Mont Belvieu Area Chamber of Commerce welcomed GameDay Men’s Health Mont Belvieu with a ribbon cutting
are his wife Amanda and daughters Molly and Sydney
They were joined by city officials and chamber representatives
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Mayor: Run-off between Mouton and West.Councilmember At-Large: Turner and Williams Ward 1: CrenshawWard 2: HilliardWard:3 Sherwood
Chambers County — A former Chambers County teacher already booked and released on charges of having an improper relationship with a male student is facing new charges stemming from the same investigation
according to information Mont Belvieu Police Chief Jimmy Ellison provided to KFDM/Fox 4 News
MBPD detectives arrested Molly Colleen Spears
early this morning on two separate felony warrants for Sexual Assault of a Child
she could face 2-20 years in prison and up to a $10,000 fine
she surrendered on the initial charge of Improper Relationship Between Educator and Student
Spears posted $50,000 bond and was released
the Chambers County District Attorney’s Office requested investigative assistance this month from the Mont Belvieu Police Department Criminal Investigations Division into new evidence of possible sexual assault of a child incidents that occurred in 2022 and 2023
These new allegations were connected to a previously investigated case of Improper Relationship Between Educator and Student conducted by the Barbers Hill ISD Police Department in 2023
working with Chambers County DA’s Office Investigators
began conducting additional investigation and interviews
MBPD Detectives obtained two separate felony arrest warrants for Spears on charges of Sexual Assault of a Child
Each warrant carries a separate $100,000 bond
Mont Belvieu PD Detectives arrested Spears this morning and processed her at police headquarters before she was transferred to the Chambers County Jail
Chief Ellison says he's "appreciative of the inter-agency relationships and cooperative investigative efforts involved in this case."
Chambers County District Attorney Cheryl Lieck Henry also expressed her appreciation
“Chambers County is blessed with law enforcement teams that care about kids and working together to ensure justice," says Lieck
"My office is grateful for the collaboration exhibited here.”
The eatery serves Tex-Mex cuisine ranging from nachos and quesadillas to fajitas and enchiladas
Jovanna joined Community Impact as a reporter in July 2023
She graduated from Sam Houston State University in December 2021 where she majored in mass communication with a focus in multiplatform journalism and a minor in creative writing
and served as a writer for the campus newspaper
2024 /PRNewswire/ -- James Avery Artisan Jewelry
a family-owned jewelry retailer based in Texas
is pleased to announce the opening of its new store at Mont Belvieu Crossing
The new store is located at 9217 Eagle Drive
"We're excited to open our newest location in Mont Belvieu
especially as the I-10 corridor continues to grow so rapidly," said Karina Dolgin
chief product and revenue officer at James Avery
"Mont Belvieu was recently named one of the fastest-growing cities in the Houston area
and this new location will offer a convenient shopping experience for families in the area
right across from Barber's Hill schools and near popular spots like HEB and TJ Maxx."
and visitors are invited to register for a gift card giveaway
During the grand opening celebration on Saturday
there will be drawings for 30 James Avery gift cards valued at $50
the first 100 guests will receive a gift with purchase
"Our team is thrilled to bring the timeless craftsmanship and care that James Avery is known for to Mont Belvieu," said Store Manager Vanessa AguirreNzang
"We're looking forward to celebrating the upcoming Christmas season with our guests and helping them find meaningful gifts or treating themselves to our beautiful new designs."
The store's hours are Monday through Saturday, 10 a.m. to 8 p.m., and Sunday, 12 to 6 p.m. Store Manager Vanessa AguirreNzang and her team are ready to welcome customers to shop in the new store or use the Curbside Pickup or Buy Online, Pickup in Store options at JamesAvery.com
About James Avery Artisan Jewelry®– James Avery is a vertically integrated
family-owned company located in the heart of the Texas Hill Country
We offer finely crafted jewelry designs for men and women in sterling silver
James Avery jewelry is designed in the Texas Hill Country
with more than 90 percent of our pieces crafted in Kerrville
Texas using the finest materials sourced worldwide
We are a multi-channel retailer with over 130 James Avery stores in four states
Our jewelry is also available at JamesAvery.com
over 250 Dillard's locations and at Dillards.com and at 37 Von Maur locations and VonMaur.com
You can also find our designs at airport stores in Houston and Nashville
as well as select Army and Air Force Exchange Service (AAFES) locations
as well as @jamesaveryjewelry on TikTok for new releases
Drawing Details Odds of winning depend on total number of entries received
Thirty James Avery gift cards will be awarded: twenty-four $50 gift cards
Entries accepted October 5 through October 12
Hourly drawings on October 12 between 11:00 a.m
during the Grand Opening Celebration at the Mont Belvieu Crossing James Avery Artisan Jewelry store
Winners not eligible to win a subsequent gift card in the same promotion
Winners need not be present to win; however
if prize is not claimed within 14 days of drawing
prize will be awarded to an alternate winner
Associates and immediate family members not eligible for this gift promotion
James Avery Artisan Jewelry is honoring family and Texas nostalgia with a new seasonal collection—including a charming..
