This document discusses logistical methodologies for loading, transporting, and storing frac sand. It covers topics like plant improvements to increase efficiencies, trends in logistics like increased automation and optimization, and adapting to market demands. The presentation emphasizes how automation, controls, and logistics software can optimize operations and reduce costs through features like ticketing systems, truck queue management, and data reporting portals. It also considers alternatives like transporting sand in containers and highlights how coordination across the supply chain is important to minimize interruptions.

1. 1
LOGISTICAL
METHODOLOGIES
LOADING, TRANSPORT
AND STORAGE

2. 2
Agenda
• The Significance Of This Topic To You
• Poll of Audience on Logistical Impact
• Plant Improvements
• Logistical Trends
• Adapting to Current Market Demand
• Significant Impact of Controls/Automation
on Logistics
• Characterizing Optimization
• Other Key Industry Trends and Innovation
• Summary
• Q&A

3. 3
The Significance of This Topic to You
• Audience Demographic
• Frac Sand Supplier
• E&P
• Pressure Pumper
• Equipment Supplier
• Do You Invest In Logistical Innovation and
Infrastructure?
• E&P, Pressure Pumpers, Frac Sand Suppliers,
Equipment Manufacturers, Truckers, Others
• Plant and Well Head Equipment Failure
Occurs… Sending Shock Waves Through
Supply Chains.
• Coordination Between Suppliers and End
Users Is Key …. Control and Communication
• Production Costs Decrease And Sustainable
Profitability Exist, When Supply
Interruptions Are Minimized or Mitigated.

4. 4
Knowledge
Used In
Presentation
• Questionaire Sent to Frac Sand Suppliers
• Interviews with E&P and Pressure Pumpers
• Discussions with Logistics Providers
• IAC Experience Across Multiple Industries
• Feedback from Equipment Suppliers
• Studies Published on Internet
• Trusted Collegues

5. 5
Plant Improvements
• Cap X Spend Improved With Increased Pricing
• Additional Personnel to Prep Trucks for Loading
• SafeRacks/Preload Stations Utilized
• Controls/automation/cameras
• Integrated Data Feeds/Planning With End Users
• Silo Inventory Control/Loading Systems Upgraded
• Additional Dryers, Screeners, Wet Plant Capacity
• Improved Communication with End User
• Consistent 8-10 min avg load time
• Load Wet and Dry Sand
• Improved Dust Collection Systems
• Community Involvement on Safety and Training

6. 6
Logistical Trends
• Logistical Ease and Efficiency is Customer Specific
not Basin Specific.
• Investment into New Equipment
• Personnel Hiring/Retention Still Key Focus
• Adapting to Loading Wet and Dry Sand
• Implemented Software to Track and Communicate
with Suppliers and Customers
• Product Mix Adapted to Demand
• Automation at Plant Increased Efficiencies
• Simulfrac Demand Impacted Logistical Planning
• Leasons Learned From Wet Sand Transport
• Increased Mix of transport systems
10-15% - New Bottom Dump 26 - 28 tons
30-60% - Pneumatics 22 – 25 tons
30-60% - Box Design 20 – 22 tons

7. 7
Adapting to
Current Market
Demand
• Sustainability Of Frac Sand Supplier(s) Increased
• Frac Sand Suppliers Still Struggling With Overall
Capacity.
• Increased Sprint And Interruption Capacity In Plant
Inventories
• Increased Partnering And Communication Has Resulted
In A Decreased Backlog Of Trucks At Loadout
• Staffing Interruptions And Reduced Maintenance
Personnel are Decreasing
• Dry Sand Remains Dominant Supply in Current Market.
• Wet Sand Demand is End User Specific
• Sustained Demand Has Allowed More Consistent Run
Times Decreasing Wear On Equipment From Continual
(Startup/Shutdown)

8. 8
Automation
Controls and
Optimization
The Largest Impact
On Plant, Logistics
and Well Head
Performance
• Ticketing System to Manage Trucks on-site
• Cameras And Streamlined Truck Positioning
• Pre-Staging of Trucks
• Reduction of Human Error
• Lane Balancing
• Que Balancing
• Product Management
• Automated Loadout Systems Based on
Orders/Load Capabilities
• Integrated Billing With Customer Based on
Completed load
• Truck Tracking Software Improves
Communication With Real Time Data

9. 9
Transload Interface Examples
Frac Sand facility
Cement facility
Preload Hoppers
for Rail

