San Antonio-based Petro Waste Environmental LP (PWE) has begun construction on its Deep Six and Big Lake landfills in the Permian Basin (a region in the Western part of Texas). The Deep Six landfill facility is a joint venture with Trinity Environmental Services I, LLC, a Guggenheim Partners portfolio company, and is located adjacent to Trinity’s Deep Six saltwater disposal facility, which is separately owned and operated by Trinity.
The Big Lake facility in Reagan County is wholly owned by Petro Waste. Funding for the Big Lake facility and Petro Waste’s share of the Deep Six landfill facility is being provided by Petro Waste’s equity sponsor, Tailwater Capital. Once the Deep Six and Big Lake facilities open in 2018, Petro Waste will have four landfills in operation in the Permian Basin.
“These are two very strategic locations for our company, giving us a foothold in the Southern Delaware Basin, as well as in the Southern Midland Basin,” said Petro Waste Environmental Founder and CEO George Wommack in a statement. “PWE already operates a Northern Delaware Basin landfill in Orla and a Northern Midland Basin facility in Howard County, and now we have all four corners of the most active play in the U.S. covered.”
The Deep Six landfill facility will be built on a 212-acre tract in Reeves County, Texas, 10 miles south of the city of Pecos. Construction has already commenced, with the landfill’s opening anticipated early in the second quarter of 2018. Deep Six will accept oil-based mud, water-based mud, oil-based drill cuttings, water-based drill cuttings, contaminated soil and RCRA-exempt, non-hazardous exploration and production (E&P) waste, as well as provide washouts and other ancillary services.
The Reagan County facility will be located on a 245-acre tract on Highway 137, approximately 12 miles north of Big Lake, at the Stiles turnoff. In addition to providing the same services as the Deep Six facility, the Big Lake landfill will sell fresh water and high-quality aggregate. Construction is scheduled for completion in the second quarter of 2018.
Petro Waste’s other two Permian Basin facilities are the Orla Landfill, which opened in April and is also now part of the joint venture with Trinity, and a Howard County facility located between Stanton and Big Spring, which opened in September. Both facilities offer the same services as the Deep Six and Reagan Landfills.