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LIVING OFF THE LAND


Dec. 24, 1996

Cold weather slows well service flow

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By PEGGY McCRACKEN
Staff Writer
PECOS, Dec. 24, 1996 - Winter is a slow time for Farmers Irrigation, but
at least one pulling unit is usually in the field helping a farmer solve
a water well problem.

Such was the case last week when a contractor from Arizona used his
video equipment to check for separated tubing or other problems for Ron
Fossum at Agri-West Inc. southwest of Pecos.

Mike Adams, Farmers Irrigation owner for the past year-plus, brings in
the contractor periodically to check out wells that may need a new shaft
or other repair.

While Adams is in the field, Guy Weatherman mans the store and uses the
telephone to track down parts needed on a particular job.

He and Libby Horsburgh, office manager, enjoy the respite from hectic
summer months, when five pulling units may be needed to keep water
flowing to cotton, corn, sorghum, cantaloupes, bell peppers, alfalfa and
other crops grown in the Pecos Valley.

Each pulling unit requires a crew of three, and another crew works in
the shop to repair what they bring in.

Crews may bring in bowls (turbine engines) from the wells to be
rebuilt, or they will pull a shaft that has separated and needs to be
patched.

Often a shaft will be in such bad shape that it can't be pulled, and a
new liner is lowered inside it, Weatherman said.

"We do that ourself, then put the pumps back in," he said.

Pipe is stacked in a fenced yard behind the shop until it is needed. A
machinist stands ready with a shop full of gadgets that can cut pipe,
thread it or do any of the other jobs required on a water well.

Weatherman said the staff is able to slow down in the winter - "from 60
hours to 30 per week."

Like any agriculture-related business, they enjoy the slack time while
they can.

Future looms large for Texas Equipment

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By PEGGY McCRACKEN
Staff Writer
SEMINOLE, Dec. 24, 1996 - Expanded agricultural trade with Mexico fueled
a recent merger between a West Texas John Deere dealership and a New
York company that has nothing whatever to do with farming.

Paul Condit of Seminole, who founded and heads Texas Equipment Co.
Inc., said he plans to double the number of retail farm equipment and
parts stores, adding stores in Hereford, Dimmit and Friona to the three
currently in operation in Seminole, Pecos and Plains.

Marc Noel, Texas Equipment credit manager, said the merger with Marinex
Multimedia Corporation was "the most economically feasible and quickest
way to become a publicly traded company, which allows us to sell stock
to finance any expansions or changes that we plan to do."

With the new name of Texas Equipment Corporation and an application to
be listed on the NASDAQ Stock Exchange as TEXQ, the company has agreed
on a price to purchase White Implement in Hereford and J&H Equipment in
Dimmit and Friona.

"We should take over Jan. 1," Noel said.

The six stores are expected to sell $40 to $50 million in farm
equipment, parts and supplies next year, he said.

"Our sales will hit $25 million gross this year," he said. "We will
probably have the same products in all six stores."

Stores on the Plains sell more grain combines, but "basically we will
have the same John Deere equipment," Noel said.

Texas Equipment sells John Deere equipment and parts from its Pecos
store at 1842 Bickley Blvd. (Texas Highway 17). Bill Condit is manager.

The company expects to model the "superstore" concept into the farm
equipment industry. Global changes to farming methods have been
documented in recent magazine and newspaper articles.

New satellite "precision farming" technology will permit satellite
assessment of moisture, fertilizer, insecticide and seeding on a square
yard by square yard basis, said Paul Condit, chief executive officer and
president of the new corporation.

"This information can be downloaded to the onboard computers for
computer-driven soil and yield management," Condit said.

Advantages of this technology begins to force a gradual retooling of
the entire industry, he said. The company also expects to resell lower
tech used and lease returned equipment to nearby Mexico by utilizing
payment bonds.

Condit has over 23 years experience in the farm implement business.
Texas equipment's Dec. 31, 1995 unaudited figures show assets of $8.5
million, $3 million stockholder's equity, $25 million revenues and
$600,000 net income.

