T47CH3

Title 47 > T47CH3

Sections (29)

47-306

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-306. preservation and use of samples and Records — Reports of determinations and identifications. The Idaho geological survey shall preserve any samples or records deposited with it pertaining to mineral, oil or gas resources, exploration or production on lands within the state. The Idaho geological survey may use such samples or records to assist with mineral and petroleum assessments and characterization of geologic resources as part of its mission and directive to determine the geology, hydrogeology, geologic hazards, and mineral, oil and gas resources of the state. On request, the Idaho geological survey shall supply to the owner or owners of the samples or records a report of any such determinations and identifications specific to the samples or records provided by the owner or owners of the samples or records. History: [(47-306) 1931, ch. 115, sec. 6, p. 196; I.C.A., sec. 46-306; am. 2009, ch. 11, sec. 15, p. 26; am. 2016, ch. 194, sec. 1, p. 541.]

47-307

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-307. Use of information. The Idaho geological survey is hereby authorized to utilize in its study of regional geology, mineral deposits, industrial minerals and aggregates, oil and gas resources, and groundwater resources, in its dissemination of geological and mineral data, and in its publication of reports and maps on the geology and mineral resources of the state, any information derived from samples and records deposited with it. The Idaho geological survey shall not disclose any record, or any information contained therein, if the record or information is exempt from disclosure under the Idaho public records act, chapter 1, title 74 , Idaho Code, or is subject to a confidentiality agreement between the Idaho geological survey and the owner or owners of the records or information. Should a confidentiality or data-sharing agreement exist, the terms of that agreement shall control any disclosure by the Idaho geological survey. For information that becomes publicly available or that is not exempt from disclosure under the Idaho public records act, the existence of a confidentiality or data-sharing agreement will not extend the period of confidentiality beyond that available under the Idaho public records act. Subject to any confidentiality or data-sharing agreement, the Idaho geological survey is authorized to share such records or information obtained under section 47-306 , Idaho Code, or information derived therefrom, with the Idaho oil and gas conservation commission and the Idaho department of lands, in furtherance of the respective authorized functions of the commission and the Idaho department of lands. The sharing of information between the Idaho geological survey, the oil and gas conservation commission and the Idaho department of lands shall not render the shared information subject to disclosure to other persons under the Idaho public records act. History: [(47-307) 1931, ch. 115, sec. 7, p. 196; I.C.A., sec. 46-307; am. 2009, ch. 11, sec. 16, p. 26; am. 2016, ch. 194, sec. 2, p. 542.]

47-309

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-309. Title. This act may be cited as the Oil and Gas Conservation Act. History: [(47-309) 47-329, added 1963, ch. 148, sec. 16, p. 433; am. and redesig. 2017, ch. 271, sec. 1, p. 678.]

47-310

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-310. Definitions. Unless the context otherwise requires, the terms defined in this section shall have the following meanings when used in this act. The use of the plural includes the singular, and the use of the singular includes the plural. (1) Administrator means the division administrator for oil and gas conservation within the department of lands, as established under section 58-104A , Idaho Code. (2) American association of professional landmen is the land profession’s resource for support, ethical standards of practice, career advancement, and legislative advocacy. (3) American petroleum institute or API is the largest petroleum and natural gas trade organization in America and represents all segments of America’s natural gas and oil industry. API was formed in 1919 as a standards-setting organization and has developed more than seven hundred (700) standards to enhance operational and environmental safety, efficiency, and sustainability. (4) Arms-length contract means a contract or agreement that has been arrived at in the marketplace between independent, nonaffiliated persons with opposing economic interests regarding that contract. For purposes of this chapter, two persons are affiliated if one person controls, is controlled by, or is under common control with another person. The following percentages, based on the instruments of ownership of the voting securities of an entity, or based on other forms of ownership, determine if persons are affiliated: (a) Ownership in excess of fifty percent (50%) constitutes control, or as defined in the joint operating agreement. (b) Ownership of ten percent (10%) through fifty percent (50%) creates a presumption of control. (c) Ownership of less than ten percent (10%) creates a presumption of noncontrol, which the commission may rebut if it demonstrates actual or legal control, including the existence of interlocking directorates. Notwithstanding any other provisions of this chapter, contracts between relatives, either by blood or by marriage, are not arms-length contracts. To be considered arms-length for any production month, a contract must meet the requirements of this definition for that production month and must have met the requirements when the contract was executed. (5) Commission means the oil and gas conservation commission. (6) Condensate means the light liquid hydrocarbons that occur as a gas under initial subsurface conditions that condense into a liquid with a decrease in pressure below the dew point during production in the reservoir and at the surface, or only at the surface. The API gravity of condensate is typically fifty (50) degrees to one hundred twenty (120) degrees. (7) Confidential well status refers to a well for which the operator has applied and received confidential status from the commission pursuant to section 47-327 , Idaho Code. Information about a confidential well

47-311

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-311. Public interest. It is declared to be in the public interest to foster, encourage and promote the development, production and utilization of natural resources of oil and gas in the state of Idaho in such a manner as will prevent waste; to provide for uniformity and consistency in the regulation of the production of oil and gas throughout the state of Idaho; to authorize and to provide for the operations and development of oil and gas properties in such a manner that a greater ultimate recovery of oil and gas may be obtained and that the correlative rights of all owners be fully protected; to encourage, authorize and provide for voluntary agreements for cycling, recycling, pressure maintenance and secondary recovery operations in order that the greatest possible economic recovery of oil and gas may be obtained within the state to the end that the land owners, the royalty owners, the producers and the general public may realize and enjoy the greatest possible good from these vital natural resources. History: [(47-311) 47-315, added 1963, ch. 148, sec. 1, p. 433; am. 2012, ch. 111, sec. 1, p. 302; am. and redesig. 2017, ch. 271, sec. 3, p. 681.]

