U.S. Silica and BNSF Railway Partner to Significantly Increase Proppant Supply to Eagle Ford
June 18 2012 - 9:00AM
Business Wire
U.S. Silica Holdings, Inc. (NYSE: SLCA) today announced an
innovative alliance with BNSF Railway Company (BNSF) to build a new
silica sand storage facility in San Antonio, TX, that will support
the rapidly growing oil and gas extraction industry in the Eagle
Ford shale.
US Silica is the second largest domestic producer of commercial
silica, a specialized mineral that is a critical input into the oil
and gas proppants end market and various industrial and specialty
products. BNSF Railway is one of North America's leading freight
transportation companies operating on 32,000 route miles of track
in 28 states and two Canadian provinces. Together, US Silica and
BNSF will build a new 15,000-ton frac sand storage facility, which
will be operational in early 2013.
Bryan Shinn, US Silica’s Chief Executive Officer, said the
company is “very excited to partner with BNSF to add a unit train
frac sand storage facility in a prime Eagle Ford location. US
Silica is committed to continuing to differentiate our offering by
leveraging our scale and flexible supply chain to bring high
quality products closer to the market.”
“Working with US Silica to extend BNSF’s service into the Eagle
Ford shale will create new opportunities for growth for the
nation’s energy supply, for jobs and the economy,” said John
Lanigan, BNSF executive vice president and chief marketing
officer.
US Silica anticipates the company will make three to four
shipments per month of approximately 10,000 tons of frac sand on
100 car unit BNSF trains from its Ottawa, IL sand mine to meet the
industry’s need for proppant. The shipments will include three
different grades of dry sand, as well as resin coated proppants
from US Silica’s new facility in Rochelle, IL, which is expected to
be fully operational in the first quarter of 2013.
ABOUT U.S. SILICA
U.S. Silica Holdings, Inc., a Delaware corporation, is
the second largest domestic producer of commercial silica, a
specialized mineral that is a critical input into the oil and gas
proppants end market and a variety of attractive industrial and
specialty products end markets. During its 100-plus year history,
U.S. Silica Holdings, Inc. has developed core competencies in
mining, processing, logistics and materials science that enable it
to produce and cost-effectively deliver over 200 products to
customers across these end markets. U.S. Silica Holdings, Inc. is
headquartered in Frederick, Maryland.
For more information, contact Anita Willis-Boyland at
Willis-Boyland@USSilica.com or 301.682.0676.
About BNSF
BNSF Railway is one of North America's leading freight
transportation companies operating on 32,000 route miles of track
in 28 states and two Canadian provinces. BNSF is one of the top
transporters of consumer goods, grain, industrial goods and
low-sulfur coal that help feed, clothe, supply, and power American
homes and businesses every day. BNSF and its employees have
developed one of the most technologically advanced, and efficient
railroads in the industry. We work continuously to improve the
value of the safety, service, energy, and environmental benefits we
provide to our customers and the communities we serve. You can
learn more about BNSF at www.BNSF.com.
Forward-Looking Statements:
This press release includes “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements include but are not limited to our plans,
objectives, expectations ad intentions and other statements that
contain words such as “expects,” “contemplates,” “anticipates,”
“plans,” “intends,” “believes” and variations of such words or
similar expressions that predict or indicate future events, or that
do not relate to historical matters. These statements are based on
our current beliefs or expectations and are inherently subject to
significant uncertainties and changes in circumstances, many of
which are beyond our control. There can be no assurance that our
beliefs or expectations will be achieved. Actual results may differ
materially from our beliefs or expectations due to economic,
business, competitive, market and regulatory factors.
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