Jeannie Nichols said she is “ready to fight” against impacts she said local communities face amid growing oil and gas production in Eddy County.
Nichols, 48, is a lifelong resident of Happy Valley, a rural community of about 600 people that borders Carlsbad City limits and the closest residential area to 10 oil wells recently drilled by Midland-based Permian Resources.
The county’s current ordinance – written in 1975 and unamended since – prohibits oil and gas facilities, such as drilling rigs, pipelines or tank batteries from being constructed within 300 feet of homes or other occupied buildings without consent of the owner of the adjacent property or structure.
During the Tuesday, May 5, Eddy County Commission meeting Nichols asked the county to enlarge the buffer zone to half a mile. Her proposal was included in the meeting’s published agenda as a “discussion” item, meaning no action was taken.
No one from the audience other than Nichols spoke for or against her proposal.
She said the closest oil well being drilled is slightly more than 400 feet from her house, and that she’s experienced abrasive noise, increased traffic and a lack of privacy as the drilling sites are operated all day and night.
“Until recently it was a quiet, peaceful neighborhood, and now we live in a literal war zone,” Nichols told commissioners. “The oilfield has infiltrated and surrounded us without so much as a courtesy phone call or letter or public meeting as to the intentions of our community.”
Carlsbad grants approval
The wells are being drilled within city limits, but most of Happy Valley is outside the city in Eddy County.
The Carlsbad City Council voted in June to approve permits for each of the wells and an associated tank battery as part of Permian Resources’ 17-well campaign the company calls its Water Buffalo Project.
The Water Buffalo wells are in an area near the intersection of West Texas Street and New Mexico State Road 524, targeting oil deposits in the Wolf Camp and Bone Spring formations about 8,000 feet beneath and within the broader Permian Basin.
The wells are in an area of the city known as its Wellhead Protection Zone, meaning oil and gas wells require the city’s permission and review due to possible impacts to the Sheep’s Draw wellfield in southwestern Carlsbad where the city draws most of its groundwater.
Permian Resources Regulatory Manager Stephanie Rabadue denied that the project would impact groundwater supplies. She also explained that pipelines associated with the project would be encased in steel and concrete, preventing any contaminants from leaking into groundwater.
“We are certainly compliant with local and state regulations,” said Permian Resources spokesperson Lindsey White.
All told, the company estimated the project would mark an $85 million capital investment in the community along with “tens of millions” in oil and gas royalties paid to the city and local mineral rights owners.
But it faced opposition during the June 17, 2025, City Council meeting when the plans were approved – a meeting Nichols also attended to speak against the proposal.
At the recent County Commission meeting, Nichols voiced similar misgivings as to the impact on safety of the local community, along with air pollution and noise concerns Nichols said Happy Valley would face when the wells were built and operated.
Community ‘blind-sided’
Nichols said she supported the oil and gas industry, and the economic benefits it brought to Eddy County. But Nichols was concerned, she said, as oil and gas developments continued to encroach on residential communities.
“My community has been blindsided with the latest invasion and for the safety of our families, and the decency and compassion for our quality of life, I am asking you, the county commissioners, to take action,” Nichols said. “I’m not trying to shut down the oilfield, and I’m not asking you to shut it down, either.”
County Attorney Cas Tabor pointed to the city of Carlsbad’s ordinance that places similar restrictions on facilities within 500 feet of homes.
County Manager Mike Gallagher, who served as Lea County manager until January 2025, said that county, which neighbors Carlsbad to the east, has no ordinance and relies on state regulations to ensure safety of communities alongside drilling operations.
There is no state law regarding oil facilities’ distance from homes.
District 4 Commissioner Bo Bowen said commissioners should gather more information on the Happy Valley situation and the county’s oil and gas regulations before considering any amendment.
“I think we need to look at this and come up with something that is better than what is in place,” he said. “We can come up with something that helps the residents but also keeps the industry that keeps Eddy County and the state moving still wanting to participate.”
Managing Editor Adrian Hedden can be reached at 575-628-5516, or @AdrianHedden on the social media platform X.





