is thrilled to unveil its 2025 Valentine's Day Collection
Jewelry
Retail
Household, Consumer & Cosmetics
Corporate Expansion
Do not sell or share my personal information:
board members and friends cut the ribbon on their new building in the Midstream Business Park located at 2822 N
Ashley Wells and Macie Schubert of the Mont Belvieu Area Chamber with members of US Congressman Brian Babin’s office delivering a proclamation
Ashley Wells and Macie Schubert of the Mont Belvieu Area Chamber receiving a proclamation from Texas Senator Brandon Creighton’s office
Ashley Wells and Macie Schubert of the Mont Belvieu Area Chamber receiving a proclamation from Susan LeBlanc of Texas Representative Terry Leo-Wilson’s office
From left are Deputy City Manager Andy Rodgers
Macie Schubert of the Mont Belvieu Area Chamber
Mayor Joey McWilliams and City Manager Brian Winningham
It wasn’t exactly Chamber of Commerce weather that greeted those who showed up for Thursday’s grand opening of the Mont Belvieu Area Chamber of Commerce’s new home
But as Chamber President Macie Schubert stepped up to the microphone to open the ceremony
she noted that the rain had stopped and said
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Dave Rogers is managing editor of The Baytown Sun
Email notifications are only sent once a day
The rare Holly Jackson Outstanding Achievement Award was presented to Barbara Ponder by Board Member Holly Jackson
Pictured from left are: Brandon Kiser of Texas Senator Brandon Creighton's office
Susan LeBlanc of State Rep Terri Leo-Wilson's office
Brittany Dennis of Congressman Brian Babin's office and Chamber Board Member Natalie Degler
Kevin King gives up a $100 bill to Magician Ben Jackson
Beach City Citizen/Volunteer of the Year Johnny Eversoll
Will Carter of Congressman Brian Babin's office
Brandon Kiser of Senator Brandon Creighton's office
Mont Belvieu Area Chamber President Macie Schubert and Chamber Board Member Natalie Degier
Mont Belvieu Citizen/Volunteer of the Year Jason Burclaw
Old River Citizen/Volunteer of the Year Mary Massey
MBAC Ambassador of the Year Veronica Artis
MBAC Ambassador of the Year Veronica Artis acknowledge her fellow chamber ambassadors and the tough competition to win this award
Business Professional of the Year Ted Keller of Targa Resources
Tony Cooling and Shawn Sandefur of ONEOK accepted the Business of the Year award
Tracy Newsom and Becki Parsons of All American T-Shirts & Graphics accepted the Small Business of the Year award
Outgoing Chamber Director Melissa Dennis accepted an appreciation award
Brittany Dennis of Congressman Brian Babin's office
pictured with Brandon Kiser of Senator Brandon Creighton's office
Outgoing Chamber Director Penny Durant of H-E-B was presented an appreciation award
The newly created President's Award goes to Bryan Crismon of Targa Resources
Mont Belvieu City Manager Brian Winningham
and Mayor Joey McWilliams welcome Someburger to town with an official sign
Owners Doug and Margaret Brown and their son Conner
along with their parents Candace and Richard Brown
Someburger employees were busy preparing meals and milkshakes for the hungry visitors at the grand opening of the Mont Belvieu restaurant
joined in the celebration of Someburgers' new Mont Belvieu location
Friday had to be one of the most anticipated restaurant grand openings ever
Guests were ordering their burgers even before the new Someburger restaurant in Mont Belvieu officially opened at 13407 Langston Blvd
Exciting and grateful were the words most expressed by owners Doug and Margaret Brown
Mont Belvieu Area Chamber of Commerce welcomed Firehouse Subs – Mont Belvieu to the area with a grand opening and ribbon cutting on Jan
the restaurant is known for its quality and commitment to the community as can be noted by the beautiful mural on the wall of the establishment
Mont Belvieu Area Chamber Ambassador Jamie Graves with Epique Realty
Chamber Ambassador Veronica Artis with Coastline
Also pictured Chamber Ambassadors Sidney Otto with Rollo Insurance Mont Belvieu
Blythe Adam with Rave Financial Credit Union
Chamber Board Member Gordon McCarley with Bruce Temporary Services
Mont Belvieu Area Chamber of Commerce proudly welcomes Blue Hill Tobacco to the area with a grand opening and ribbon cutting on Friday
they offer a relaxing environment for tobacco enthusiasts to gather consort and enjoy quality cigars
tobacco pipes and accessories for tobacco enjoyment
Pictured (center) are owners Jeremy and Brooke Franco along with Mont Belvieu Area Chamber of Commerce members
a 125,000-barrel per day (bpd) natural gas liquids (NGL) fractionator in Mont Belvieu
and the full looping of the West Texas NGL Pipeline system
Oklahoma-based company said in a news release that the completion of MB-6 increases the company's fractionation capacity to more than one million bpd
“reducing the need for third-party fractionation and enhancing ONEOK's ability to serve growing NGL market demand”
The completion of the full looping of the West Texas NGL Pipeline system expands its capacity to 515,000 bpd
which are expected to be completed in mid-2025
will further increase system capacity to 740,000 bpd
"The completion of these important NGL projects demonstrates our dedication to meeting the needs of our customers by providing reliable midstream solutions," ONEOK President and CEO Pierce Norton II said
"These strategic expansions provide critical NGL transportation and fractionation capacity
supporting NGL growth across our integrated operations”
ONEOK completed its acquisition of a system of natural gas liquids (NGL) pipelines from Easton Energy for approximately $280 million
The transaction included approximately 450 miles of liquids products pipelines located in the strategic Gulf Coast market centers for NGLs
ONEOK said it plans to connect the pipelines to its Mont Belvieu
NGL infrastructure and ONEOK's Houston refined products and crude oil infrastructure
"The closing of this strategic acquisition provides immediate earnings
expands our natural gas liquids asset portfolio and accelerates ONEOK's ability to capture commercial synergies related to our recent acquisition of Magellan," Norton said
"These new assets offer significant connectivity between critical Gulf Coast supply and demand centers”
ONEOK announced it planned to purchase the remaining issued share capital of EnLink Midstream LLC
which it recently took over from Global Infrastructure Partners (GIP)
it had closed the acquisition is for 43 percent of Enlink’s outstanding common units for $14.90 per unit and 100 percent of the interests in the managing member for $300 million
for total cash consideration of approximately $3.3 billion
Expected to conclude in the first quarter of 2025
the transaction is subject to customary closing conditions including approval by a majority of holders of outstanding EnLink common shares
ONEOK also agreed to sell three natural gas pipelines with an aggregate capacity of 3.7 billion cubic feet a day (Bcfd) to DT Midstream Inc
The transaction involves 1,300 miles of pipelines straddling seven states “in the attractive Midwest market region which is expected to experience continued growth in power demand”
The transaction is expected to close by the end of 2024 or early 2025
ONEOK describes itself as a leading midstream operator that provides gathering
Dozens arrested in two-month investigation
The Mont Belvieu Police Department turned a look into a series of seemingly unrelated financial fraud cases into a two-month multi-agency investigation resulting in as many as 40 arrests of suspects as far away as Georgia and Illinois
Mont Belvieu — A former Beaumont police officer turned police chief of Mont Belvieu is revealing details to KFDM/Fox 4 of a fraud case spanning three counties and leaving dozens of victims in its wake
The investigation dubbed 'Operation Cash Back' broke the case wide open
Mont Belvieu Police Chief Jimmy Ellison says investigators from his department and multiple agencies discovered 35 fraud victims in Harris
The suspects are accused of making unauthorized wire transactions and stealing between $360,000 and $600,000
They recruited lower level participants who allowed the money to be laundered through their bank accounts
