The guilty pleas come as Texas lawmakers and the oil industry work to combat widespread crude oil theft in the Permian Basin.
Six people have pleaded guilty in a federal crude oil theft conspiracy that prosecutors say stole tens of thousands of barrels of oil from producers in eastern New Mexico before transporting it into Texas for resale.
An April federal indictment alleges the conspiracy targeted oil producers in the Permian Basin and involved transporting stolen crude across the Texas-New Mexico state line. The region spans more than 86,000 square miles and accounts for the majority of U.S. crude oil production.
Images from the April indictment show sites where Louis George Edgett is alleged to have conducted business
On July 15, six of the 14 defendants pleaded guilty to participating in a conspiracy to steal crude oil.
Gyardo Gonzalez, of Lovington, New Mexico
Mario Mendoza, of Lovington, New Mexico
Miguel A. Soto, of Lovington, New Mexico
Luis Rojo, of Seminole, Texas
Diana Marquez Rojo, of Hobbs, New Mexico
Jesus Martin Hernandez-Borja, of Hobbs, New Mexico
“We were able to disrupt an organized theft group responsible for stealing tens of thousands of barrels of crude oil across Texas and New Mexico,” said FBI Dallas Special Agent in Charge R. Joseph Rothrock in a written statement. “The FBI will continue to work with our partners to combat the large-scale theft and distribution of stolen goods.”
In a news release, federal prosecutors state that the defendants admitted to stealing tens of thousands of barrels of crude oil and selling it to co-conspirators at rates significantly below West Texas Intermediate (WTI) pricing.
How prosecutors say the scheme worked:
The indictment alleges the group stole crude oil from producers in the Eastern New Mexico region of the Permian Basin, transported it, and eventually stored it on four leased sites in New Mexico, some of which were on government-owned land before selling it to co-conspirators in Texas who transported it for resale at a profit.
In Thursday’s release, prosecutors provided additional context into the operation. One conspirator sold 10,975 barrels of stolen crude to Edgett and Strickland between June 2022 and July 2024 for $15 a barrel, totaling $164,625, compared to a market rate of $888,975. Prosecutors say another conspirator admitted in plea papers that the crude he stole was valued at up to $1.5 million.
The big picture:
Oil theft has long been a concern in the Permian Basin, where industry groups say organized theft costs producers millions of dollars each year. The Federal Reserve of Dallas reported that more than 40% of oil executives have been impacted by theft, with 61% of that being crude oil theft.
The Energy Security Council estimated that the industry lost up to 3% of all the oil produced in Texas in 2016, the most recent available data. They equate the revenue loss to range between $450 and $1.5 billion.
State lawmakers also targeted oilfield theft during the 2025 legislative session after industry groups warned the crime was costing producers millions of dollars.
In 2025, the Texas legislature enacted laws to combat oilfield theft in the Permian Basin:
House Bill 48 establishes a DPS-created oil field theft prevention unit
Senate Bill 494 directs the Railroad Commission to create a second task force to prevent the theft of petroleum products.
Senate Bill 1806 gives DPS the authority to inspect vehicles they suspect are used to transport stolen oil and increases the penalties for oil and gas theft.
Remaining defendants:
There are 8 remaining defendants charged in the indictment:
Texas defendants:
Randell Wayne Reid, 41, of Electra, Texas, owner of Reidco Enterprises, a Texas-based company;
James Darrell Reid, 65, of Electra, owner of Reidco Enterprises; and
Christopher Frederick Harris, 22, of Seminole, Texas.
New Mexico Defendants:
Louis George Edgett, 68;
Brenden Floyd Strickland, 25;
Sixto Herrera-Estebane, 43;•
Tavares Montrail Cole, 48;
Danny Dale Brown Jr., 42.
Prosecutors say plea papers also indicated that James Darrell Reid and Randell Reid purchased the stolen oil from Edgett and Strickland at prices significantly below WTI, transported it across the New Mexico-Texas state lines, then sold the stolen crude oil to midstream buyers at prices below WTI.