Marinex Multimedia Corporation will continue its existing business of
creation of digital content, including a CD-ROM magazine entitled
"Trouble & Attitude," a site on the world wide web known generally as
"The Biz Entertainment CyberNetwork" (http://www.bizmag.com) and a site
on the web known as "The East Village (http://www.eastvillage.com).

Texas Equipment stockholders will be the majority stockholders in the
new corporation, with 16.8 million shares, Noel said.

Condit said that Texas Equipment is poised for growth and expansion of
efficient, cost effective, creative agriculture, which is expected to
double in the first quarter of the next century.

Already they have a site on the world wide web
(http://www.texasequipment.com), with a link to John Deere's page
(http://www.deere.com).

John Deere is the world's leading producer of agricultural equipment.
The company offers full lines of tractors, combine harvesters, tillage
tools, planters, hay equipment, cotton pickers and strippers,
cultivators and other implements.

The company's objective is to increase its competitive advantage: not
only to introduce important technology advances, but also to develop
products that strategically address a spectrum of customer needs, new
geographic markets and new niche markets.

In recent years the John Deere tractor line was completely replaced
with all-new models: utility and agricultural tractors in 1992, row-crop
and four-wheel-drive tractors in 1993, and in 1994, the 8000 series
row-crop tractors, including the 225-horsepower 8400, the largest
row-crop tractor in the industry.

The 8000 series are totally new tractors, designed to provide
unprecedented standards of control, maneuverability, power application
and visibility. The design of these tractors is so unique that they have
been granted a patent.

Deere & Company, founded in 1837, grew from a one-man blacksmith shop
into a worldwide corporation that today does business in more than 160
countries and employs 33,000 people worldwide.

The company is guided today, as it has been since 1837, by John Deere's
original values: a commitment to product quality, customer service,
business integrity and a high regard for individual contribution.

Texas Equipment is one of the leading distributors of John Deere farm
machinery in the nation and is the largest distributor of peanut
harvesting equipment in the country, Noel said.

"If one store doesn't have it, the others will," Noel said of the
inventory. "The majority of the paperwork and record keeping for all six
locations will be done here in Seminole. We will have consolidated
inventory sheets."

Besides John Deere equipment, Texas Equipment sells specialized
equipment that John Deer does not manufacture, including peanut
harvesting equipment and bushhog equipment.

Mistlete makes excellence wildlife forage

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COLLEGE STATION, Texas - It's not only good for holiday decorating, but
it's also an excellent source of wildlife forage. The mild winters that
Texas is famous for help mistletoe grow in abundance, reports the Texas
Agricultural Extension Service.

It doesn't find favor in everyone's eyes, though - many farmers and
ranchers consider the parasite a nuisance, said Dr. Jerral Johnson,
Extension plant pathologist.

The white berries are succulent little treats for native birds. As
birds feed and move from tree to tree, they redeposit mistletoe seed,
explained Johnson.

``Once the seed roots itself down in the limb of the tree it just
continues to live there,'' said Johnson. After rooting, the mistletoe
drains the host tree of its nutrients and may kill the tree.

Trees with heavy leaf cover are less susceptible to the menacing
mistletoe. But farmers and ranchers who find themselves faced with a
pasture full of shedding trees have a variety of options when it comes
to dealing with the parasite.

Pruning is an option for small trees with thin limbs. A cut should be
made 12 inches below the mistletoe plant, removing the plant trunk or
the limb of the tree. The mistletoe will eventually return.

``By removing it, we do reduce its ability to produce seed and the
spread of seed,'' said Johnson.

After clipping the mistletoe, another option is to tightly wrap the
limb with a black plastic bag.

An absence of light will cause the parasite to starve itself. ``The
plant will normally return in 12 to 24 months, and I only recommend this
for small trees with few branches,'' said Johnson.

The Tiemanns, a Central Texas family, has opted not to destroy the
parasite but instead turn it into a profitable venture.

``We got in the business because back in the 1950s, we had a real bad
drought in this part of the state and they were trying to figure out how
to stay on the ranch. The family started selling mistletoe,'' explained
Speedy Tiemann of Coleman.

