Rock Products

JUL 2015

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12 • ROCK products • July 2015 FRAC SAND INSIDER A new policy study from The Heartland Institute shows industrial sand mining has been "a significant driver of econom- ic growth across the Upper Midwest." If done in an environmentally responsible manner, the study finds, "it can be an important source of employment and earnings for decades to come." The study, titled "Economic Impacts of Industrial Silica Sand (Frac Sand) Min- ing," is the second in a series by Heart- land Institute Research Fellow Isaac Orr and geologist Mark Krumenacher, who is principal and senior vice pres- ident of GZA GeoEnvironmental Inc., addressing the mining of frac sand. Krumenacher was a speaker at the first Frac Sand Insider Conference hosted by Rock Products magazine, and Min- ing Media International. "Industrial sand mining has been a big economic stimulus to Western Wiscon- sin," said Orr. "When I started college at the University of Wisconsin Eau Claire in 2006, people there were still talking about how the town had never really re- covered from the UniRoyal Tire factory closing in town, even though the tire fac- tory closed in 1991. Now, thousands of people have high-paying jobs in the area. "Oil and natural gas currently account for 35 and 28 percent of our total en- ergy consumption, respectively, and we will continue to need increasing amounts of these resources in the future," Orr continued. "Shale gas al- ready accounts for 40 percent of our total natural gas production, and this figure is likely to grow, meaning frac sand mining will continue to be an im- portant part of the Western Wisconsin economy for decades to come." Demand for frac sand has led many counties and municipalities to pro- cess applications for new mines and processing facilities. Policymak- ers and citizens in these communi- ties need the information in this new Heartland Policy Study to make in- formed decisions about the economic benefits and costs of industrial sand mining. They should know: • The benefits of silica sand mining include high-paying opportunities for employment, increasing regional eco- nomic activity, generating tax revenues for state and local governments, and improving economic diversity in rural communities that rely heavily on agri- culture for household income. • The costs include asserted negative effects on tourism and agriculture, and whether mining might result in "boom or bust" economic cycles and may thus not be a sound foundation for long-term economic prosperity. • The authors focused their analysis on Wisconsin, the largest producer of industrial silica sand in the nation, noting the state "has strong agricul- tural and tourism sectors and there- fore provides valuable insight into claims industrial sand mining could negatively affect these industries." Study: Frac Sand Mining a Boon for Employment, Earnings, Economies Unimin Energy Solutions announced the first delivery of frac sand by unit train to its Jerry Run, W.Va., termi- nal. Unimin, with partners CSX Rail- road and Process Transload, operates a high-efficiency transload and storage facility in the liquids-rich region of the southern Marcellus in West Virgina and southwestern Pennsylvania. The Jerry Run terminal has a 20,000- ton storage capacity and 25 trucks/ hour loading rate to facilitate rapid re- sponse and improved logistics. CSX will shuttle unit trains to continuously re- plenish frac sand inventory. "This high capacity-quick response system reflects Unimin's next genera- tion terminal design and service mod- el," said Joe Migyanko, general sales manager for Unimin's Northern Re- gion. "In addition to having proppant supply closer to the wellhead, the effi- ciency and scale will allow us to pass savings onto our customers." The Jerry Run terminal is the most re- cent addition to Unimin's 10 terminal network operating in the Marcellus and Utica plays: • Clarksburg, W.Va., and Benwood, Pa.: rail terminals serving the liquids-rich southwest Marcellus. • Navarre, Ohio: serving the Utica shale. • Monaca and Crafton, Pa.: covering western Pennsylvania and the wet gas sections of the Marcellus. • Punxsutawney, Williamsport and Tay- lor, Pa.: serving central Pennsylvania. • Binghamton and Horseheads, N.Y.: covering the dry gas sections of the Marcellus shale. Unimin's Jerry Run Terminal Now Operational

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