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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 Friday, April 8, 2022.

The staff and I would like to share our condolences with the family and friends of OGCC Commissioner Marc Shigeta. Marc served as an OGCC Commissioner for five years and as our vice-chair for four years. He will be dearly missed.

April 2022 Secretary Update

Current Items:
Proposed Legislation Idaho Code 47-3
OGCC Special Meeting
2022 Legislative Session
Injection Well Update
Field Status
Monthly production and sales for January 2022
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
A public comment session was held on Wednesday, March 16, 2022 from 5:00pm – 7:00pm (MT) in Fruitland, ID. This was an opportunity for the public to provide oral comment before the Department on the fourth draft text. Approximately ten members of the public attended the meeting, most of whom presented comments. The Department has created a fifth draft text to present to the OGCC at the special meeting next week.
More information can be found on the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage of the OGCC website.

OGCC Special Meeting
A special meeting of the OGCC will be held next Tuesday, April 12, 2022 @ 2:30pm. This special meeting is for the OGCC to discuss Proposed Legislation for Idaho Code 47-3. More information can be found on the Commission Meetings page of the OGCC website.

2022 Legislative Session
For the first time since 2019 the Idaho Legislature approved the rules chapters. This means that the Commission will not have to go through omnibus rulemaking this year and a number of special meetings and agenda items can now be avoided. Non-fee rules became effective on March 31, 2022 and fee rules became effective March 18, 2022.

Injection Well Update
The comment period for the Class II injection well permit ended on March 30, 2022. The Dept. of Lands submitted comments specifically in regard to the proposed well integrity evaluation procedures in the Recommended Decision. No additional announcements have been made by EPA Region 10 for a timeframe moving forward.
More information can be found on the EPA region 10 website Public Notice: Proposed Aquifer Exemption and UIC Class II Permit for Willow Gas Field in Idaho | US EPA

Field Status
Snake River Oil & Gas has concluded well construction operations in the Fruitland area for the 2021-2022 drilling campaign. The Department has made inspections of all wells and is working with the operator as they complete necessary reporting for the wells as required in Idaho Code § 47-424.

Monthly production and sales for January 2022
There have been some request for production and sales volume to be shared in this update. The Department tracks and provides this on the OGCC website. That page is found here:
2022.01_MonthlyOGReports_Redacted_PTS.pdf (idaho.gov)

News Article(s) of Interest
Black Mesa Energy, and oil and gas production company, is working with Idaho Power to develop a power purchase agreement for a solar facility to meet Micron’s renewable energy goal.
Idaho utility launches renewable energy program with 40-MW solar project (solarpowerworldonline.com)

The state of Washington to preserve 10,000 acres of trees to sell as carbon credits to polluters
https://www.yakimaherald.com/news/northwest/wa-to-preserve-10-000-acres-of-trees-to-sell-as-carbon-credits-to-polluters/article_5b92c9e4-8bf2-562f-bcd1-3ebf577ad506.html

Geothermal Plants Could Be a Future Source of Lithium

Fire at Exxon Refinery in Montana Shuts Down Some Units
https://www.rigzone.com/news/fire_at_exxon_refinery_in_montana_shuts_down_some_units-28-mar-2022-168417-article/

Current Prices

Natural Gas	$6.25 mmbtu.	04/06/22	(34.4% / $1.60 increase since last month)
NGL	$12.43 mmbtu.	04/06/22	(0.3% / $0.04 increase since last month)
Utah Sweet Crude	$86.43 bbl.	04/08/22	(14.3% / $14.37 decrease since last month)
WTI	$97.76 bbl.	04/08/22	(15% / $17.19 decrease since last month)

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

The Department will be presenting a fifth draft text to the Commission at the April 12, 2022 special meeting. No public comments will be accepted and there will not be a written comment period on this fifth draft text. The Commission will be taking votes on specific sections of the statute (see OGCC Agenda).

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

The fourth draft text has been posted and the Department will receive oral comments from the public at the Wednesday, March 16, 2022 public comment session to be held  from 5:00pm – 7:00pm (MT) at the Fruitland City Hall, 200 S Whitley Dr, Fruitland, ID 83619. There will be no written comment period for this fourth draft and no teleconference nor Zoom option to attend the session. This is an in-person public comment session only. In order to provide comments, advanced sign-up is required no later than Monday, March 14, 2022 at 5:00pm (MT). Notify comments@idl.idaho.gov to sign up.

