Idaho Oil and Gas 101

Bobby Johnson, P.G.Oil and Gas Program Manager

Idaho Department of Lands

Idaho Oil and Gas Conservation Act

“The Commission shall have and is hereby jurisdiction and authority over all persons and property, public and private, necessary to enforce the provisions of this act, and shall have power and authority to make and enforce rules, regulations and order, and do whatever may reasonably be necessary to carry out the provisions of this act. Any delegation of authority to any other state officer, board or commission to administer any and all laws of this state relating to the conservation of oil and gas, or either of them is hereby rescinded and withdrawn and such authority is hereby unqualifiedly conferred upon the commission…”

• Geologic setting and history of wells• General Location and Geology of Wells• Well Construction Basics

Topics Covered

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.

• 180 oil and gas wells drilled through late 1980s. No commercial production occurred.

Recent Developments• First drilling permits issued in late 2009• Drilling started in early 2010• Gas discovery announced in 2010• Eleven wells can produce gas• Two dry wells• One drilling applications approved but not

drilled

Where are the wells?

• 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• Leasing activity extends from Washington

County to Gem and Canyon Counties.

Oil and Gas Well Construction

Shallow Sands to ~270 ftSilty 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

Well Cross SectionDrill holeConductor

Casing

Surface Casing

Production Casing

Tubing

Well Cross SectionDrill hole

Surface Casing

Tubing

Production Casing

Well Cross SectionDrill hole

Production Casing

Tubing

Main Concerns

1. Allowing Responsible Resource Extraction2. Protecting Water Quality

Well Integrity Fluid Containment on Surface Disclosure of Fluids Proper Disposal of Fluids

More Water Protections

• Mechanical integrity testing and standards for wells.

• Class II injection wells deferred to IDWR.• Surface reclamation standards.• Improved well plugging requirements.• IDWR and IDEQ have water quality data for

the last 20+ years

Past and Present Exploration

• 3D Seismic and 2D Seismic• Current BMP (Best Management Practices)– Measure While Drilling (MWD)– Cementation and Design– Steel Design

• Conventional Wells Vs. Unconventional Wells• Completions– Wireline Logs

Past and Present Exploration

• The current development is in a conventional reservoir.

• Meaning no stimulation is currently needed.• Could we see well stimulation?• No Applications have been received.

Regulation

• Past Regulation was done by Mineral Manager– In addition to all other mineral regulation in the

state• New appropriation allows for Oil and Gas

dedicated Program Manager• New Oil and Gas Commission by law.– All Citizen Commission

• Updated Rules for Current technology and BMP’s