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Idaho Code title 47, chapter 3 – Proposed Statutory Changes

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/

Application for Permit to Drill (Irvin #1-19) 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 August 22, 2022. Comments can be submitted online on the Idaho Department of Lands Contact Us page or to comments@idl.idaho.gov

May Monthly Report and 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.

OGCC Secretary Update – July 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, July 9, 2022.

July 2022 Secretary Update

Current Items:
Monthly Production and Sales for April 2022
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Monthly Production and Sales for April 2022
The April 2022 monthly report is available. More reports can be found on the Monthly and Annual Reports page. The Department will begin posting monthly production data for the Barlow #2-14 well in July. May production reports are due to be filed with the state by July 14, 2022.

Injection Well Update
According to the operator, EPA Region 10 is continuing to evaluate all comments received on the Recommended Decision published in January 2022. The comment period closed March 30th. No further timeframes for a final decision on the aquifer exemption and Class II injection well permit are available at this time.

Field Status
Snake River Oil & Gas has concluded well construction operations in the Fruitland area for the 2021-2022 drilling campaign and is currently evaluating the technical data from the three new wells. Additional development opportunities may be identified as a result of this work. Production from all wells was shut-in from May 9th to the evening of May 23rd. This shut-n was needed to perform scheduled maintenance at both the Little Willow gathering and Highway 30 processing facilities. Full production resumed the evening of May 23rd.

News Article(s) of Interest
New York Denies Permit for Bitcoin-Mining Power Plant due to emissions threshold
New York Denies Permit for Bitcoin-Mining Power Plant (governing.com)

Supreme Court: EPA Lacks Authority to Cap CO2 From Existing Power Plants
https://www.electric.coop/supreme-court-epa-lacks-authority-to-cap-co2-from-existing-power-plants

US raises $22 million from Western oil and gas auctions
https://www.reuters.com/business/energy/us-raises-22-mln-western-oil-gas-auctions-2022-06-30/

Natural gas oversupply continues leading to additional price drops
https://www.cnbc.com/2022/06/30/natural-gas-drops-10percent-on-track-for-worst-month-in-more-than-three-years.html

How Do Graphene Nanoparticles Reduce Oil Viscosity?
https://www.azom.com/news.aspx?newsID=59322

Biden tells oil refiners: Produce more gas, fewer profits
https://ksltv.com/496191/biden-tells-oil-refiners-produce-more-gas-fewer-profits/

Current  Prices

Natural Gas (EIA) $5.63 MMBtu. 07/06/22 (40.5% / $3.83 decrease since last month)
NGL (EIA) $11.46 MMBtu. 07/06/22 (11.9% / $1.54 decrease since last month)
Utah Sweet Crude $92.93 bbl.  07/08/22 (15.2% / $16.68 decrease since last month)
WTI $104.78 bbl. 07/08/22 (11.9% / $14.20 decrease since last month)

April Monthly Report

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

OGCC Secretary Update – June 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 Sunday, June 12, 2022.

June 2022 Secretary Update

2022 First Quarter Commission Report (this was sent to the Commission on Tuesday, June 14, 2022)

Current Items:

Proposed Legislation Idaho Code 47-3
Monthly Production and Sales for March 2022
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
At the May 19th OGCC meeting the Commission approved the last substantive draft containing revisions of Idaho Code 47-3. Per the Commissions direction the department is working through this draft one final time to resolve any grammatical issues that may have been missed in prior drafts. No substantive changes will be made during this review.

The Commission is subject to the Executive Agency Legislation (EAL) Process through the Idaho Division of Financial Management. The EAL process is used to prepare statutory change for the 2023 Idaho Legislature. Ideas must be submitted by June 24, 2022 and proposed legislation must be received by August 12, 2022. With our statute changes approved by the Commission we are on track to meet these administrative guidelines.

More information can be found on the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage of the OGCC website.
Specific information regarding the EAL process can be found on the webpage of the DFM website.

Monthly Production and Sales for March 2022
The March 2022 monthly report is available. More reports can be found on the Monthly and Annual Reports page. April production and sales reports are due June 14th.

Injection Well Update
According to the operator, EPA Region 10 is continuing to evaluate all comments received on the Recommended Decision published in January 2022. The comment period closed March 30th. No further timeframes for a final decision on the aquifer exemption and Class II injection well permit are available at the present time.

Field Status
Snake River Oil & Gas is currently evaluating the technical data from the three new wells. Additional development opportunities may be identified as a result of this work. Production from all wells was shut-in from May 9th to perform scheduled maintenance at both the Little Willow gathering and Highway 30 processing facilities. Full production resumed the evening of May 23rd.