Chief Ellison says there are four primary suspects
including money laundering and engaging in organized criminal activity
Three of the four are also charged with breach of computer security
Their bonds are between $300,000 and $600,000
Investigators have frozen the bank accounts and say others could face charges in the case
From Mont Belvieu Police Chief Jimmy Ellison:
the Mont Belvieu Police Department began investigating a series of seemingly unrelated financial fraud cases where victims reported funds stolen from their bank accounts via unauthorized wire transactions
led by the MBPD Criminal Investigations Division expanded to other regional law enforcement agencies when it was determined that other agencies were investigating similar cases
Investigators eventually identified 35 individual fraud victims within the region spanning Mont Belvieu
Combined losses of at least $360,000 have been confirmed and may reach up to a total of $600,000 in total funds stolen and laundered through other bank accounts
Through a multi-agency investigation dubbed “OPERATION CASH BACK” and led by MBPD-CID
investigators eventually identified four (4) key individuals as the primary suspects in this fraud scheme
These individuals are believed to have recruited other persons
and orchestrated the criminal activities in these cases
“The scheme involved suspects who obtained victims' stolen financial data
then used various online messaging apps to recruit other lower-level individual participants who allowed their legitimate bank accounts to be used to funnel stolen funds through,” explained Chief Jimmy Ellison of the Mont Belvieu Police Department
a coordinated operation involving Mont Belvieu PD
Chambers County District Attorney’s Office
and the United States Marshal’s Service resulted in the execution of 40 separate search warrants for electronic devices and data
related search warrants were also executed at two residences in McNair and Baytown
Multiple arrests related to this ongoing investigation have occurred throughout Southeast Texas and as far away as Georgia and Illinois
but due to the ongoing nature of this investigation and the potential for additional defendants to be identified
MBPD is only identifying the four primary named suspects at this time
In addition to the fraud-related evidence that was seized in this operation
search warrants executed also resulted in the recovery and seizure of over $10,000 in cash tied to the scheme
as well as assorted quantities of illegal drugs and controlled substances in possession of the defendants
Multiple bank accounts used by suspects in the commission of these offenses have been frozen and investigators will continue to aggressively investigate these cases
“Financial crimes like these are becoming far too common and growing more complex
This multi-agency investigation serves as a testament to tenacious detective work and our invaluable local
and federal partnerships that help bring justice to victims of these types of crimes
We especially appreciate the partnership with Chambers County District Attorney Cheryl Lieck Henry and her staff for helping send the message that if you victimize someone in Chambers County
they will have Happy hour all day and $5 kids meals
The celebration special will run all week which is Fried catfish with Pontchartrain topping served over parmesan rice with asparagus
Floyd’s Seafood Mont Belvieu lit up at night
Julia & Ramon Martinez and Maria Landry
8 Floyd’s Seafood in Mont Belvieu will celebrate five years in Mont Belvieu
This location is independently owned and operated by Ramon and Julia Martinez
Then a chance of scattered thunderstorms overnight
26-foot diameter piece of Enterprise Products’ Fractionator 14 project was parked Tuesday at the south intersection of Interstate 10 and Farm Road 3180
halfway between a Cedar Bayou dock in Baytown and its destination at Enterprise’s Mont Belvieu plant
a 180-foot long and 26 feet in diameter piece of Enterprise Products’ Fractionator 14 project
is prepared to leave the dock alongside Cedar Bayou Monday night for a two-night
13-mile trip to the company’s Mont Belvieu location
Several of the dozen or so motorcycle officers tasked with traffic control for this week’s move of a 180-foot long tower from Baytown to Enterprise Products’ Mont Belvieu plant prepare to head out Monday night
After two long nights with a definitely heavy haul – 1.4 million pounds – Enterprise Products’ new 180-foot long deisobutanizer tower (DIB) finished up its 13-mile trip from a dock on Cedar Bayou in Baytown to the company’s Mont Belvieu plant on State Highway 146 Wednesday
The DIB tower is associated with Enterprise’s Fractionator 14 (Frac 14) project
the 13th fractionator to be built at the Mont Belvieu complex
Trader’s Corner, a weekly partnership with Cost Management Solutions
analyzes propane supply and pricing trends
examines the current propane forward price curve
Catch up on last week’s Trader’s Corner here: Trading versus hedging in propane futures
When we see a propane forward price curve like in Chart 1
it is obvious there is something amiss in the market
this is the current Mont Belieu ETR propane forward price curve
April 2025 MB ETR propane is 13.25 cents higher than May
and it is 17.75 cents above Conway April propane
the October 2025 to March 2026 propane price average is slightly inflated
The values set for the two winters after that aren’t bad
Something is obviously out of balance in the supply/demand equation
We are going to try and solve the unknown in this equation and see if we can come up with an answer
We will start on the supply side of the equation to see if the numbers are low there
Energy Information Administration (EIA) collects data on propane production and imports
The other is natural gas plant field production
which accounts for about 90 percent of supply
If one or both supply streams are having problems
it could cause a short-term shortage in the market
Given that the high price is contained to April
it appears traders believe whatever ails the market is short term in nature
Propane production is down in the last couple of weeks but is equal to this time last year and near the five-year high
The problem is not that oil and gas wells and refiners are not producing propane
So there should be plenty of propane upstream of the fractionators
we are not going to provide a chart on propane imports
Imports are a relatively small part of supply
running at only 99,000 barrels per day (bpd)
That is equivalent to the five-year average for week 15 of the year
Conclusion: Propane imports are not the problem
Even though supply is getting to the fractionators
propane inventories took a sudden nosedive last week
That wouldn’t really cause overall inventory to go down
because the inventories upstream of fractionators would be included
inventories upstream of the fractionators would see a corresponding increase
and a build in overall inventories would likely occur
But overall inventories went down 1.284 million barrels
Propane inventories upstream of the fractionators only increased 319,000 barrels
So only about 45,000 bpd of propane accumulated upstream of the fractionators
Refineries make about 250,000 bpd of propane
Total propane production last week was 2.744 million bpd
That means fractionators made 2.494 million bpd of spec propane while breaking down Y-grade
That means fractionators processed 98.2 percent of the propane that hit the Y-grade caverns upstream of them
It would seem fractionators are not the problem
That means the imbalance in the equation is not on the supply side
The imbalance must be created on the demand side
ready-for-sale propane inventories downstream of the fractionators declined 1.603 million bpd
That means demand exceeded 2.494 million bpd of fractionated propane
plus 250,000 bpd of spec propane from refiners and 99,000 bpd of propane imports (total 2.843 million bpd) and still needed to draw 229,000 bpd from spec propane inventories
That is a lot of demand for a week ending April 11
What makes all of this even more perplexing is that during the same week last year ready-for-sale propane inventories increased 1.667 million barrels during the week ending April 12