47-312

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-312. Act not construed to restrict production — waste prohibited. It is not the intent or purpose of this law to require the proration or distribution or the production of oil and gas among the fields of Idaho on the basis of market demand. This act shall never be construed to require, permit, or authorize the commission or any court to make, enter, or enforce any order, rule, regulation or judgment requiring restriction of production due to market demand of any pool or of any well (except as provided in section 47-315 , Idaho Code, hereof) to an amount less than the well or pool can produce without waste in accordance with sound engineering practices. The waste of oil and gas or either of them as defined in this chapter is hereby prohibited. History: [(47-312) 47-328, added 1963, ch. 148, sec. 14, p. 433; am. 2012, ch. 73, sec. 5, p. 215; am. and redesig. 2017, ch. 271, sec. 4, p. 681.]

47-313

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-313. Lands subject to this act. This act shall apply to all lands located in the state, however owned, including any lands owned or administered by any government or any agency or political subdivision thereof, including lands of the United States, or lands subject to the jurisdiction of the United States over which the state of Idaho has police power, except to the degree that it is inharmonious with the uses, activities or regulations of the United States, and furthermore, the same shall apply to any lands committed to a unit agreement approved by the secretary of the interior or his duly authorized representative, except that the commission may, with respect to such unit agreement, suspend the application of this act or any part of this act so long as the conservation of oil and gas and the prevention of waste as in this act provided is accomplished under such unit agreements, but such suspension shall not relieve any operator from making such reports as may be required by the commission with respect to operations under any such unit agreement. History: [(47-313) 47-327, added 1963, ch. 148, sec. 13, p. 433; am. and redesig. 2017, ch. 271, sec. 5, p. 681.]

47-314

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-314. Oil and gas conservation commission created — Powers — limit on local restrictions — Attorney general. (1) There is hereby created an oil and gas conservation commission of the state of Idaho within the department of lands. The commission shall consist of a county commissioner as described in this section and four (4) members appointed by the governor with the advice and consent of the senate. (a) The county commissioner shall be from a county where oil and gas are being produced or have been produced within the last ten (10) years and shall be elected by a majority of the county commissioners from such producing counties. The county commissioner shall serve a four (4) year term. A vacancy shall be filled by election for the unexpired term in the same manner provided for election to a full term. (b) The governor shall appoint four (4) members who shall serve at the pleasure of the governor. One (1) member shall be knowledgeable in oil and gas matters and shall have at least eight (8) years of experience in the oil and gas industry. One (1) member shall be a mineral interest owner without an oil and gas lease in a county where oil and gas have been produced. One (1) member shall be a resident of Idaho knowledgeable in land use matters and shall have at least five (5) years experience in land use matters. The term of office of each appointed member of the commission shall be four (4) years. A vacancy shall be filled by appointment for the unexpired term in the same manner provided for an appointment to the full term. (2) The commission shall annually elect a chairman and a vice chairman from its membership. Such officers shall hold their respective offices until their successors are elected. If a vacancy occurs in either office, the commission shall elect a member to fill such office for the remainder of the term. (3) The commission shall meet at least annually and thereafter on dates set by the commission. A majority of the members shall constitute a quorum. (4) The members of the commission appointed by the governor or selected by the county commissioners shall be compensated as provided in section 59-509 (n), Idaho Code. (5) The oil and gas administrator of the department of lands shall be the secretary for the commission. (6) The department of lands shall have the power to exercise, under the general control and supervision of the commission, all of the rights, powers and duties vested by law in the commission, except those provided in sections 47-328 and 47-329 (3), Idaho Code. (7) The commission shall have and is hereby given 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 orders and to do whatever may reasonably be necessary to carry out the provisions of this act. Any delegation

47-315

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-315. Authority of commission. (1) The commission is authorized and it is its duty to regulate the exploration for and production of oil and gas, to prevent waste of oil and gas, to protect correlative rights, and to otherwise administer and enforce this act. It has jurisdiction over all persons and property necessary for such purposes. In the event of a conflict, the duty to prevent waste is paramount. (2) The commission and the department shall protect correlative rights by administering the provisions of this chapter in such a manner as to avoid the drilling of unnecessary wells or incurring unnecessary expense and in a manner that allows all operators and royalty owners a fair and just opportunity for production and the right to recover, receive and enjoy the benefits of oil and gas or equivalent resources while also protecting the rights of surface owners. (3) The commission is authorized to make such investigations as it deems proper to determine whether action by the commission in discharging its duties is necessary. (4) The commission is authorized to appoint, as necessary, committees for the purpose of advising the commission on matters relating to oil and gas. (5) Without limiting its general authority, the commission shall have the specific authority to require: (a) Identification of ownership of oil and gas wells, producing leases, tanks, plants, structures, and facilities for the transportation or refining of oil and gas; (b) The taking and preservation of samples and findings, if taken or analyzed; (c) The drilling, casing, operation and plugging of wells in such manner as to prevent: (i) the escape of oil and gas out of one (1) pool into another; (ii) the detrimental intrusion of water into an oil and gas pool that is avoidable by efficient operations; (iii) the pollution of freshwater supplies by oil, gas, or saltwater; (iv) blowouts, cavings, seepages, and fires; and (v) waste as defined in section 47-310 , Idaho Code; (d) The taking of tests of oil and gas wells; (e) The furnishing of a reasonable performance bond with good and sufficient surety, conditioned upon the performance of the duty to comply with the requirements of this law and the regulations of the commission with respect to the drilling, maintaining, operating and plugging of each well drilled for oil and gas; (f) That the production from wells be separated into gaseous and liquid hydrocarbons, which shall each be measured by means and upon standards that may be prescribed by the commission; (g) That wells not be operated with inefficient gas-oil or water-oil ratios, and to fix these ratios, and to limit production from wells with inefficient gas-oil or water-oil ratios; (h) Metering or other measuring of oil, gas, or product; (i) That every person who produces oil and gas in the state keep and maintain for a period of five (5) years complete and accurate records

