New North Dakota Transload Facility Serving Bakken Shale in
the Williston Basin will be First Terminal built under New
Partnership agreement
Smart Sand and Canadian Pacific Railway Limited (TSX: CP)
(NYSE: CP) today announced a strategic long-term
partnership under which the two companies will supply and
ship premium, Northern White frac sand to the
unconventional oil and gas industry in key North America
producing regions (including the Bakken and Eagle Ford
formations, and the Utica and Marcellus Shales). The two
companies also announced the partnership's first
initiative: building a new frac sand transload facility,
expected to be the region's largest, in Makoti, North
Dakota that will serve the Bakken formation in the
Williston Basin beginning in early 2013.
"We are excited to partner with transportation leader
Canadian Pacific to bring our combined expertise to those
companies working in the Bakken Shale formation," said
Charles Young, founder, president and board member of Smart
Sand. "Smart Sand offers substantial dry sand
capacity and 100-plus years of proven reserves, plus direct
rail access for unit trains. We believe the new North
Dakota transload facility offers a unique combination of
cost effectiveness, reliability and product flexibility. We
look forward to offering similar services in other
producing regions while building strong relationships in
the Williston Basin."
"Smart Sand has prime resources and processing
capabilities which align well with CP's shipping
presence in the energy sector. This agreement with
Smart Sand demonstrates our commitment to provide our
customers with end-to-end transportation service that is
competitive and reliable," said Jane O'Hagan,
CP's Executive Vice President and Chief Marketing
Officer.
Smart Sand's primary facility, which opened in late
June 2012 and is located on the CP rail line in Oakdale,
Wisconsin, will supply premium Northern White frac sand in
a broad range of mesh sizes to the new transload facility.
Based on Smart Sand's initial processing capacity of
more than one million tons per year, plus the company's
extensive proven reserves, the facility will be able to
quickly fulfill long- and short-term orders while providing
direct rail access for unit trains.
We are pleased this partnership with Smart Sand will take
full advantage of CP's strategic network and experience
in the energy industry. Together, we will supply a reliable
stream of high quality Northern White frac sand. We
look forward to serving many companies in the region as we
grow our partnership with Smart Sand," O'Hagan
added.
Canadian Pacific is the only North American railroad to
serve the Bakken Formation, the Alberta Industrial
Heartland and the Marcellus Shale. In addition, CP is the
only Class I railway to connect the energy hubs of the U.S.
Midwest, Alberta and Saskatchewan to the Northeast U.S.
Through its network to the Northeast U.S. and through the
Kansas City gateway to the U.S. Gulf Coast, CP is able to
partner with the energy industry to facilitate growth in
moving oil and energy-related materials. Each year, CP
moves hundreds of thousands of carloads of energy-related
products, including crude oil, sulphur, fuels, diluents and
materials key to the energy industry, such as pipe and frac
sand.
About Smart Sand
Smart Sand, Inc. is one of the leading providers of
high-quality proppant and related logistics services to the
oil and gas industry in North America. All of Smart
Sand's facilities are located near major rail transport
lines, ensuring reliable, cost-effective delivery to major
shale plays in the U.S. and Canada. For more
information, please visit www.smartsand.net.
About Canadian Pacific
Canadian Pacific (CP: TSX)(NYSE: CP) operates a North
American transcontinental railway providing freight
transportation services, logistics solutions and supply
chain expertise. Incorporating best-in-class technology and
environmental practices, CP is re-defining itself as a
modern 21st century transportation company built on safety,
service reliability and operational efficiency. Visit
www.cpr.ca to learn more.
Editor's Note: Broadcast quality HD and SD b-roll and
still images can be downloaded here
For Smart Sand:
Owen Blicksilver Public Relations, Inc.
Kristin Celauro, 732-264-1131,
Kristin@blicksilverpr.com
or
Jennifer Hurson, 845-507-0571,
Jennifer@blicksilverpr.com
For Canadian Pacific:
Ed Greenberg, 612-849-4717,
Ed_greenberg@cpr.ca
24/7 Media Pager: 855-242-3674
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