Transcript Meeting 10_15_2013

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rescinded and withdrawn and such authority is hereby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…”
Topics Covered
• Geologic setting and history of wells
• General Location and Geology of Wells
• Well Construction Basics
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
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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 ft
Silty Sands to ~550 ft
Shale to ~4500 ft
Sand lenses 1800+ ft
Shale to ~4500 ft
Volcanics 4500+ ft
12” Conductor Casing
to ~100 ft
8 5/8” Surface Casing
to ~800 ft
4 5/8” Production Casing
to ~4000 ft
Conductor
Casing
Well Cross Section
Drill hole
Tubing
Surface
Casing
Production
Casing
Well Cross Section
Drill hole
Tubing
Surface
Casing
Production
Casing
Well Cross Section
Drill hole
Tubing
Production
Casing
Main Concerns
1. Allowing Responsible Resource Extraction
2. 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