Eddy County prepares for $500M industrial revenue bonds for new natural gas plant
Eddy County advanced on a plan to issue $500 million in industrial revenue bonds to a Texas-company to build a natural gas processing plant near Carlsbad.
On Tuesday Eddy County’s Board of County Commissioners approved a declaration of intent with Pronto Midstream LLC for the facility to be located 25 miles northeast of Carlsbad, according to a memorandum written by Eddy County Manager Roberta Gonzales to commissioners.
“The industrial revenue bond would provide property, gross receipts tax and compensating tax exemptions to defray part or all of the costs of the project,” she stated in the memo.
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Gonzales said the plant could encourage economic development in northeastern Eddy County.
“In return for the tax exemptions, Pronto Midstream would agree to an annual payment in lieu of taxes (PILT),” she said.
Pronto is a subsidiary of Matador Resources based in Dallas and would construct the facility to accommodate the production of 200 cubic feet of natural gas (mcf) a day, read a proposal written by the company and submitted to commissioners.
The new project would consist of a buildout of a project built in 2017 and process 60,000 mcf and is currently in operation, according to the proposal.
A resolution approved by commissioners is a non-binding attempt on the County’s part to issue the industrial revenue bond for the financing of the project, Gonzales wrote in her memorandum.
Matador Resources has operations in the Wolfcamp and Bone Springs plays in the Delaware Basin in southeast New Mexico and West Texas, cited the company’s website.
Matador Resources also conducts midstream operations in support of exploration, development and production operations.
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The company provides natural gas processing, oil transportation services along with natural gas, oil and produced water gathering services and produced water disposal services for third parties, according to the Matador website.
Jill Sweeny, attorney with the Sherman and Howard law firm, said an ordinance selling the actual bonds could be developed by November for commission approval.
Mike Smith can be reached at 575-628-5546 or by email at MSmith@currentargus.com or @ArgusMichae on X, formerly known as Twitter.
This article originally appeared on Carlsbad Current-Argus: Eddy County prepares for $500M bond sale for new gas plant
