ELTZ -> WILEY LEASE LLC
ELITE is acquiring a majority interest in Wiley Lease LLC. The business consists of 24/7 trucking operations with 4 active salt water disposal sites and services customers in Atascosa and McMullen counties in Texas with revenues of $35 million in 2015.
Wiley Lease LLC business includes:
3 disposal sites in (4 wells) in Atascosa county and 1 disposal site in McMullen County.
55 trucks and 53 trailers
Additional permit in Atascosa County for a new facility.
Roustabout service for on sight field operations providing manpower, materials and equipment.
45% ownership in reclamation plant located on Gossett Lease.
Wiley Lease LLC generates revenue from a variety of activities which include a trucking fee; the customer pays a fee to transport saltwater from the wellhead to the disposal site. A disposal fee; the producer pays a fee to dispose of the saltwater into a SWD. Oil skim; crude oil entrained in the saltwater is skimmed at the disposal well, separated and sold at the prevailing crude price. The company typically prefers to negotiate a rate with the customer that includes both trucking and disposal services, but also has the ability to charge for only trucking or only disposal if desired. Offering both transportation and disposal is a competitive advantage in the marketplace because the customer prefers a one stop shop solution.
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