Two things - why can't the valances be removed (sounds pretty strange) or are you renting? And you're not clear about where you want the panels when you say "about halfway up" - do you mean you'd hang them directly between the top and bottom of the face of the valance sticking 5" out from the wall? Don't you think that will look strange? I would either rework the top of the panels to deal with the loops another way, or get different curtains.

I believe you are referring to cornices or cornice boxes. Are they made out of wood? Are they installed over panelled walls? If they can't be removed, just buy pinch pleated drapes and use the hardware that's already there by using pin hooks.

larke and gracie01,

I finally found a picture of what these look like in the unfinished stage. In our case the valance extends to the top of the window in each room.

Lots of work and cost to remove them. After being in place for 40ish years, the ceilings have been spackled, crown added, etc right up to the valance so everything would have to be repaired or replaced to add that little 5" piece underneath. Also the adjacent walls would need to be repainted.
I apologize but I am a decorating disaster, hence the user name. Didn't want to do the damage to the outside of these ugly things by putting up a rod and hanging panels from them if it looked stupid. I need all the help I can get. lol
Thank you both for your assistance. I'll take the panels back and go buy different curtains as my sewing skills are pretty limited as well.
dee

Hi dee zaster
I think those things are called a pain in the butt. To hang panels on the outside would look tackie. If you want panels you have to go behind and only use a rod with ceiling mount brackets.
You can also scratch the panels and use a blind or shade and install mood lighting up in there.