Friends and neighbors join the Tiemann family to harvest each year's
crop.

``They gather it. They bring it in and we buy it. We pay by the pound
and we go and pay them for it. So it's a good way for them to make
Christmas money,'' said Tiemann.

The following specific livestock, crop and weather conditions were
reported by district Extension directors:

PANHANDLE: Moisture adequate to very short. Pasture, range conditions
are fair to good; some fire danger reported. Livestock are in good
condition, receiving supplemental feed. Wheat rated good. Sorghum,
cotton harvests nearing completion with good yields.

SOUTH PLAINS: Moisture adequate to short. Pastures, ranges need
moisture. Some stocker cattle grazing on wheat fields. Cotton harvest
nearing completion with good yields. Sorghum harvest complete.

ROLLING PLAINS: Moisture surplus to adequate. Pastures, ranges in fair
to good condition. Supplemental feeding of cattle continues. Wheat
planting complete; crop is in fair to good condition. Cotton crop
continues to be fair to good.

NORTH TEXAS: Moisture surplus to adequate. Pastures, ranges in poor,
fair and good condition across district. Supplemental feeding of cattle.
Poor cool season vegetable crops. Peach producers pruning trees. Poor to
good pecan crop.

EAST TEXAS: Moisture adequate to short. Winter pastures generally good.
Cattle conditions good. Good progress in wheat. Oats offering limited
grazing. Vegetable harvests declining. Pecan harvests complete. Peach
tree pruning and spraying active.

FAR WEST TEXAS: Moisture adequate to very short. Pastures, ranges in
fair to good condition. Supplemental feeding of livestock. Oats doing
well. Sorghum harvest nearing completion with higher than expected
yields. Very light pecan crop.

WEST CENTRAL TEXAS: Moisture adequate. Pastures, ranges fair to
excellent. Small grain fields progressing well. Oats doing better than
some wheat fields. Livestock in fair to excellent condition. Some
culling of ewes and cattle before the first of the year.

CENTRAL TEXAS: Moisture adequate. Cool season forages have benefited
from above normal temperatures. Warm season forages are dormant. Sorghum
yields have been good. Pecan harvest under way with very low yields.

SOUTHEAST TEXAS: Moisture adequate to short. Pastures, ranges in fair
to good condition; moisture has been helpful. Cattle feeding continues.
Peanut harvest complete in Lee County. Pecan harvest completed with low
yields.

SOUTHWEST TEXAS: Moistuse adequate. Increased moisture due to recent
rains will help protect growing tips of wheat, oats, winter grasses and
vegetables. Livestock are in fair to good condition. Harvesting cabbage,
spinach and cucumbers for pickling.

COASTAL BEND: Moisture short. Winter pastures progressing. Most oat and
wheat fields need moisture. Supplemental feeding of livestock. Second
rice harvest complete. Fall garden production has been fair. Pecan
harvest nearly complete.

SOUTH TEXAS: Moisture short. Pastures, ranges in need of rain. Last hay
cutting of the year continues. Some harvest of late sorghum harvest
under way. Sugarcane, citrus harvests continue with the dry weather.

Water is key issue at vegetable conference

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HEREFORD - Water, a vital element for any crop but especially critical
for vegetable production, will be the focus here January 21 at the 27th
annual High Plains Vegetable Conference.

"Water is our highest priority for the future of the High Plains
vegetable industry,"said Dr. Roland Roberts, vegetable specialist with
the Texas Agricultural Extension Service and conference coordinator.
Speakers will be professionals representing all aspects of water
resources and management in crop production, he said.

The conference begins at 8:30 a.m. at the Hereford Community Center,
100 Avenue C at Park Avenue. It is sponsored by the Extension Service,
High Plains Vegetable Growers and Shippers Council, Texas Agricultural
Experiment Station, Texas Tech University, Deaf Smith County extension
Vegetable Development Committee, Deaf Smith County Chamber of Commerce
and Texas Department of Agriculture.

