idaho department of lands director tom schultz
TRANSCRIPT
![Page 1: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/1.jpg)
IDAHO DEPARTMENT OF LANDSDirector Tom Schultz
Oil & Gas in Idaho
![Page 2: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/2.jpg)
OIL AND GAS CONSERVATION COMMISSION
Oil and Gas Conservation Act administration
Five-member citizen commission appointed by
Governor and confirmed by Senate
IDL is the administrative arm of the commission
Monthly meetings
![Page 3: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/3.jpg)
ONCE UPON A TIME…
11 to 10 million years ago, the Western Snake
River Plain formed.
9 to 2 million years ago, Lake Idaho occupied
much of this area.
About 2 million years ago the lake drained to
the north, likely through Hells Canyon.
152 oil and gas wells drilled through late
1980s. No commercial production occurred.
![Page 4: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/4.jpg)
0
2
4
6
8
10
12
19
00
19
04
19
08
19
12
19
16
19
20
19
24
19
28
19
32
19
36
19
40
19
44
19
48
19
52
19
56
19
60
19
64
19
68
19
72
19
76
19
80
19
84
19
88
19
92
19
96
20
00
20
04
20
08
20
12
20
16
Number of Wells by Year
![Page 5: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/5.jpg)
05
101520253035404550
AD
A
BA
NN
OC
K
BE
AR
LA
KE
BIN
GH
AM
BO
ISE
BO
NN
EV
ILLE
BU
TTE
CA
NY
ON
CA
RIB
OU
CA
SS
IA
CLA
RK
ELM
OR
E
FR
AN
KLIN
GE
M
JEF
FE
RS
ON
KO
OTE
NA
I
LE
MH
I
LE
WIS
NE
Z P
ER
CE
ON
EID
A
OW
YH
EE
PA
YE
TTE
PO
WE
R
TE
TO
N
WA
SH
ING
TO
N
Wells by County
![Page 6: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/6.jpg)
0
10
20
30
40
50
60
70
80
90
100
Western
Idaho
Overthrust Albion Rocky
Mountain
Lewiston
Embayment
Purcell
Trench
Misc.
Wells by Geologic Province
![Page 7: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/7.jpg)
RECENT HISTORY OF DRILLING
Drilling permits issued in late 2009
Drilling started in early 2010
Gas discovery announced in 2010
2D Seismic Survey
![Page 8: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/8.jpg)
EXPLORATION: 2012 - PRESENT
2012-2014 Three 3D seismic explorations
completed
3D Seismic Survey
![Page 9: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/9.jpg)
26 Well
Permits
Since 2007
5 Permits
Not
Drilled
2 Out-
standing
3 Expired21
Permits
Drilled
4 Wells
P&A’d
8 Wells
Producing
9 Wells
Shut In
![Page 10: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/10.jpg)
MOST ACTIVITY IS IN WESTERN IDAHO
Leasing activity extends from Washington
County to Gem, Canyon, and Ada Counties.
Willow Field, roughly north of the Payette River
at the lower ends of Big and Little Willow
Creeks
Hamilton Field, centered on New Plymouth
Both fields may expand with more drilling and
exploration
![Page 11: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/11.jpg)
SEISMIC MAP
Seismic Surveys Western
Idaho
![Page 12: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/12.jpg)
WELLS IN PAYETTE COUNTY
![Page 13: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/13.jpg)
FIRST COMMERCIALLY PRODUCED GAS
![Page 14: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/14.jpg)
Seismic Surveys Eastern Idaho
![Page 15: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/15.jpg)
PERMIT IN EASTERN IDAHO
![Page 16: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/16.jpg)
![Page 17: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/17.jpg)
OIL AND GAS WELL CONSTRUCTION
Shallow Sands to ~270 ft
Silty Sands to ~550 ft
Shale to ~4500 ft
Sand lenses 1800+ ft
Volcanics 4500+ ft
Shale to ~4500 ft
12” Conductor Casing
to ~100 ft
8 5/8” Surface Casing
to ~800 ft
4 5/8” Production
Casing to ~4000 ft
![Page 18: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/18.jpg)
ESTIMATED PRODUCTION
Bridge Energy estimated from 5.1 to 35.6
billion cubic feet of gas.
Gross value of $15.3 to $107 million.
Local severance taxes of $153,000 to $1.07
million.
Oil and gas commission tax revenue of
$230,000 to $1.6 million.
![Page 19: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/19.jpg)
WHAT IS BEING PRODUCED?
Mostly natural gas
Some condensate (very light oil)
Natural gas liquids (propane,
butane, etc.)
Oil (currently from just one well)
Drill rig working on Idaho well
![Page 20: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/20.jpg)
MAIN CONCERNS
1. Allowing Responsible Resource Extraction
2. Protecting Water Quality
Well Integrity
Fluid Containment on Surface
Disclosure of Fluids
Proper Disposal of Fluids
![Page 21: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/21.jpg)
TAX COMMISSION INVOLVEMENT
$ - Collects 2.5% severance tax
$ - Audits
$ - Enforces collections
$ - Inter-accounts 60% of proceeds to IDL for
use by the Oil and Gas Conservation
Commission
![Page 22: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/22.jpg)
OTHER 40% OF SEVERANCE TAX
$ - 28% to Counties with production
$ - 28% to Cities in these counties
$ - 28% to Public School Income Fund
$ - 16% to Local Economic Development
Account
![Page 23: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/23.jpg)
CURRENT TAX COLLECTIONS TO IDL
As of May 11, 2016, about $42,000 received
by IDL FY2016
Depressed commodity prices mean less tax
revenue, and less development and investment
by industry
![Page 24: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/24.jpg)
PUBLIC UTILITIES COMMISSION
Regulates intrastate gathering lines
Federal Energy Regulatory Commission
Regulates interstate pipe lines (e.g. WilliamsPipeline)
![Page 25: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/25.jpg)
DEQ INVOLVEMENT
Sets water quality standards
Classifies ground water resources
Regulates air permitting
Petroleum spill and release response
Determines Ground Water Protection Area for
public drinking water supplies
Engineering review of water evaporation
(disposal) pits
![Page 26: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/26.jpg)
IDWR INVOLVEMENT
Inventory of water wells
Review of drilling permits
Water rights
Regulation of geothermal wells
![Page 27: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/27.jpg)
WHAT IS FRESH WATER?
Fresh Water is defined in the rules to include all
surface and ground waters.
Default classification of all groundwater is a
“General Resource Aquifer”, and water quality
standards must be maintained.
IDEQ can set alternate points of compliance,
and can undertake rulemaking to reclassify an
aquifer to an “Other Resource Aquifer”.
![Page 28: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/28.jpg)
BONDS
Active Wells
Individual well bond of $10,000 plus $1/foot of
well length.
Blanket bonds: Up to 10 wells - $50,000
11 to 30 wells - $100,000
Over 30 wells - $150,000
![Page 29: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/29.jpg)
BONDS
Inactive Wells
Individual well bond of $10,000 plus $8/foot of
well length.
![Page 30: Idaho Department of lands Director Tom Schultz](https://reader031.vdocuments.mx/reader031/viewer/2022020701/61f91a8ff1224d6b024ea0d2/html5/thumbnails/30.jpg)