fctate
THE BATTALION
WEDNESDAY, JUNE 3, 1981
Page 7
thefts in oil boom, ‘inside jobs’ suspected
K United Press International
DALLAS — Due to the current drilling boom,
ilmen often wait six months for delivery of cru-
— }j avc | ; al machinery, but if they place an order with a
InvoL' Increased prices are creating a boom in the oil
jidiistry and leading to shortages of more than
“tsonC Bing equipment. Companies are increasingly
—o ho: eporting thefts of field equipment.
pi discussing the equipment and manpower
tages, spokesmen point to the industry’s
lomenal growth.
or instance, Atlantic Richfield officials say
[company now invests more capital in its Dal-
ivision, ARCO, than the entire corporation
:geted a few years ago.
A lot of these thieves are stealing to order, ”
Frank Potter, a Hughes Tool Co.
:esman.
Ne can tell because when they break into our
Jim 1
'endered;.
warehouses, they are fairly selective about what
they steal.’
The recent tremendous increase in oil explora
tion and production make South Texas and Okla
homa prime targets, he says, although thefts are
fairly common in every oil field.
Tom Haywood, executive vice president of the
North Texas Oil and Gas Association, said the
theft problem is most serious in producing fields.
“It’s occurring on a daily basis and it is causing
not only expense, but down time in presently
producing wells,” he said. “It’s equivalent to
stealing oil from the general public, because ev
ery barrel you cannot produce is a barrel that has
to be imported at premium prices. That costs
American manpower, in addition to being a ma
jor headache for producers.”
The culprits, equipped with blow torches and
special winch trucks capable of lifting several
tons of machinery, strike these isolated fields at
night. On a good night, an hours’ work can net
them $25,000 in equipment.
“Many well sites have no electricity, so they
have a gasoline-powered engine (valued at
$3,500 to $10,000) to run the pumping unit,” he
said. “These guys can go in there, use a torch to
cut through tbe belts and welds, lift the thing up
and load it on a truck in 10 minutes.
“It’s a pretty good night’s work when someone
can go out and steal $22,500 worth of equipment
and sell it the next day for 50 percent of its value.
And it’s not the sort of thing you’d put down on
your income tax.’
Like Potter, Haywood points to the booming
deregulated oilfields and the resulting shortage
of equipment for the increase in theft.
“Right now, used equipment sells for just ab
out as much as new equipment. The reason is
availability. Suppose you need a $5,000 engine.
You can wait six months for delivery on a new one
or you can take a rebuilt one and get your well
under production right away, Haywood said. Or
a producer can place an order with his local theft
ring.
Often the thefts are inside jobs.
“We had some well service equipment stolen
around here a few months ago where it was appa
rent from the manner it was stolen, that they
used certain safety techniques which would only
be known by people familiar with oil well servic
ing,” Haywood said.
“We had a case in which $22,000 of equipment
was stolen just across the Red River in Oklahoma
and taken to Gainsville, Texas and sold. When I
got the information on that one, I called the FBI
and they did a very thorough investigation. In
fact, we had a person plead guilty just last week in
federal court in Tyler, Texas and we re hoping he
gets a stiff penalty,” Haywood said.
Haywood said a gang recently drove into a
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legitimate storage yard in Jacksboro, Texas dur
ing the daytime and proceeded to load up several
thousand dollars worth of pipe, departing before
anyone even knew of the heist.
“In that particular case, the pipe ended up in a
Louisiana well, but since it couldn’t be identi
fied, it couldn’t be recovered,” he said.
The Texas legislature is considering two bills,
sponsored by Sen. Bob Glasgow, D-
Stephenville, designed to help law enforement
agencies catch and convict more thieves.
One bill makes theft of equipment specifically
designed for exploration and production of oil
and gas a second-degree felony.
Another would require dealers that buy used
equipment to keep the seller’s name, address,
drivers license and vehicle license plate number,
as well as the machinery’s serial number already
required under existing law.
State sues
neighbor
for water
United Press International \
ALBUQUERQUE, N.M. —
The State of New Mexico has filed
a motion before U.S. District
Judge Howard Bratton seeking
dismissal of a water suit filed by
the City of El Paso’s Public Ser
vice Commission.
Richard Simms, counsel for
New Mexico State Engineer Steve
Reynolds, said the state contends
the federal court lacks jurisdiction
in the matter, because under the
11th Amendment ofthe U.S. Con
stitution, citizens of one state can
not sue citizens of another.
The state also contends that the
matter needs additional adjudica
tion before the New Mexico Sup
reme Court before it is heard in
federal court.
Reynolds invoked a state water
export ban in late April, and
Simms says New Mexico contends
the Supreme Court should be
allowed to examine Reynolds’ rul
ing for possible certification.
The City of El Paso, citing %
potential water shortage, has filed
application for more than 300 wa
ter well drilling permits in south
ern New Mexico in Dona Ana and
Otero Counties.
Through its Public Service
Commission, El Paso is also chal
lenging the New Mexico ground
water export ban that Reynolds in
voked, contending it amounts to a
restraint on interstate commerce,
forbidden under federal law.
The State of New Mexico^-
argues, however, that the'com
plaint by El Paso against the ex
port ban is faulty. New Mexico
contends the El Paso complaint
challenged the constitutionality of
the ban, instead of the major arti
cles of the state constitution in
which it is included.
Both sides appeared before
Bratton May 15, and the judge
ordered them to file formal mo
tions by June 1, the basis for Mon
day’s action.
Formal briefs are due by June
15 and answers to those briefs are
due in Bratton’s court by June 22.
Pete Schenkkan, attorney for
the El Paso Public Service Com
mission, says the tactic of certifica
tion is a delaying stratagem on
New Mexico s part. He contends
it will only lengthen the entire leg
al process that ultimately will
wind up in federal court anyway.
“We suggest it is not appropriate,”
he said Tuesday.
The action taken Monday in
Albuquerque involved the State of
New Mexico’s motion for dismis
sal or certification, and a motion
filed by an intervenor in the case.
The Elephant Butte Irrigation
District. The irrigation district
filed a motion to abstain or dis
miss.
“What is standing in the way of
appropriation of New Mexico’s
water is the New MexicP Consti
tution,” he said.
5 indicted
for siezure
at airport
United Press International
HOUSTON — A federal grand
jury indicted three Houston-area
men and the wives of two of them
in connection with the May 6 sie
zure of about 800 high-quality gun
silencers at a suburban airport.
Houston machinists Aaron
Phillip Knopps, 45, and William
Kelly Kimball, 37, and Homer
Gene Hawkins, 33, were charged
Monday with one count of con
spiracy, one count of manufactur
ing illegal firearms and four counts
of possessing illegal firearms.
Carol Kimball and Kay Tucker
Hawkins were each named in the
conspiracy count.
The three men posted bond
after they were arrested and re
main free. The women appeared
before U.S. Magistrate Waiter-
mire and were released on person
al recognizance bonds.
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Call 845-2611
C