American Oil and Gas Reporter - April 2015 - 40

Idaho Group Supports Rule Updates
BOISE, ID.-As interest grows for new
oil and natural gas development in Idaho,
the state is bringing its oil and gas rules
in line with contemporary standards, according to the head of the state trade
group.
The Idaho Petroleum Council credits
the success to the state's history of resource
development, knowledgeable regulators
and an active membership, says Suzanne
Budge, the group's president. "We look
at what is and is not working in other
states," she relates. "It is critical that we
adapt our framework to current best practices because so much about this industry
has changed in just the past decade."
That process began in 2011 and continues into the 2015 Idaho Legislature,
Budge reports. "This year, we have
taken a pretty big bite at additional
statutory changes," she characterizes.
"There were three bills from the commission, two bills by IPC and two bills
by the legislative delegation from the
southwestern Idaho basin where development is occurring."
Since 2010, state records show 16
wells have been drilled in southwestern
Idaho. More recently, according to published reports, mineral leasing activity
has taken place in Idaho's Ada, Canyon,
Payette, Gem, Washington and Owyhee
counties, and Malheur County, Or. "Our
approach has been to bring in today's inTABLE 1
Idaho Oil & Gas Permit Fees
Effective July 1, 2015
APD

$2,000

Deepen well

$500

P&A uncompleted well

$500

Well treatment

$1,000

Pit construction

$1,500

Directional drilling

$1,000

Multizone completion

$1,300

Set fieldwide spacing

$1,300

Integration order

$1,300

Unitization order

$1,300

IPC Initiatives
Budge highlights IPC's success with
H 124, which received a gubernatorial
signature in late March. H 124 allows
the Idaho Oil and Gas Conservation Commission to exclude federal minerals when
considering unit formation or operatorrequested changes. At a Senate hearing
in March, the bill's House sponsor, Representative Judy Boyle, R-Midvale, pointed
to the delays often associated with federal
mineral production. "You are dealing
with a federal agency that takes a long
time," Boyle testified.
The bill provides IOGCC with a
process for considering interest pooling
or integrating a unit when a 55 percent
majority of mineral owners agree to lease
their rights or otherwise participate.
Another bill to receive lawmakers'
approval and the governor's signature is
H 125, Budge indicates, which corrects
a 2012 revision to the oil and gas statute.
H 125 returns the term "condensate" to
the definition of gas that was inadvertently
omitted in the earlier bill. "The tax code
says the state's 2.5 percent severance
tax applies to oil and gas production,
but without including condensate in the
definition of gas," she notes. "Some worried the tax would not be collected."
Tax clarification also is addressed in
H 269, she notes. The bill redefines "gross
income" for purposes of oil and gas sales
to align tax collections with industry and
market practices, Budge explains. According to the bill, sale price is "the
amount realized by the producer . . . at
the wellhead or after transportation without

deduction for transportation, manufacturing, and processing costs." The bill
also adds reference to IRS regulations
for defining "related parties" in determining gross income and arms-length
sales.
According to the Idaho Legislature's
website, H 269 was amended late in the
session and was the only industry-specific
bill of seven this session that had not
passed by late March, although Budge
noted that it was likely to become law
because it had passed both houses.

Commission Bills
Of the trio of IOGCC-supported bills,
H 49 provides for increasing oil and gas
application fees with separate fees for
different types of operations (Table 1).
Previously, applications for all drilling
and treating operations were covered by
a flat $100 fee. General fees for applications for permits to drill had been raised
earlier to $2,000 and are unchanged under
the bill.
A second commission-supported bill,
HB 4, sets a one-year mark for public release of well information. "At this early
stage of development, it is understandable
that companies want to keep data confidential," Budge says. "But there was
nothing that said the information ever
had to be released, which is out of line
with other states. The bill was not meant
to target the industry so much as bring
oil and gas into line with the state's
record exemption code."
A third commission-supported bill,
HB 50, provides a framework for the
unitization process, observes Budge. "This
is all new language," she describes. "When
there are competing or multiple interests,
this gives the commission a way to rationally develop a field without drilling
more wells than necessary. Here again,
we have the benefit of applying what
works in other states."
Ì

$1,000

Change spacing unit

dustry standards as we consider revisions,"
Budge says. "We have good support from
our members with operations in other
states and benefit from their experience.
That has helped keep our rules aligned
with what works elsewhere and not set
bad precedents."

