REGIONAL ECONOMIC DEVELOPMENT REPORT

REGIONAL ECONOMIC DEVELOPMENT REPORT Prepared for By December 212

CONTENTS SECTION 1: SECTION 2: SECTION 3: BASELINE CONDITIONS ANALYSIS APPENDIX Notes: 1. Data regarding Oil & Gas portion of ad valorem base is from the office of the Texas Comptroller of Public Accounts and based on 29 values. 2. Population and housing units data comes from the US Census Bureau (21), vehicle registrations are from TXDOT (211), and population estimates are from the Texas State Data Center (1st number represents death/birth rates with no growth factor, while the second represents the impact of one half of growth factor from 2 to 21. 3. Ad valorem market value, tax rates, and taxes collected (reflect county government and not other entities) come from the Comptrollers Office. 4. Sales Tax collections represent gross sales in the county. 5. Data on active wells and oil and gas production comes from the Texas Railroad Commission. 6. Wind energy capacity information is from the Texas Public Utility Commission. 7. All farm data and values are derived from the US Department of Agriculture Censuses for 22 and 27.

Section 1: BASELINE CONDITIONS

23 24 25 26 27 28 29 21 211 Permian Basin RPC QUICK FACTS Ad Valorem Tax Base Population 417,679 Housing Units 162,53 Oil & Gas Share 67.7% of 29 Base Oil & Gas Other Reg. Vehicles 455,47 22 Pop. Estimate 459,444 48,572 23 Pop. Estimate 496,214 547,5 24 Pop. Estimate 529,37 613,18 Ad Valorem Market Value PBRPC Gross Sales 14,,, 5,,, 12,,, 1,,, 4,,, 8,,, 3,,, 6,,, 4,,, 2,,, PBRPC 2,,, 1,,, PBRPC 27 28 29 21 211 Ad Valorem Taxes.48.46.44.42.4.38.36.34 PBRPC Average Tax Rate 27 28 29 21 211 PBRPC 4,, 35,, 3,, 25,, 2,, 15,, 1,, 5,, PBRPC 27 28 29 21 211

Permian Basin RPC Active Wells 2 211 65, 7, 75, 8, 85, PBRPC 1,8,, 1,6,, 1,4,, 1,2,, 1,,, 8,, 6,, 4,, 2,, Gas Production (MCF) 23 27 28 29 21 211 PBRPC PBRPC area has 234 MW or 23% Of state s 138 MW capacity Current Wind Energy Capacity (MW) 3,, 25,, Oil Production (BBL) PBRPC Rest of the State 2,, 15,, 1,, 5,, PBRPC By 214 PBRPC area is planned for 3784 MW or 19% Of state s 19895 MW capacity PBRPC AREA Number of Farms 22 4,183 27 4,675 Acres -Production/Grazing 22 11,18,55 27 11,43,497 Market Value of Farm 27 2,14,796 6,, 5,, 4,, 3,, 2,, 1,, 1, 5, 22 27 By Farm 22 27 23 27 28 29 21 211 PBRPC PBRPC PBRPC MARKET VALUE OF FARMS PER ACRE 22 $267 27 $56

23 24 25 26 27 28 29 21 211 Andrews County QUICK FACTS Ad Valorem Tax Base Population 14,786 Housing Units 5,814 Reg. Vehicles 18,284 Oil & Gas Share 78.5% of 29 Base Oil & Gas Other 22 Pop. Estimate 16,447 17,478 23 Pop. Estimate 17,989 2,246 24 Pop. Estimate 19,449 22,712 5,,, Ad Valorem Market Value 5,,, PBRPC Gross Sales 4,,, 4,,, 3,,, 3,,, 2,,, Andrews 2,,, PBRPC 1,,, 1,,, 27 28 29 21 211 Ad Valorem Taxes Tax Rate 2,,.6.5.4 15,,.3.2.1 27 28 29 21 211 Andrews 1,, 5,, Andrews 27 28 29 21 211

Andrews County Active Wells 2 211 5,5 6, 6,5 7, 7,5 8, Andrews 45,, 4,, 35,, 3,, 25,, 2,, 15,, 1,, 5,, Gas Production (MCF) 23 27 28 29 21 211 Andrews ANDREWS COUNTY WIND ENERGY CAPACITY (MW) CURRENT: 29,, 28,, 27,, 26,, Oil Production (BBL) ANNOUNCED: 194 25,, 24,, Andrews CANCELLED/DELAYED: 23,, 22,, 21,, 23 27 28 29 21 211 ANDREWS CO. Number of Farms 22 169 27 175 Acres -Production/Grazing 22 83,998 27 88,474 2,, 15,, 1,, 5,, 22 27 By Farm Andrews ANDREWS CO. MARKET VALUE OF FARMS PER ACRE 22 $164 Market Value By Farm 27 1,572,18 1, 8, 6, 4, 2, Andrews 27 $34 22 27

Borden County QUICK FACTS Ad Valorem Tax Base Population 641 Housing Units 385 Oil & Gas Share 89.3% of 29 Base Oil & Gas Other Reg. Vehicles 1,143 22 Pop. Estimate 663 663 23 Pop. Estimate 68 643 24 Pop. Estimate 651 582 Ad Valorem Market Values Borden Gross Sales 1,2,, 2,, 1,,, 8,, 1,5, 6,, 4,, 2,, 27 28 29 21 211 Borden 1,, 5, Borden Ad Valorem Taxes.35 Tax Rate 1,9, 1,8,.3.25.2.15.1 Borden 1,7, 1,6, Borden.5 27 28 29 21 211 1,5, 1,4, 27 28 29 21 211

Borden County Active Wells Gas Production (MCF) 4,, 2 211 Borden 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, Borden 54 56 58 6 62 23 27 28 29 21 211 BORDEN COUNTY WIND ENERGY CAPACITY (MW) CURRENT: 264 5,, 4,, 3,, Oil Production (BBL) ANNOUNCED: 2 2,, Borden CANCELLED/DELAYED: 325 1,, 23 27 28 29 21 211 BORDEN CO. Number of Farms 22 132 27 116 Acres -Production/Grazing 22 48,15 27 435,166 Market Value By Farm 27 2,171,362 15,, 1,, 5,, 15, 1, 5, 22 27 By Farm Borden Borden BORDEN CO. MARKET VALUE OF FARMS PER ACRE 22 $347 27 $579 22 27