47-316

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-316. Permit to drill or treat a well — fees. (1) It shall be unlawful to commence operations for the drilling or treating of a well for oil and gas without first giving notice to the commission of intention to drill or treat and without first obtaining a permit from the commission under such rules and regulations as may be reasonably prescribed by the commission and by paying to the commission a filing and service fee as provided by this section. (a) Any request for a permit or authorization as set forth in subsection (3)(a), (b), (c), (d), (e), (f), (g), (m), (n) or (o) of this section shall be made by application to the department of lands, and processed as provided in this section. (b) The department shall notify the director of the department of water resources regarding applications for permits to drill or treat a well. The director of water resources shall have ten (10) business days from the date of receipt of such notification from the department of lands to recommend conditions he believes necessary to protect freshwater supplies. (c) Applications submitted under this section, except those listed in subsection (3)(c) and (g) of this section, shall be posted on the department of lands’ website for ten (10) business days for a written comment period. (d) The department of lands shall approve or deny applications in subsection (3)(a), (b), (c), (d), (f), (g), (m), (n) and (o) of this section in a timely and efficient manner. This time frame does not apply to permits submitted with an application processed under section 47-328 , Idaho Code. (e) The department’s decision made under this section may be appealed to the commission by the applicant pursuant to the procedure in section 47-328 (4) through (6), Idaho Code. (2) Upon issuance of any permit to drill or treat a well, a copy thereof, including any limitations, conditions, controls, rules or regulations attached thereto for the protection of freshwater supplies as required in section 47-315 , Idaho Code, shall be forwarded to the director of the department of water resources. (3) The department shall collect the following fees, which shall be remitted to the state treasurer for deposit in the oil and gas conservation fund and shall be used exclusively to pay the costs and expenses incurred in connection with the administration and enforcement of this chapter: (a) Application for a permit to drill a well (b) Application to deepen a well (c) Application to plug and abandon a well, if not completed within one (1) year from issuance of permit to drill a well (d) Application to treat a well, if separate from an application for a permit to drill a well (e) Application to construct a pit, if separate from an application for a permit to drill a well (f) Application to directionally drill a well, if separate from an application for a permit to drill a well (g) Application for a recompletion, mo

47-317

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-317. spacing units. (1) To prevent or assist in preventing the waste of oil and gas, to avoid drilling unnecessary wells or to protect correlative rights, the department may, on its own motion or on the application of an interested person, and after notice and opportunity for hearing, issue an order establishing spacing units on a statewide basis, or for defined areas within the state, or for oil and gas wells drilled to varying depths. (2) An order establishing spacing units shall specify the location, size, and shape of the unit, which, in the opinion of the department, shall result in the efficient and economical development of the pool as a whole. These units established by the department shall be geographic. The geographic boundary of the unit shall be described in accordance with the public land survey system. The department shall issue an order establishing a spacing unit or units to determine the area that can be efficiently and economically drained by one (1) well for the orderly development of the pool. The department may amend the order if evidence determines that additional wells are needed to efficiently and economically drain the pool or if evidence indicates the location of the pool is different from that in the initial order. Such amendment is subject to notice and an opportunity for hearing as provided in section 47-328 , Idaho Code. (3) In the absence of an order by the department establishing spacing units, or authorizing different well density patterns for particular pools or parts thereof, the following requirements shall apply: (a) Oil wells. Every well drilled for oil shall be located in a spacing unit consisting of a forty (40) acre governmental quarter-quarter section or lot or tract, or combination of lots and tracts substantially equivalent thereto. (i) An oil well located on a forty (40) acre spacing unit shall have a minimum setback of three hundred thirty (330) feet from the completed interval of the wellbore to the closest exterior geographic boundary of the unit. (ii) No oil well shall be drilled less than nine hundred ninety (990) feet from any other well drilling to and capable of producing oil from the same pool. (b) Directional and vertical gas wells. Every directional well and vertical well drilled for gas shall be located in a spacing unit consisting of a six hundred forty (640) acre governmental section or lot or tract, or combination of lots and tracts substantially equivalent thereto. A directional or vertical gas well located on a six hundred forty (640) acre spacing unit shall have a minimum setback of six hundred sixty (660) feet from the completed interval of the wellbore to the closest exterior boundaries of the governmental section. (i) No gas well shall be drilled with the closest point of its completed interval less than nine hundred ninety (990) feet from the closest point of the completion int

47-319

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-319. setbacks. (1) Except as provided in this section, oil and gas wells, tank batteries and gas processing facilities shall not be constructed within three hundred (300) feet of an existing occupied structure, domestic water well, canal, ditch or the natural or ordinary high-water mark of surface waters or within fifty (50) feet of a highway. (2) Oil and gas wells, tank batteries and gas processing facilities may be constructed less than three hundred (300) feet but more than one hundred (100) feet from an existing occupied structure, domestic water well, canal or ditch if the operator has obtained the express written permission from the owner of the occupied structure, domestic water well, canal or ditch. History: [47-319, added 2017, ch. 271, sec. 12, p. 689.]

