Occidental Permian Ltd. (Oxy) is expanding its footprint in Gaines County, Texas, with the planned addition of a mud plant adjacent to its existing Seminole Gas Processing Plant. According to filings with the Texas Commission on Environmental Quality (TCEQ), the new facility is being permitted under a Permit by Rule (PBR) application, submitted on July 16, 2025 and currently listed as pending.

This expansion reflects Oxy’s continued investment in integrated operations within the Permian Basin—supporting drilling and production with on-site capabilities that improve efficiency, reduce costs, and support long-term development in the region.

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🏗️ What Is a Mud Plant?

A mud plant is a facility dedicated to the production, storage, and distribution of drilling fluids, often called “mud.” These fluids are essential to modern oil and gas drilling operations. They serve a range of critical functions:

Cooling and lubricating the drill bit
Transporting rock cuttings to the surface
Maintaining wellbore pressure and stability
Preventing formation damage during drilling

Mud plants typically blend water, oil, and additives such as barite, bentonite, xanthan gum, and various chemicals to create custom fluid formulations tailored to specific drilling conditions. These facilities include blending tanks, silos, labs for fluid testing, and truck-loading infrastructure to deliver fluids to nearby rigs.

By adding a mud plant on-site at its Seminole Gas Processing Plant, Oxy can streamline its drilling support operations and reduce logistical complexity—especially valuable in a basin as active and expansive as the Permian.

📋 Permit Details: SEMINOLE MUD PLANT (Project #395615)

Permit #: 180874
Permit Type: Permit by Rule (PBR)
Action Type: Initial Registration
Submitted: July 16, 2025
Status: Pending
Customer Name: Occidental Permian Ltd.
Regulated Entity #: RN112248794
Location:
From the intersection of Highway 214 and CR205 northwest of Seminole, travel 0.2 miles northwest on Hwy 214, then turn left and go 0.2 miles on a lease road. The site is located on the left.

The permit includes compliance with the following PBR rules:

106.512 – Engines and Turbines
106.261 – Emission Limitations for Facilities
106.472 – Organic and Inorganic Liquid Loading/Unloading

The TCEQ project is being reviewed by Engineer Amanda Andrews and Peer Reviewer Joshua Wheatley. As of July 22, the project has entered the deficiency review cycle, and the engineer’s initial review is complete.

💵 Fee and Processing Information

Oxy paid a $450 permit application fee on July 16, 2025, via credit card. This signals the company’s commitment to moving swiftly through the permitting process to begin construction and commissioning of the new mud plant.

🔍 Why This Matters

The addition of a mud plant directly at the gas processing facility signals a smart infrastructure play. It creates:

Faster turnaround for drilling fluid supply in the region
Reduced trucking costs and emissions from off-site deliveries
Increased operational control over fluid quality and availability
Strategic support for nearby drilling programs across Gaines County and the broader Midland Basin

As Permian Basin operators continue to focus on capital discipline and margin resilience, integrated infrastructure like this mud plant supports long-term efficiency and environmental stewardship.