Presentation from an Oct. 22 WisPolitics.com-WisBusiness.com event in Eau Claire focused on sand mining.

1. Frac Sand and
Transportation
Transportation Impacts from
Non-Metallic Mining in
Wisconsin

2. LOGISTICS, LOGISTICS, LOGISTICS
 „Triad‟ of potential highway trips from fracture sand industry
 Mine Site =>Processing Site => Bulk Load Out Site
 Most mines are on local road system creating local road issues.
 WI Statutes allow local units to assess highway impact fees
 Most processing is on a rail line connection which eliminates one
potential truck trip from processing to load out site.
 A number of locations have mining, processing, and rail load out
contained within a single site and involve no trucking.
 STH impacts
 Short-term – Intersections or convergence points.
 Longer-term – Pavement deterioration on certain segments.
 Low Risk – Segment length reconstruction or capacity.
 Railroads become the critical link in the triad.

3. SAND BOOM (2009- EARLY 2012)

4. POTENTIAL STATE HIGHWAY IMPACTS (EARLY 2012)

5. Frac Sand and
Transportation
Maturation and Stabilization
Summer/Fall 2012

6. PROPOSED vs. REAL
•Only about 1/3 of
proposed facilities are
actually active
•“Active” = operating
or under construction
•Many large proposals
have done nothing

7. LIMITS ON TOTAL MARKET DEMAND
 North American Market only
 No International Market
 New Technology
 Alternative Proppants Other Than “Northern White”
 Alternate Methods to fracking
 Other Energy Sources
 Indications are that over the next five years, a „reasonable‟
market demand of 40 Million TPA with some high end
potential of 60 Million TPA .

8. LIMITS ON WI SHARE OF FRACTURE SAND MARKET
 “Northern White” is also found in Illinois and Minnesota.
 Two large market players, UNIMIN and U.S.
Silica, alone are producing almost 10 Million TPA in
those states.
 “Brown Sand” is widely available in multiple
states, including Texas in close proximity to fracture
drilling.
 Could put WI share of market at 25 Million TPA or less.

9. LOCATION AND LOGISTIC LIMITS

10. PROCESSING CAPACITY
Based on Market Demand
Demand based on 40 Processing WIS SHARE
Million TPA Plants (1.2 (50%)
TPA AVG)
Frac Sand 30.8 TPA 26 13
Resin Coated 5.2 TPA 5 3
Ceramics 3.6 TPA --
Other <.4 TPA --
Total 40.0 TPA 31 16
Current „Active‟ West Wisconsin Processing Plants 18

11. GEOGRAPHIC AFFINITY AND RAILROADS (FALL 2012)

12. LIMITING FACTORS ON GEOGRAPHIC LOCATION
 Physical challenges to rail access
 Example: BNSF and CP along Mississippi River and
bluffs
 Political issues with access to rail
 Local moratoriums on mines, processing, and rail load
out
 Federal Scenic Byway, WI Scenic Easement Restrictions,
 Contractual relationships between producers,
shippers, and users.
 „Put/Take contracts‟

13. POTENTIAL STATE HIGHWAY IMPACTS (FALL 2012)