Six Plead Guilty in Federal Permian Basin Oil Theft Ring That Stole Tens of Thousands of Barrels Across Texas and New Mexico
A major federal crude oil theft conspiracy unraveled further this week as six defendants formally admitted their roles in a sophisticated criminal operation that drained tens of thousands of barrels of oil from Permian Basin producers and moved the stolen commodity across state lines for resale. The guilty pleas, entered on July 15, mark a significant milestone in one of the most sweeping oilfield theft prosecutions in recent Texas history.
,The six individuals pleaded guilty to charges stemming from a seven-count federal indictment alleging that 14 defendants conspired to steal crude oil from Permian Basin oil producers and resell it for significant profit, as announced by U.S. Attorney for the Northern District of Texas Ryan Raybould.,
The defendants who entered guilty pleas include Gyardo Gonzalez, Mario Mendoza, and Miguel A. Soto, all of Lovington, New Mexico; Luis Rojo of Seminole, Texas; and Diana Marquez Rojo and Jesus Martin Hernandez-Borja, both of Hobbs, New Mexico. ,A seventh defendant, Tavares Montrail Cole, has admitted in filed plea papers to participating in the conspiracy, and his rearraignment is scheduled for August 3.,
The Scale of the Theft
Federal prosecutors laid out a striking financial picture of the alleged operation in court documents. ,According to plea papers, one conspirator sold 10,975 barrels of stolen crude oil to co-defendants Louis Edgett and Brenden Floyd Strickland between June 2022 and July 2024. That oil carried an approximate fair market value of nearly $889,000, yet Edgett and Strickland paid a mere $15 per barrel, totaling just over $164,000.,
The discounted transactions did not stop there. ,Another conspirator sold 9,090 barrels of stolen crude oil to Edgett and Strickland during a six-month window between January and June 2024, oil that carried a market value exceeding $724,000, but was purchased for approximately $136,350., ,Yet another conspirator admitted in plea papers that the crude oil he stole was valued at up to $1.5 million.,
How the Operation Worked
,According to the indictment returned on April 8, 2026, all 14 defendants allegedly conspired to transport stolen crude oil across the New Mexico-Texas border for the purpose of enriching themselves. The indictment alleges that several 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.,
,Co-defendant Louis Edgett conducted business on at least four properties in New Mexico, maintaining frac and oil tanks on those properties. Luis Rojo, Soto, and other co-defendants stole crude oil from other producers in the Permian Basin and delivered it to the tanks Edgett maintained. Another co-defendant, Brenden Floyd Strickland, was responsible for facilitating the delivery of the stolen oil.,
From there, the stolen product was passed further down the chain. ,Plea papers indicated that James Darrell Reid and Randell Reid, both of Electra, Texas, who are also charged in the case, purchased the stolen oil from Edgett and Strickland at prices significantly below the West Texas Intermediate benchmark and transported it across the New Mexico-Texas state line to their business site in Seminole, Texas., ,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 FBI Responds
The FBI made clear that dismantling this ring was a priority. Special Agent in Charge R. Joseph Rothrock of the FBI Dallas field office stated that federal investigators were able to disrupt an organized theft group responsible for stealing tens of thousands of barrels of crude oil across Texas and New Mexico, and that the FBI would continue working with partners to combat large-scale theft and distribution of stolen goods.
,The investigation was conducted jointly by the Bureau of Land Management, the FBI, the Texas Department of Public Safety’s Criminal Investigation Division, and sheriff’s offices in Lea and Eddy counties in New Mexico.,
Defendants Still Facing Trial
Eight defendants remain in the case without guilty pleas. ,Texas defendants still facing charges include Randell Wayne Reid, 41, of Electra, owner of Reidco Enterprises; James Darrell Reid, 65, of Electra, also an owner of Reidco Enterprises; and Christopher Frederick Harris, 22, of Seminole, Texas., New Mexico defendants who have not yet resolved their cases include Louis George Edgett, Brenden Floyd Strickland, Sixto Herrera-Estebane, Danny Dale Brown Jr., and Tavares Montrail Cole, whose rearraignment is pending.
,The remaining defendants face imprisonment ranging from five years up to 65 years and millions of dollars in fines if convicted., All defendants who have not been adjudicated are presumed innocent unless proven guilty in a court of law.
The Bigger Problem: Oilfield Theft Across the Permian Basin
This case is far from an isolated incident. The Permian Basin, ,a vast sedimentary shale basin spanning over 86,000 square miles in Southeastern New Mexico and West Texas, is the largest oil-producing region in the United States and accounts for the majority of all U.S. crude oil production., That concentration of wealth has long made it a target for organized theft rings.
Industry groups have repeatedly warned that criminal networks are costing producers tens of millions of dollars annually. The Federal Reserve Bank of Dallas has reported that more than 40 percent of oil executives have been impacted by theft, with crude oil representing the majority of what is stolen. Energy Security Council estimates have placed the annual revenue loss from oil theft in Texas as high as $1.5 billion.
Texas Lawmakers Strike Back
The steady drumbeat of industry complaints prompted action in Austin. During the 2025 legislative session, Texas lawmakers pushed through a series of measures aimed at cracking down on oilfield theft in the Permian Basin. House Bill 48 directed the Texas Department of Public Safety to establish a dedicated oilfield theft prevention unit. Senate Bill 494 required the Texas Railroad Commission to create a separate task force focused on preventing petroleum product theft. Senate Bill 1806 gave DPS expanded authority to inspect vehicles suspected of transporting stolen oil and stiffened penalties for oil and gas theft offenses.
The guilty pleas entered this week signal that federal prosecutors are equally committed to pursuing these cases, even as state-level enforcement infrastructure continues to be built out. With eight defendants still awaiting trial and a seventh rearraignment on the horizon, the full scope of consequences from this conspiracy is yet to be determined. Sentencing dates for the six who have already pleaded guilty have not yet been announced.