Crime
West Texas Oil Theft Ring Busted, $12 Million Seized in Multi-State Sting - Hoodline
Six people were arrested August 11 on felony charges tied to an alleged multi-state oil theft ring that prosecutors say siphoned crude from wastewater and sold it across Texas, New Mexico, and Oklahoma under an operation authorities called Black Market Basin. The scheme centers on Vallee Oil and Gas, a wastewater disposal company based in West Texas that investigators say bought and moved crude it had no authorization to handle.
The scheme centers on Vallee Oil and Gas, a wastewater disposal company based in West Texas that investigators say bought and moved crude it had no authorization to handle. Court records indicate the company skimmed oil out of wastewater streams that passed through its operation. Authorities seized more than $12 million in petroleum products, luxury goods, vehicles, and cash connected to the ring.
Charges include felony oil theft, money laundering, and organized crime. For West Texas, where the oil patch economy runs deep and wastewater disposal is routine, the case raises real questions about oversight inside an industry that most people here either work in or know someone who does. The Permian Basin sits just down the road from Lubbock, and the region's economic health tracks closely with what happens in that sector.
The arrests were first reported by the Houston Chronicle, with Texas law enforcement leading the investigation.
Twelve million dollars seized from a single wastewater disposal company is a number that suggests the scheme ran longer than anyone caught it.
Common questions
What is the Black Market Basin oil theft case in West Texas?
- Black Market Basin is the name authorities gave to an alleged multi-state oil theft ring. Six people were arrested August 11 on felony charges including oil theft, money laundering, and organized crime. The ring allegedly operated across Texas, New Mexico, and Oklahoma, with over $12 million in assets seized.
What company was at the center of the West Texas oil theft ring?
- Vallee Oil and Gas, a West Texas wastewater disposal company, is at the center of the case. Investigators say the company bought and moved crude it had no authorization to handle, skimming oil out of wastewater streams that passed through its operation.
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