23 24 25 26 27 28 29 21 211 Crane County Ad Valorem Tax Base Oil & Gas Share 87.8% of 29 Base Oil & Gas Other QUICK FACTS Population 4375 Housing Units 1632 Reg. Vehicles 5,68 22 Pop. Estimate 4,993 5,291 23 Pop. Estimate 5,594 6,237 24 Pop. Estimate 6,3 7,61 Ad Valorem Market Values Crane Gross Sales 2,4,, 2,3,, 2,2,, 2,, 15,, 2,1,, 2,,, 1,9,, 1,8,, 1,7,, 27 28 29 21 211 Crane 1,, 5,, Crane Ad Valorem Taxes.5.4.3.2.1 Tax Rate 27 28 29 21 211 Crane 7,8, 7,6, 7,4, 7,2, 7,, 6,8, 6,6, 6,4, 6,2, 6,, 27 28 29 21 211 Crane

Crane County Active Wells Gas Production (MCF) 7,, 2 6,, 5,, 4,, Crane 3,, Crane 211 2,, 1,, 3,2 3,4 3,6 3,8 4, 4,2 4,4 23 27 28 29 21 211 CRANE COUNTY WIND ENERGY CAPACITY (MW) 1,5, Oil Production (BBL) CURRENT: ANNOUNCED: 1,, 9,5, 9,, Crane CANCELLED/DELAYED: 8,5, 8,, 23 27 28 29 21 211 CRANE CO. Number of Farms 22 44 27 37 Acres -Production/Grazing 22 375,177 27 375,177 2,, 1,5, 1,, 5, 22 27 By Farm Crane CRANE CO. MARKET VALUE OF FARMS PER ACRE 22 $112 Market Value By Farm 27 3,877,193 5, 4, 3, 2, 1, 22 27 Crane 27 $382

Dawson County QUICK FACTS Ad Valorem Tax Base Population 13,833 Housing Units 5,22 Oil & Gas Share 54.2% of 29 Base Oil & Gas Other Reg. Vehicles 12,22 22 Pop. Estimate 14,727 14,693 23 Pop. Estimate 15,57 15,291 24 Pop. Estimate 16,512 15,669 1,6,, 1,4,, 1,2,, 1,,, 8,, 6,, 4,, 2,, Ad Valorem Market Value 27 28 29 21 211 Dawson 4,, 35,, 3,, 25,, 2,, 15,, 1,, 5,, Dawson Gross Sales 23 24 25 26 27 28 29 21 211 Dawson Ad Valorem Taxes 6,2,.66.64.62.6.58.56.54.52.5 Tax Rate 27 28 29 21 211 Dawson 6,1, 6,, 5,9, 5,8, 5,7, 5,6, 5,5, Dawson 5,4, 27 28 29 21 211

Dawson County Active Wells 2 211 1,5 1,1 1,15 1,2 1,25 1,3 1,35 Dawson 7,, 6,, 5,, 4,, 3,, 2,, 1,, Gas Production (MCF) 23 27 28 29 21 211 Dawson DAWSON COUNTY WIND ENERGY CAPACITY (MW) CURRENT: 6,, 5,, 4,, Oil Production (BBL) ANNOUNCED: 3,, 2,, Dawson CANCELLED/DELAYED: 147 1,, 23 27 28 29 21 211 DAWSON CO. Number of Farms 22 581 27 555 Acres -Production/Grazing 22 572,422 27 568,36 Market Value By Farm 27 871,43 12,, 1,, 8,, 6,, 4,, 2,, 3, 2, 1, 22 27 By Farm Dawson Dawson DAWSON CO. MARKET VALUE OF FARMS PER ACRE 22 $72 27 $851 22 27

Ector County QUICK FACTS Ad Valorem Tax Base Population 137,13 Housing Units 53,27 Oil & Gas Share 33.7% of 29 Base Oil & Gas Other Reg. Vehicles 145,25 22 Pop. Estimate 153,425 159,443 23 Pop. Estimate 167,77 184,168 24 Pop. Estimate 181,788 29,829 Ad Valorem Market Value 14,,, 12,,, 1,,, 8,,, 6,,, 4,,, 2,,, 27 28 29 21 211 Ector 12,,, 1,,, 8,,, 6,,, 4,,, 2,,, Ector Gross Sales 23 24 25 26 27 28 29 21 211 Ector Ad Valorem Taxes.41.4.39.38.37.36.35.34.33 Tax Rate 27 28 29 21 211 Ector 5,, 4,, 3,, 2,, 1,, Ector 27 28 29 21 211

Ector County Active Wells Gas Production (MCF) 6,, 2 5,, 4,, 211 Ector 3,, 2,, 1,, Ector 5,2 5,4 5,6 5,8 6, 6,2 23 27 28 29 21 211 ECTOR COUNTY WIND ENERGY CAPACITY (MW) CURRENT: 153 25,, 2,, 15,, Oil Production (BBL) ANNOUNCED: 535 1,, Ector CANCELLED/DELAYED: 5,, 23 27 28 29 21 211 ECTOR CO. Number of Farms 22 287 27 31 4,, 3,, 2,, 1,, Ector ECTOR CO. MARKET VALUE OF FARMS PER ACRE Acres -Production/Grazing 22 53,781 27 423,919 Market Value By Farm 27 56,521 15, 1, 5, 22 27 By Farm Ector 22 $141 27 $398 22 27

Gaines County QUICK FACTS Ad Valorem Tax Base Oil & Gas Share 75% of 29 Base Oil & Gas Other Population 17,526 Housing Units 6,31 Reg. Vehicles 18,16 22 Pop. Estimate 2,133 22,26 23 Pop. Estimate 23,17 27,687 24 Pop. Estimate 25,939 34,27 Ad Valorem Market Value Gaines Gross Sales 7,,, 6,,, 5,,, 4,,, 3,,, 2,,, 1,,, 27 28 29 21 211 Gaines 6,, 5,, 4,, 3,, 2,, 1,, 23 24 25 26 27 28 29 21 211 Gaines Ad Valorem Taxes 25,,.4.39.38.37.36.35.34.33.32 Tax Rate 27 28 29 21 211 Gaines 2,, 15,, 1,, 5,, Gaines 27 28 29 21 211