That is a 3.27-million-barrel swing year-to-year in the ready-for-sale propane inventory for the 15th week of the year
Now look at the difference in demand between the week ending April 12 last year and April 11 this year in Chart 3
That is a 777,000-bpd difference in demand year-over-year between the same weeks of the year
Both domestic and export demand contributed
Domestic demand was 386,000 bpd more than the same week last year
and export demand was 391,000 bpd more than the same week last year
Because there is a lot of weekly volatility in demand
we usually look at it on a four-week average
Chart 4 is the same chart of total demand using the four-week average
Using the four-week average shows just a 175,000-bpd difference in demand for the 15th week of the year
The four-week average does show a surge in demand back during the winter storm
demand has been trending largely like it did last year
Even though we balanced the equation when looking specifically at the numbers reported by the EIA for the week ending April 11
it is hard to understand the answer to our question
Why would both domestic and export demand be so much higher from one year to the next
We have also speculated that buyers of U.S
propane for export could be buying a lot in April
trying to get cargoes delivered before their country imposes tariffs on the United States
and that could be an explanation for the dramatic year-over-year change
But where is all of the domestic demand during week 15 of the year coming from
with ready-for-sale propane inventories 9.719 million barrels (32.5 percent) behind last year
getting a grip on what is causing it is slippery
the 1.603-million-barrel draw in ready-for-sale inventory for last week is inflated and probably should not be carrying the weight in the market it appears to have
Complex equations like this are why we were force-promoted to a new grade each year after the seventh grade
It is little wonder that our answer is still lacking
All charts courtesy of Cost Management Solutions
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“Mattress Mack,” owner of Gallery Furniture says retirement is not in the cards for him
My people are my customers,” said Mattress Mack
He joked with members of the Mont Belvieu Area Chamber this week that he may bring a store to Mont Belvieu
If attendance at the membership luncheon and small business expo held at Hilton Garden Inn was indicative of the growth in the area
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Texas (KTRK) - Investigators say 40 people have been arrested in several states
accused of stealing hundreds of thousands of dollars from dozens of people
Mont Belvieu Police started the investigation and said the suspects allegedly used stolen data from the dark web.The investigation was dubbed "Operation Cash Back."
Mont Belvieu police say they know of 35 residents in our area who are victims of this scheme
The victims in this case weren't tricked into clicking on something online or giving out their bank passwords
They just woke up one day to see money missing from their accounts
Police started working on the case in June when they realized a trend with the fraud reports
found other local departments were working similar cases and then connected the dots to determine a local group of people were responsible
Some suspects lived as far away as Georgia and Illinois
25; Jayson Gipson 20; and Lajewel McGilbray
They have all been charged with money laundering and engaging in organized criminal activity
Police say the suspects got financial information off the dark web that came from data breaches and used it to wire money out of people's accounts
the total amount of stolen money ranges between $360,000 to $600,000
Other suspects were arrested for letting the ring leaders funnel stolen money through their bank accounts
they start making wire transfers out of the victim's bank accounts
they have to transfer that money into a clean account and that's where they began recruiting other people," said Mont Belvieu Police Chief Jimmy Ellison
Most of the other people arrested were friends and family of the ringleaders
while others were recruited through social media
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Show Breaking News BarCloseLocal NewsChristian Terry
MONT BELVIEU
Texas – Multiple arrests have been made in connection to a bank fraud investigation led by the Mont Belvieu Police Department
The department said the investigation into a series of seemingly unrelated financial fraud cases started in June 2024
where victims reported funds stolen from their bank accounts via unauthorized wire transactions
The investigation expanded to include other regional law enforcement agencies when it was determined that other agencies were investigating similar cases
and Liberty County were identified by investigators and the combined losses suffered by those victims are at least $350,000
Mont Belvieu police say losses may reach up to a total of $600,000 in total funds stolen and laundered through other bank accounts
dubbed “Operation Cash Back,” led to authorities identifying four primary suspects in the scheme
Investigators say they believe the four suspects recruited other people into the scheme and orchestrated it
“The scheme involved suspects who obtained victims stolen financial data then used various online messaging apps to recruit other lower-level individual participants who allowed their legitimate bank accounts to be used to funnel stolen funds through,” explained Chief Jimmy Ellison of the Mont Belvieu Police Department
and the United States Marshal’s Service have executed 40 search warrants for electronic devices and data in the past week as part of the investigation
Investigators also searched two homes in McNair and Baytown
The department said multiple arrests have been made throughout Southeast Texas and as far away as Georgia and Illinois
“Due to the ongoing nature of this investigation and the potential for additional defendants to be identified
MBPD is only identifying the four (4) primary named suspects at this time,” the department said
Over $10,000 in cash as well as illegal drugs have also been seized as part of the investigation
Multiple bank accounts investigators say were used in the scheme have also been frozen
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Christian Terry covered digital news in Tyler and Wichita Falls before returning to the Houston area where he grew up
He is passionate about weather and the outdoors and often spends his days off on the water fishing
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Read Today’s Top Story: The Truth About Houston Agents 2025
McGrath Real Estate Partners recently broke ground on phase two of its 1,500-acre Riceland master-planned community in Mont Belvieu
138-acre phase will include the Lakehouse Recreation Center and the development of Sweetgum Park
Riceland will hold its official grand opening for the public on Sept. 21. Nine model homes by Chesmar Homes, David Weekley Homes
Highland Homes and Perry Homes will be open for viewing
has 417 completed home lots and 85 homes under construction
The community will also have 30 miles of trails
which will incorporate Mont Belvieu City Hall and a newly opened fire station
Canada-based Trez Capital provided $40 million in financing for the second phase
It also provided the financing for phase one
“We’re eager to begin two exciting new amenities for the community and to continue collaborating with the City of Mont Belvieu on developing a city-wide path and trail system that will enhance walkability and continue to build on the community-focused lifestyle Riceland has to offer,” McGrath Vice President Randy Hopper said in a press release
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Catch up on last week’s Trader’s Corner here: US propane inventories highest ever
we will look at a current anomaly in Mont Belvieu and how it will force us to fine-tune our propane swaps in the future to make them cleaner
let’s do an addendum to last week’s Trader’s Corner
We began last week’s article with the following:
In last week’s Trader’s Corner
