DOGM updates: aquifer exemption approved for Ferron disposal well; A1 Lithium and Skyline Mine water management remain under review

Dal Gray of the Division of Oil, Gas and Mining (DOGM) reported that the Environmental Protection Agency approved an aquifer exemption for a gas operator in Ferron, allowing the operator to pursue applications for a Class II saltwater disposal well in the Navajo Sandstone at an estimated depth of about 2,500 feet. Gray said the disposal project is expected to be a long process and will not proceed immediately.

DOGM staff also updated the council on the A1 Lithium exploration program. A1 applied in 2024 for three exploration wells; one well (Boise‑Dava) was permitted and completed in February 2024, experienced a drilling blowout that was contained with no reported environmental contamination, produced and tested brine through 2024–2025, and is currently shut in. A second well drilled in late 2025 was unsuccessful and plugged and abandoned. The company is pursuing a small mine permit (approximately 20 acres) and contemplates processing facilities and three disposal wells; exploration permits remain confidential until mine‑permit filings are made public.

On Skyline Mine, officials said the site is not actively mining but remains a focus of water‑management operations to supplement Electric Lake during drought. Reported pumping/discharge rates were about 3,500 gallons per minute at the main discharge point and about 1,400 gpm at the JC1 well; discharge resumed in March after a February shutdown and water quality was reported in compliance with permit requirements. DOGM and company representatives said monitoring and additional drilling near Boulger Reservoir are planned to better understand groundwater behavior; officials stated there is no confirmed direct hydraulic connection that would act as a "bathtub plug" between Electric Lake and the mine.

DOGM introduced staff members who will continue to provide technical updates as permits and monitoring work progress.