Gaines County Active Wells 2 211 2,6 2,8 3, 3,2 3,4 3,6 Gaines 7,, 6,, 5,, 4,, 3,, 2,, 1,, Gas Production 23 27 28 29 21 211 Gaines GAINES COUNTY WIND ENERGY CAPACITY (MW) CURRENT: ANNOUNCED: CANCELLED/DELAYED: 35,, 3,, 25,, 2,, 15,, 1,, 5,, Oil Production (BBL) 23 27 28 29 21 211 Gaines GAINES CO. Number of Farms 22 724 27 825 Acres -Production/Grazing 22 758,896 27 947,728 Market Value By Farm 27 1,92,377 2,, 15,, 1,, 5,, 24, 22, 2, 18, 22 27 By Farm 22 27 Gaines Gaines GAINES CO. MARKET VALUE OF FARMS PER ACRE 22 $62 27 $951

23 24 25 26 27 28 29 21 211 Glasscock County QUICK FACTS Ad Valorem Tax Base Oil & Gas Share 75.1% of 29 Base Oil & Gas Other Population 1,226 Housing Units 58 Reg. Vehicles 2,397 22 Pop. Estimate 1,341 1,343 23 Pop. Estimate 1,443 1,396 24 Pop. Estimate 1,473 1,291 Ad Valorem Market Value Glasscock Gross Sales 2,,, 5,, 1,5,, 1,,, Glasscock 4,, 3,, 2,, Glasscock 5,, 1,, 27 28 29 21 211 Ad Valorem Taxes Tax Rate 5,,.4.35.3.25.2.15.1.5 27 28 29 21 211 Glasscock 4,, 3,, 2,, 1,, Glasscock 27 28 29 21 211

Glasscock County Active Wells Gas Production (MCF) 3,, 2 25,, 2,, 211 Glasscock 15,, 1,, 5,, Glasscock 1,1 1,15 1,2 1,25 1,3 1,35 23 27 28 29 21 211 GLASSCOCK COUNTY WIND ENERGY CAPACITY (MW) CURRENT: 124 8,, 7,, 6,, 5,, Oil Production (BBL) ANNOUNCED: 4,, 3,, Glasscock CANCELLED/DELAYED: 2,, 1,, 23 27 28 29 21 211 GLASSCOCK CO. Number of Farms 22 199 27 185 Acres -Production/Grazing 22 492,939 27 479,785 Market Value By Farm 27 1,91,119 5,, 4,, 3,, 2,, 1,, 3, 2, 1, 22 27 By Farm Glasscock Glasscock GLASSCOCK CO. MARKET VALUE OF FARMS PER ACRE 22 $353 27 $737 22 27

Howard County QUICK FACTS Ad Valorem Tax Base Population 35,12 Housing Units 13,124 Oil & Gas Share 36.3% of 29 Base Oil & Gas Other Reg. Vehicles 29,31 22 Pop. Estimate 36,919 37,666 23 Pop. Estimate 38,232 39,226 24 Pop. Estimate 38,886 39,463 3,5,, 3,,, 2,5,, Ad Valorem Market Value 1,4,, 1,2,, 1,,, Howard Gross Sales 2,,, 1,5,, 1,,, 5,, 27 28 29 21 211 Howard 8,, 6,, 4,, 2,, 23 24 25 26 27 28 29 21 211 Howard Ad Valorem Taxes Tax Rate 14,, 12,,.7.6.5.4.3.2.1 27 28 29 21 211 Howard 1,, 8,, 6,, 4,, 2,, 27 28 29 21 211 Howard

Howard County Active Wells 2 211 3,4 3,45 3,5 3,55 Howard 14,, 12,, 1,, 8,, 6,, 4,, 2,, Gas Production (MCF) 23 27 28 29 21 211 Howard HOWARD COUNTY WIND ENERGY CAPACITY (MW) CURRENT: 5 ANNOUNCED: CANCELLED/DELAYED: 12 8,, 7,, 6,, 5,, 4,, 3,, 2,, 1,, Oil Production (BBL) 23 27 28 29 21 211 Howard HOWARD CO. Number of Farms 22 466 27 519 Acres -Production/Grazing 22 518,369 27 522,791 Market Value By Farm 27 773,53 5,, 4,, 3,, 2,, 1,, 8, 6, 4, 2, 22 27 By Farm 22 27 Howard Howard HOWARD CO. MARKET VALUE OF FARMS PER ACRE 22 $444 27 $768

Loving County QUICK FACTS Ad Valorem Tax Base Population 82 Housing Units 5 Oil & Gas Share 86.4% of 29 Base Oil & Gas Other Reg. Vehicles 244 22 Pop. Estimate 83 8 23 Pop. Estimate 78 76 24 Pop. Estimate 67 56 1,2,, 1,,, 8,, Ad Valorem Market Value 6, 5, 4, Loving Gross Sales 6,, 4,, Loving 3, 2, Loving 2,, 1, 27 28 29 21 211 23 24 25 26 27 28 29 21 211 Ad Valorem Taxes 4,5,.6.5.4.3.2.1 Tax Rate 27 28 29 21 211 Loving 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, Loving 27 28 29 21 211

Loving County Active Wells 1,, Gas Production (MCF) 2 8,, 6,, 211 Loving 4,, 2,, Loving 66 67 68 69 7 23 27 28 29 21 211 LOVING COUNTY WIND ENERGY CAPACITY (MW) 2,5, Oil Production (BBL) CURRENT: 2,, 1,5, ANNOUNCED: 1,, Loving CANCELLED/DELAYED: 5, 23 27 28 29 21 211 LOVING CO. Number of Farms 22 NA 27 NA 1 1 1 NOT AVAILABLE Loving LOVING CO. MARKET VALUE OF FARMS PER ACRE Acres -Production/Grazing 22 NA 27 NA Market Value By Farm 27 6,22,443 1 1 22 27 By Farm NOT AVAILABLE 22 27 Loving 22 $8 27 $131

