They say location is everything. I would bet that location is everything to Reliant Holdings and $250,000 is just a nice little kicker to buy down their investment.

First, let's look at the location, near the intersection of FM 1788 and County Road 60.

• This tract of land is not currently within the City Limits, however it is adjacent to the La Entrada Route (AKA Hwy 349 Reliever) which will provide excellent access to major roads leading N, S, E & W. However, the City's master plan (pg 3-34) calls for the annexation of land along the La Entrada Route, but that will be years away.


• This tract of land is near the Kinder-Morgan CO2 Central Basin line which has a branch which cuts through the area near the common corner of Ector, Midland and Andrews Counties (to serve the Mabee Field). I would presume that there are CO2 pipelines that branch off this main line and are even closer to the site, but publicly available maps don't show these types of lines (September 11th Pipeline security measures).

This business can't just locate anywhere. They have to have access to major roadways and a source of CO2 (either from a plant or a pipeline).

Then there is this matter: Reliant Holdings has just recently opened a CO2 recovery and processing facility in Windsor, Colorado. I can't find any talk of any local incentives to build this plant. Granted, their partner, an ethanol plant, may have provided the kicker so they could reduce their emissions.

So what did they build in Windsor?

The $5 million facility will have 16 full-time employees, producing about 150 tons of CO2 per day in its initial production and twice that when it reaches full capacity, according to a press statement.

And what are they proposing here? $7 million in capital expenditures and 55 jobs? This doesn't seem to track, $5 Million = 16 and $7 Million = 55?.

I have absolutely nothing against Reliant Holdings. I think CO2 is a great industry to be in and there is always a need. I love the fact a company with such a reach across the Western United States finds West Texas home. However, given the above factors, without our $250,000, I think the worst that would have happened is that Reliant Holdings would have moved further up 1788 (maybe into Ector or Andrews County) to be closer to the CO2 infrastructure.

BTW: Newsroom Stew, has some intelligent questions about where the employees will come from and how contributing back to the City's tax base works with this site outside of the City Limits.

UPDATE: This isn't a done deal. The City of Midland's Council has to approve this agreement. Councilman Bill Dingus voted against BCCK's deal on similar grounds, and they were inside the City Limits.