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

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, March 4, 2022.

March 2022 Secretary Update

2021 Fourth Quarter Commission Report (this was sent to the Commission on Saturday, March 5th)

Current Items:

Proposed Legislation Idaho Code 47-3
Injection Well Update
Field Status
News Article(s) of Interest
Current Prices

Proposed Legislation Idaho Code 47-3
The Department considered comments received via written comment and from the Commission and public at the February 15, 2022 regular meeting on the third draft text and is working on the fourth draft text.

The Department will be holding a public comment session on Wednesday, March 16, 2022 from 5:00pm – 7:00pm (MT) at the Fruitland City Hall, 200 S Whitley Dr, Fruitland, ID 83619. This is an opportunity for the public to provide oral comment before the Department on the fourth draft text which will be available next week. There will be no written comment period for this fourth draft and no teleconference or Zoom option to attend the session. This is an in-person public comment session only. In order to provide comments, advanced sign-up is required no later than Monday, March 14, 2022 at 5:00pm (MT). Notify comments@idl.idaho.gov to sign up. There are a few individuals who have signed up and we are looking forward to hearing from mineral interest owners and residents in the field.

More information can be found on the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage.

Injection Well Update
The Department listened to the EPA hearing held on Friday, February 18, 2022 regarding the Class II well application. Eight public comments were given over a 50-minute timespan. The written comment period was extended to March 30, 2022.

Field Status
Snake River Oil + Gas continues its operational activity for several wells in the Western Snake River Basin:

• Fallon 1-10 (Harmon Field): well cementing completed in January, well turned to production 2/8/2022.
• Barlow 2-14 (Harmon Field: drilling operations completed; well is designated confidential per Idaho Code § 47-327. Information will be ready for release in April 2022, log information October 2022.
• Fallon 1-11 (Harmon Field): drilling operations completed; well is designated confidential per Idaho Code § 47-327. Information will be ready for release in May 2022, log information November 2022.
• Dutch Lane 1-13 (Harmon Field): drilling operations completed; well is designated confidential per Idaho Code § 47-327. Information will be ready for release in July 2022, log information January 2023.
• Tracy Trust 3-2 (Hamilton Field): This well was drilled and completed by Bridge Energy in 2010 but never produced. Final plugging operations will commence in the next 3- to 4 weeks.

News Article(s) of Interest
Oil driller invests in carbon-capture pipeline for Midwest

(note: carbon sequestration via injection wells is currently illegal in Idaho)

His climate push stalled, Biden looks to infrastructure law
https://www.eenews.net/articles/his-climate-push-stalled-biden-looks-to-infrastructure-law/

Chemical Hazard Reporting & Planning Enforcement Actions by EPA Region 10 in 2021 | US EPA
(note: insertion of this article was requested by an Idaho resident)

Current Prices

Natural Gas	$4.65 mmbtu.	03/02/22	(27.8% / $1.79 decrease since last month)
NGL	$12.39 mmbtu.	03/02/22	(5.9% / $0.69 increase since last month)
Utah Sweet Crude	$100.80 bbl.	03/02/22	(28.5% / $22.34 increase since last month)
WTI	$114.95 bbl.	03/04/22	(45.8% / $36.10 increase since last month)

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

A public comment session will be held on Wednesday, March 16, 2022 from 5:00pm – 7:00pm (MT) at the Fruitland City Hall, 200 S Whitley Dr, Fruitland, ID 83619. This is an opportunity for the public to provide oral comment before the Department on the fourth draft text which will be available next week (week of March 7th). There will be no written comment period for this fourth draft and no teleconference nor Zoom option to attend the session. This is an in-person public comment session only. In order to provide comments, advanced sign-up is required no later than Monday, March 14, 2022 at 5:00pm (MT). Notify comments@idl.idaho.gov to sign up. If no sign-ups are received, the public comment session will be canceled.

More information can be found on the following webpage: https://ogcc.idaho.gov/rules-and-statutes/47-3-changes/

The December 2021 monthly report is now available. Please see the Monthly and Annual Reports page for more information.

