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OGCC Secretary Update – October 2022
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 8, 2022.
October 2022 Secretary Update
Current Items:
Severance Tax Update
Monthly Production and Sales for July 2022
Docket No. CC-2022-OGR-01-002, Application for Integration
Approved Amended Application for Permit to Drill (Irvin #1-19)
Approved Application for Permit to Drill (Barlow #3-14)
Injection Well Update
Field Status
Interstate Oil and Gas Compact Commission Annual Conference
News Article(s) of Interest
Current Prices
Severance Tax Update
July, August, and September 2023 revenue into the Oil & Gas Conservation (OGC) fund was nearly $110K. Of this amount, $103K was received as a distribution from the Idaho Tax Commission for the OGC funds portion of Idaho’s oil & gas severance tax.
Monthly Production and Sales for July 2022
The July 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information. August reports are required to be filed with the state no later than Friday, October 14, 2022.
As a reminder, Natural Gas Liquids produced in Idaho are shipped via rail to facilities in Kansas, our Condensate is transported via truck to plants in Wyoming, and Idaho’s Natural Gas production is added to the Williams gas pipeline at a terminal in Payette County.
Docket No. CC-2022-OGR-01-002, Application for Integration
The Department will be holding 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.
Approved Amended Application for Permit to Drill (Irvin #1-19)
The Department has approved the Irvin #1-19 application for permit to drill September 10, 2022. More information can be found on the Well Permit Applications page or the Irvin #1-19 well file page.
Approved Application for Permit to Drill (Barlow #3-14)
The Department has approved the Barlow #3-14 application for permit to drill September 27, 2022. More information can be found on the Well Permit Applications page or the Barlow #3-14 well file page.
Injection Well Update
The Department continues to monitor the injection well application being processed by the EPA. Public comment review was completed by EPA region 10 staff in July 2022 with a recommendation to approve the permit.
When that review was completed by region 10 the application package was shared with EPA headquarters in Washington DC where it is currently under additional review.
Field Status
Pad preparation and well cellar construction has been completed for both the Irvin #1-19 and Barlow #3-14 wells. The Irvin #1-19 is expected to spud the week of October 2, 2022 and will take approximately 10 days to drill. The Barlow #3-14 will follow once drilling operations have been completed on the Irvin well. Snake River is in the process of installing storage tanks on the Fallon #1-10 and Dutch Lane #1-13 well pads to hold produced water from the wells.
As required under Idaho Code § 47-315(9) the Department has completed annual inspections for the wells in the Willow Field area. Facilities inspections and wells in the Harmon Field area will be completed during the month of October.
Interstate Oil and Gas Compact Commission Annual Conference
I will be attending the Interstate Oil and Gas Compact Commission Annual Conference in Baltimore Maryland from October 15 to October 18. The bulk of this year’s agenda will entail funding for addressing orphaned wells (Idaho has no orphaned wells) and the continued transition to additional energy sources to compliment oil & gas production.
News Article(s) of Interest
Idaho Oil & Gas Leader speaks at Payette Luncheon
https://www.argusobserver.com/business/oil-and-gas-leader-speaks-at-payette-chamber-luncheon/article_bc119786-33a1-11ed-9662-0b40c508831f.html?utm_medium=social&utm_source=email&utm_campaign=user-share
OPEC to restrict oil production
https://www.deseret.com/utah/2022/10/6/23391074/opec-cuts-oil-production-new-gas-price-hikes-will-congress-take-action-nopec-joe-biden
Flush with cash, EPA could toughen methane rules | E&E News
https://www.eenews.net/articles/flush-with-cash-epa-could-toughen-methane-rules/
How does permitting for clean energy infrastructure work
https://www.brookings.edu/research/how-does-permitting-for-clean-energy-infrastructure-work/
Current Prices
| Natural Gas (EIA) | $6.06 MMBtu. | 10/05/22 | (25.5% / $2.07 decrease since last month) |
| NGL (EIA) | $8.90 MMBtu. | 10/05/22 | (17.0% / $1.82 decrease since last month) |
| Utah Sweet Crude | $78.65 bbl. | 10/07/22 | (2.0% / $1.58 increase since last month) |
| WTI | $98.13 bbl. | 10/07/22 | (12.2% / $11.94 increase since last month) |
Application for permit to drill approved – Barlow #3-14
The Department has approved the Barlow #3-14 application for permit to drill. More information can be found on the Well Permit Applications page or the Barlow #3-14 well file page.
July Monthly Report
The July 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.
OGCC Secretary Update – September 2022
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
Application for permit to drill approved – Irvin #1-19
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.
Application for Permit to Drill (Barlow #3-14) Under Review – Accepting public comments
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
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. Please see the Administrative Hearings page for more information.
Amended Application for Permit to Drill (Irvin #1-19) Under Review – Accepting public comments
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
June Monthly Report
The June 2022 monthly report is now available. Please see the Monthly and Annual Reports page for more information.
OGCC Secretary Update – August 2022
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) |