Pecos City Council approved eight drilling permits May 8 for US Energy Development Corp to develop wells on two pads near town, after a presentation from company officials and questions from council members and residents.

Kevin Duncan, vice president of operations for US Energy Development Corp, and Colton Nutt, the company’s senior operations engineer, told council their permits cover two pads (the “Hollywood” and “Iceman”) and that the company has contracted a rig with operations planned in late 2025 into early 2026. They said some wells in the area are infill development on previously drilled pads and that the company has drilled wells in Ward and Reeves counties in recent years.

Company presenters said the pads are sited at distances the company considered sufficient from residences and public facilities; they estimated the nearest permanent uses (a Basin yard) at about a half mile, the ball fields parking lot and golf course at about 0.8 miles, and the Pecos airport terminal about 1.4 miles from the closest well point. The company also said it will install hydrogen sulfide (H2S) monitoring while drilling and perform regular leak-detection surveys.

Council members and staff pressed the company about sound and visual impacts. Staff suggested sound walls on the north and west sides of the site to reduce drilling noise at the ballpark, golf course and airport; company representatives said they would discuss and, if required, install sound mitigation and would maintain monitoring equipment after drilling and completion.

Several council members also raised the drilling-permit fee schedule. A council member noted the city’s $4,000 drilling-permit fee and said comparable jurisdictions charge up to $10,000; staff told council they are reviewing the ordinance and will bring a fee update to a future meeting.

The council approved the permits with a motion from Councilman Graham and a second from Councilman Porrasco and voted in favor.

What was decided: eight drilling permits were granted for the two pads as presented. The company committed to H2S monitoring and to continued communication about mitigation and local contracting opportunities.

Community requests and follow-up: council members asked staff to evaluate permit fees and to confirm whether sound walls or other noise mitigation should be required as a permit condition. Company officials encouraged the council to consider local contracting opportunities and said they would provide business cards for local outreach.

Quotes in this article are taken from the council meeting transcript and are attributed to meeting speakers.