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Gonzales County

01/20/2011 2:25 PM | Anonymous member (Administrator)

Posted:  December 31, 2010: GONZALES INQUIRER

By Daniel Elizondo


Sitting quietly in and around Gonzales County is a gold mine waiting to exhale.


It may not be as simple as shootin' at the ground and up comes a bubblin' crude. But the idea is certainly there.


In just the past year, thousands of oil leases erupted in Gonzales County sparking a trail of money around the City of Gonzales and paving way for a new age "oil boom".


EOG Resources, Inc., one of the largest oil and natural gas companies in the United States, has already acquired over 700 leases in Gonzales County dating from January 2010 to today. And that number could grow. EOG holds mineral rights leases for approximately 580,000 net acres across six counties including Gonzales County in the Eagle Ford Shale, the prolific new horizontal play in South Texas.


The Eagle Ford Shale stretches across South Texas from deep in the Valley to north of Gonzales County. It is found at depths between 4,000 and 12,000 feet and is up to 250-feet thick in some places, generally without natural fracturing present.


EOG Public Relations Director Liz Ivers told the Gonzales Inquirer "EOG has a long-term focus on the Eagle Ford. We have consistently characterized the Eagle Ford as a ‘resource play', meaning that we expect it to be productive for many, many years to come."


The City of Gonzales is already reaping the benefits of this boom after the release of its sales tax revenue payment for October and November increased by a whopping 17.41% compared to last year.


"Royalty owners, who have signed leases, may have already received cash payments," said Ivers. " Once production commences, royalty owners receive royalties and, in turn, may spend these dollars on goods and services, which may increase sales and use tax revenues to the county."


The County is receiving property taxes based on mineral valuation each year and sales and use taxes on goods and services used by the oil and gas companies.


Crude oil is the main production from the Eagle Ford and if found, is transported via truck and underground pipelines to refineries in Corpus Christi, Houston and other U.S. locations.


"EOG is committed to being a responsible operator and a good neighbor of Gonzales County," continued Ivers. "Just as it is across North America, where it has extensive experience in all facets of crude oil and natural gas operations."


The area in and around Gonzales County has already seen an increase in activity from different crews working on the drilling and production of Eagle Ford wells. The positive for Gonzales is that this will last over a long period of time. And the best part about it is - it has just begun.

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