Two Electra, Texas, men were among 14 people from Texas and New Mexico who were arrested and indicted for their alleged involvement in a “large-scale” oil theft conspiracy in the Permian Basin — the largest oil-producing region in the U.S.
A federal grand jury in Lubbock, Texas, indicted 14 defendants — including Randell Wayne Reid, 41, and James Darrell Reid, 65, owners of Texas-based Reidco Enterprises — for allegedly planning to transport stolen crude oil across the New Mexico-Texas border for the “purpose of enriching themselves,” read a media release from the Office of the U.S. Attorney for the Northern District of Texas.
A third Texan, Christopher Frederick Harris, 22, of Seminole, Texas, was also among those indicted. The other 11 defendants are from Lovington, New Mexico.
The indictment alleges several defendants stole crude oil from oil producers in the Eastern New Mexico region of the Permian Basin with some of the stolen oil stored on land leased by one of the defendants from the U.S. government.
The individuals then sold the stolen crude oil to other members of the conspiracy at prices significantly below West Texas Intermediate prices.
For context, the WTI is the benchmark used to price crude oil in the Permian Basin and a majority of the U.S.
Those who bought the oil knew the crude oil had been stolen and then transported it across the New Mexico-Texas border to sell it, federal authorities allege.
U.S. Attorney for the Northern District of Texas Ryan Raybould announced on Wednesday, April 23, that each defendant was charged with conspiracy to transport stolen property in interstate commerce.
Several defendants were also charged with the interstate transportation of stolen property, as well as the receipt, possession or sale of stolen property.
According to the U.S. Attorney’s Office, if convicted, each defendant faces a maximum penalty of five years in prison on the conspiracy charge and up to 10 years in federal prison on each count of interstate transportation of stolen property, and receipt, possession or sale of stolen property.
What is the Permian Basin?
According to the Texas Railroad Commission, the Permian Basin is an oil and gas-producing area located in West Texas and the adjoining region of southeastern New Mexico.
The Permian Basin covers an area approximately 250 miles wide and 300 miles long and is composed of more than 7,000 fields
It accounts for nearly 40% of all oil production in the United States and nearly 15% of its natural gas production.
Mateo Rosiles is the Texas Connect reporter for USA TODAY and its regional papers in Texas. Got a news tip for him? Email him: mrosiles@usatodayco.com.
This article originally appeared on Wichita Falls Times Record News: Federal grand jury indicts two Electra men in Permian oil theft case
Reporting by Mateo Rosiles, USA TODAY NETWORK / Wichita Falls Times Record News
USA TODAY Network via Reuters Connect