Seismic 2-D, < 12 mi.

$800

Seismic 2-D, 12-24 mi.
3-D <72 mi.

$2,000

Seismic 2-D, >24 mi.
3-D >72 mi.

$2,500

Source: Idaho HB 49, passed and signed by governor 3/19/15

40 THE AMERICAN OIL & GAS REPORTER

Osage's Oklahoma Well Hits 850 BOE Peak Rate
SAN DIEGO-The Everest 1-9MH, a
horizontal well in Oklahoma, recorded a
one-day peak production rate of 850
barrels of oil equivalent, with a product
mix of 78 percent crude oil and natural
gas liquids and 22 percent natural gas,
Osage Exploration and Development Inc.
says. The company has a 65 percent
working interest in the well.
In addition to the Everest 1-9MH, the
company reports two horizontal Missis-

sippian wells in Logan County, Ok.-the
George Plagg 1-18MH and George Plagg
1-19MH-both hit 30-day production peak
rates.
In its first 30 days of production, the
company says the George Plagg 1-18MH
produced 21,028 barrels of oil equivalent.
The product mix was 86 percent oil and
natural gas liquids, and 14 percent natural
gas. Osage has a 49 percent working interest in the well.
r



American Oil and Gas Reporter - April 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - April 2015

Contents
American Oil and Gas Reporter - April 2015 - Cover1
American Oil and Gas Reporter - April 2015 - Cover2
American Oil and Gas Reporter - April 2015 - Contents
American Oil and Gas Reporter - April 2015 - 4
American Oil and Gas Reporter - April 2015 - 5
American Oil and Gas Reporter - April 2015 - 6
American Oil and Gas Reporter - April 2015 - 7
American Oil and Gas Reporter - April 2015 - 8
American Oil and Gas Reporter - April 2015 - 9
American Oil and Gas Reporter - April 2015 - 10
American Oil and Gas Reporter - April 2015 - 11
American Oil and Gas Reporter - April 2015 - 12
American Oil and Gas Reporter - April 2015 - 13
American Oil and Gas Reporter - April 2015 - 14
American Oil and Gas Reporter - April 2015 - 15
American Oil and Gas Reporter - April 2015 - 16
American Oil and Gas Reporter - April 2015 - 17
American Oil and Gas Reporter - April 2015 - 18
American Oil and Gas Reporter - April 2015 - 19
American Oil and Gas Reporter - April 2015 - 20
American Oil and Gas Reporter - April 2015 - 21
American Oil and Gas Reporter - April 2015 - 22
American Oil and Gas Reporter - April 2015 - 23
American Oil and Gas Reporter - April 2015 - 24
American Oil and Gas Reporter - April 2015 - 25
American Oil and Gas Reporter - April 2015 - 26
American Oil and Gas Reporter - April 2015 - 27
American Oil and Gas Reporter - April 2015 - 28
American Oil and Gas Reporter - April 2015 - 29
American Oil and Gas Reporter - April 2015 - 30
American Oil and Gas Reporter - April 2015 - 31
American Oil and Gas Reporter - April 2015 - 32
American Oil and Gas Reporter - April 2015 - 33
American Oil and Gas Reporter - April 2015 - 34
American Oil and Gas Reporter - April 2015 - 35
American Oil and Gas Reporter - April 2015 - 36
American Oil and Gas Reporter - April 2015 - 37
American Oil and Gas Reporter - April 2015 - 38
American Oil and Gas Reporter - April 2015 - 39
American Oil and Gas Reporter - April 2015 - 40
American Oil and Gas Reporter - April 2015 - 41
American Oil and Gas Reporter - April 2015 - 42
American Oil and Gas Reporter - April 2015 - 43
American Oil and Gas Reporter - April 2015 - 44
American Oil and Gas Reporter - April 2015 - 45
American Oil and Gas Reporter - April 2015 - 46
American Oil and Gas Reporter - April 2015 - 47
American Oil and Gas Reporter - April 2015 - 48
American Oil and Gas Reporter - April 2015 - 49
American Oil and Gas Reporter - April 2015 - 50
American Oil and Gas Reporter - April 2015 - 51
American Oil and Gas Reporter - April 2015 - 52
American Oil and Gas Reporter - April 2015 - 53
American Oil and Gas Reporter - April 2015 - 54
American Oil and Gas Reporter - April 2015 - 55
American Oil and Gas Reporter - April 2015 - 56
American Oil and Gas Reporter - April 2015 - 57
American Oil and Gas Reporter - April 2015 - 58
American Oil and Gas Reporter - April 2015 - 59
American Oil and Gas Reporter - April 2015 - 60
American Oil and Gas Reporter - April 2015 - 61
American Oil and Gas Reporter - April 2015 - 62
American Oil and Gas Reporter - April 2015 - 63
American Oil and Gas Reporter - April 2015 - 64
American Oil and Gas Reporter - April 2015 - 65
American Oil and Gas Reporter - April 2015 - 66
American Oil and Gas Reporter - April 2015 - 67
American Oil and Gas Reporter - April 2015 - 68
American Oil and Gas Reporter - April 2015 - 69
American Oil and Gas Reporter - April 2015 - 70
American Oil and Gas Reporter - April 2015 - 71
American Oil and Gas Reporter - April 2015 - 72
American Oil and Gas Reporter - April 2015 - 73
American Oil and Gas Reporter - April 2015 - 74
American Oil and Gas Reporter - April 2015 - 75
American Oil and Gas Reporter - April 2015 - 76
American Oil and Gas Reporter - April 2015 - 77
American Oil and Gas Reporter - April 2015 - 78