The third draft text of proposed statutory changes has been posted to the Idaho Code title 47, chapter 3 – Proposed Statutory Changes webpage.  The third draft text will be presented to the Commission at the February 15, 2022 regular meeting for the Commission to provide oral comment. The Commission will also accept public comment at the meeting (see OGCC meeting agenda for sign-up requirements) and will accept written comment on the third draft text from February 15- February 22, 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, February 4, 2022.

February 2022 Secretary Update

Current Items:
February OGCC Meeting
Proposed Legislation Idaho Code 47-3
Injection Well Update
Federal Orphaned Well Funding
Field Status
News Article(s) of Interest
Current Prices

February OGCC Meeting
The first regular OGCC meeting of 2022 will be held on Tuesday, February 15, 2022, at the Idaho Department of Lands Office, Garnet Conference Room, 300 N. 6th St., Suite 103, Boise, Idaho. The meeting will begin at 1:30pm and will be conducted in-person and have a teleconference option. More information on the OGCC meetings can be found at https://ogcc.idaho.gov/commission-meetings/

Proposed Legislation Idaho Code 47-3
The Department received oral comments from the OGCC at the January 5, 2022 special meeting and received three written comments on the second draft text. The Department will be reviewing those comments and working on a third draft text to present to the OGCC at the February 15, 2022 regular meeting. More information on this can be found at https://ogcc.idaho.gov/rules-and-statutes/47-3-changes/

Injection Well Update
The Department published the following information on the OGCC website on January 14, 2022:
https://ogcc.idaho.gov/epa-to-accept-comments-on-a-class-ii-injection-well-application-for-the-willow-field/
The comment period for the application ends on February 28, 2022. IDL will be providing comments on the technical aspects of the application. The Commission will not be providing comments on the application.
The EPA has regulatory authority over the class II injection program in Idaho. This is because IDWR asked EPA to accept primacy in 2017.

Federal Orphaned Well Funding
In coordination with the Interstate Oil and Gas Compact Commission and the U.S. Department of the Interior, the Biden administration announced over $1 Billion in funding for orphaned well remediation. Biden Administration Announces $1.15 Billion for States to Create Jobs Cleaning Up Orphaned Oil and Gas Wells | U.S. Department of the Interior
Idaho is fortunate to have an active operator who is maintaining responsibility and bonding for our oil and gas wells. As a result we did not need to request federal dollars from this bill.
Here is a summary of the bill:
• ~$500 million will be provided to 26 states that have orphaned wells.
• The 26 states requesting funds have listed ~129,000 wells in total.
• Those states that requested these funds will be monitored by the DOI for efficiencies throughout the process.
The Department of Interior stated that the number may be closer to two-million wells. When I asked about the difference between state data and the DOI estimates the representative was unable to provide an explanation beyond confirming her estimates.

Field Status
The Barlow #2-14, Fallon #1-11, and Dutch Lane #1-13 wells are drilled with production casing completed in Payette County. Testing of the wells is ongoing.
Sometimes a In Idaho, flaring is allowed during well testing for a total of 14 days. These 14 days do not have to be consecutive.

News Article(s) of Interest
Colorado stands alone as it initiates plan to make the leasing of state land for oil & gas contingent on greenhouse gas emissions in the vicinity.
https://energyoffice.colorado.gov/climate-energy/ghg-pollution-reduction-roadmap

Idaho Power files more petitions seeking access to private land
https://www.bakercityherald.com/news/local/idaho-power-files-more-petitions-seeking-access-to-private-land/article_4e6029e8-7ec8-11ec-873f-7b1376b078f3.html

Potential lithium source in Idaho geothermal
https://www.idahofallsmagazine.com/2022/01/its-in-the-water

Current Prices

Natural Gas	$6.44 mmbtu.	02/02/22	(69.9% / $2.65 increase since last month)
NGL	$11.70 mmbtu.	02/02/22	(15.4% / $1.56 increase since last month)
Utah Sweet Crude	$78.46 bbl.	02/02/22	(19% / $12.55 increase since last month)
WTI	$78.85 bbl.	02/04/22	(16.6% / $13.11 increase since last month)

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

The November 2021 monthly report is now available. Please see the Monthly and Annual Reports page for more information.