Idaho oil and gas laws can be found in Chapter 3 and 8, Title 47 of Idaho Code Statutes. Pursuant to Idaho Code § 47-315, 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 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.
Powers and Jurisdiction of the Commission
The commission has the jurisdiction and authority over all persons and property, public and private, necessary to enforce the provisions of this Act, and has power and authority to make and enforce rules, regulations and orders, and do whatever may reasonably be necessary to carry out the provisions of this Act[i].
Further, the commission may sue and be sued in its administration of this Act in any state or federal district court in the state of Idaho having jurisdiction of the parties or of the subject matter.
Pursuant to Idaho Code § 47-319, the commission is authorized and it is its duty to prevent waste of oil and gas and to protect correlative rights, and otherwise to administer and enforce this Act. It has jurisdiction over all persons and property necessary for that purpose. In the event of a conflict, the duty to prevent waste is paramount. Also, 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.
Regulation of Operation
It is unlawful to commence operations for the drilling of a well for oil or gas without first giving notice to the commission of intention to drill 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[ii].
Idaho Code § 47-322 provides that when two 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.
Civil Actions
Pursuant to Idaho Code § 47-325, the commission has 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 it. 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 s/he may be interrogated, any district court in the state, upon the application of the commission, may in term time or vacation issue an attachment for such person and compel him/her to comply with such subpoena, and to attend before the commission and produce such records, books, and documents for examination, and to give his/her testimony. Such court has 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.
Any person adversely affected by any rule, regulation or order made or issued under this Act, may within ninety days after the entry thereof bring a civil suit or action against the commission in the district court of Ada county, or in the district court of the county in which the complaining person resides, or in the U.S. district court for Idaho (if it otherwise has jurisdiction), and not elsewhere, to test the validity of any provision of this Act, or rule, regulation or order, or to secure an injunction or to obtain other appropriate relief, including all rights of appeal[iii].
Leases
Pursuant to Idaho Code § 47-801, the state board of land commissioners is authorized and empowered to lease for a term of ten years, and as long thereafter as oil, gas, casinghead gas, casinghead gasoline or other hydrocarbons, or any of them, is produced in paying quantities, or as much longer thereafter as the lessee in good faith should conduct drilling operations thereon, any state or school lands which may contain oil, gas, casinghead gas, casinghead gasoline, or other hydrocarbons, together with the right to use and occupy so much of the surface of said land as may be required for all purposes reasonably incident to the prospecting for, exploration for, drilling for, production, refining and marketing of said oil, gas, casinghead gas, casinghead gasoline or other hydrocarbons produced from said lands, including the right to construct and maintain thereon all works, buildings, plants, waterways, roads, communication lines, pipelines, reservoirs, tanks, pumping stations, or other structures necessary to the full enjoyment thereof for the purposes of the lease.
[i] Idaho Code § 47-317.
[ii] Idaho Code § 47-320.
[iii] Idaho Code § 47-326.
