LUBBOCK, Texas — A third major bust in the Permian Basin’s ongoing battle against oilfield theft since September is wrapping up with federal investigators leveling charges against 14 defendants from Texas and Lea County.
The indictments were announced Wednesday, April 22 by U.S. Attorney for the Northern District of Texas Ryan Raybould on charges of conspiracy to transport stolen property in interstate commerce. Several of the accused are also charged with interstate transportation of stolen property and receipt, possession or sale of stolen property.
The indictments were filed April 8 in federal court in Lubbock, alleging the defendants “stole crude oil from oil producers in the eastern New Mexico region of the Permian Basin, some of which was then stored on land that one of the conspirators leased from the United States government.”
According to the release, the alleged conspirator then sold the stolen crude oil to others in the conspiracy at prices significantly below West Texas Intermediate pricing.
The charges further state the conspirators, knowing the crude oil was stolen, then transported the oil across the New Mexico-Texas border for further sale at a profit.
The defendants listed in the case are:
Texas defendants
• Randell Wayne Reid, 41, of Electra, Texas, owner of Reidco Enterprises, a Texas-based company.
• James Darrell Reid, 65, of Electra, owner of Reidco Enterprises.
• Christopher Frederick Harris, 22, of Seminole.
Lovington, New Mexico defendants
• Louis George Edgett, 68.
• Brenden Floyd Strickland, 25.
• Sixto Herrera-Estebane, 43.
• Gyardo Gonzalez, 47.
• Jesus Martin Hernandez-Borja, 51.
• Diana Marquez Rojo, 45.
• Jose Luis Rojo, 49.
• Jose Mario Rivas-Mendoza, 37.
• Miguel A. Soto, 41.
• Tavares Montrail Cole, 48.
• Danny Dale Brown Jr., 42.
If convicted, each defendant faces a maximum penalty of five years in prison on the conspiracy charges and up to 10 years in federal prison on each count of interstate transportation of stolen property, and receipt, possession or sale of stolen property.
The Bureau of Land Management, Federal Bureau of Investigation, Texas Department of Public Safety-Criminal Investigation Division, Lea County Sheriff’s Office and the Eddy County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Ann Howey is prosecuting the case.
The case is the third major oilfield theft bust in the region in recent months.
In September, federal authorities charged five men in a large-scale theft operation in Eddy County that involved a Mexican cartel and stealing from crude oil pipelines in New Mexico and West Texas.
According to court documents, Special Agents with the Bureau of Land Management opened the investigation in June after receiving information Maxwell Jensen, Thomas Rees, Christopher Ortega, German Ortiz-Santillano and Christian Jesus Contreras Varela allegedly were engaged in a scheme to steal crude oil from Plains All American Pipeline facilities in New Mexico, store it at a yard in Carlsbad, and transport it into West Texas for resale.
If convicted, Jensen, Rees, Ortega and Ortiz-Santillano face 10 years in prison and Contreras Varela faces 15 years in prison.
In November, six more men were arrested in an oilfield theft scheme on allegations they stole steel rods, pipe and other materials from an oilfield location. Ricardo Flores, David Holguin, Juan Jacquez Sanchez, Etuid De La Cruz, Luis Medrano Rubio and Fernando Ortiz were all arrested and charged with property theft more than $30,000 less than $150,000 and engaging in organized criminal activity, both second-degree felonies.
In an interview with the News-Sun in October, Fleetwood described oilfield theft in the region as a “booming business” for organized criminal groups that circulate throughout the Permian stealing everything from oil to pumpjacks.
“For 2024 and up to the first few months of 2025, I have 59 oilfield theft cases on my desk in Lea County alone,” Fleetwood told the News-Sun in October.
Fleetwood said most thefts of oil run around 300 barrels — or about $17,000 a load at current prices — but the thefts are occurring in multiple locations over the course of days and weeks to the point it is beyond some smaller oil companies to contend with.
“I know one independent (oil company) that had to sell out because of theft,” Fleetwood said. “I was working two different cases involving this company as a victim. Someone stole $1 million worth of pumpjacks off their wells.”
A survey conducted last year of 33 oil and gas executives by the Dallas Federal Reserve Bank showed 41 percent had their operations affected by oilfield theft in the past year.
Crude oil theft topped the list of items stolen with 61 percent of respondents stating they’d had crude oil stolen in the past year. Piping, valves and wiring was the second-most reported target, with 58 percent of respondents identifying those items being taken.
“I have a case now where we are looking at $7.5 million in oil theft and that’s just one person,” Fleetwood said. “Some of these cases are much bigger. It is a lot more organized than people realize.”
Levi Hill’s email is reporter1@hobbsnews.com.