Hobbs and Lea County

New Mexico Business Journal, August, 1995 by Sandy Starr

Lea county in southeastern New Mexico borders the Texas state line, which puts it almost 300 miles from the state capital in Santa Fe. Geographically remote, you could say. However you get there, a sense of isolation permeates the trip. The landscape is washed in earth tones, scrub grass and cactus are sparse; there's a piercing lack of green. The only bright color is the endless blue sky. Slowly the flatness plumps up, vegetation increases, shadowy outlines of mountains rise and break the distant horizon. Changes in terrain as you near Lea County coincide with its changing economic landscape.

With roots in agriculture, ranching and cattle feed production, what really put Lea County on the map was oil, which dominated the economic base for years. But the county survived the boom or bust fluctuations of that industry and learned hard lessons about diversification. Although oil is flowing once more, the industry will never again be the principal focus of the area's economy.

The Industrial Development Corporation of Lea County (IDC), headed by Janet Seagrave, has taken an aggressive approach to attracting new business and industry. The organization is propelling the county upward, with what looks to be a sharp, on-target perspective for types of projects and businesses to go after.

The Hobbs Army Air Field, a B-17 training base during-World War II, closed years ago, leaving 9,800 acres available for development. The IDC has been able to aggressively promote the prime location for diverse projects, from business to recreation, in what is now the Hobbs Industrial Air Park (HIAP).

Great Effort, Great Success

Their hard-charging approach is paying off with some first-rate successes. The National Soaring Society Headquarters, the 18 hole Ocotillo Municipal Golf Course, and recreational facilities of Harry McAdams State Park are all located at the HIAP. Located next to the HIAP, the College of the Southwest, a private 4-year liberal arts college, may soon add a masters in education program. The New Mexico Junior College, also adjacent to the airpark, offers vocational and associate degrees, and development of specialized programs to provide on-site training for businesses. The Lea County Cultural Center was recently completed and offers quality performance space for big name entertainment and productions. The Cowboy Hall of Fame and Lea County Regional Hospital are next door as well, making the HIAP appealing for prospective business and industry.

Perhaps the biggest success to date is winning the competition for the new medium-security state prison that will create as many as 800 jobs in Hobbs. In an area that has been economically depressed, Billy McKibben, Jr., governmental affairs and prison coordinator for Lea County, says the prison acquisition garnered a lot of support. A survey taken just a few months prior to the winning announcement, gave the project a 71 percent public approval rating. It will be built on 640 acres at the HIAP; ground breaking is scheduled for October. It should be a big boost to the economy in many ways, not the least of which, Seagrave says, is that with the good paying jobs it creates, "It will give the sons and daughters of the area a chance to come home."

Although the prison is big news, it isn't the only news. A lot is happening in Hobbs and Lea County. Southeastern New Mexico is becoming a mecca for the dairy industry; several dairies and related support businesses are blossoming with them. Lovington recently added the Lea County Cheese Company to its list of businesses. The company moved its operations from South Dakota, and employs 20 workers. The IDC is actively soliciting more milk processing companies. A recent mailout targeted over 300 milk processors in three northern states. New Mexico's milk production is high, and companies are looking seriously at making a move south.

Oil Is on the Upswing

The oil and gas industry is on the up-swing, and Navajo Refining just re-opened its Lea County facility near Lovington, after being closed for almost two years. With production and price per barrel climbing, support service businesses are making the economic climb, too. Pride Petroleum, a Houston based company, with operations in Lovington and Artesia, recently purchased X-Pert Enterprises, Inc., in Hobbs. Pride is the second largest well-servicing company in the world, with more than 525 servicing rigs and 400 employees.

Agriculture and ranching are still important to the economy, and an influx of new businesses, restaurants, grocery stores and more, complement existing establishments. Jal is negotiating for a juvenile detention facility to be located on a 29-acre site left vacant when their hospital and junior high school closed. The IDC is working with Waste Control Specialists in developing a hazardous waste storage, disposal and research facility just over the Texas state line. A 6-mile rail spur from Eunice could serve the facility. The waste site could draw as many as 1,000 employees from the county.