47-320

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-320. Integration of tracts — Orders of department. (1) When two (2) or more separately owned tracts are embraced within a spacing unit, or when there are separately owned interests in all or a part of a spacing unit, the interested persons may integrate their tracts or interests for the development and operation of the spacing unit. In the absence of voluntary integration, the department, upon the application of any owner in that proposed spacing unit, shall order integration of all tracts or interests in the spacing unit for drilling of a well or wells, for development and operation thereof and for the sharing of production therefrom. The department, as a part of the order establishing a spacing unit, may prescribe the terms and conditions upon which the royalty interests in the unit shall, in the absence of voluntary agreement, be deemed to be integrated without the necessity of a subsequent separate order integrating the royalty interests. Each such integration order shall be upon the just and reasonable terms and conditions set forth in this section. (2) All operations, including, but not limited to, the commencement, drilling, or operation of a well upon any portion of a spacing unit for which an integration order has been entered, shall be deemed for all purposes the conduct of such operations upon each separately owned tract in the spacing unit by the several owners thereof. That portion of the production allocated to a separately owned tract included in a spacing unit shall, when produced, be deemed, for all purposes, to have been actually produced from such separately owned tract by a well drilled thereon. (3) Each such integration order shall authorize the drilling, equipping and operation, or operation, of a well or wells on the spacing unit; shall designate an operator for the integrated unit; shall prescribe the time and manner in which all the owners in the spacing unit may elect to participate therein; and shall make provision for the payment by all those who elect to participate therein of the reasonable actual cost thereof, plus a reasonable charge for supervision and interest. Each such integration order shall provide for the three (3) following options: (a) Working interest owner. An owner who elects to participate as a working interest owner shall pay the proportionate share of the actual costs of drilling and operating a well allocated to the owner’s interest in the spacing unit. Working interest owners who share in the costs of drilling and operating the well are entitled to their respective shares of the production of the well. The operator of the integrated spacing unit and working interest owners shall enter into an approved joint operating agreement. The department shall deem the joint operating agreement as just and reasonable if the agreement is based on a standard industry form, such as those supplied by the Americ

47-321

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-321. unit operations. (1) An agreement for the unit or cooperative development or operation of a field, pool, or part thereof may be submitted to the department for approval as being in the public interest or reasonably necessary to prevent waste or protect correlative rights. Such approval shall constitute a complete defense to any suit charging violation of any statute of the state relating to trusts and monopolies on account thereof or on account of operations conducted pursuant thereto. The failure to submit such an agreement to the department for approval shall not for that reason imply or constitute evidence that the agreement or operations conducted pursuant thereto are in violation of laws relating to trusts and monopolies. (2) The department, upon its own determination or upon application of an owner, shall conduct a hearing to consider the need for unit operation of an entire pool or portion thereof to increase ultimate recovery of oil and gas from that pool or portion thereof. The department shall issue an order requiring unit operation if it finds that: (a) Unit operation of the pool or portion thereof is reasonably necessary to prevent waste or to protect correlative rights; (b) Unit operation of the pool or portion thereof is reasonably necessary for maintaining or restoring reservoir pressure or to implement cycling, water flooding, enhanced recovery, horizontal drilling, dewatering or a combination of these operations or other operations or objectives to be cooperatively pursued with the goal of increasing the ultimate recovery of oil and gas; and (c) The estimated cost to conduct the unit operation will not exceed the value of the estimated recovery of additional oil and gas resulting from unit operation. (3) An application for requesting an order providing for the operation as a unit of one (1) or more pools or parts thereof in a field shall contain: (a) A plat map showing the proposed unit, the existing spacing units, and the well or wells within the units; (b) The names and addresses of all persons owning mineral interests and working interests in the proposed unit; (c) An affidavit that the applicant, by certified mail, notified all persons owning unleased mineral interests and working interests in the proposed unit at least sixty (60) days prior to filing the application with the department of the applicant’s intention to make the application; (d) A proposed plan of unit operations for the proposed unit that contains the information in subsection (5) of this section; and (e) A proposed operating agreement that is consistent with the proposed plan of unit operations. (4) An application for unit operations shall be subject to the procedures set forth in section 47-328 , Idaho Code. (5) An order for a unit operation must be upon just and reasonable terms and conditions and shall prescribe a plan for unit operations that incl

47-322

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-322. oil and gas metering systems. (1) Each meter shall be properly constructed, maintained, repaired and operated to continually and accurately register the quantity of oil and gas produced from the well. (2) The meter shall be installed, used and operated according to industry standards and guidelines promulgated by the American petroleum institute, American gas association, and the gas processors association that are in effect at the time of installation of the meter. If standards conflict, the most current American petroleum institute standard shall apply. (3) All custody transfer meters and all allocation meters used in the allocation of custody transfer volumes shall be calibrated by a third party at least quarterly in each calendar year. The records of calibrations shall be maintained by the operator of the meter for at least five (5) years and copies shall be submitted to the department. History: [47-322, added 2017, ch. 271, sec. 15, p. 696.]

47-323

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-323. commingling of production. A producer shall not, prior to metering, commingle production from two (2) or more oil and gas wells without prior approval from the department after notice and opportunity for hearing. History: [47-323, added 2017, ch. 271, sec. 16, p. 696.]