The program has been approved by TDA for five continuing education
units to maintain certification of applicators of restricted use
pesticides. The $25 registration fee includes lunch.

This year's conference will examine the status of water sources, water
requirements, irrigation scheduling, water purity, conservation, low
energy precision application and drip irrigation systems, large scale
mulching, use of heat units and the potential evapotranspiration
network, and development of whole-farm water conservation plans that
meet state and federal requirements.

Keynote speakers will be Wayne Wyatt, manager of the High Plains
Underground Water Conservation District Number One, and Dr. Edward
Martin, Extension Service engineer with the University of Arizona,
Tucson. Wyatt will address the present and future outlook for the area's
water supply. Martin will report on his research on vegetable irrigation
requirements and timing the application of vegetable irrigation with
heat units.

Others on the program will be Leon New, Extension Service irrigation
specialist; Mark Griffith, extension assistant for water quality; Dr.
Frank Dainello, Extension Service horticulturist; Dr. Greta Schuster,
extension agent for integrated pest management; Dr. David Bender,
experiment station associate professor of horticulture; Levon Harmon,
TDA pesticide specialist, and Roberts.

Some 25 exhibits and educational displays will be presented by
agribusiness professionals serving the vegetable industry.

Upland harvest down from '95

but up from November forecast

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AUSTIN - Texas Upland cotton production for 1996 is expected to total
4.2 million bales 6, percent below 1995, according to figures released
by Texas Agricultural Statistics Service. This is 150,000 bales more
than the November 1 forecast.

"Even though earlier drought resulted in greater than normal
abandonment statewide, production prospects on the High Plains have
continued to yield better than expected with some excellent yields
occurring," State Statistician Dennis Findley reported.

Statewide harvested acreage is estimated at 3.9 million acres, 32
percent less than last year. Yield increased from November 1 and is
expected to average a record 517 pounds per acre compared with 372
pounds last year.

Harvest is progressing rapidly. On the Plains, freezing temperatures
allowed harvest to move forward with the following clear, open days.

Production on the Southern High Plains is estimated to total 2.15
million bales, 5 percent more than the previous year's production.
Average yield, at 543 pounds, is 164 pounds more than a year ago.

The Northern High Plains crop, estimated at 800,000 bales, is 37
percent more than last year. In the Low Plains, production is estimated
at 415,000 bales, up 1 percent from a year ago.

United States Upland cotton production is expected to total 18.2
million bales, up 4 percent from last year. Yield is expected to average
698 pounds per acre compared with 533 pounds in 1995. Harvested acreage
is estimated at 12.52 million acres, 21 percent below a year ago.

Harvest brisk for grapefruit, orange crops

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AUSTIN - The December 1 Texas grapefruit production was 5.7 million
boxes for the 1996-97 season, 25 percent above last year.

All orange production is estimated at 1.45 million boxes, up 54 percent
with early and midseason oranges accounting for 1.3 million boxes and
Valencias, 150,000 boxes.

The production of all oranges was 940,000 boxes last year. Harvest
moved briskly throughout November as shippers were busy filling gift
orders. Quality and pack out remained good.

Rainfall was minimal for the month.

United States grapefruit production is forecast at 73.8 million boxes,
up 11 percent from last year. All orange production is forecast at 286.0
million boxes, up 5 percent from last year.

Farm Bureau to seek tax relief

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SAN ANTONIO - The president of the Texas Farm Bureau outlined an
aggressive legislative program for the state's largest farm organization
in his annual address to TFB convention delegates in San Antonio today.

Bob Stallman, a rice producer from Columbus, focused on property tax
relief as the primary legislative goal of the organization during the
upcoming Seventy-fifth session of the Texas Legislature.

"Your Farm Bureau has made a firm commitment to tackle the school
property tax monster that has devoured the tax dollars, business profits
and home ownership dreams of many Texans." Stallman told the
approximately 1,500 TFB delegates at the San Antonio Marriott
RiverCenter.

