A giant native American ghost threatens an oil baron.
Scooby and the gang are in Texas, where an oil baron -- P.J. Flamboise -- wanted to buy land from the Wantawau Tribe until a giant ghost appeared. The gang goes to see Jeff Wingfield, a law student and trustee for the tribe, who tells them it was he and not Flamboise who wished to hire the ghost-breakers.
The ghost appears on schedule, but Fred believes it's a statue suspended from a helicopter. As Flamboise owns the only helicopter in the area, they suspect he's behind it. Flamboise tries to blow up the giant wooden statue, but Scooby and Fred discover the dynamite. Fred later finds a diagram showing that Flamboise had already tapped the oil fields on Wantawau land by illegally drilling diagonally.