American Oil and Gas Reporter - April 2015 - 79
American Oil and Gas Reporter - April 2015 - 80
American Oil and Gas Reporter - April 2015 - 81
American Oil and Gas Reporter - April 2015 - 82
American Oil and Gas Reporter - April 2015 - 83
American Oil and Gas Reporter - April 2015 - 84
American Oil and Gas Reporter - April 2015 - 85
American Oil and Gas Reporter - April 2015 - 86
American Oil and Gas Reporter - April 2015 - 87
American Oil and Gas Reporter - April 2015 - 88
American Oil and Gas Reporter - April 2015 - 89
American Oil and Gas Reporter - April 2015 - 90
American Oil and Gas Reporter - April 2015 - 91
American Oil and Gas Reporter - April 2015 - 92
American Oil and Gas Reporter - April 2015 - 93
American Oil and Gas Reporter - April 2015 - 94
American Oil and Gas Reporter - April 2015 - 95
American Oil and Gas Reporter - April 2015 - 96
American Oil and Gas Reporter - April 2015 - 97
American Oil and Gas Reporter - April 2015 - 98
American Oil and Gas Reporter - April 2015 - 99
American Oil and Gas Reporter - April 2015 - 100
American Oil and Gas Reporter - April 2015 - 101
American Oil and Gas Reporter - April 2015 - 102
American Oil and Gas Reporter - April 2015 - 103
American Oil and Gas Reporter - April 2015 - 104
American Oil and Gas Reporter - April 2015 - 105
American Oil and Gas Reporter - April 2015 - 106
American Oil and Gas Reporter - April 2015 - 107
American Oil and Gas Reporter - April 2015 - 108
American Oil and Gas Reporter - April 2015 - 109
American Oil and Gas Reporter - April 2015 - 110
American Oil and Gas Reporter - April 2015 - 111
American Oil and Gas Reporter - April 2015 - 112
American Oil and Gas Reporter - April 2015 - 113
American Oil and Gas Reporter - April 2015 - 114
American Oil and Gas Reporter - April 2015 - 115
American Oil and Gas Reporter - April 2015 - 116
American Oil and Gas Reporter - April 2015 - 117
American Oil and Gas Reporter - April 2015 - 118
American Oil and Gas Reporter - April 2015 - 119
American Oil and Gas Reporter - April 2015 - 120
American Oil and Gas Reporter - April 2015 - 121
American Oil and Gas Reporter - April 2015 - 122
American Oil and Gas Reporter - April 2015 - 123
American Oil and Gas Reporter - April 2015 - 124
American Oil and Gas Reporter - April 2015 - 125
American Oil and Gas Reporter - April 2015 - 126
American Oil and Gas Reporter - April 2015 - 127
American Oil and Gas Reporter - April 2015 - 128
American Oil and Gas Reporter - April 2015 - 129
American Oil and Gas Reporter - April 2015 - 130
American Oil and Gas Reporter - April 2015 - 131
American Oil and Gas Reporter - April 2015 - 132
American Oil and Gas Reporter - April 2015 - 133
American Oil and Gas Reporter - April 2015 - 134
American Oil and Gas Reporter - April 2015 - 135
American Oil and Gas Reporter - April 2015 - 136
American Oil and Gas Reporter - April 2015 - 137
American Oil and Gas Reporter - April 2015 - 138
American Oil and Gas Reporter - April 2015 - 139
American Oil and Gas Reporter - April 2015 - 140
American Oil and Gas Reporter - April 2015 - 141
American Oil and Gas Reporter - April 2015 - 142
American Oil and Gas Reporter - April 2015 - 143
American Oil and Gas Reporter - April 2015 - 144
American Oil and Gas Reporter - April 2015 - 145
American Oil and Gas Reporter - April 2015 - 146
American Oil and Gas Reporter - April 2015 - 147
American Oil and Gas Reporter - April 2015 - 148
American Oil and Gas Reporter - April 2015 - 149
American Oil and Gas Reporter - April 2015 - 150
American Oil and Gas Reporter - April 2015 - 151
American Oil and Gas Reporter - April 2015 - 152
American Oil and Gas Reporter - April 2015 - 153
American Oil and Gas Reporter - April 2015 - 154
American Oil and Gas Reporter - April 2015 - 155
American Oil and Gas Reporter - April 2015 - 156
American Oil and Gas Reporter - April 2015 - 157
American Oil and Gas Reporter - April 2015 - 158
American Oil and Gas Reporter - April 2015 - 159
American Oil and Gas Reporter - April 2015 - 160
American Oil and Gas Reporter - April 2015 - 161
American Oil and Gas Reporter - April 2015 - 162
American Oil and Gas Reporter - April 2015 - 163
American Oil and Gas Reporter - April 2015 - 164
American Oil and Gas Reporter - April 2015 - 165
American Oil and Gas Reporter - April 2015 - 166
American Oil and Gas Reporter - April 2015 - 167
American Oil and Gas Reporter - April 2015 - 168
American Oil and Gas Reporter - April 2015 - 169
American Oil and Gas Reporter - April 2015 - 170
American Oil and Gas Reporter - April 2015 - 171
American Oil and Gas Reporter - April 2015 - 172
American Oil and Gas Reporter - April 2015 - 173
American Oil and Gas Reporter - April 2015 - 174
American Oil and Gas Reporter - April 2015 - 175
American Oil and Gas Reporter - April 2015 - 176
American Oil and Gas Reporter - April 2015 - 177
American Oil and Gas Reporter - April 2015 - 178
American Oil and Gas Reporter - April 2015 - 179
