Well, according to the MRT, it looks like the old FDIC Building at 303 Veterans Airpark Lane has a new MDC incentee! Welcome Apache Corporation, lets hope you stick around longer than the last incentee at that address.

Other business in the action-heavy session at City Hall included authorization of a $250,000 economic development agreement with the Apache Corp. oil and gas producing company to create a minimum of 51 jobs at the firm's new 48,000 square-foot headquarters at 303 Veterans Airpark Lane.

The contract calls for the MDC to make a $125,000 interest-free forgivable loan by May 15 next year and another such loan by May 15, 2012. A $750,000 capital investment by Apache is also required. Based in Houston, the company is opening a regional headquarters office here.

You have to admit it does fit in the MDC Strategic Plan.

Invest in the Oil and Gas Business and Support Energy Business Development in Claydesta/College/Airport Development Zone (though their current office is already at the corner of A & Wadley)

However, here is the question we always ask, why does a multi-billion dollar global company, need a $250,000 forgivable loan to create 51 new jobs in Midland? Especially a firm which has been acquiring fields for years.

Here's their track record:

1991 - Apache Acquires Amoco's MW Properties and enters the Permian Basin.

1995 -Apache Acquires Texaco Properties expanding Permian Basin holdings.

2005 - Apache Acquires ExxonMobil Properties in Permian Basin

March 2006 - Apache Acquires Amerada Hess Properties in Permian Basin.

June 2007 - Apache Acquires Anadarko Assets for $1 Billion

April 2009 - Apache Acquires Marathon Assets for $187.4 Million

It's not like they haven't been growing and expanding in the Permian Basin for a while, and you have to love how they described the area in one of their reports a couple of years ago:

Like Apache's Gulf of Mexico properties, the Central Region is a cash machine. In 2005, the region invested $369 million and earned $841 million, returning $2.28 for every $1 invested. In 2006, a budget of $400 million is expected to return $1 billion, and the region should exit the year with more reserves than when it entered.

Apache is fortunate to have this unsung core asset.

So what do you think the probability of establishing a large regional office in Midland was based on their acquisitions?

I'm just curious where they are going to drop $750,000 in capital improvements when their current taxable property value (excluding minerals) is only $188,540 with only $15,240 being furniture and fixtures.