we presented our case that the draw on inventories three weeks ago was likely due to unusual circumstances
that inventory builds had gotten back on track
and that conditions were such that builds would likely continue for a while longer
we imagined several more weeks of smaller builds that cumulatively might take inventories to a new record
What we did not foresee is the massive 3.366-million-barrel build just reported by the Energy Information Administration (EIA) in its Weekly Petroleum Status Report for the week ending October 11 that in one fell swoop would take inventories to an all-time high
the EIA reported an equally surprising inventory draw of 1.369 million barrels
industry analysts were expecting a 1.57-million-barrel build
We think it is highly probable that this week’s drop was a bit of a correction to last week’s unusually high build
The average over the two weeks would be about a million-barrel-per-week build
We think that is more likely what took place
despite the 1.369-million-barrel draw reported in the last report
we would not be surprised if inventories were reported as building again in the next EIA report
In September and October, Mont Belvieu had a very unusual pricing situation
There are three pricing points at the Mont Belvieu
ETR prices came under extreme downward pricing pressure starting in September when it was learned that planned maintenance at Energy Transfer’s Nederland NGL export terminal would not be completed before the end of the month. At one point in intraday trade, ETR was priced at 19 cents below ENT during September
The first assumption was that pricing relationships would return to normal at the month’s change
There was a significant improvement in the spread at that point
it was discovered that Nederland had propane compressor issues at restart
the assumption was that spreads would return to normal when the compressor issue was resolved
The market participants we talked to believed that the compressor issues were resolved
yet the price spreads never returned to normal
we justified the continued spread as likely because Energy Transfer was awash with propane
and ENT and TAR were tight as spot buyers went to them while ETR was down
We made that argument because ETR is trading at 41 percent of crude
That was not the case in September when ETR was priced as low as 31 percent of crude
the spread widened because Mont Belvieu ETR prices were being pushed down
the spread is wider because Mont Belvieu ENT and TAR prices are being pushed up
But with the spread widening more dramatically recently
it became obvious that something was still wrong
We are now hearing that Nederland is loading at reduced rates
That is likely forcing buyers who expected to ship products in October to sell in October and buy in November
thus keeping ETR October prices from rising
buyers who need product quickly are forced to Mont Belvieu ETR and TAR
The chart below shows the price spread between the two primary Mont Belvieu pricing points of ETR and ENT over the last year to illustrate the unusual nature of the current situation
(Chart courtesy of Cost Management Solutions)
This event has highlighted the importance of ensuring swaps and physical buys are more closely aligned
if a retailer is buying physical supply from Enterprise
it is important that swaps be settled against Mont Belvieu ENT
most swaps have settled against TET propane
That probably works okay 95 percent of the time
even if a retailer’s physical propane is bought at Enterprise posting or a Mont Belvieu ENT index
since the spread between the pricing points is generally narrow and their price movement in tandem
In the rare Mont Belvieu pricing situation currently happening
a retailer buying physical supply from Enterprise but holding a swap settling against Mont Belvieu ETR is getting hurt
Because ETR is priced so much lower than ENT
a swap based on ETR is not doing what it is supposed to
which is offset by the changes in the value of the physical supply bought by the retailer
It would be better if a retailer that has indexed their physical supply off ENT or buys at Enterprise’s posting also bases their swap settlements against ENT
a propane retailer might have the option to buy from several suppliers
It is not inconceivable to have physical supply contracts based on both ENT and ETR propane
Let’s say a retailer plans to physically buy 100,000 gallons of propane from Enterprise at a specific pipeline location indexed to Mont Belvieu ENT’s price next month
a retailer plans to buy another 100,000 gallons from a different supply at the same terminal indexed to Mont Belvieu ETR
the retailer may have done all their swaps against those physical buys based on one of the pricing points or the other
a retailer in that situation would be better served in the future by having some swaps settled against MB ETR and some settled at MB ENT
The term “basis risk” is used to describe the possibility that prices of propane at two physical points or two pricing points might be different. In the Sept. 30 Trader’s Corner, we talked about removing unknowns from pricing by buying on an indexed price basis rather than posting
the margin the wholesaler charges can vary
If the retailer buys at a price based on a fixed differential to the hub basis
the risk is reduced by correcting the margin the wholesaler receives
basis risk could be created by physically buying propane based off one pricing point and doing swaps settling against another pricing point
The way for a retailer to eliminate that basis risk is to make sure that the swap settles against the same pricing point that his physical supply cost is based upon
the retailer creates a cleaner hedge more likely to perform as expected
Call Cost Management Solutions today for more information about how client services can enhance your business at 888-441-3338 or drop us an email at info@propanecost.com
looks ahead at propane prices in the new year and beyond
and explains the relationship between propane and crude oil
Catch up on last week’s Trader’s Corner here: Top 10: The best of Trader’s Corner 2024
The primary purpose of this Trader’s Corner is to let propane buyers know that the best value for propane is further into the future
The chart below shows the price of propane for the current month and 35 months out
Any propane buyer can lock in these future prices using swaps
so it’s easy to see where the value resides
Mont Belvieu ETR propane buyers can lock in swaps to cover the months of October 2026 through March 2027 at an average of around 69.75 cents and the start of the following winter at 68.125 cents
That price is about 9 to 10 cents better than what the winter months have averaged over the last 10 years
we won’t know if propane price protection acquired at those prices for that time period will be a good buy until those months have come and gone
we do know that buying so much below the long-term average greatly increases the chances that it will be a good price
so Merry Christmas and Happy New Year and see you next time
do lots of imagining and get into the details of why that opportunity above exists
imagine that propane is crude oil’s little brother
Little brother admires big brother and likes to do what big brother does
If you plot the movements of the two brothers
you will find that little brother follows the movements of big brother closely most of the time
Little brother has averaged 43 percent of the value of big brother this year
Occasionally other things get the attention of little brother
Little brother’s value has ranged from 31 percent to 54 percent of big brother’s value this year
But establishing the median value of little brother shows he doesn’t wander off for too long
Now that you are absolutely convinced of this strong bond between propane and crude
so what makes him wander off from big brother are bright
attention-getting things right in front of him
any separation between the brothers is generally in the nearby months
the more crude influences the price of propane
propane prices well into the future are more closely reflecting the crude values plotted above
Let’s do some more imagining to understand how the crude prices above get established