Martin County QUICK FACTS Ad Valorem Tax Base Population 4,799 Housing Units 1,852 Oil & Gas Share 82.5% of 29 Base Oil & Gas Other Reg. Vehicles 6,585 22 Pop. Estimate 5,447 5,556 23 Pop. Estimate 6,58 6,274 24 Pop. Estimate 6,532 6,75 Ad Valorem Market Value Martin Gross Sales 3,5,, 25,, 3,,, 2,5,, 2,, 2,,, 15,, 1,5,, 1,,, Martin 1,, Martin 5,, 27 28 29 21 211 5,, 23 24 25 26 27 28 29 21 211 Ad Valorem Taxes 8,, Tax Rate 7,,.4.35.3.25.2.15.1.5 27 28 29 21 211 Martin 6,, 5,, 4,, 3,, 2,, 1,, 27 28 29 21 211 Martin

Martin County 2 211 Active Wells 1, 2, 3, Martin 35,, 3,, 25,, 2,, 15,, 1,, 5,, Gas Production (MCF) 23 27 28 29 21 211 Martin MARTIN COUNTY WIND ENERGY CAPACITY (MW) CURRENT: 12 ANNOUNCED: CANCELLED/DELAYED: 251 2,, 15,, 1,, 5,, Oil Production (BBL) 23 27 28 29 21 211 Martin MARTIN CO. Number of Farms 22 379 27 464 Acres -Production/Grazing 22 526,7 27 457,99 Market Value By Farm 27 637,3 6,, 5,, 4,, 3,, 2,, 1,, 15, 1, 5, 22 27 By Farm Martin Martin MARTIN CO. MARKET VALUE OF FARMS PER ACRE 22 $434 27 $645 22 27

23 24 25 26 27 28 29 21 211 Midland County QUICK FACTS Ad Valorem Tax Base Population 136,872 Housing Units 54,351 Oil & Gas Share 2.5% of 29 Base Oil & Gas Other Reg. Vehicles 161,48 22 Pop. Estimate 149,2 159,774 23 Pop. Estimate 159,257 186,377 24 Pop. Estimate 167,55 214,349 16,,, 14,,, 12,,, 1,,, 8,,, 6,,, 4,,, 2,,, Ad Valorem Market Value 27 28 29 21 211 Midland 12,,, 1,,, 8,,, 6,,, 4,,, 2,,, Midland Gross Sales Midland Ad Valorem Taxes.24 Tax Rate 3,, 25,,.23.22 2,,.21.2.19 Midland 15,, 1,, Midland.18 27 28 29 21 211 5,, 27 28 29 21 211

Midland County 2 211 Active Wells 2, 4, 6, Midland 7,, 6,, 5,, 4,, 3,, 2,, 1,, Gas Production (MCF) 23 27 28 29 21 211 Midland MIDLAND COUNTY WIND ENERGY CAPACITY (MW) CURRENT: ANNOUNCED: CANCELLED/DELAYED: 2,, 15,, 1,, 5,, Oil Production (BBL) 23 27 28 29 21 211 Midland MIDLAND CO. Number of Farms 22 477 27 61 Acres -Production/Grazing 22 361,558 27 456,633 Market Value By Farm 27 66,2 2,, 15,, 1,, 5,, 3, 2, 1, 22 27 By Farm Midland Midland MIDLAND CO. MARKET VALUE OF FARMS PER ACRE 22 $384 27 $869 22 27

23 24 25 26 27 28 29 21 211 Pecos County QUICK FACTS Ad Valorem Tax Base Population 15,57 Housing Units 5,585 Oil & Gas Share 72.8% of 29 Base Oil & Gas Other Reg. Vehicles 17,856 22 Pop. Estimate 17,59 16,791 23 Pop. Estimate 18,524 17,67 24 Pop. Estimate 2,35 17,885 Ad Valorem Market Value Pecos Gross Sales 5,,, 1,2,, 4,,, 3,,, 2,,, Pecos 1,,, 8,, 6,, 4,, Pecos 1,,, 2,, 27 28 29 21 211 Ad Valorem Taxes.8.7.6.5.4.3.2.1 Tax Rate 27 28 29 21 211 Pecos 3,, 25,, 2,, 15,, 1,, 5,, 27 28 29 21 211 Pecos

Pecos County Active Wells 2 211 2,6 2,7 2,8 2,9 3, Pecos 35,, 3,, 25,, 2,, 15,, 1,, 5,, Gas Production (MCF) 23 27 28 29 21 211 Pecos PECOS COUNTY WIND ENERGY CAPACITY (MW) CURRENT: 826 ANNOUNCED: CANCELLED/DELAYED: 6 14,, 12,, 1,, 8,, 6,, 4,, 2,, Oil Production (BBL) 23 27 28 29 21 211 Pecos PECOS CO. Number of Farms 22 27 27 287 Acres -Production/Grazing 22 2,916,7 27 2,97,965 Market Value By Farm 27 2,747,518 4,, 3,, 2,, 1,, 15, 1, 5, 22 27 By Farm 22 27 Pecos Pecos PECOS CO. MARKET VALUE OF FARMS PER ACRE 22 $139 27 $271

23 24 25 26 27 28 29 21 211 Reeves County QUICK FACTS Ad Valorem Tax Base Oil & Gas Share 46.8% of 29 Base Oil & Gas Other Population 13,783 Housing Units 4,64 Reg. Vehicles 1,385 22 Pop. Estimate 14,896 15.17 23 Pop. Estimate 15,81 16,186 24 Pop. Estimate 16,58 16,532 Ad Valorem Market Value 1,,, 95,, 9,, 85,, 8,, 75,, 7,, 27 28 29 21 211 Reeves 35,, 3,, 25,, 2,, 15,, 1,, 5,, Reeves Gross Sales Reeves Ad Valorem Taxes.42 Tax Rate 2,9, 2,8,.4.38 2,7,.36.34 Reeves 2,6, Reeves.32.3 27 28 29 21 211 2,5, 2,4, 27 28 29 21 211

Reeves County Active Wells Gas Production (MCF) 4,, 35,, 2 3,, 25,, 211 Reeves 2,, 15,, 1,, Reeves 5,, 65 7 75 8 85 23 27 28 29 21 211 REEVES COUNTY WIND ENERGY CAPACITY (MW) 3,5, 3,, Oil Production (BBL) CURRENT: 2,5, 2,, ANNOUNCED: 1,5, Reeves 1,, CANCELLED/DELAYED: 5, 23 27 28 29 21 211 REEVES CO. Number of Farms 22 166 27 221 Acres -Production/Grazing 22 1,9,877 27 1,4,344 Market Value By Farm 27 1,482,12 19,, 18,5, 18,, 17,5, 17,, 16,5, 16,, 15, 1, 5, 22 27 By Farm Reeves Reeves REEVES CO. MARKET VALUE OF FARMS PER ACRE 22 $139 27 $315 22 27

