Unlocking Benefits for the Midland Community with the Midland Drilling Project
Millions of dollars of undeveloped oil and gas revenues are beneath the City of Midland. Accessing these oil reserves is extremely difficult due to the dense urban development in the area, but a path does exist.
In the area east of Garfield Street, the only access point available to drill for the deposits is a small piece of unused land on the Midland College campus.
Potential royalty owners are comprised of landowners, local businesses, local non-profits and churches, MISD, Midland College, and the City of Midland and collectively could make nearly $600 million in future royalties from the wells drilled.
Accessing the Minerals:
Midland College’s Critical Role
Because the mineral deposit is beneath a dense urban area, unoccupied acreage on the Midland College campus is the only access point available to extract these deposits via horizontal drilling.
Midland-Petro D.C. Partners, LLC (Midland-Petro), is actively pursuing the opportunity for a lease with Midland College for minerals the institution owns in the unit and a drill site that will utilize approximately 11 acres in the northwest corner of the main campus.
Midland College is considering a proposal that would allow Midland-Petro to drill wells, produce the oil, and pay the royalty owners.
11 acres represents approximately 5% of Midland College’s campus.
The proposed drill site is adjacent to the Midland Airpark and located as far as possible from all buildings and activity on the Midland College Campus.
Midland-Petro is prepared to take measures to help conceal operations from the rest of campus that could include constructing soundwalls around the 11-acre site and new landscaping.
$600,000,000 Benefit to Local Stakeholders
In addition to the City of Midland and Midland College, thousands of local landowners including families, businesses, non-profits, churches, and schools, will be paid royalties by the Midland Drilling Project.
Below are estimated aggregate royalties for these entities should the mineral deposits be accessed by the Midland Drilling Project:
Midland College’s mineral interests in the Midland Drilling Project will yield approximately
$
0
million
for the institution in royalties and other associated compensation.
Plus Midland-Petro would provide Midland College with an immediate cash bonus in the form of a lease bonus payment.
Plus Midland-Petro is also prepared to provide clean water, sourced by off-campus wells, at no charge to Midland College for campus irrigation and beautification, a value of approximately $500,000 per year.
Midland ISD:
- $4,386,041
Midland College:
- $40,000,000
Other Schools and Colleges:
- Hillander School: $680,675
- Baylor University: $791,883
- University of Texas: $791,883
- Southwestern University: $791,883
Churches/Non-Profits:
- First Methodist Church of Midland: $282,816
- First Baptist Church: $771,751
- Faith Apostolic Church: $148,598
- St. Marks United Methodist Church: $134,218
- Holy Cross Orthodox Church of Midland and Odessa: $594,392
- FMH Foundation: $262,827
- Permian Basin Community Center: $186,946
*Calculated at $75 posted price
Local Businesses and Landowners:
- $347,000,000
City of Midland:
- $198,000,000
Midland taxpayers would be beneficiaries of
$
0
million
in royalty payments because of the City of Midland’s mineral interests in the Midland Drilling Project.
The $198 million in royalties generated by the Midland Drilling Project for the City of Midland is more than the City’s 2023-24 annual budget of $167 million.
Path Forward
Midland College issued an RFP in August 2024, allowing for the submission of proposals. Midland-Petro submitted a proposal and the Midland College Board of Trustees will consider space for the drill site in their master plan.
Midland-Petro encourages Midland College and their Board of Trustees to consider the Midland community’s feedback and input on a proposed drill site, engage in serious and good faith negotiations to pursue the project, and ultimately award the RFP to Midland-Petro.
This is a critical moment in time for consideration of this project and the ability to access the oil reserves and the benefits for the entire community now and in the future is in the balance.
Acknowledging Midland’s
Heritage & Community Support
The support of city leadership and generosity of Midland families have been critical to the growth of Midland College over the past 50 years.
The Midland Drilling Project represents an opportunity to take another collaborative step forward and continue this legacy, along with substantial financial benefits.
The project would also acknowledge the significance of the oil and gas industry to Midland College’s heritage and local support.
Frequently Asked Questions
Operations
The undeveloped northern piece of the Midland College Campus is the only available space to provide access to the minerals.
An RFP is required by state statute for a government entity to lease its minerals. The RFP process allows for a formal negotiation process between interested parties.
Timing is dependent on Midland College’s RFP process, the timing of permits being issued, and infrastructure construction. It is anticipated that drilling would begin approximately one year following final agreements with Midland College.
The project will require 11 acres, approximately 5% of the main campus.
Drilling activity is anticipated to take 3-4 years. The well site would be active for as long as the wells continue to produce, which we expect to be at least 20 years.
In addition to the City of Midland and Midland College, thousands of local landowners including families, businesses, non-profits, churches, and schools, will be paid royalties by the Midland Drilling Project.
Minimal disruption will occur, and appropriate mitigation efforts will be made to address traffic, noise and other concerns.
Roads and Traffic
The project will work in coordination with the City of Midland to ensure limited disruption to local traffic.