Frac Sand and TransportationTransportation Impacts from Non-Metallic Mining in Wisconsin
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.
Frac Sand and TransportationMaturation and Stabilization Summer/Fall 2012
PROPOSED vs. REAL•Only about 1/3 ofproposed facilities areactually active•“Active” = operatingor under construction•Many large proposalshave done nothing
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 .
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.
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‟