American Oil and Gas Reporter - April 2015 - 180
American Oil and Gas Reporter - April 2015 - 181
American Oil and Gas Reporter - April 2015 - 182
American Oil and Gas Reporter - April 2015 - 183
American Oil and Gas Reporter - April 2015 - 184
American Oil and Gas Reporter - April 2015 - 185
American Oil and Gas Reporter - April 2015 - 186
American Oil and Gas Reporter - April 2015 - 187
American Oil and Gas Reporter - April 2015 - 188
American Oil and Gas Reporter - April 2015 - 189
American Oil and Gas Reporter - April 2015 - 190
American Oil and Gas Reporter - April 2015 - 191
American Oil and Gas Reporter - April 2015 - 192
American Oil and Gas Reporter - April 2015 - 193
American Oil and Gas Reporter - April 2015 - 194
American Oil and Gas Reporter - April 2015 - Cover3
American Oil and Gas Reporter - April 2015 - Cover4
http://staging.nxtbook.com/nxtbooks/aogr/201702/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201701/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201612/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201611/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201610/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/pbios2016_programguide/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201609/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201608/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201607/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201606/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201605/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201604/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201603/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201602/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201601/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201512/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201511/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201510/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201509/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201508/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201507/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201506/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201505/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201504/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201503/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201502/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201501/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201412/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201411/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201410/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201409/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/pbios2014_programguide/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201408/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201407/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201406/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201405/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201404/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201403/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201402/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201401/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201312/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201311/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201310/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201309/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201308/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201307/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201306/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201305/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201304/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201303/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201302/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201301/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201212/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201211/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201210/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201209/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/2012_pbios/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201208/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201207/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201206/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201205/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201204/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201203/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201202/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201201/stage.php
http://staging.nxtbook.com/nxtbooks/demo/aogr_clone/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201112/stage.php
https://www.nxtbookmedia.com