Idaho Department of Lands decides on rules governing conservation of crude oil and natural Gas in Idaho.

In mid-May, the Oil and Gas Conservation Commission instructed the IdahoDepartment of Lands to start a negotiated rule making to update the existing rules for recovery of natural gas and oil deposits in Idaho. Those rules had been put in place twenty years ago before the current discovery of potentially economic reserves of gas and oil.  Industry, environmental groups, county governments, individuals and state agencies produced a draft rule which the Commission has accepted and which will be submitted to the 2012 session of the Idaho Legislature for final approval.

On November 15^th, the Commission met to take testimony on the proposed rule and vote on it.

The meeting opened with a presentation by Eric Wilson, Idaho Department of Lands Program Manager-Minerals at the meeting of the Commission, which is made up of the Governor, Secretary of State, Attorney General, Superintendent of Public Instruction, and Controller.

It was time to review the existing rules and the negotiated rulemaking process allowed many stakeholders to be heard.  These rules are useful and usable and will apply to the entire state.

Wilson outlined some of the changes made to the current regulation:

•  Adding a15 day public comment period on applications to drill
• Handling well treatments, called fracturing or fracking, in two sections: application and approval.  Use and disposalof volatile compounds is also regulated.
• Adding pit requirements and surface reclamation measures to protect fresh water;
• Requiring reports of actual amounts of fluids used intreatment of wells (fracturing) as well as notification of treatment anddisposal sites of fluids;
• Increasing bonding amounts and additionalbonding;
• Adding a 3-tiered system for blanket bonds.  Wells that have been inactive for 24 months must have individual bondsrather than be under a blanket bond;
• Adding a new section on surface owner protections that is based on case law throughout the states;
• Updating casing requirements, pit constructionstandards, short and long term standards;
• Class 2 injection wells will no longer beallowed.
• Adding very specific standards on improved wellplugging
• Including new reclamation standards were included.

Testimony included support for the new regulations, pointing out this willbe an economic benefit to the counties and the state.  Others said we need regulations on this activity butdon’t need to regulate the industry out of the state.

Others expressed concern that we were rushing to develop these fossil fueldeposits and needed to take care that we did not leave poisons behind thatwould last for a long time.  Anotherconcern was the issue of lining pits which needs to stay in the rule.  There was support for more work on theblanket bonding section and concern over the use of carcinogenic chemicals inthe fracturing fuels

The commissioners asked several questions about disclosure of ingredients inthe fluid; blanket bonding; the APAprocess and timeline and pointed out that these rules will not be in placeuntil after the Legislature has approved them. The current temporary ruleswould stay in place until then.

Lt. Governor Brad Little, acting as chairman in the absence of the Governor,recused himself because of a potential conflict of interest.  The rest of the commission voted to submitthe pending rule to the Idaho Legislature for approval.

For official rules, see this website: http://adm.idaho.gov/adminrules/rules/idapa20/0702.pdf