Milam County’s economic future may indeed be in high-tech projects like cryptocurrency mining and solar farms, but there’s been a recent surge in a most familiar Texas industry—oil and gas.
After several years of decline, the county’s sales tax receipts have increased by 23 percent to date in 2019 and much of that is attributable to two projects at opposite sides of Milam, according to County Judge Steve Young.
Valero’s oil pipeline is snaking its way across the western portion of the county to link up with the company’s terminal on Chandler Road north of Taylor.
Treadstone Oil Company has purchased an older, existing oil lease in the Gause area and drilled about 50 new wells, according to Young.
He said the sales tax surge is “due in part to those coming into the county to work in the Gause Oil Patch and the pipeline.
AHEAD—For the first two months of 2019 Milam County sales tax rebates totaled $281,138.
That’s up $51,049 from the $230,089 collected in the first two months of 2018.
The 70-mile Valero pipeline connects existing facilities near Hearne to the Austin suburbs.
Its distribution terminal was once targeted for Hut-to but instead was built outside Taylor.
It’s being installed well north of Rockdale. Currently pipe is laid out north of Thorndale and is easily visible on both sides of FM 486, just south of the FM 1331 intersection.
From there the line heads west toward the Williamson County line just south of FM 1331, intersecting with CR 438 before leaving Milam County.
Young said he has been advised another, larger, oil pipeline is poised to cross the county, with construction to begin in January, 2020.
“This one will connect the Houston Ship Channel to the Permian Basin,” Young said.
OIL ACTIVITY—Young said he believes another 300 wells will be drilled in the Gause area.
He said most wells are in the Austin Chalk formation with one well coming in at 2,000 barrels.
The county judge said at least one well has been drilled into the Eagle Ford formation.
Precinct 3 Commissioner John Fisher said he has been working to help keep county roads repaired, due to considerable oilfield traffic.
“There’s a lot of action along County Roads 353 and 358,” Fisher said.
The activity extends well into Burleson County.
ROCKDALE, TOO—
Even though neither of those two endeavors is inside the city limits of Rockdale, the city numbers are also up in 2019.
For the first two months of this year, the City of Rock-dale has received $210,195 from its sales tax collections.
That compares to $192,011 over the identical period in 2018, a 9.47-percent increase.
“My theory is that contractors are staying in our motels and also spending money in town,” Whittaker said.
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