You go down to the crude restaurant owned by the crude producer
you note that all the tables are full of other U.S
You walk to the counter and ask the producer if he has crude and he says
What will you have?” You are very hungry and ask for 10,000 barrels of crude
You gladly pay the man because you’re starving
the crude producer knows it might not be as busy next month
He knows he has plenty of crude on the way and offers you a gift card if you want to lock in your price for next month
You say you will wait since you are mostly interested in what you need today
I will give a discount on the gift card – 10,000 barrels at $69.50.” You agree
The producer realizes you aren’t really interested in the crude you will need further out
but has established that you have a hard time passing up a bargain
so he offers a gift card for the next month at $69 and so on and so forth
You walk out with a pocket full of gift cards with each one giving you 10,000 barrels of crude at a slightly lower price
Those gift cards are the equivalent of a swap
and the producer is happy because he can make plenty of profit even at the discounted price of the gift cards
You and the crude producer have just created a backwardated price curve like the one above for the crude you will buy
this is what the price curve for crude most often resembles
there are good values for propane further out as well
let’s say you use all of your gift cards and return to the restaurant
You note that most of the tables are empty
and he agrees it is slow and says he has an all-you-can-get deal for $65 per barrel
so you offer to buy next month’s crude at $65 per barrel
The producer says he thinks it will be busier that month
and you offer $65.50 per barrel and the producer (who really isn’t sure it will be busier) agrees
You follow the same pattern and leave with a pocket full of gift cards
each with a slightly higher price than the preceding month
But you feel even the highest price you paid is a good bargain
the price structure you have established for your crude is the opposite of the chart above
The price structure where the price is higher with each subsequent month is called a contango price structure
This can happen when the market is oversupplied
the assumption is generally going to be that whatever is causing the oversupply will be resolved in the future
The inventories are not low enough to cause a run-up in prices since crude production is high and there is a lot of spare production capacity
there is an expectation that crude will remain oversupplied in 2025
The current tightness in inventories is why the value for the winter of 2025-26 is not as good as the further-out winters
propane buyers need to understand the relationship between crude and propane and understand the impact of the crude forward price curve on propane’s price
They also need to understand what factors impact crude’s future price and lead to the different pricing structures we have discussed
They need to monitor the impact these factors have on crude’s forward curve because that will ultimately be reflected in propane prices
Hope it’s been a great year and the next will be even better
West Chambers County Pilot Club Past President/Director Linda Polk
with 2025 “Cruising the 50s on The Hill” Gala Bronze Sponsor Chamber County Constable Ben L
“Cruising the 50s on the Hill” Gala Bronze Sponsor Lisa Dagle Bean
hands a check to West Chambers County Pilot Club Past President/Director Linda Polk
will hold its annual fundraising gala on Saturday
The theme of this year’s Gala is “Cruising the 50s on the Hill”
For more information, contact W.C.C.P.C. at P.O. Box 1032, Mont Belvieu, TX 77580, email wccpilotclub@gmail.com or Linda Gilmore at rayegil2@yahoo.com. To purchase tickets, contact any West Chambers County Pilot Club member or call Treasurer Diana Jackson at 505-220-7499.
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Catch up on last week’s Trader’s Corner here: Imbalances between propane production, export capacity
concerning linking the government of Iraq with weapons of mass destruction
“Reports that say that something hasn’t happened are always interesting to me
there are known knowns; there are things we know we know
We also know there are known unknowns; that is to say we know there are some things we do not know
But there are also unknown unknowns – the ones we don’t know we don’t know
And if one looks throughout the history of our country and other free countries
it is the latter category that tends to be the difficult ones.”
Propane retailers wanting or needing to lock in propane prices for the future may relate to Rumsfeld’s statement. In this Trader’s Corner, we will try and capture some things we know as propane buyers and some things we may not know now but could, thus reducing the number of unknowns to one. There could still be unknown unknowns, as Rumsfeld famously refers to them
but we must deal with those should they become known
Retailers know they have customers who will demand propane from them in the future
retailers probably have a feel for the minimum and maximum volumes they are likely to sell
but they can’t know exactly how much they will sell in the future
The best way to deal with the unknown volume is not to overbuy
Hedging and price protection should be calculated beginning with the lowest potential sales volume
Retailers know the current price of propane for not only the current month but also three years out
Chart 1: Mont Belvieu – ETR – September 2024 through August 2027 (Courtesy of Cost Management Solutions)
Chart 1 is a recent forward price curve for propane
These were known prices based on the buying-selling activity at that moment
and a propane buyer could have bought propane at around those prices for each month shown at that time
Without any future price protection from swaps
a retailer has little idea what he will pay for propane when his customers demand it at some point in the future
To make it easy to follow the points we want to make in this Trader’s Corner
let’s focus on the price of propane for just one month
propane was valued at 78 cents when Chart 1 was captured
Let’s say a retailer did a 50,000-gallon swap at that price
namely his cost for the 50,000 gallons of propane that he expects his customers to demand in January 2025
What the actual market price for propane will be in January 2025 is still unknown and will remain so until January comes and goes
Succinctly, a propane retailer has created a known supply cost in Mont Belvieu, Texas, on 50,000 gallons of January 2025 propane using a swap to offset market price movements
Retailers also know that the price of propane in their tank is valued higher than the price of propane at Mont Belvieu
They see the difference as related to two things: transportation costs and the wholesale margin the physical supplier adds to the propane for its services
They are two pieces to the transportation part
The first is what the pipeline company will charge to move the propane from Mont Belvieu to the terminal up the line that a trucking company uses to get the retailer his physical propane
What the pipeline company charges to move products along its pipeline is called a tariff
The tariff is known or is at least knowable
Pipeline companies are required to publish their tariffs so any user of its line will know exactly what it costs to move propane from Mont Belvieu
Let’s say a retailer looks up the tariff to the terminal
where he will send the trucking company to pick up his physical supply and finds it is 8 cents per gallon
The swap buyer knows that no matter what the price of propane actually is in January
the swap he owns will offset market movements
resulting in cost of supply of 78 cents on 50,000 gallons
He knows the cost of getting the propane to the terminal is 8 cents
Another piece of the pricing puzzle at the terminal is unknown
That is the amount the physical supplier will add to the propane for his margin
Physical suppliers will post propane for sale at a certain delivery point
Unless the retailer knows both the price of propane at Mont Belvieu when he has the propane lifted and the tariff
he will have no idea what margin the wholesaler has added
