EL PASO, Texas -- El Paso County sheriff's deputies said they have broken up an alleged fuel theft ring in far East El Paso on Wednesday morning. After a month-long investigation, deputies said they discovered tanker truck drivers were working as the middle men in the operation.

More than 16 people were taken into custody, seven of them were arrested for various charges like engaging in motor fuel transaction without a permit, a third-degree felony and transporting motor fuel under false cargo manifest, also a third-degree felony. Also, 2,000 gallons of gasoline were seized, investigators said. Deputies stormed the business at 13181 Montana Ave. where they believe a gasoline theft ring was operating from.

"Was picking up gas legally and then they were driving to the first location on Montana and unloading gas there, selling about 300 gallons per trip," said Commander Eddie Campa with the El Paso County Sheriff's Office.

Campa said they believe Salvador Armendariz, who was detained at the Montana location, was the ring leader. Campa said the truck drivers from the Laredo-based Alanis Company were dumping between 200 or 300 gallons of gas at a location before transporting the rest to Mexico.

Investigators said gasoline was then sold to independent consumers, including companies. Campa said the operation is costing El Paso County a lot of money.

"It affects everybody. It affects us, the consumers, it affects the distributors who are legally selling their gas, it affects the county because we don't receive the adequate tax money we need because gasoline is not being taxed," said Campa.

Sheriff's investigators allowed KFOX access to the operation at another location on Zaragosa, where the gasoline was stored and dispensed into vehicles. Campa said the charges are numerous.

"You are talking about theft, untaxed fuel, unlicensed distributors and a potentially hazardous situation that affects the environment as gas was being stored in unapproved containers," said Campa.

Other agencies are involved in the case, like the Texas Comptroller Public Accounts/Criminal Investigations Division, Texas Department of Public Safety and the El Paso Fire Marshal’s Office.