47-324

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-324. reporting requirements. (1) All reporting parties shall file the applicable reports described in this section to the department within the time frames provided. Each report shall be completed on forms prescribed by the department. (a) Monthly production report. Operators shall file monthly production reports to properly account for all oil, gas and water production and disposition from each well, including the amounts of oil and gas sold from each well. Production reports shall be filed on the required form before the fifteenth day of the second calendar month following the month of production. (b) Gathering facility report. Operators of a gathering facility shall file monthly reports concerning the operation of the plant on the required form before the fifteenth day of the second calendar month following the month of operation. (c) Gas processing plant report. The operator of each plant manufacturing or extracting liquid hydrocarbons, including gasoline, butane, propane, condensate, kerosene or other derivatives from natural gas, or refinery or storage vapors, shall file a report concerning the operation of the plant on the required form before the fifteenth day of the second calendar month following the month of operation. (d) Monthly transportation and storage report. Each gatherer, transporter, storer or handler of crude oil or hydrocarbon products, or both, shall file monthly reports showing the required information concerning the transportation operations of the gatherer, transporter, storer or handler before the fifteenth day of the second calendar month following the month of operation. (e) Monthly end purchaser report. Any third-party, arms-length purchaser of oil, gas, or condensate that is ready for refining or other use that is subject to the state of Idaho severance tax from the producer or operator of a lease located in this state shall file monthly reports to account for the purchase of all hydrocarbons, including volume and price paid. End purchaser reports shall be filed on the required form before the fifteenth day of the second calendar month following the month in which the hydrocarbons were purchased. If the end purchaser does not provide the required report, the operator shall provide the information specified in this paragraph by the end of the second calendar month following the month in which the hydrocarbons were purchased. (2) All well test reports. An operator shall file all well test reports within thirty (30) days of completing or recompleting the well. The reports shall include all oil, gas and water produced during all tests. (3) Well production potential test reports. Unless otherwise provided for in this section, each operator of producing gas or oil wells shall test each producing well for a twenty-four (24) hour period every six (6) months and shall record all oil, gas and water volumes, including choke

47-325

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-325. Falsification of records — Limitation of actions. (1) Any person who, for the purpose of evading this act or any rule, regulation or order of the commission shall make or cause to be made any false entry in any report, record, account, or memorandum required by this act, or by any such rule, regulation or order, or shall omit, or cause to be omitted, from any such report, record, account, or memorandum, full, true and correct entries as required by this act, or by any such rule, regulation or order, or shall remove from this state or destroy, mutilate, alter or falsify any such record, account, or memorandum, shall be guilty of a misdemeanor and, upon conviction, shall be subject to a fine of not more than five thousand dollars ($5,000) or imprisonment for a term not exceeding twelve (12) months, or to both such fine and imprisonment. (2) No suit, action or other proceeding based upon a violation of this act or any rule, regulation or order of the commission hereunder shall be commenced or maintained unless same shall have been commenced within one (1) year from date of the alleged violation. Provided however, the provisions of this subsection shall not apply to actions governed by the provisions of chapter 52, title 67 , Idaho Code. History: [(47-325) 47-326, added 1963, ch. 148, sec. 12, p. 433; am. 2012, ch. 73, sec. 4, p. 214; am. and redesig. 2017, ch. 271, sec. 18, p. 697.]

47-326

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-326. public data. (1) Subject only to any applicable provisions of section 47-327 , Idaho Code, the following data is public information that shall not be considered trade secret information under chapter 8, title 48 , Idaho Code, nor be exempt from public records disclosure under chapter 1, title 74 , Idaho Code. Except as provided in section 47-327 , Idaho Code, the department shall, upon receipt of the information, make publicly available all data under this section on its website without requiring any person to submit a public records request: (a) All reports required under section 47-324 (1) through (5), Idaho Code; (b) All well survey location plats; and (c) All state-required permits, except seismic data. (2) The department shall provide complete internet access to all documents in subsection (1) of this section, not granted confidential status, on its website. (3) A claim to exempt data from disclosure shall be supported and accompanied by a specific citation to the law authorizing an exemption from disclosure and an explanation of how the data meets the standards for being withheld from disclosure. When a portion of a record or a portion of a page in that record is subject to disclosure and the other portion is subject to a claim that it is exempt from disclosure under this chapter or chapter 1, title 74 , Idaho Code, the person making the claim must clearly identify the portion claimed as exempt and the portion not claimed as exempt from disclosure at the time of submittal. History: [47-326, added 2017, ch. 271, sec. 19, p. 698; am. 2023, ch. 283, sec. 10, p. 862.]

47-327

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-327. confidentiality of well and trade information. (1) Information that shall be held confidential from the public includes logs of a well granted confidential well status pursuant to subsection (2) of this section, electrical or radioactivity logs, electromagnetic or magnetic surveys, core descriptions and analyses, and geophysically or geologically derived subsurface maps. Seismic data shall remain confidential from all parties at the discretion of the operator due to the nature of purchasing and licensing such data. (2) An operator may request confidential well status at the time of filing an application for a permit to drill. The information in the application form itself will not be confidential. (a) Confidential status shall be granted and shall include all pertinent data and information relating to drilling completion and testing the well. Such information shall be kept confidential from the public for a period of one hundred eighty (180) days after completion of the well. (b) Well test results shall be kept confidential from the public for a period of one hundred eighty (180) days after completion of the test. (c) No extensions shall be allowed beyond the one hundred eighty (180) day confidentiality period. (3) An operator may request that well logs for a well with confidential well status be held confidential. (a) To obtain confidential treatment of a well log, the operator of the well shall place the log in an envelope, noting log readings and marked confidential. (b) An operator may request, and the department may grant, an additional six (6) months of confidentiality for well logs. (c) Confidential status for a well log shall terminate six (6) months after the run date on the log or, in the case of an extension, twelve (12) months after the run date on the log. Confidential status for a well log shall not continue for a period in excess of twelve (12) months after the run date on the log. (4) The state tax commission, the oil and gas conservation commission, the Idaho geological survey and other state agencies shall share oil and gas records when necessary for those agencies to carry out their duties assigned by law, regardless of whether the records are held confidential from the public under this section. This sharing of records shall not render the shared records subject to disclosure to the public under the public records act. (5) All state agencies, state employees, contract personnel, temporary personnel and their agents or affiliates shall be governed by the confidentiality provisions of this section and shall be subject to sections 74-117 and 74-118 , Idaho Code, should any information or records protected under statute be disclosed. History: [47-327, added 2017, ch. 271, sec. 20, p. 698; am. 2023, ch. 283, sec. 11, p. 862.]