10. Ticketing/Logistics
Monitoring/Reporting

11. 11
Ticketing/Logistics Software
Engines Are Designed To Move Trucks As Efficiently As
Possible Thru The Plant
• Lane Balancing
• Stack or Balance methods/options allows the loadmaster to
maximize their lanes by balancing trucks evenly over available
lanes, or use the stack method to run the facility on a smaller
crew, optimizing load-out staff
• Queue Management
• Loadmaster can set desired queue limits to manage truck flow,
manage traffic patterns, or optimize staff
• Manage and view trucks assigned to lanes
• Product Management
• Loadmasters can quickly view available products by lane,
remove available products from lanes, which instantly effects
auto queuing methods
• Scale Management
• Ensures Proper Billing and Load Weights
• Tracks Total Order Quantities Across Multiple Loads

12. 12
Typical Ticketing User Forms
• Forms Utilized For Daily Management
• User Forms Can:
• Reprint Ticket
• Manually Create Tickets
• Add/Modify Trucks
• View/Create Orders

13. 13
Tickets
• Once Load-out Is Complete,
Drivers Will Receive A Ticket.
• Barcodes Can Be Added For
Transload Requirements As
Well

14. 14
Transloads
• Ticketing System Offers An Intake
Solution For Transload Facilities
• Utilizing Barcodes And Check-in Kiosk,
A Solution Can Be Provided To Check
The Loads Back In, Maintain Quality
Control, And Even Show What Loads
Are In Transit To The Final Destination.

15. 15
Ticketing Data Portal
• Data Portal, Users Can:
• Communicate And Coordinate With Customers And
Suppliers.
• View Tickets
• Create Custom Reports
• Setup Schedules To Send Reports To Users Or
Customers
• Add/Modify Orders
• See Total Shipment Summaries

16. 16
Characterizing Optimization
Operational Performance
(Short Term – vs – Sustained)
• Silo Inventory Management
• In-Bound Order Management
• Logistics Control Rail or Truck
• Offloading/Loading Process
• QA/QC and Order Processing
Fiscal Optimization
• Personnel – Hiring and Retention
• Capital Cost – Growth and Annual
• Operational Cost Per Ton
• Maintenance Cost Per Ton
• Demmurage

17. 17
Possible Alternatives
• ISG Container Transport of Sand
• Pros
• Ease of Top or End Loading
Containers
• Ship By Rail or Truck
• Higher Load Per Shipment
• Fewer Trucks and Drivers Per Frac
• High Storage Capacity on Site At
Plant or Well Head
• Sealed from Moisture
• Pre-Stack Full Volume for Simulfrac
at Plant or Wellhead
• Cons
• Additional Equipment Required to
Stack and Handle Containers at Plant
and Well Head.
• Additional Equipment To Dump and
feed WellHead.
• Capital Cost to Implement

18. 18
Summary
• Optimize Existing Infrastructure At Frac Sand Plants For Wet
Or Dry Sand. Consider 3rd Party Input/Analysis
• Implement Ticketing/ Logistics Monitoring Systems And
Integrate Data Portals With All Parties
• Implement Capital Improvements In Loadout Area For Pre-
Staging, Camera Positioning, Rapid Fill And Optimized Loading
Of Various Haul Truck/Rail Configurations.
• Negotiate Data Exchange And Planning With E&P And
Pressure Pumpers Into Pricing. Shared Responsibiliity Model.
• Consider Partnering And Co-bidding Supply Between Frac
Sand Suppliers To Minimize Unplanned Interruptions.
• Continue Investment Into Dry Plant And Wet Plant
Performance To Ensure On-time Supply.
• Consider Options And Processes Used For Mass Transport
From Other Industries. (I.E, ISG Containers)
• Continue To Focus On Safety, Training And Culture To
Minimize Injuries In The Logistics Process.
• IAC Is Committed To Supporting This Industry Through OEM
Products, Plant Design, Optimization, Construction, In-basin
Maintenance Teams, Dryer Support And Innovation

19. 19
IAC IS A MULTI-
DIMENSIONAL,
FULLY INTEGRATED,
TRULY UNIQUE EPC
CONTRACTOR
IAC provides Engineering through Commissioning, and all aspects in between of your EPC project

20. 20
IAC provides Engineering through Commissioning, and all aspects in between of your EPC project
4800 Lamar, Mission KS 66202 USA
(800) 334-7431
www.iac-intl.com
iaccorp@iac-intl.com
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