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64 | Frac Sand Insider May 2015 www.rockproducts.com Domestic Frac Sand equal between RCS and ceramics (Fielden, 2013; Hi Crush Part- ners LP, 2013; Hughes, 2013; Mawet and others, 2012; PacWest, 2014b; U.S. Geological Survey, 1991-2014; Thomas Curan, Ana- lyst, FBR Capital Markets and Company, NY, NY, oral commun., Au- gust 12, 2014). Nearly 71 percent of the total tonnage of frac sand sold and used over the period 2003-2012 reported by the USGS occurred during the period 2008-12 and was valued at 4.7 billion dollars (2013avg$) FOB and refects the U.S. petroleum industry's rapid increase in drilling in unconventional oil and gas targets in tight formations which required frac sand as a proppant (U.S. Geological Survey, 1991-2014). U.S. Production of Frac Sand Frac sand production data are published in the U.S. Geological Survey Minerals Yearbook as regionally aggregated statistics. Pub- lished statistical data on frac sand production by State are limited. Reasons for this include: (1) some companies do not respond to USGS data collection questionnaires; (2) some companies con- sider production data confdential and the USGS is prohibited from publishing this type of data; (3) companies may report aggregated statistics for multiple frac sand operations in different states; (4) or combined sand production of which frac sand is a component; or (5) state government and local agencies do not collect data pertain- ing to frac sand production. The most recent published data, based on estimated regional U.S. production is available for 2012 by the USGS (U.S. Geological Survey, 1991-2014). However, discussions with local and State agencies; and industry representatives resulted in preliminary estimates of 2014 frac sand production among States with production of one Mt per year or greater. Based on preliminary estimates, which are subject to revision, approximately 54 Mt of frac sand will be produced in 2014 among the states listed in Table 1. An unknown, but relatively small portion of this production may have also been used to produce RCS. There are also states that produce relatively small amounts of frac sand, such as Ohio, with a reported 2012 production of nearly 65,000 metric tons (t) (Wolfe, 2013). Preliminary data suggest that frac sand production in 2014 will increase substantially over that reported in 2012 because of increased drilling activity and higher demand for frac sand. Demand for frac sand in 2014 will also be greater than that of 2013, but probably at a slower growth rate than the previous several years because of lower energy prices. Nearly 70 percent of the estimat- ed 2014 domestic frac sand, or about 38 Mt, was mined in the Great Lakes Region owing to the premium sand deposits in the region; existing railway infrastructure, and long term presence in the industry (see Table 1). The states that comprise this region and their respective estimated annual production, rounded to the nearest Mt listed in descending order are Wisconsin (24 Mt), Illinois (8 Mt), Min- nesota (5 Mt), and Michigan (1 Mt). Deriving an estimate for frac sand production in Wisconsin was more diffcult than some other States owing to the large number of permits granted for mining over the last several years, but with fewer operations actually developed and producing than permitted. This resulted in a wide range of pro- duction estimates. Common names of the frac sands, which are mined from the Ordovician Saint Peter Sandstone, include Jordan Sand, Ottawa Sand, Northern White Sand, Saint Peter; and Sierra Gold. In addi- tion, these sands are also used in glass making and in foundries. Figures 6a and 6b are photographs of a vertically integrated frac- sand facility in the Great Lakes Region and a sample of the Region's premium quality frac sand. Iowa and Missouri produce approximately 2 million metric tons per year (Mt/yr) and 1 Mt/yr of frac sand, respectively. These sands are similar in character to the frac sands produced in the Great Lakes Region. Nearly all of the premium sands are transported by rail to transfer points in areas where fracking is occurring and trucked to fracking sites or stockpiled at locations to await orders State Preliminary frac sand production es- timates for 2014 (rounded to nearest 10 6 metric tons) 1 Percentage share of estimated U.S. frac sand production (rounded to nearest whole percent) 2 Wisconsin 24 44 Illinois 8 15 Texas 8 15 Minnesota 5 9 Arkansas 2 4 Iowa 2 4 Nebraska 2 4 Arizona 1 2 Michigan 1 2 Missouri 1 2 Total 54 101 Table 1. Preliminary estimate of 2014 frac sand production by states determined to produce more than 1 million metric tons (Mt) per year. An unknown, but relatively 1 Preliminary estimates and subject to revision. 2 -