SOURCE: TexCom, Inc.

May 06, 2008 12:15 ET

Administrative Law Judges Recommend Issuance of Environmental Permits to TexCom Gulf Disposal for Wastewater Disposal Project

HOUSTON, TX--(Marketwire - May 6, 2008) - TexCom, Inc. (PINKSHEETS: TEXC) announced today that two Administrative Law Judges with the State Office of Administrative Hearings (SOAH) have issued Proposals for Decision recommending that the Texas Commission on Environmental Quality (TCEQ) approve TexCom Gulf Disposal, LLC's (TGD) applications for permits to accept and dispose of non-hazardous industrial wastewater in a deep injection well in east Montgomery County.

The decision of the judges followed hearings held in December 2007 during which they heard expert testimony on geology and other factors addressing the potential for injected wastewaters at the proposed site to come in contact with underground sources of drinking water. Parties participating in the hearing included TGD, the TCEQ's Executive Director and Office of Public Interest Counsel, Montgomery County, the City of Conroe, the Lone Star Groundwater Conservation District, and a group of individuals who opposed the applications. The judges' recommendations took the form of two Proposals for Decision which will now be subject to final adoption, modification or rejection by the TCEQ Commissioners.

Upon issuance of the permits, construction of surface equipment and testing of the well, TGD will be able to accept and safely dispose of up to 12,000 barrels per day of non-hazardous industrial wastewater into an already completed deep injection well at depths of between 6045 to 6390 feet. The injection formation lies beneath 1100 feet of shale which acts as a confining zone isolating the injected wastewater from area groundwater resources.

Lou Ross, CEO of TexCom, said, "The Administrative Law Judges have unequivocally stated in their conclusions that the TGD wells, if constructed and operated in accordance with the specifications of the applications and the requirements of the draft permits, will not adversely affect public health, public welfare or the environment and will not cause endangerment of underground sources of drinking water. With these Proposals for Decision, we are confident that the Commissioners will approve issuance of the permits."

Forward-Looking Statements

Statements contained herein and the information incorporated by reference herein may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Forward-looking statements can be identified by the use of forward-looking terminology such as, but not limited to, "may," "will," "expect," "anticipate," "estimate," "would be," "believe," or "continue" or the negative or other variations of comparable terminology. We intend such forward-looking statements to be covered by the safe harbor provisions applicable to forward-looking statements contained in Section 21E of the Exchange Act. Such statements (none of which is intended as a guarantee of performance) are subject to certain assumptions, risks and uncertainties, which could cause our actual future results, achievements or transactions to differ materially from those projected or anticipated.

Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements, which are other than statements of historical facts.

These statements are subject to uncertainties and risks including, but not limited to, product and service demands and acceptance, changes in technology, economic conditions, the impact of competition and pricing, and government regulation and approvals. TexCom cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those TexCom expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as our ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business.

Our expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, including without limitation, our examination of historical operating trends, data contained in our records and other data available from third parties. There can be no assurance, however, that our expectations, beliefs or projections will result, be achieved, or be accomplished. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no duty to update these forward-looking statements.

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