47-328

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-328. Rules for commission — administrative procedures. (1) The commission shall have authority to hear rulemaking proceedings, complaints filed with it pursuant to this chapter and appeals from the administrator’s decision on an application filed pursuant to this chapter, and any other matter the commission decides should be heard by the commission. The commission may act on its own motion. The commission may prescribe rules governing the procedure before it, subject to the provisions of the administrative procedure act, chapter 52, title 67 , Idaho Code. (2) In all cases where a complaint is made by the commission or any person that any provision of this act or any rule or order of the commission is being violated, the commission shall serve notice of any hearing to be held on such application or complaint to the interested persons by certified mail, return receipt requested, or in the same manner as is provided in the rules of civil procedure for the service of summons in civil actions. Where the interested person is unknown or cannot be located, the commission shall serve notice by publishing at least one (1) notice of the hearing to such person in a newspaper of general circulation in the county where the affected tract is located. Such notice must be sent, delivered or published, as appropriate, at least five (5) business days before the date of the hearing. (3) Except as provided in section 47-316 (1)(a), Idaho Code, and subsection (2) of this section, any request for an order related to oil and gas activities within the commission’s jurisdiction, other than a civil penalty proceeding pursuant to section 47-329 , Idaho Code, or other enforcement action by the department of lands or the commission, shall be made by application to the department of lands and processed as provided in this section. (a) The department shall notify the applicant within five (5) business days of receipt of an application if additional information is required for the department to evaluate the application. (b) For applications involving an order regarding establishment or amendment of a spacing unit, unit operations or integration of a spacing unit, the applicant shall send a copy of the application and supporting documents to all known and located uncommitted mineral interest owners, all working interest owners within the proposed spacing unit, and the respective city or county where the proposed unit is located. The mailing shall be sent by certified mail within seven (7) days of filing the application and include notice of the hearing date on which the administrator will consider the application. For any uncommitted owners and working interest owners who cannot be located, an applicant shall publish notice of any application for an order, notice of hearing and response deadline once in a newspaper of general circulation in the county in which the affected pro

47-329

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-329. Powers of commission — Witnesses — Penalty. (1) The commission shall have the power to summon witnesses, to administer oaths, and to require the production of records, books, and documents for examination at any hearing or investigation conducted by the commission. (2) In case of failure or refusal on the part of any person to comply with a subpoena issued by the commission, or in case of refusal of any witness to testify as to any matter regarding which he may be interrogated, any district court in the state, upon the application of the commission, may issue an attachment for such person and compel him to comply with such subpoena, and to attend before the commission and produce such records, books, and documents for examination, and to give his testimony. Such court shall have the power to punish for contempt as in the case of disobedience to a like subpoena issued by the court, or for refusal to testify therein. (3) Any person who violates or fails to comply with any of the provisions of this chapter or any rules or orders made or promulgated hereunder may be assessed a civil penalty by the commission or its duly authorized agent of not more than ten thousand dollars ($10,000) for each violation and shall be liable for reasonable attorney’s fees. Each day the violation continues shall constitute a separate and additional violation, punishable by separate and additional civil penalties in like amount or other like civil penalties as determined by the commission; provided that the civil penalties do not begin to accrue until the date notice of violation and opportunity to be heard are given. (a) Assessment of a civil penalty may be made in conjunction with any other commission administrative action. (b) No civil penalty may be assessed unless the person charged was given notice and opportunity for a hearing pursuant to chapter 52, title 67 , Idaho Code, which civil penalty begins to accrue no earlier than the date notice of violation and opportunity for a hearing are given. (c) If the commission is unable to collect such penalty or if any person fails to pay all or a set portion of the civil penalty as determined by the commission, it may recover such amount by action in the appropriate district court. (d) Any person against whom the commission has assessed a civil penalty under the provisions of this section may, within twenty-eight (28) days of the final action by the agency making the assessment, appeal the assessment to the district court of the county in which the violation is alleged by the commission to have occurred pursuant to chapter 52, title 67 , Idaho Code. (e) All civil penalties collected pursuant to this section shall be remitted to the oil and gas conservation fund. (4) Whenever it shall appear that any person is violating or threatening to violate any provision of this act or any rule, regulation, or order made hereunde

47-330

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-330. Oil and gas conservation fund created — Tax. (1) For the purposes of paying the expenses of administration of this act and for the privilege of extracting oil and gas in this state, there is hereby levied and imposed on all oil and gas produced, saved and sold or transported from the premises in Idaho where produced a tax of two and one-half percent (2.5%) of the gross income received by the producer of the oil and gas produced. Gross income shall mean the amount realized by the producer for sale of the oil and gas, whether the sale occurs at the wellhead or after transportation of the product, without deduction for marketing, transportation, manufacturing, and processing costs borne by the producer. Where the parties to the sale are related parties and the sales price is lower than the price for which that oil and gas could otherwise have been sold to a ready, willing, and able buyer and where the taxpayer was legally able to sell the oil and gas to such a buyer, gross income shall be determined by reference to comparable arms-length sales of like kind, quality, and quantity in the same field or area. For purposes of this subsection, related parties shall be as defined in section 267 of the Internal Revenue Code, as defined, in section 63-3004 , Idaho Code. This tax is in addition to all other taxes provided by law. It shall be the duty of the state tax commission to enforce collection of this tax and to make such rules as may be necessary, pursuant to the provisions of chapter 52, title 67 , Idaho Code. All money so collected shall be remitted to the state treasurer for deposit in the oil and gas conservation fund, which fund is hereby created in the office of the state treasurer of the state of Idaho. (2) The persons owning an interest, working interest, royalty interest, payments out of production, or any other interest in the oil and gas, or in the proceeds thereof, shall be liable for such tax in proportion to their ownership at the time of production. The tax so assessed and fixed shall be payable monthly, and the sum so due shall be remitted to the state tax commission, on or before the twentieth of the month following the month in which the tax accrued, by the producer on behalf of himself and all other interested persons. The person remitting the tax, as herein provided, is hereby empowered and required to deduct from any amounts due the persons owning an interest in the oil and gas, or in the proceeds thereof, at the time of production a proportionate amount of such tax before making payment to such persons. (3) The tax imposed by this section shall apply to all lands in the state of Idaho, anything in this act to the contrary notwithstanding; provided however, there shall be exempted from the tax hereinabove levied and assessed the following, to wit: (a) The interest of the United States of America and the interest of the stat