Stallman, who served on Governor George W. Bush's Citizens Committee on
Property Tax Relief, said the property tax system could no longer keep
pace with the needs of the Texas educational system. Stallman cited data
collected during the 14 public hearings held by the committee:

* Property Taxes have increased by 144 percent~ in the last 10 years.

* The property tax base declined by six per cent while personal income
went up 74 per cent and the gross state product by 57 per cent.

* Service and trade industries pay 17 percent of business property tax,
yet generate 62 percent of the state economic activity.

* Manufacturing and energy companies pay 56 percent of all state and
local business taxes, even though they represent only 25 percent of
total state employment and 38 percent of the gross state product.

* Homeowners pay more than one-third of all property taxes. "The
property tax system is not capable of matching our economic growth,"
Stallman said. "It is missing the target and has no hope of ever hitting
it, unless tax rates are raised to unthinkable levels."

The Farm Bureau president said that Texas needs a new method of funding
education, one that tracks economic growth and spreads the burden more
eveniy among the state's business community. He noted that much of the
state's economic growth has been in the lightly taxed service
industries. Stallman said that agricultural use valuation, which taxes
farm and ranch property on productive value rather than market value,
has helped stave off disaster, but still leaves Texas farmers and
ranchers in an unequitable tax situation.

"Even with the agricultural use valuation, farmers and ranchers pay
almost three times their fair share of taxes based on production
agriculture's share of the overall state economy." Stallman said.

Stallman used the drought of 1996 to illustrate the situation. "Many
farmers and ranchers had no crop at all, or were forced to liquidate
entire herds of livestock. There was no income, but property taxes are
still due. The burden is the same, whether the crop year is good, bad or
dreadful."

Stallman said the Farm Bureau has backed the business activity tax as
the most equitable solution for Texas' education funding problem. This
tax was one of three alternatives surfaced by the Governor's work group
that preceded the citizens committee. The other two were a gross
receipts tax and modifications in state sales taxes.

He said that a hybrid approach would likely be used, and that may have
Farm Bureau support, as long as "real property tax relief" is achieved,
with any remaining local property tax significantly reduced and capped
to prevent future escalation. The Farm Bureau leader praised the efforts
of the organization's members state wide, whose efforts at building the
organization came in the midst of a drought that crippled much of
agriculture. Listing the achievements of Texas Farm Bureau in 1996,
Stallman named the new farm bill, changes in food safety legislation,
some federal tax relief, and an 85 per cent success rate for candidates
endorsed by the Texas Farm Bureau Friends of Agriculture Fund.

Stallman also reported on "Project 2000," a special committee of Farm
Bureau members that will conduct a study of the farm organization and
its future.

Noting that the world has a limited amount of land capable of producing
food and fiber, he said, "Human population growth is not limited, but
neither is the potential of the human mind and the spirit of American
agriculture."

"In the laboratory, we will find new and better ways to produce safe
and affordable food and fiber for our people and the people of the
world," Stallman said. "We are tremendously proud of our role and
eagerly await the potential of the future.

Marfa rancher on task force

to study private cattle grading

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MARFA, Dec. 24, 1996 - Rancher J.E. White Jr. of Marfa has been named
to a nationwide beef industry task force that will study the feasibility
of pirvatizing the grading of cattle.

Texas and Southwestern Cattle Raisers Association nominated White to
serve on the 17-member group of ranchers, feeders and other cattle
marketing speciaists appointed by the National Cattlemen's Beef
Association.

The task force has been directed to study the current U.S. Department
of Agriculture's grading system to determine if the system is slowing
the industry's progress toward developing high-quality branded products
and whether private industry can develop a system that will better meet
consumer needs for consistent quality beef.

The task force will also study the status of instrument carcass grading
systems and evaluate alterntives that will speed up commercial
application of instrument grading.

The group will prepare an interim report for NCBA's annual meeting in
Kansas City which begins January 29.

USDA helps rural residents have better life

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Temple - December 9, 1996 - "When people hear the name United States
Department of Agriculture, too often they don't see the whole picture,"
said Steve Carriker, acting state director of rural development.