Terrell County QUICK FACTS Ad Valorem Tax Base Population 984 Housing Units 7 Oil & Gas Share 79.2% of 29 Base Oil & Gas Other Reg. Vehicles 1,456 22 Pop. Estimate 1,42 1,4 23 Pop. Estimate 1,74 1,47 24 Pop. Estimate 1,83 996 1,4,, 1,2,, Ad Valorem Market Value 6,, 5,, Terrell Gross Sales 1,,, 8,, 6,, 4,, Terrell 4,, 3,, 2,, Terrell 2,, 27 28 29 21 211 1,, 23 24 25 26 27 28 29 21 211 Ad Valorem Taxes.7.6.5.4.3.2.1 Tax Rate 27 28 29 21 211 Terrell 3,2, 3,1, 3,, 2,9, 2,8, 2,7, 2,6, 2,5, 2,4, 2,3, 27 28 29 21 211 Terrell

Terrell County Active Wells Gas Production (MCF) 8,, 2 211 Terrell 7,, 6,, 5,, 4,, 3,, 2,, 1,, Terrell 14 15 16 17 18 23 27 28 29 21 211 TERRELL COUNTY WIND ENERGY CAPACITY (MW) 35, 3, Oil Production (BBL) CURRENT: 25, 2, ANNOUNCED: 15, 1, Terrell CANCELLED/DELAYED: 5, 23 27 28 29 21 211 TERRELL CO. Number of Farms 22 76 27 17 Acres -Production/Grazing 22 18,593 27 12,17 Market Value By Farm 27 2,734,256 4,5, 4,, 3,95, 3,9, 3,85, 3,8, 6, 4, 2, 22 27 By Farm Terrell Terrell TERRELL CO. MARKET VALUE OF FARMS PER ACRE 22 $17 27 $225 22 27

23 24 25 26 27 28 29 21 211 Upton County QUICK FACTS Ad Valorem Tax Base Population 3,355 Housing Units 1,548 Oil & Gas Share 91.3% of 29 Base Oil & Gas Other Reg. Vehicles 4,435 22 Pop. Estimate 3,676 3,854 23 Pop. Estimate 3,981 4,339 24 Pop. Estimate 4,165 4,672 5,,, 4,,, 3,,, Ad Valorem Market Value 1,, 8,, 6,, Upton Gross Sales 2,,, Upton 4,, Upton 1,,, 2,, 27 28 29 21 211 Ad Valorem Taxes.26 Tax Rate 1,, 8,,.25.24 6,,.23.22 Upton 4,, Upton.21.2 27 28 29 21 211 2,, 27 28 29 21 211

Upton County Active Wells Gas Production (MCF) 9,, 2 85,, 8,, 211 Upton 75,, 7,, 65,, Upton 1, 2, 3, 4, 6,, 23 27 28 29 21 211 UPTON COUNTY WIND ENERGY CAPACITY (MW) 25,, Oil Production (BBL) CURRENT: 353 2,, 15,, ANNOUNCED: 1,, Upton CANCELLED/DELAYED: 5,, 23 27 28 29 21 211 UPTON CO. Number of Farms 22 83 27 11 Acres -Production/Grazing 22 723,446 27 634,516 Market Value By Farm 27 2,956,855 1,, 8,, 6,, 4,, 2,, 8, 6, 4, 2, 22 27 By Farm 22 27 Upton Upton UPTON CO. MARKET VALUE OF FARMS PER ACRE 22 $137 27 $513

Ward County QUICK FACTS Ad Valorem Tax Base Population 1,658 Housing Units 4,694 Oil & Gas Share 71.3% of 29 Base Oil & Gas Other Reg. Vehicles 13,72 22 Pop. Estimate 11,6 11,24 23 Pop. Estimate 12,497 11,439 24 Pop. Estimate 13,315 11,344 2,,, Ad Valorem Market Value 45,, 4,, Ward Gross Sales 1,9,, 1,8,, 1,7,, Ward 35,, 3,, 25,, 2,, 15,, Ward 1,6,, 1,5,, 27 28 29 21 211 1,, 5,, 23 24 25 26 27 28 29 21 211 Ad Valorem Taxes.9.8.7.6.5.4.3.2.1 Tax Rate 27 28 29 21 211 Ward 16,, 14,, 12,, 1,, 8,, 6,, 4,, 2,, 27 28 29 21 211 Ward

Ward County Active Wells Gas Production (MCF) 7,, 2 211 2,6 2,7 2,8 2,9 3, 3,1 Ward 6,, 5,, 4,, 3,, 2,, 1,, 23 27 28 29 21 211 Ward WARD COUNTY WIND ENERGY CAPACITY (MW) 14,, 12,, Oil Production (BBL) CURRENT: ANNOUNCED: 515 1,, 8,, 6,, 4,, Ward CANCELLED/DELAYED: 2,, 23 27 28 29 21 211 WARD CO. Number of Farms 22 86 27 119 1,7, 1,65, 1,6, 1,55, 1,5, Ward WARD CO. MARKET VALUE OF FARMS PER ACRE Acres -Production/Grazing 22 465.639 27 439,92 1,45, 22 27 By Farm 22 $138 Market Value By Farm 27 1,347,15 2, 15, 1, 5, 22 27 Ward 27 $37

Winkler County QUICK FACTS Ad Valorem Tax Base Population 7,11 Housing Units 3,27 Reg. Vehicles 8,116 Oil & Gas Share 22 Pop. Estimate 7,973 67.9% of 29 Base Oil & Gas Other 8,276 23 Pop. Estimate 8,712 9,261 24 Pop. Estimate 9.324 9,992 2,,, 1,5,, Ad Valorem Market Value 1,2,, 1,,, 8,, Winkler Gross Sales 1,,, 5,, Winkler 6,, 4,, 2,, Winkler 27 28 29 21 211 23 24 25 26 27 28 29 21 211 Ad Valorem Taxes.8.7.6.5.4.3.2.1 Tax Rate 27 28 29 21 211 Winkler 12,, 1,, 8,, 6,, 4,, 2,, 27 28 29 21 211 Winkler