47-331

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-331. Obligation to pay royalties as essence of contract — interest. (1) The obligation arising under an oil and gas lease to pay oil and gas royalties to the royalty owner or the owner’s assignee, to deliver oil and gas to an end purchaser to the credit of the royalty owner or the owner’s assignee, or to pay a portion of the proceeds of the sale of the oil and gas to the royalty owner or the owner’s assignee is of the essence in the lease contract. (2) Unless otherwise agreed by the parties: (a) A royalty of no less than twelve and one-half percent (12.5%) of the oil and gas or natural gas plant liquids produced and saved shall be paid. The lessee shall make payments in legal tender unless written instructions for payment in kind have been provided. (b) Royalty shall be due on all production sold from the leased premises except on that consumed for the direct operation of the producing wells and that lost through no fault of the lessee. (3) If the operator under an oil and gas lease fails to pay oil and gas royalties to the royalty owner or the owner’s assignee within one hundred twenty (120) days after the first production of oil and gas under the lease is marketed, or within sixty (60) days for all oil and ninety (90) days for all gas produced and marketed thereafter, the unpaid royalties shall bear interest at the maximum rate of interest authorized under section 28-22-104 (1), Idaho Code, from the date due until paid. Provided, however, that whenever the aggregate amount of royalties due to a royalty owner for a twelve (12) month period is less than one hundred dollars ($100), the operator may remit the royalties on an annual basis without any interest due. (4) A royalty owner seeking a remedy for failure to make payments under the lease or seeking payments under this section may file a complaint with the commission or may bring an action in the district court pursuant to section 47-333 , Idaho Code. The prevailing party in any proceeding brought under this section is entitled to recover court costs and reasonable attorney’s fees. (5) This section does not apply if a royalty owner or the owner’s assignee has elected to take the owner’s or assignee’s proportionate share of production in kind or if there is a dispute as to the title of the minerals or entitlement to royalties, the outcome of which would affect distribution of royalty payments. History: [47-331, added 2017, ch. 271, sec. 24, p. 704; am. 2023, ch. 283, sec. 13, p. 865.]

47-332

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-332. reports to royalty owners. (1) Each royalty payment shall be accompanied by an oil and gas royalty check stub that includes the following information: (a) Lease or well identification; (b) Month and year of sales included in the payment; (c) Total volumes of oil, condensate, natural gas liquids or other liquids sold in barrels or gallons, and gas in MCF; (d) Price per barrel, gallon, or MCF, including British thermal unit adjustment of gas sold; (e) Severance taxes attributable to said interest; (f) Net value of total sales attributed to such payment after deduction of severance taxes; (g) Owner’s interest in the well, expressed as a decimal to eight (8) places; (h) Royalty owner’s share of the total value of sales attributed to the payment before any deductions; (i) Royalty owner’s share of the sales value attributed to the payment, less the owner’s share of the severance taxes; (j) An itemized list of any other deductions; and (k) An address at which additional information pertaining to the royalty owner’s interest in production may be obtained and questions may be answered. If information is requested by certified mail, an answer must be mailed by certified mail within thirty (30) days of receipt of the request. (2) All revenue decimals shall be calculated to at least eight (8) decimal places. (3) All oil and gas volumes shall be measured by certified and proved meters. (4) The lessee must maintain, for a period of five (5) years, and make available to the lessor upon request, copies of all documents, records or reports confirming the gross production, disposition and market value including gas meter readings, pipeline receipts, gas line receipts and other checks or memoranda of the amount produced and put into pipelines, tanks, or pools and gas lines or gas storage, and any other reports or records that the lessor may require to verify the gross production, disposition and market value. History: [47-332, added 2017, ch. 271, sec. 25, p. 705.]

47-333

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-333. Action for accounting for royalty. (1) Whenever an owner of a royalty interest makes a written demand for an accounting of the oil and gas produced, but no more frequently than once every twenty-four (24) months, and makes written demand for delivery or payment of his royalty as may then be due upon the person or persons obligated for the delivery or payment of the royalty, and the obligated persons then fail to make the accounting demanded and the payment or delivery of the royalty due within a period of ninety (90) days following the date upon which the demand is made, then the royalty owner may file an action in the district court of the county wherein the lands are located to compel the accounting demanded and to recover the payment or delivery of the royalty due against the person or persons obligated. (2) In such an action, the prevailing party or parties shall be entitled to reasonable attorney’s fees to be allowed by the court, together with the costs allowed to a prevailing party, pursuant to section 12-120 , Idaho Code. (3) The remedies under this section are not exclusive and do not abrogate any right or remedy under other laws of this state. History: [47-333, added 2017, ch. 271, sec. 26, p. 706.]

