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NGL Energy Partners Spends $93 Million for New Mexico Water Rights

  • Mexico, September 12, 2018: NGL Energy Partners has spent $93 million to acquire 122,000 acres of ranch land in New Mexico, giving it access to nearly 12 million barrels of annual fresh water rights.

    The Tulsa, Okla company bought the Beckham and McCloy ranches in New Mexico, which gives the company access to over 20 saltwater disposal well locations and 11.6 million barrels of annual fresh water rights.

    NGL Energy Partners said the land will give producers in Eddy and Lea counties -- which lie in the New Mexico portion of the prolific Permian Basin oil field -- additional options for water sourcing and disposal.

    The company currently operates 27 active saltwater disposal facilities with a million barrels a day of disposal capacity in the Delaware Basin, which is part of the Permian.

    A recent study by Duke University said water use per well in the Permian Basin had increased 767 percent between 2011 and 2016, a finding that Texas energy group Texas Alliance of Energy Producers took issue with.

    SOURCE: MRT.COM