1. Idaho Oil and Gas 101 Bobby Johnson, P.G. Oil and Gas Program Manager Idaho Department of Lands

2. 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to administer any and all laws of this state relating to the conservation of oil and gas, or either of them is hereby rescinded and withdrawn and such authority is hereby unqualifiedly conferred upon the commission…”

3. Geologic setting and history of wells General Location and Geology of Wells Well Construction Basics Topics Covered

4. 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.

6. 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

7. 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.

8. 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

9. Well Cross Section Drill hole Conductor Casing Surface Casing Production Casing Tubing

10. Well Cross Section Drill hole Surface Casing Tubing Production Casing

11. Well Cross Section Drill hole Production Casing Tubing

12. Main Concerns 1.Allowing Responsible Resource Extraction 2.Protecting Water Quality  Well Integrity  Fluid Containment on Surface  Disclosure of Fluids  Proper Disposal of Fluids

13. 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

14. 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

15. 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.

16. 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