Winkler County Active Wells 5,, Gas Production (MCF) 2 4,, 3,, Winkler 2,, Winkler 211 1,, 5 1, 1,5 2, 2,5 23 27 28 29 21 211 WINKLER COUNTY WIND ENERGY CAPACITY (MW) 5,, Oil Production (BBL) CURRENT: ANNOUNCED: 4,, 3,, 2,, Winkler CANCELLED/DELAYED: 1,, 23 27 28 29 21 211 WINKLER CO. Number of Farms 22 44 27 53 Acres -Production/Grazing 22 491,718 27 532,883 4,, 3,, 2,, 1,, 22 27 By Farm Winkler WINKLER CO. MARKET VALUE OF FARMS PER ACRE 22 $12 Market Value By Farm 27 2,637,615 8, 6, 4, 2, 22 27 Winkler 27 $262

Section 2: ANALYSIS

INFRASTRUCTURE INVESTMENTS Despite tremendous gains in tax base and tax collections (both ad valorem and sales taxes) during the last five years, many of the sampled entities made little in the way of infrastructure investments in their jurisdictions, to offset usage of existing facilities by those industries that were largely responsible for those gains. In addition, in cases where marginal investments were made in infrastructure, too often those investments (like road and bridge funds) were spread between the administration of multiple precinct crews or providing equipment for each precinct, and so little, if any of those funds actually trickled down to making road and bridge improvements in a particular area. Some counties did use the opportunity to invest in new jails or courthouse renovations, and while these improvements may be necessary they do little to build the infrastructure necessary to sustain long term development or additional economic growth. That being said, these investments can be worthwhile if they improve the quality of life for residents or protect the integrity of future budgeting by decreasing long term maintenance and operations costs. This is particularly important, as several counties, have seen depletion in production and subsequently, their ad valorem base. While increases in energy prices have helped offset those losses, jurisdictions throughout the Permian Basin area are largely dependent on this ad valorem base and a reduction in current energy prices could produce significant hardships in future budgeting. The development of infrastructure is most commonly seen in the larger counties, such as Ector and Midland. Ector County committed to specific partnerships to develop a roadway in their industrial park, one in a new residential/retail development, and one associated with the Summit Energy project. Midland County has been active in projects to facilitate Loop 25 and SH 349 expansion, and Andrews County recently partnered with the City of Andrews to build a truck bypass around the city to help facilitate movement of large trucks and oilfield equipment. However, the project also provides additional land-use and development opportunities that will likely provide long term returns via increased ad valorem property values and diversification of the overall tax base. These investments, particularly in relation to housing and roads, are vitally important. During last year s report, we found direct correlations between new housing starts and higher wage ranges due to the highly mobile workforce in the Permian Basin. In addition, this year, we see a high degree of correlation between the number of registered vehicles in an area compared to overall population and their transportation needs, as evidenced by crash rates.

ECONOMIC DIVERSIFICATION VERSUS AD VALOREM DIVERSIFICATION During the down turns of the energy industry in the 8 s and 9 s, an emphasis was placed on diversification of the economy in the Permian Basin, and while some of those efforts were successful, growth of the energy industry segment over the last decade, due to enhanced recovery methods, has created such a tremendous shift in the baseline that looking at ad valorem property values, it might occur to outsiders that no efforts were made at diversification. As previously noted, the decrease in production and in ad valorem values, largely masked by increased prices, creates a looming problem as entities move forward. As important as economic diversification is for economic development, diversification of the property tax base is just as, if not more important, for taxing entities. Even for areas with increased production, questions persist regarding the length of those reserves with current technologies, and due to the variations in extraction costs, the ability to produce could be more dramatically affected by even marginal reductions in energy prices.

AGRICULTURE PRODUCTION From 22 to 27, the number of farming operations in the Permian Basin increased by nearly 5. More noteworthy, however, is the fact that the market value of production increased by over $2 million and the value of production by farm grew by more than 5%. In addition, the ad valorem value, per acre, of these operations also doubled. While farming and ranching, much like the energy industry can be significantly impacted by natural and market factors, when these operations are viewed as agribusiness operations, with a per operation investment/value in excess of $2 million dollars each (as of 27), they become a significant economic factor. In addition, with the recent construction of the Village Farms greenhouse in Monahans, due largely to favorable daylight length, ideal temperature conditions, availability of affordable energy (natural gas/ electric) and carbon dioxide, if water needs can be met, there are tremendous long term opportunities for the area in hydroponic greenhouse agricultural production. From 22 to 27 the Market Values of Farm Properties DOUBLED ALTERNATIVE ENERGY and their Production Values INCREASED OVER 5% The Permian Basin has truly been an epicenter for energy production and alternative energies are no exception. Currently, the Permian Basin accounts for 23% or 234 megawatts of the state s 1,38 megawatt wind energy capacity. Wind energy generation capacity in the Permian Basin is slated to increase 1,444 megawatts by 214. However, due to uncertainty regarding the extension of tax credits, transmission capacity, and available capital for these projects, there is currently in excess of 8 megawatts of additional capacity projects in the Permian Basin Regional Planning Commission region that have been cancelled or delayed. Extension of tax credits and improvements to the existing grid could greatly expand wind energy opportunities in the Permian Basin and allow for additional diversity and baseline stabilization of ad valorem values in the region. Solar energy is also a future possibility to bring value and stability to ad valorem values. While several projects have been considered and plans for a long term 5 megawatt farm exist, the current cost of development and associated rates of return have not yet made these types of projects highly viable. However, potential changes in federal policy and incentives for green energy may make these opportunities cost effective sooner than current market based economics. Currently, over 8 MW of additional wind power planned for the Permain Basin is DELAYED/CANCELED

WIND and SUNLIGHT Provide Numerous Opportunities for the Permian Basin GOING FORWARD Whether capitalizing on existing opportunities or future developments, infrastructure investments throughout the Permian Basin are a vital necessity. Improvements to roads, water resources, or preliminary property developments that facilitate industrial or residential development should be priorities for communities. Many of these types of improvements can be made in partnership with other entities either through direct capital investment, tax credits, or long term loans. Due to the mobile nature of the Permian Basin and its workforce, infrastructure developments that provide development areas for new businesses or homes can also help areas with depleting production capitalize on opportunities for service companies and new workers seeking to locate in the basin. Despite the ups and downs of the energy economy and its subsequent effects on ad valorem values and tax collections, the areas that have made significant investment in infrastructure projects geared at expanding their area s industrial, retail, or residential development have seen the most profound growth, including increase in tax base, sales tax collections, and personal income.

