WTI	$94.87 bbl.	08/11/22	(12.3% / $12.91 decrease since last month)

 

At the May 19, 2022 regular meeting, the Commission voted in favor of the sixth draft text to be presented during the 2023 legislative session. Department staff reviewed this draft for grammar and format. The Commission and Department fall under the Executive Agency Legislative System (EALS) guidelines. Following these guidelines, the Department completed and submitted the EALS Legislative Idea Form on June 23, 2022. The Department submitted the Statement of Purpose/Fiscal Impact form along with the final text Friday afternoon, August 12, 2022.

More information can be found here: https://ogcc.idaho.gov/rules-and-statutes/47-3-changes/

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 22, 2022. Comments can be submitted online on the Idaho Department of Lands Contact Us page or to comments@idl.idaho.gov

The May 2022 monthly report is now available. Also, revisions to the Monthly Reports from November 2021 through April 2022 are now posted on the Monthly Reports page. Please see the Monthly and Annual Reports page for more information.