Once a well has been drilled

Nabors/Apache recently finished drilling a well on a portion of our family property. in this case a single well. We are told fracking is beginning. What is the process from this point on? I am kind of curious as to what would happen with natural gas. Don't think there is a pipeline in our area yet, but our landman said Apache would not be flaring any gas. We are southwest of Toyah a couple of miles.

Larry – Apache recently (May 3rd) placed into service (partially) a 30-inch natural gas pipeline flowing gas north, crossing I-20 in the vicinity of McAlpine Road Exit 13, ~6 miles west of Toyah. Mind locating your property survey for us? Thanks -- Later -- Buzz

Guessing this pipeline is destined to connect to the wahoo pipeline or whatever it is called going from Fort Stockton to Hobbs.

I believe around section 32, block 71.

Apache is building its own infrastructure with gas and oil gathering lines to their own refineries and sales lines

to the Texas Gulf coast for their LNG tanker loading facilities and AMOCO Chocolate Bayou oil refinery (Apache

is the name AMOCO Production Company took up when they expanded in the 80s.

In addition to the plants, refineries, salt water disposals, frack water tank/reservoirs and water wells, they

are building their own gas fired electricity generating facilities and 3 phase 777 KVA transmission lines

all over the area from Balmorhea to Kent and north to Dell City...and west to Cornudas and Siera Blanca

in Hudspeth county. They will be independent...not on the ERCOT system. They will vertically integrate

their operations in west Texas wherever possible to minimize operating costs and maximize profits on the

oil and natural gas they produce in Reeves, Culberson, Hudspeth, Jeff Davis, and Pecos counties. They are proving the boundaries of the Alpine Height, Delaware Amalgamated stacked shale plays from between Fort Stockton and Alpine, Balmorhea to Toyah, to Dell City, west to Cornudas/Sierra Blanca. The whole area, the Delaware Basin contains about 2 and 1/2 times the proven oil and gas the entire Permian basin east of the

Pecos river has ever produced.

I wouldn't be surprised if Apache ends up building one or more company cities along IH-20 and IH-10 west of

Pecos and Balmorhea for oilfield personnel to live, work, and have their families.

near Verhalen

Look along CCR-336 as it parallels FM2903....that's going to be the backbone of Apache gas/oil gathering infrastructure.....and they've got it staked out already for a right of way East across 2903 to Hwy 17 where it becomes Barilla road....and the right of way continues east on Barilla road to FM2007

along it to the Hwy 285 crossing where it can split and one line goes to the WAHA plant at

Coyanosa, the other to the new plant Energy Transfer is building on the east side of Hwy 285 near

the junction of Reeves and Pecos counties.

They will HAVE to build several more Apache gas and oil products refineries and more 30 inch lines to

the Texas Gulf Coast to get their products to market. You might even see a spur line and tanker

car loading facility west of Pecos...maybe just inside Culberson county on the rail line.

near Verhalen

Thanks for the insight. Wow.

Is Verhalen still a town of a single (nice) residence and a deserted store. Used to stop at that store coming home from Balmorhea or dove hunting.

Yep...still pretty much the same. They took Dwayne Cape to the old folks home...he's got dimentia

now....he owned that General Store and Post Office there. Now a Mexican guy bought it and is

fixing it up to be a convenience store, beer stop, and have a small RV park around it.

Noble Energy has their own man camp on 5 acres on the west side of Hwy 17 at Verhalen and

they have their Verhalen field office on CCR 331 just west of the north boundary of Verhalen.

Can't really call it a town. Only other business there is the office for Madera Valley Water Supply.

near Verhalen

Lawrence my family has land next to the intersection of 10 and 20. What kind of activity are you seeing there?

Apache, Noble, COG, Shell Western, and Oxy are the primary leaseholders of that area, but drilling/development

is going to be in 2018-2019 because Apache is concentrating on the infrastructure....electricity,

gas/oil/produced water gathering and transport lines. They are also building several natural

gas plants in that area and will have to build oil refineries to produce fuel oil, diesel, jet fuel,

and gasoline to be pumped to other areas of the USA to be retailed. Because of the Colonial

products pipeline interruption due to hurricane Harvey....there will be diesel, gasoline, jet fuel

oil refineries springing up all over this area and new distribution transport pipelines going to the west coast and the east coast from this area. Liquified Natural Gas, LNG, plants will be built

in this area (I hear a total of 40 plants are planned as of now) to produce co-mingled product

to be shipped all over the USA. We're talking about a 2 Trillion dollar energy gathering, refining,

transportation unified system for the entire USA over the next 5 to 10 years. That's what Trump's team is counting on to super stimulate the economy and provide tens of millions of

jobs for our people.

As they develop the area around the junction of IH10 and IH20....I think they (oil companies)

will decide to build a city that caters to oil and gas development employees because, frankly, the

services and access to housing provided by Pecos and the surrounding cities is pitiful. I've heard the name that's proposed for the proposed city is Delaware City.

Hang on to your property at that location, it's gonna be worth a lot.....but, please remember

for the oil and gas exploration companies to develop this area and employ so many people,

the land owners need to cooperate with them. Farmers and Ranchers CAN conduct their

operations around and in the midst of oil and gas exploration/production/refining.

I'm a big advocate of raising vegetables and fruit trees in greenhouses and enclosed orchards

to provide food year around in this area....and solar power the facilities so they are vertically

integrated and self sustaining. The oil companies will be glad to help develop food production

in the area to help feed their employees and all Texans. We can do the same thing with small

animals for meat, eggs, and milk. West Texas is a GOOD location for a mighty agricultural

supply effort with the help of the oil and gas companies.

In short, my message is that oil and gas companies and the farmers, ranchers, landowners

need not be enemies....but SHOULD work together as partners to develop energy AND

food production in this area while maintaining our space around each of us...so we aren't crammed together like sardines like other places in the USA. And Harvey reminds us to

prepare for disaster even out here. We should have stockpiles of supplies and transport

equipment for the people of this area should we need it for earthquakes, wildfires, tornadoes, etc....and someplaces to take people to get medical attention and have a place to stay until they can rebuild. West Texans don't HAVE to be like the rest of the USA.

near Verhalen

Lawrence, I like your way of thinking. In California they have certainly mixed oil production and agraculture. I think wind energy could also be explored. My contact at Apache has been very stingy with details about the company’s plans for our property. We own both dirt and minerals. 60 a.c. of 160 square.

You should also think about integrating a solar farm into your plans for your land.

You can get your own commercial solar panel arrays from www.civicsolar.com for about

70 cents per watt. I've bought the Canadian Solar 325 watt poly silicon panels for that price

and am taking my farm off grid to be completely independent and stand alone.

Don't get talked into having some company lease purchase panels to you and tie you to the

grid.....in Texas, since we are independent of the national power grid, they DO NOT HAVE to buy

your produced power from solar panels. But, there are ways to get the oil companies

to help you build a solar farm for your use and take the excess energy you produce into their

system to power their pumpjacks and plants....and they will pay you for the electricity you

produce. Like I say, work WITH the oil and gas companies.

You can make that 60 acres pay off on many levels. Email me for more discussion if you like.

near Verhalen