47-334

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-334. use of surface land by owner or operator. (1) For the purposes of this section, the following definitions shall apply: (a) Surface land means land upon which oil and gas operations are conducted. (b) Crops means any growing vegetative matter used for an agricultural purpose, including forage for grazing and domesticated animals. (c) Surface landowner means a person who owns all or part of the surface land as shown by the records of the county in which the surface land is located. Surface landowner does not include the surface landowner’s lessee, renter, tenant or other contractually related person. (d) Surface landowner’s property means a surface landowner’s surface land, crops on the surface land and existing improvements on the surface land. (e) Surface use agreement means an agreement between an owner or operator and a surface landowner addressing the use and reclamation of surface land owned by the surface landowner and compensation for damage to the surface land caused by oil and gas operations that result in loss of the surface landowner’s crops on the surface land, loss of value of existing improvements owned by the surface landowner on the surface land and permanent damage to the surface land. (2) An owner or operator may: (a) Enter onto surface land under which the owner or operator holds rights to conduct oil and gas operations; and (b) Use the surface land: (i) To the extent reasonably necessary to conduct oil and gas operations; and (ii) Consistent with allowing the surface landowner the greatest possible use of the surface landowner’s property, to the extent that the surface landowner’s use does not interfere with the owner’s or operator’s oil and gas operations. (3) Except as is reasonably necessary to conduct oil and gas operations, an owner or operator shall: (a) Mitigate the effects of accessing the surface landowner’s surface land; (b) Minimize the interference with the surface landowner’s use of the surface landowner’s property; and (c) Compensate a surface landowner for unreasonable: (i) Loss of a surface landowner’s crops on the surface land; (ii) Loss of value to existing improvements owned by a surface landowner on the surface land; and (iii) Permanent damage to the surface land. (4) For the purposes of this section, an owner or operator is not required to: (a) Obtain location or spacing exceptions from the department or commission; or (b) Utilize directional or horizontal drilling techniques that are not: (i) Technologically feasible; (ii) Economically practicable; or (iii) Reasonably available. (5) The provisions of subsection (2) of this section do not apply to the extent that they conflict with or impair a contractual provision relevant to an owner’s or operator’s use of surface land for oil and gas operations. (6) (a) The provisions of this section do not prevent: (i) A person from seeking a remedy allowed by l

47-335

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-335. producers — monthly statements — idaho state tax commission. (1) Every producer engaged in the production of oil or gas from any well or wells in the state shall each month file with the Idaho state tax commission, on forms prescribed by the Idaho state tax commission, a statement containing the information required by subsection (2) of this section relating to the oil or gas produced, saved and sold or transported from the premises in Idaho where produced. (2) The statement required in subsection (1) of this section shall include: (a) The name, description and location of: (i) Every well or wells; and (ii) Every field in which the well or wells are located; and (b) Any other reasonable and necessary information required by the Idaho state tax commission. (3) The statements required to be filed with the Idaho state tax commission shall be signed and sworn to by the producer or a designee. (4) The Idaho state tax commission is authorized to conduct audits, relating to producer compliance with the provisions of this section, at least every three (3) years. History: [(47-335) 47-331, added 2017, ch. 116, sec. 1, p. 267; am. and redesig. 2018, ch. 169, sec. 15, p. 365.]

47-336

TITLE 47 MINES AND MINING CHAPTER 3 OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE 47-336. INTERSTATE COMPACT FOR CONSERVATION OF OIL AND GAS RATIFIED. (1) The state of Idaho does hereby ratify, approve, adopt and confirm the interstate compact to conserve oil and gas heretofore executed in the city of Dallas, Texas, on February 16, 1935, and is now deposited with the department of state of the United States and which has been extended with the consent of congress to September 1, 1947, which said compact is substantially as follows: INTERSTATE COMPACT TO CONSERVE OIL AND GAS ARTICLE I This agreement may become effective within any compacting state at any time as prescribed by that state, and shall become effective within those states ratifying it whenever any three of the states of Texas, Oklahoma, California, Kansas and New Mexico have ratified and congress has given its consent. Any oil-producing state may become a party hereto as hereinafter provided. ARTICLE II The purpose of this compact is to conserve oil and gas by the prevention of physical waste thereof from any cause. ARTICLE III Each state bound hereby agrees that within a reasonable time it will enact laws, or if the laws have been enacted, then it agrees to continue the same in force, to accomplish within reasonable limits the prevention of: (a) The operation of any oil well with an inefficient gas-oil ratio. (b) The drowning with water of any stratum capable of producing oil or gas, or both oil and gas, in paying quantities. (c) The avoidable escape into the open air or the wasteful burning of gas from a natural gas well. (d) The creation of unnecessary fire hazards. (e) The drilling, equipping, locating, spacing or operating of a well or wells so as to bring about physical waste of oil or gas or loss in the ultimate recovery thereof. (f) The inefficient, excessive or improper use of the reservoir energy in producing any well. The enumeration of the foregoing subjects shall not limit the scope of the authority of any state. ARTICLE IV Each state bound hereby agrees that it will, within a reasonable time, enact statutes, or if such statutes have been enacted then that it will continue the same in force, providing in effect that oil produced in violation of its valid oil and/or gas conservation statutes or any valid rule, order or regulation promulgated thereunder, shall be denied access to commerce; and providing for stringent penalties for the waste of either oil or gas. ARTICLE V It is not the purpose of this compact to authorize the states joining herein to limit the production of oil or gas for the purpose of stabilizing or fixing the price thereof, or create or perpetuate monopoly, or to promote regimentation, but is limited to the purpose of conserving oil and gas and preventing the avoidable waste thereof within reasonable limitations. ARTICLE VI Each state joining herein shall appoint one representative to a commission hereby constituted and designated as T