propane retailers can change that unknown into a known
Perhaps propane wholesalers add 2 to 5 cents margin
It would be preferable to negotiate what is known as an index contract with the physical supplier that fixes the margin amount
The price paid on an index contract is indexed against the hub price connected to the pipeline terminal
Let’s say the physical supplier and retailer negotiate an index contract that fixes the wholesaler margin at 3 cents
The pipeline tariff from the hub is 8 cents in our example
That makes the difference between the hub and the pipeline terminal 11 cents
An example of an indexed contract would be the propane retailer paying the daily average for Mont Belvieu TET propane on the day of lifting (the index) plus 11 cents (the fixed differential)
The retailer and wholesaler might agree on a different index
for example using the monthly average instead of the daily average or using a different pricing point like Mont Belvieu non-TET propane rather than Mont Belvieu TET
eliminating another unknown is important for the retailer by fixing the wholesale margin amount
The last leg of the pricing is the transportation from the pipeline terminal to the retailer’s tank
a retailer would negotiate a long-term freight rate
let’s assume the freight is negotiated and fixed at 5 cents per gallon over the next year
Adding the freight to the fixed pipeline terminal differential is 16 cents
making the differential between Mont Belvieu or Conway and the retailer’s tank a known 16 cents
A buffer might need to be built into the freight amount
especially when quoting customers a fixed price further out to cover possible increases in the rate
a retailer still has no idea what the price of propane will be in January 2025
that is destined to remain unknown until January has come and gone
and the monthly average for January 2025 can be calculated
He knows he has the same favored physical supplier he has been using
which allocates and moves propane up the line to the pipeline terminal he is familiar with using
He also has a favored trucking company that will move propane from the terminal to his tank
He knows what he is going to be charged for those services
This process of moving propane through the supply chain and the cost of doing so is known as the physical side of the transaction
He knows that he has a 50,000-gallon swap with a strike price of 78 cents in the hub of Mont Belvieu
The activity surrounding the swap is known as the financial side of the transaction and functions independently of the physical transaction
one offsets the other to provide a known cost of supply
The retailer knows that when January arrives his physical supplier is going to charge him whatever the daily average for Mont Belvieu propane was on the day of lifting plus 11 cents and that the trucking company is going to move it into his tank for 5 more cents
He knows that no matter what the actual price of propane is in January
his swap is going to offset the changes in the cost of the physical propane bought such that the price paid is 78 cents + 16 cents
to that price and fix a January sales price to his customer at $1.94
a hedge is completed that establishes and protects the retailer’s margin
All the pricing components downstream of Mont Belvieu are now known
and the physical supply will price against that Mont Belvieu price
so it makes for a clean hedge (minimum number of variances between the physical and financial side of the transactions)
The retailer has a swap with a known fixed strike price
a known pipeline tariff and wholesaler margin
Propane prices are unlikely to remain where they were on the day the swap was set
let’s look at what happens when propane prices go up
which is what the retailer wanted to protect his customers from
We can focus on the price movement at Mont Belvieu since all the rest is fixed
Let’s assume that when January is in the books
the price of propane averaged 90 cents at Mont Belvieu
The physical supplier will invoice the retailer 12 cents higher than what the sales price of $1.94 above was built upon
Yet the retailer will only receive $1.94 from his customer
the physical side of the transaction will yield just an 88 cents margin to the retailer
The retailer bought a swap with a strike price of 78 cents
he will receive the difference between the 78-cent strike and the monthly average for January Mont Belvieu propane
The retailer will get a 12 cents-per-gallon payment on 50,000 gallons of propane
combined with the 88 cents made on the physical transaction
which was exactly what the retailer priced and budgeted against
If propane prices fall and average 70 cents in January
the retailer will make $1.08 on the physical side of the transaction
he will be obligated to pay 8 cents on the financial side (swap)
He will use the 8 cents extra margin made on the fixed-priced sale to the customer to cover this swap obligation
returning the margin on the combined physical and financial transactions to $1
which is just what was priced and budgeted against
The example above is a true hedge because the supply costs and the sales price were both known and established
If the sales side is not established and the swap position is taken
it is no longer a hedge; it is speculation
the sale to the customer does not protect the retailer from falling prices
Removing that one known completely changes the complexion of the situation
If the retailer could establish the supply side at a very favorable number
he may know he can hold his retail price up even if the market falls
essentially it should be viewed as the sale side being set as well
whether the retailer has a customer committed to the gallons or not
The retailer should see it as committing to a sale at $1.94
whether to a customer that has agreed to it in advance or will call for it in January
If the retailer does not do so and lowers the sales price in the future
we cannot eliminate the unknown of what propane will be traded for in the future
We might be able to make some educated guesses
Other than some smaller variances in how the physical and financial sides of these transactions operate
we can know the other important components that allow the retailer to change an unknown cost of supply into a known one
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The $1.75 billion ONEOK-MPLX deal reflects how midstream companies are going big in the petrochemicals sector
ONEOK and MPLX have entered into definitive agreements to form joint ventures to construct a large-scale 400,000-bbl/d LPG export terminal in Texas City
and a 24-inch pipeline from the Mont Belvieu facility to the new terminal
A lot of the energy industry’s attention over the last two years has focused on natural gas coming out of the Permian
there was so much natural gas that producers had to pay to have it taken away
Then, the Matterhorn pipeline opened and other gas pipeline projects reached a final investment decision
More Gulf Coast LNG production came online
AI data center demand exploded out of seemingly nowhere
natural gas dominated most of the major talks
a few midstream companies have steadily built interconnected facilities for another segment of the market—NGL
In early February, ONEOK and MPLX announced a $1.75 billion deal to construct a new 400,000 bbl/d LPG export terminal in Texas City
and a new 24-inch pipeline from ONEOK’s Mont Belvieu
The move was a culmination of a years-long effort and made ONEOK and MPLX “full-fledged members of the elite ‘wellhead-to-water club,’” as RBN analyst Housley Carr put it in an examination of the deal
The two midstream companies joined four others—Enterprise Products Partners, Energy Transfer, Targa Resources and Phillips 66—that can boast ownership of a complete NGL supply and transport chain
“We are excited to collaborate with MPLX on these strategically located projects
which expand and extend our NGL value chain providing additional optionality and value to our customers,” said Pierce H
during the company’s first-quarter earnings call following the deal in February
“Given our high expectations for future growth and demand for more energy infrastructure
these projects with MPLX complement our disciplined capital allocation strategy.”
