Dakota Plains and UNIMIN Announce 750,000 Ton Per Year Frac Sand Terminal In New Town, North Dakota Cost Efficient Proppant Supply To Energy Service Companies In The Williston Basin
WAYZATA, Minn., Aug. 1, 2013 /PRNewswire/ -- Dakota Plains Holdings, Inc. ("Dakota Plains"), (OTC: DAKP) and UNIMIN Corporation ("UNIMIN") today jointly announced a frac sand storage and transloading facility to be built at the Pioneer Terminal in New Town (Mountrail County), North Dakota. The new facility will have a throughput capacity of approximately 750,000 tons per year. Construction is now underway and operations are expected to commence by January 2014.
The new terminal will supply energy service companies with frac sands sourced directly from UNIMIN's newest and largest proppant production facility in Tunnel City, Wisconsin. The fracturing sands will be transported on Canadian Pacific's (TSX:CP) (NYSE: CP) rail network. Under the terms of the agreements between the parties, UNIMIN will provide a direct marketing service to oilfield service companies and fund the construction of four new ladder tracks and a sand storage and transloading facility. Dakota Plains will provide a land lease to UNIMIN of up to 30 years, and Dakota Petroleum Transport Solutions, LLC, a joint venture in which Dakota Plains holds a 50% membership interest, will provide fee-based transloading services. The facility will include 8,000 tons of fixed storage, twin high-speed truck loadouts, and track capacity for 70 loaded railcars.
Chairman and Chief Executive Officer of Dakota Plains, Craig McKenzie, said, "This sand terminal complements the ongoing Pioneer Terminal expansion launched earlier this year, which is on schedule for a year-end start-up, and launches an inbound oilfield supply service to the Bakken and Three Forks operators in the Williston Basin. UNIMIN will build four new ladder tracks, which leaves the existing four tracks at Pioneer available for further expansion of inbound and outbound services."
Lou Mastandrea, UNIMIN's Executive VP / Sales & Marketing said, "UNIMIN is extremely well-positioned to provide direct and cost efficient proppant supply to the Williston Basin. Our Tunnel City plant is on schedule to begin operations at year-end, and will subsequently begin rail shipments to supply the Pioneer Terminal with UNIFRAC hydraulic fracturing sands.
UNIMIN also will utilize the Pioneer Terminal to deliver its PROPSTAR resin coated proppants to service companies in the region. We are pleased to partner with Dakota Plains in this venture and believe the Pioneer location in New Town, North Dakota, is ideally situated to respond to proppant requirements in the Bakken and surrounding areas."
"Canadian Pacific is pleased to be the rail partner for the UNIMIN venture at the Pioneer Terminal," said Canadian Pacific Vice-President of Energy and Merchandise, Tracy Robinson. "Through CP's network, we offer direct service from the sand source at Tunnel City in Wisconsin to New Town, North Dakota. We look forward to leveraging our network to provide a cost effective way for inbound materials to reach Bakken production areas."
About Dakota Plains Holdings, Inc.
Dakota Plains Holdings, Inc. is an integrated midstream energy company, which competes through its 50/50 joint ventures to provide customers with crude oil offtake services that include marketing, transloading and trucking of crude oil and related products. Direct and indirect company assets include a proprietary trucking fleet, a transloading facility located in Mountrail County, North Dakota, and over 1,000 railroad tank cars.
Dakota Plains is uniquely positioned to exploit crude oil 'export' opportunities within the Williston Basin of North Dakota and Montana, which is the largest onshore oil production source in North America, where the lack of available pipeline capacity provides a long-term and increasing surplus of crude oil available for the core business of the company. For more corporate information please visit: www.dakotaplains.com.
About UNIMIN Corporation
UNIMIN is the world's leading producer of UNIFRAC quartz proppants and a vertically integrated producer of PROPSTAR resin coated proppants for hydraulic fracturing and hydrocarbon recovery. A member of the privately held Sibelco Group, UNIMIN operates 49 mining and mineral processing facilities in the United States, Canada and Mexico. Executive offices are located in New Canaan, CT, with technology, analytical and sales service centers situated throughout North America. For more information and corporate sustainability report please visit: www.unimin.com and www.uniminsustainability.com.
Cautionary Note Regarding Forward Looking Statements
This announcement contains forward-looking statements that reflect the current views of Dakota Plains, including, but not limited to, statements regarding our future growth and plans for our business and operations. We do not undertake to update our forward-looking statements. These statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of lack of diversification, dependency upon strategic relationships, dependency on a limited number of major customers, competition for the loading, marketing and transporting of crude oil and related products, difficulty in obtaining additional capital that will be needed to implement business plans, difficulties in attracting and retaining talented personnel, risks associated with building and operating a transloading facility, changes in commodity prices and the demand for crude oil and natural gas, competition from other energy sources, inability to obtain necessary facilities, difficulty in obtaining crude oil to transport, increases in our operating expenses, an economic downturn or change in government policy that negatively impacts demand for our services, penalties we may incur, costs imposed by environmental laws and regulations, inability to obtain or maintain necessary licenses, challenges to our properties, technological unavailability or obsolescence, and future acts of terrorism or war, as well as the threat of war and other factors described from time to time in the company's reports filed with the U.S. Securities and Exchange Commission, including our annual report on Form 10-K, filed March 14, 2013, as may be amended and supplemented by subsequent reports from time to time.
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SOURCE Dakota Plains Holdings, Inc.