News Article(s) of Interest
Why is gasoline so high?
https://www.huffpost.com/entry/why-are-gas-prices-so-high_n_62a4f061e4b04a61734f6bed?utm_source=facebook&utm_medium=news_tab

EIA expects high refinery margins to contribute to increased fuel production this summer (to meet demand).
U.S. Energy Information Administration – EIA – Independent Statistics and Analysis

Current Prices

Natural Gas (EIA)  $9.46 MMBtu.      06/08/22  (14% / $1.16 increase since last month)
NGL (EIA)  $13.00 MMBtu.  06/08/22  (1.5% / $0.20 increase since last month)
Utah Sweet Crude  $109.61 bbl.    06/10/22 (10.2% / $11.17 increase since last month)
WTI $118.98 bbl. 06/10/22 (7.1% / $8.49 increase since last month)

(green indicates prices increase since last update, red indicates decline)

March Monthly Report

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

Idaho Code title 47, chapter 3 – Proposed Statutory Changes

The Department will be presenting a sixth draft text for a vote to the Commission at the May 19, 2022 regular meeting. No written comment period will be done but oral public comments will be accepted at the Commission meeting. Sign-ups are required, please see the OGCC Agenda for more information.

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

OGCC Secretary Update – May 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, May 6, 2022.

May 2022 Secretary Update

Current Items:
Proposed Legislation Idaho Code 47-3
OGCC Regular Meeting
New Commissioner from Payette County
Upcoming IOGCC Meeting
Injection Well Update
Field Status
Monthly Production and Sales for February 2022
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
At the April meeting the Commission discussed final changes to Idaho Code 47-3. The department has followed the recommendations of the Commission and will present a draft for vote at the May meeting.
More information can be found on the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage of the OGCC website.

OGCC Regular Meeting
The May regular meeting of the OGCC was rescheduled and will be held Thursday, May 19, 2022 @ 1:30pm. More information can be found on the Commission Meetings page of the OGCC website.

New Commissioner from Payette County
Idaho Code 47-314(1)(a) requires that one of the members of the OGCC be a county commissioner from an oil and gas producing county in Idaho. This opening has been filled by Jennifer Riebe. Ms. Riebe is the District 2 Payette County Commissioner and has begun onboarding to the OGCC. She will be attending the May 19th meeting as an OGCC Commissioner. We appreciate Ms. Riebe’s commitment to Payette county and the state of Idaho.

Upcoming IOGCC Meeting
Idaho is a full member of the Interstate Oil & Gas Compact Commission (IOGCC). The IOGCC May business meeting will be held May 14-17, 2022 in Oklahoma City Oklahoma. James and I will be attending the business meeting as well as the annual State Inspector’s Forum that coincides with the business meeting. For those interested in hearing some of the topics of primary concern to state regulators, the Council of Regulatory Officials session includes a “state’s roundtable which can be heard via Zoom. Registration instructions can be found on the IOGCC website here: . Commissioners are encouraged to listen in.

Injection Well Update
The EPA comment period closed 3/30/2022. The Dept. of Lands submitted comments regarding the proposed well integrity evaluation procedures in the Recommended Decision. EPA Region 10 is evaluating each comment received and has not provided additional information regarding a timeframe for a decision. IDL staff plans to meet with members of the Ground Water Protection Council (GWPC) during the IOGCC meeting to discuss the technical aspects of the EPA Recommendation.

Field Status
Snake River Oil & Gas continues to evaluate potential well locations in the Fruitland area for the 2021-2022 drilling campaign. The Department has completed inspections of all wells in both Harmon and Willow fields. Two minor issues were brought to the attention of the operator and have subsequently been remedied. IDL will follow up with confirmation inspections in the next 7 to 10 days.

Monthly Production and Sales for February 2022
February Monthly Report | Oil & Gas Conservation Commission (idaho.gov)

News Article(s) of Interest
Bipartisan public lands mapping bill becomes law
(original link no longer works)

Risch, King Bill to Modernize Public Land Mapping Heads to President’s Desk – Press Releases – James E Risch, U.S. Senator for Idaho (senate.gov) (this link was added to this post to replace the broken link above)

Biden overhauls federal oil and gas leasing program — Here’s what it means

Current Prices

Natural Gas $8.30 MMBtu. 05/04/22 (32.8% / $2.05 increase since last month)
NGL $12.80 MMBtu. 05/04/22 (3% / $0.37 increase since last month)
Utah Sweet Crude $98.44 bbl. 05/06/22 (13.9% / $12.03 increase since last month)
WTI $110.49 bbl. 05/06/22 (13% / $12.73 increase since last month)

(green indicates prices increase since last update, red indicates decline)

February Monthly Report

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