Privately funded operator Varas Energy has taken a major step toward long-term, conventional oil and gas development in South Texas. On December 5, 2025, the Texas Railroad Commission approved a new T-4 pipeline permit (No. 10739) authorizing Varas to operate more than 150 miles of natural gas gathering lines across eight counties in the region. The system was formerly filed under Hugoton Operating Company, Inc., a bankrupt operator undergoing Chapter 11 restructuring.