USDA has numerous programs that help rural residents all across America
to be able to buy a home of their own, go into business for themselves,
live in a decent and affordable apartment, drink clean water and have a
dependable sewer system, or have updated community facilities - such as
fire trucks, hospitals, or community centers.

According to Carriker, USDA's Rural Development, which was formerly
known as the Farmers Home Administration, has programs in all of these
areas. The Rural Housing Service offers loans and grants to very-low,
low, and moderate-income persons in towns or cities meeting certain
population requirements.

SBA offers low-interest loans

to businesses hurt by disasters

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Businesses depending on farmers and ranchers in some New Mexico and
Texas counties can now apply for low interest Economic Injury Disaster
Loans from the U. S. Small Business Administration.

These loans are available to help businesses meet normal operating
expenses that cannot be met due to the effects of a disaster. Hail and
high winds which occurred May 18 through July 17, 1996 caused many
farmers and ranchers to experience reduced incomes which may have had an
adverse economic effect on businesses depending upon these producers.
Farmers and ranchers are not eligible for this loan program but may be
eligible for disaster assistance through other Federal agencies.

Businesses in the following counties are eligible to apply: New Mexico:
Chavez and Eddy.
Texas: Andrews, Cochran, Gaines, Lea, Roosevelt, Loving, Winkler and
Yoakum.

To obtain an application or receive additional information, interested
business owners may call the SBA toll-free at 1-800-366-6303 or TDD
817-267-4688 for the hearing impaired. The deadline for filing an
application is June 30, 1997.

Due to the hail and high winds, many producers experienced crop losses
and were not able to purchase goods and services at normal levels.
Businesses that are dependent upon these producers may have experienced
decreased sales, reduced gross profit margins, increased accounts
receivable or difficulty in moving inventories at normal levels. To the
extent these problems have caused the business difficulty in meeting its
normal obligations, these loans may be of assistance.

The loan can help a business meet installments on long-term debt,
accounts payable and overhead expenses that would have been met had the
disaster not occurred. Refinancing of long-term debt, however, is not
eligible under this program. The loan is designated for those businesses
with substantial disaster-related needs and is intended to supplement
monies the business owner can provide from other sources.

Loans may be approved for up to $1,500,000 for actual disaster-related
financial needs of the business. Interest rates are 4 percent and terms
may extend to 30 years, depending upon the repayment ability of the
individual applicant. To qualify, businesses must be small by SBA's size
standard. Businesses which can meet their financial needs through other
sources are not eligible.

Drilling permits increase

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The Texas Railroad Commission issued 1,064 original drilling permits in
November, compared to 889 in November, 1995. The November total included
848 permits to drill new oil and gas wells, 36 to re-enter existing well
bore, and 180 for re-completions.

So far in 1996, there have been 11,618 drilling permits issued compared
to 10,325 recorded during the same period in 1995.

Permits issued in November included 458 oil, 236 gas, 338 oil and gas,
16 injection and 16 other permits.

NOVEMBER COMPLETIONS

In November operators reported 303 oil, 290 gas, 32 injection and five
other completions, compared to 281 oil, 335 gas and 35 injection and
other completions during the same month of last year.

Total well completions for 1996 year-to-date is 7,927, up from 7,775
recorded during the same period in 1995.

Operators reported 516 holes plugged and 102 dry holes in November,
compared to 1,303 holes plugged and 52 dry holes reported the same
period last year.

SEPTEMBER CRUDE OIL PRODUCTION

Texas preliminary September, 1996 crude oil production averaged
1,321,607 barrels of oil daily, down from 1,354,641 barrels daily
average of September, 1995.

The preliminary Texas crude oil production figure for September, 1996
is 39,648,209 barrels, a decrease from the 40,639,228 barrels reported
during September, 1995.

SEPTEMBER NATURAL GAS PRODUCTION

Texas oil and gas wells produced 454,917,591 Mcf of gas based upon
preliminary production figures for September, up from the 1995
preliminary production total of 446,710,491 Mcf.
Texas gas production in September came from 162,574 oil and 49,572 gas
wells.