Thursday’s release states that Cole has admitted to participating in the conspiracy, and his rearraignment is scheduled for August 3.
The remaining defendants are charged with conspiracy and, in some cases, interstate transportation or sale of stolen property. Prosecutors say they face between five and 65 years in prison and millions of dollars in fines if convicted.
The six defendants who pleaded guilty have not yet been sentenced. Prosecutors said the remaining defendants are presumed innocent unless and until proven guilty in court.
The guilty pleas come as Texas lawmakers and the oil industry work to combat widespread crude oil theft in the Permian Basin.
Six people have pleaded guilty in a federal crude oil theft conspiracy that prosecutors say stole tens of thousands of barrels of oil from producers in eastern New Mexico before transporting it into Texas for resale.
An April federal indictment alleges the conspiracy targeted oil producers in the Permian Basin and involved transporting stolen crude across the Texas-New Mexico state line. The region spans more than 86,000 square miles and accounts for the majority of U.S. crude oil production.
Images from the April indictment show sites where Louis George Edgett is alleged to have conducted business
On July 15, six of the 14 defendants pleaded guilty to participating in a conspiracy to steal crude oil.
“We were able to disrupt an organized theft group responsible for stealing tens of thousands of barrels of crude oil across Texas and New Mexico,” said FBI Dallas Special Agent in Charge R. Joseph Rothrock in a written statement. “The FBI will continue to work with our partners to combat the large-scale theft and distribution of stolen goods.”
In a news release, federal prosecutors state that the defendants admitted to stealing tens of thousands of barrels of crude oil and selling it to co-conspirators at rates significantly below West Texas Intermediate (WTI) pricing.
How prosecutors say the scheme worked:The indictment alleges the group stole crude oil from producers in the Eastern New Mexico region of the Permian Basin, transported it, and eventually stored it on four leased sites in New Mexico, some of which were on government-owned land before selling it to co-conspirators in Texas who transported it for resale at a profit.
In Thursday's release, prosecutors provided additional context into the operation. One conspirator sold 10,975 barrels of stolen crude to Edgett and Strickland between June 2022 and July 2024 for $15 a barrel, totaling $164,625, compared to a market rate of $888,975. Prosecutors say another conspirator admitted in plea papers that the crude he stole was valued at up to $1.5 million.
The big picture:Oil theft has long been a concern in the Permian Basin, where industry groups say organized theft costs producers millions of dollars each year. The Federal Reserve of Dallas reported that more than 40% of oil executives have been impacted by theft, with 61% of that being crude oil theft.


The Energy Security Council estimated that the industry lost up to 3% of all the oil produced in Texas in 2016, the most recent available data. They equate the revenue loss to range between $450 and $1.5 billion.
State lawmakers also targeted oilfield theft during the 2025 legislative session after industry groups warned the crime was costing producers millions of dollars.
In 2025, the Texas legislature enacted laws to combat oilfield theft in the Permian Basin:
House Bill 48 establishes a DPS-created oil field theft prevention unit
Senate Bill 494 directs the Railroad Commission to create a second task force to prevent the theft of petroleum products.
Senate Bill 1806 gives DPS the authority to inspect vehicles they suspect are used to transport stolen oil and increases the penalties for oil and gas theft.
Remaining defendants:There are 8 remaining defendants charged in the indictment:
Texas defendants:Prosecutors say plea papers also indicated that James Darrell Reid and Randell Reid purchased the stolen oil from Edgett and Strickland at prices significantly below WTI, transported it across the New Mexico-Texas state lines, then sold the stolen crude oil to midstream buyers at prices below WTI.
Thursday's release states that Cole has admitted to participating in the conspiracy, and his rearraignment is scheduled for August 3.
The remaining defendants are charged with conspiracy and, in some cases, interstate transportation or sale of stolen property. Prosecutors say they face between five and 65 years in prison and millions of dollars in fines if convicted.
The six defendants who pleaded guilty have not yet been sentenced. Prosecutors said the remaining defendants are presumed innocent unless and until proven guilty in court.
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