Section 3: APPENDIX

AD VALOREM COLLECTIONS COUNTY 211 21 29 28 27 23 Andrews 19,22,63 17,59,783 16,312,66 15,89,747 13,98,932 1,326,861 Borden 1,862,822 1,732,336 1,62,685 1,73,863 1,619,9 1,319,45 Crane 6,61,662 6,615,629 6,646,236 7,257,24 7,62,96 5,37,821 Dawson 6,28,15 6,48,666 6,3,612 6,113,584 5,69,221 4,8,646 Ector 38,697,212 36,341,2 34,18,383 34,267,631 31,367,966 23,578,788 Gaines 2,97,596 2,226,514 18,996,326 2,421,737 15,73,879 8,625,347 Glasscock 4,27,989 3,37,254 3,95,737 2,872,291 2,657,312 2,196,72 Howard 11,185,948 11,165,3 11,288,557 11,663,292 9,132,548 6,118,77 Loving 3,835,144 3,85,135 3,443,24 2,948,33 2,73,689 1,296,986 Martin 7,18,285 2,518,344 5,252,444 4,89,283 3,628,379 2,262,436 Midland 26,186,344 26,31,85 24,62,26 23,489,746 21,162,986 15,91,89 Pecos 24,852,556 24,449,528 22,452,175 24,391,414 19,39,788 13,139,51 Reeves 2,819,833 2,858,283 2,83,187 2,828,154 2,575,347 1,833,114 Terrell 3,16,49 2,791,173 2,918,973 2,874,713 2,615,488 1,579,367 Upton 9,59,994 8,75,37 8,131,545 7,559,385 6,927,166 6,31,655 Ward 14,27,285 14,316,154 13,618,287 12,69,334 9,75,364 6,4,473 Winkler 1,456,73 1,522,546 1,494,279 9,55,114 7,553,11 4,552,543 SALES TAX COLLECTIONS COUNTY 23 27 28 29 21 211 Andrews 232,132,41 442,72,16 557,487,93 477,642,118 525,14,443 712,788,38 Borden 612,991 687,9 1,142,467 61,45 742,19 1,848,711 Crane 66,199,67 155,396,548 171,737,8 98,151,83 112,32,616 153,194,525 Dawson 186,359,876 288,85,168 31,75,96 274,97,249 326,391,446 351,361,48 Ector 3,811,75,427 7,358,729,881 8,33,46,755 5,826,462,844 6,971,734,861 9,978,379,914 Gaines 248,155,177 378,759,71 466,745,3 355,2,764 41,147,586 552,923,146 Glasscock 13,976,171 16,74,37 17,57,237 17,,549 17,811,746 4,942,91 Howard 659,96,596 965,215,695 1,156,848,39 87,822,673 914,812,712 1,175,34,3 Loving 19,568 68,61 165,2 132,388 5,79 136,716 Martin 91,121,885 148,778,289 182,25,828 134,616,19 167,172,127 197,351,345 Midland 3,831,649,37 6,956,956,51 9,112,1,382 6,68,727,62 8,39,731,797 11,42,69,595 Pecos 25,421,79 54,516,91 94,279,87 641,778,796 736,59,58 976,15,832 Reeves 123,724,16 23,99,773 245,34,637 171,927,983 198,2,436 326,963,96 Terrell 4,14,114 4,39,653 4,874,377 4,515,78 4,258,147 4,311,919 Upton 39,36,649 79,239,345 8,871,513 51,242,529 77,45,763 88,539,272 Ward 126,95,333 253,231,49 313,44,992 29,319,961 269,612,64 423,539,84 Winkler 697,72,513 554,731,141 177,888,413 124,37,289 148,369,523 225,586,339

AD VALOREM MARKET VALUE COUNTY 211 21 29 28 27 23 Andrews 4,757,144,258 4,2,328,284 3,599,181,992 4,456,539,682 3,717,785,47 1,955,11,17 Borden 1,76,412,1 1,124,8,44 1,135,419,485 1,25,69,628 9,97,986 357,457,19 Crane 2,282,525,45 2,366,195,7 2,164,635,51 2,356,323,58 1,973,338,52 889,99,35 Dawson 1,287,24,45 1,274,18,66 1,186,239,75 1,335,864,42 1,58,482,46 769,324,533 Ector 11,943,735,77 11,328,158,412 1,985,85,322 11,24,335,12 9,45,22,79 5,241,914,723 Gaines 6,244,181,854 5,726,641,678 4,997,645,786 6,51,556,833 4,691,251,598 2,418,19,719 Glasscock 1,71,544,89 1,382,744,3 1,232,898,75 1,257,822,58 926,171,62 4,567,25,9 Howard 3,56,379,159 2,68,167,213 2,553,383,89 2,496,447,163 2,19,729,689 1,322,659,57 Loving 713,525,12 827,739,32 788,759,82 956,993,56 781,436,74 185,385,939 Martin 3,18,12,52 2,69,987,95 1,927,452,396 1,593,23,876 1,15,792,296 57,276,76 Midland 13,824,19,64 13,96,758,323 12,52,94,68 12,382,796,12 9,931,182,193 5,695,325,334 Pecos 4,433,941,19 4,564,671,41 4,245,92,45 4,642,456,43 3,457,252,843 1,893,759,755 Reeves 961,435,8 822,131,48 812,66,83 93,569,24 839,84,43 49,67,41 Terrell 879,87,489 1,23,853,71 1,154,39,658 1,257,766,82 1,176,146,22 427,179,273 Upton 4,52,623,192 4,128,353,75 3,541,3,727 3,5,687,619 2,935,88,583 1,11,579,381 Ward 1,91,768,41 1,925,339,76 1,776,968,448 1,94,786,188 1,66,91,848 968,16,228 Winkler 1,514,45,1 1,651,749,284 1,626,69,327 1,712,52,237 1,149,493,578 675,327,451 PBRPC 62,523,847,952 6,733,8,774 56,23,8,2 59,74,747,952 47,585,239,315 29,537,499,795 AD VALOREM TAX RATES 23 211 Andrews County.5554.4324 Borden County.4446.289 Crane County.61622.29453 Dawson County.73178.553937 Ector County.49.356372 Gaines County.38466.352352 Glasscock County.59252.3 Howard County.55.43672 Loving County.735.5481 Martin County.548.24659 Midland County.293798.19827 Pecos County.758.69 Reeves County.42636.33516 Terrell County.4885.5727 Upton County.7487.234 Ward County.6942.76 Winkler County.78.7313