A complete NGL production and transport network stands out in an era when companies in the crude
natural gas and LNG segments still prefer specialization
have been able to take advantage by combining assets they already own to make and market products that often slip under the radar
Norton said “wellhead to water” is a logical outcome of forces in the NGL market
if there’s any growth at all in propane demand in this country domestically
“All this propane that’s going to come with the movement of additional natural gas
You’re going to need to clear your barrels somewhere.”
that means building LPG export facilities in Texas City
“When you look at the 7 billion or so people in the world who don’t live like we do
one simple solution is just starting with how we cook,” he said
because you can get the propane over on a ship
and then start driving it around with trucks
“That’s a lot easier than moving it around with pipelines.”
NGLs are the components of natural gas separated from the gas that comes out of wells
The natural gas used by utilities is primarily methane
Midstream companies generally own processing plants that can separate out the other chemicals—ethane
isobutane and pentanes plus—all of which can be marketed together or separately
Ethane is one of the market’s drivers and is used as a petrochemical feedstock in the production of ethylene
Propane is used as an easily portable and storable fuel for heating and cooking
Butane is part of LPG and is also used as fuel for heating
but also serves as a propellant in aerosol products
It is used as a diluent for heavy crude oil
such as that produced in the Canadian oil sands
All of the different uses for chemicals extracted from one source (natural gas production) have created a growing global market
Allied Market Research valued the global NGL market at about $18 billion and projected it would reach $28.5 billion by 2030
growing at a compound annual growth rate of 5.4%
In 2024, S&P Global projected an increase of more than $21 billion by 2029
pushing the value closer to $40 billion with a CAGR of 6.7%
the market continues to be driven by low-cost supplies
against rapid urbanization and industrialization and a rising need for space heating across the globe
according to a report from Market Research Future
midstream operators with the required access to capital spent much of 2023 and 2024 in a “knifefight” for NGL barrels
ethane and ethylene export projects are underway along the Gulf Coast
NGL production and generally flat domestic demand,” wrote RBN analyst Kristen Holmquist in November 2024
“Wellhead to water” describes all facilities
from the processing plants treating natural gas in the Permian to the NGL pipelines to the fractionation plants in Mont Belvieu to the export terminals for purity products
Having that kind of control over a product provides midstream operators with some major advantages in efficiency and gives them the ability to collect fees from shippers at each step in the process
Targa Resources spent much of the last two years building up its NGL infrastructure
the company added two Permian processing plants and two additional NGL fractionators
Targa also put its Daytona NGL pipeline in service during third-quarter 2024
The result was a national production record. In January, the U.S. Energy Information Administration reported NGL production averaged about 7.23 MMbbl/d in October 2024
That figure exceeded October 2023 average output by 200,000 bbl/d
During its fourth-quarter earnings call in February
Targa announced three new NGL projects: the Delaware Express pipeline
a new 150,000 bbl/d NGL fractionator at Mont Belvieu and expansion of LPG export capacity to 19 MMbbl a month at Galena Park
“We are also in a position to deliver significant growth in 2026 and beyond with four new Permian G&P plants coming online in 2026
driving significant NGL volume growth through our downstream assets,” Targa CEO Matt Meloy told investors
The ONEOK-MPLX deal in February was the result of a yearslong effort
including several gas processing plants in the Rockies and the Midcontinent
NGL pipeline systems including West Texas NGL and ElkCreek
which made up the majority of 1 MMbbl/d of fractionation capacity
ONEOK also owned 30 MMbbl of salt-cavern storage for its products
Executives said finding the right assets in the right places was key to finally closing the circle on its system
ONEOK executive vice president and chief commercial officer
The location of the export dock site in Texas City was a huge advantage for the joint venture (JV)
“We have access to the open waters,” Swords said
“We’re within open waters at this location
significantly better than the other docks in the area
We’re next to [Marathon Petroleum’s] refinery
where we have a lot of other infrastructure there
That greatly reduces the cost of this venture
the location to our NGL system and storage
where we easily can be able to get our products into the dock as we go there.”
Norton referred to ONEOK’s purchase of the Easton Energy midstream NGL system in the Southeast Texas area in 2024
the deal stood out from other midstream acquisitions
which had been focused on production areas in the Permian
“The Easton acquisition was really important to us because it connected Mont Belvieu facilities—the fractionation and storage—and it connected that over to East Houston
MPLX has been an active partner in the JV on its side
The company has continued building gas processing capabilities in the Permian
the company put two new plants in service and hit record throughput on its network
MPLX changed the name of the gathering and processing segment from G&P to Natural Gas and NGL Services
“The deal is the next big move in the race to control Permian NGLs
expanding MPLX’s reach to export docks on the Texas coast,” Renton said in an analysis
told investors the growth trends in NGLs require a continued emphasis on facilities
has got a very large petrochemical footprint,” he said
as we continue to build out this project and look at incremental opportunities between that partnership
we believe that there is a roadmap for some pretty substantial growth opportunities there
I think the combination … has a lot of growth potential in the NGL platform.”
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Texas Parks and Wildlife Department and local game wardens chipped in to help remove a 12-foot gator from a ditch in Mont Belvieu on Monday
a video of the gator being lifted into a grapple truck had about 1.2 million views
Mont Belvieu Animal Control assisted in removing a 12-foot alligator in a unique way after a police officer patrolling Eagle Drive spotted it
The huge gator was seen in a drainage ditch Monday on the east side of Eagle Drive
north of FM 565 next to the sidewalk that abuts the new Riceland subdivision
you can see them hoisting up the 12-foot-gator with a crane and putting it safely in the back of the truck.HOUSTON -- Animal control officers in Texas used a trash truck to remove an alligator
It happened in the small town of Mont Belvieu
you can see them hoisting up the 12-foot-gator with a crane and putting it safely in the back of the truck
The animal had been found next to a busy road
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