Shell to boost compression at CO2 field

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HOUSTON - Shell Western E&P Inc. has announced a $20 million program to
upgrade compression capacity at its McElmo Dome CO2 source field near
Cortez, Colo., to 1.1 billion cubic feet per day (bcf/d).

"That's the biggest increase in C02 deliveries since the Cortez
pipeline was constructed in 1983," said Tim Bradley, manager for Shell's
CO2 business unit.

"CO2-based enhanced oil recovery projects have had a major impact on
Permian Basin oil production and the local economy, and continue to run
strong. Our analysis suggests that floods in place help produce about
140,000 barrels per day of crude oil, and those anticipated could add
another 10,000 to 20,000 bpd.

"We also believe that full utilization of the expanded CO2 capacity
should create or sustain 1000 to 2000 jobs. By adding one compressor
each to our Hovenweep and Yellow Jacket plants, we can readily meet
existing demand and pending contracts, and are beAer positioned to
expand deliverabllities as the market requires," said Bradley.

Cooper Energy Services of Houston will refurbish two motor-driven
electric compressors that will add a total of 15,000 horsepower of
compression to Shell's existing 40,000 horsepower. This potentially
could allow Shell to ship another 320 million cubic feet per day of CO2
to West Texas.

This project complements a $10 miliion expansion program initiated by
Shell last Spring to boost McElmo Dome production from 620 mmcf/d to
more than 850 mmcf/d. The expansion included production tubing upgrades
to five wells and the drilling of five new wells into producing zones in
the Leadville Formation at approximately 8300 feet.

The new wells are producing at 40 to 60 mmcf/d each, and have a
calculated absolute open flow potential greater than 300 mmcf/d per
well.

"The workover and drilling programs, completed late October, were the
first phase of increasing our production. The added compression
horsepower and pump station improvements along the Cortez pipeline will
now allow us to expand production capacity to nearly 1.1 billion cubic
feet per day. Overall, this will help us maintain our supply leadership
role," said Steve Anderson, Shell project engineer. Nielsons Inc. and
Empire Eiectric, both of Cortez, Col., will provide construction
services and substation power upgrades, expected to begin this month.

Parsons Process Group Inc. of Houston will furnish engineering
services. Start up is set for July 1997. "The C02 supply is there," said
Chuck Fox, chief engineer, Shell CO2 Marketing.

Shell Western E&P Inc., a subsidiary of Shell Oil Company, conducts
exploration and production operations throughout the continental U.S.,
except California. Shell and Mobil Exploration & Producing U.S. Inc.
respectively own 45 percent and 44 percent interest in the McElmo Dome.
Shell serves as field operator.

Rural development engineer to retire

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TEMPLE - December 9, 1996 - Pioneer rural development Engineer Harold
L. Carter announced his retirement at the end of November after 39 years
of federal service. Carter spent the last 31 years of his career in the
USDA Rural Development (formerly Farmers Home Administration) State
Office in Temple, working with various rural development programs.

During his tenure, Rural Development financed more than 200,000 miles
of rural water lines, 30,000 apartment units, and many community sewer
systems, rural hospitals, nursing homes, fire stations, businesses,
single family houses, and other rural development facilities. Carter
attributes the rural water supply program as the most significant
development in rural areas since the rural electric program administered
by the former Rural Electrification Administration and Farm-to-Market
roads.

"Having been raised on a farm near Roby in West Texas, where we had to
haul our water, I was made keenly aware early-in my life the need for
safe, adequate drinking water in the rural areas," Carter said. "Rural
water systems financed through Rural Development have ranged in size
from a dozen customers to several thousand, including individual
communities to multi-county projects. We are proud of this program
because of the low delinquency rate and excellent service the water
systems are providing. The success has been the result of the leadership
of the local communities and dedicated RuraI Development employees."~

Carter believes that the next big change for rural area development
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Copyright 1996 by Pecos Enterprise
Division of Buckner News Alliance, Inc.
324 S. Cedar St., Pecos, TX 79772
Phone 915-445-5475, FAX 915-445-4321
e-mail news@bitstreet.com

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