AGRICULTURE VALUES COUNTY Number of Farms Number of Acres Per Farm Value Market Value Acre Market Value by Farm 22 27 22 27 22 27 22 27 22 27 27 Andrews 169 175 83,998 88,474 8,671, 15,919, 51,31 9,965 164 34 1,572,18 Borden 132 116 48,15 435,166 7,837, 13,233, 59,37 114,81 347 579 2,171,362 Crane 44 37 375,177 375,177 1,33, 1,674, 29,65 45,237 112 382 3,877,193 Dawson 581 555 572,422 568,36 55,388, 112,342, 95,332 22,418 72 851 871,43 Ector 287 31 53,781 423,919 1,873, 3,559, 6,525 11,824 141 398 56,521 Gaines 724 825 758,896 947,728 144,614, 193,195, 199,744 234,175 62 951 1,92,377 Glasscock 199 185 492,939 479,785 13,637, 46,258, 68,526 25,41 353 737 1,91,119 Howard 466 519 518,369 522,791 15,16, 4,853, 32,416 78,714 444 768 773,53 Loving 8 131 6,22,443 Martin 379 464 526,7 457,99 14,74, 52,9, 37,134 114,9 434 645 637,3 Midland 477 61 361,558 456,633 7,41, 15,398, 15,516 25,621 384 869 66,2 Pecos 27 287 2,916,7 2,97,965 38,218, 27,545, 141,547 95,974 139 271 2,747,518 Reeves 166 221 1,9,877 1,4,344 18,563, 17,179, 111,824 77,733 139 315 1,482,12 Terrell 76 17 18,593 12,17 3,895, 4,31, 51,256 37,669 17 225 2,734,256 Upton 83 11 723,446 634,516 4,814, 8,573, 57,998 77,94 137 513 2,956,855 Ward 86 119 465,639 439,92 1,681, 1,529, 19,545 12,852 138 37 1,347,15 Winkler 44 53 491,718 532,883 1,926, 3,262, 43,774 61,545 12 262 2,637,615 TOTALS 4183 4,675 11,18,55 11,43,497 339,1, 557,45, 1,21,422 1,53,798 4,543 8,67 34,251,53

NATURAL GAS PRODUCTION (MCF) 211 21 29 28 27 23 Andrews 38,91,962 35,318,339 3,496,99 28,965,397 29,312,28 3,427,295 Borden 3,781,82 3,448,279 3,62,881 3,69,462 3,527,673 2,79,74 Crane 52,866,989 57,13,549 6,98,155 65,726,58 65,877,17 62,729,897 Dawson 2,76,629 2,217,234 2,333,43 2,456,86 2,474,628 6,56,755 Ector 53,519,252 49,278,191 44,535,639 42,498,386 39,366,512 49,68,43 Gaines 29,929,921 32,344,913 34,167,432 35,433,826 36,25,18 59,182,225 Glasscock 24,198,98 16,75,282 25,57,565 12,84,142 13,117,39 15,672,416 Howard 11,786,4 8,222,48 6,568,891 6,752,526 6,625,586 9,293,557 Loving 59,312,22 81,125,419 13,575,16 13,729,933 15,14,2 26,385,291 Martin 28,748,167 22,67,666 18,322,426 13,641,935 11,175,331 8,379,862 Midland 55,362,387 47,88,967 47,818,615 46,735,544 5,886,164 6,172,69 Pecos 273,336,274 317,251,76 325,34,2 295,577,35 226,587,139 199,248,5 Reeves 28,612,186 3,454,247 31,53,694 3,333,137 27,138,29 33,968,86 Terrell 41,772,525 49,62,595 57,494,271 65,35,243 74,388,98 69,47,43 Upton 85,26,68 84,38,37 82,644,857 76,628,331 72,99,329 7,916,359 Ward 47,43,296 47,423,1 46,996,631 48,79,648 47,34,428 65,73,856 Winkler 28,248,254 31,945,187 34,312,566 38,964,124 39,854,488 46,432,75 OIL PRODUCTION (BBL) 211 21 29 28 27 23 Andrews 28,11,461 25,548,644 23,613,175 24,369,923 24,178,822 24,275,461 Borden 3,517,155 3,382,81 3,526,95 3,662,527 3,676,93 4,557,779 Crane 8,85,244 8,899,979 9,425,93 9,574,261 9,446,496 1,55,276 Dawson 3,681,25 3,75,581 3,924,38 4,218,354 4,439,442 5,262,442 Ector 23,522,928 22,147,145 2,292,17 19,926,427 17,95,766 2,412,877 Gaines 24,665,984 24,619,538 24,639,11 25,53,987 26,924,276 3,482,519 Glasscock 6,945,122 4,779,871 3,956,867 3,677,479 3,771,143 4,343,98 Howard 7,338,923 6,89,67 5,49,379 5,49,289 5,57,884 7,97,81 Loving 2,35,939 1,634,8 1,593,395 1,614,391 1,392,887 1,8,529 Martin 16,624,83 12,448,122 1,525,792 9,199,45 6,437,824 4,658,322 Midland 18,261,622 14,731,125 13,128,775 11,426,59 11,113,341 11,19,569 Pecos 9,978,251 1,988,87 11,776,72 12,484,681 12,127,535 9,549,437 Reeves 3,295,713 1,62,83 1,142,821 1,19,42 897,689 794,8 Terrell 86,364 118,575 151,992 191,54 218,43 298,168 Upton 19,113,352 16,917,14 15,833,728 15,112,8 12,662,964 8,757,4 Ward 12,267,713 1,42,641 8,831,671 7,685,24 7,685,24 4,812,795 Winkler 3,213,647 3,297,318 3,63,116 3,757,32 3,967,219 4,381,973