1 00:00:00,000 --> 00:00:02,002 cc >> Tom Zinnen: Welcome, 2 00:00:02,002 --> 00:00:04,037 everyone, to Wednesday Nite at the Lab. 3 00:00:04,037 --> 00:00:06,072 My name is Tom Zinnen. I work here at the Biotechnology 4 00:00:06,072 --> 00:00:08,174 Center at UW-Madison. I also work for UW Extension 5 00:00:08,174 --> 00:00:10,877 Cooperative Extension, and on behalf of those organizations 6 00:00:10,877 --> 00:00:13,279 and our sponsors, Wisconsin Public Television, 7 00:00:13,279 --> 00:00:16,750 Wisconsin Alumni Association, the UW Madison Science Alliance 8 00:00:16,750 --> 00:00:19,285 and the PLATO group, thanks for coming to Wednesday Nite 9 00:00:19,285 --> 00:00:21,721 at the Lab. We do this every Wednesday 10 00:00:21,721 --> 00:00:25,225 night, 50 times a year. Tonight I'm delighted to be able 11 00:00:25,225 --> 00:00:28,061 to introduce to you, Bruce Brown who is a colleague of mine who 12 00:00:28,061 --> 00:00:30,363 also works for the cooperative extension. 13 00:00:30,363 --> 00:00:32,365 He works for the Wisconsin Geological and Natural History 14 00:00:32,365 --> 00:00:35,935 Survey here in town. He gets to work on one of the 15 00:00:35,935 --> 00:00:39,172 more interesting and soon to be, well, I think it's fair to say 16 00:00:39,172 --> 00:00:42,609 it's rather controversial, the whole issue of frac sands here 17 00:00:42,609 --> 00:00:47,013 in Wisconsin. So please join me in welcoming 18 00:00:47,013 --> 00:00:49,582 Bruce Brown to Wednesday Nite at the Lab. 19 00:00:49,582 --> 00:00:51,117 [APPLAUSE] 20 00:00:55,522 --> 00:00:57,924 >> Bruce Brown: Thank you very much. 21 00:00:57,924 --> 00:01:00,260 I'm quite pleased to see the size of the crowd we've got 22 00:01:00,260 --> 00:01:02,495 tonight. Apparently this is an issue that 23 00:01:02,495 --> 00:01:04,731 has caught a few people's attention. 24 00:01:04,731 --> 00:01:07,000 I was rather fearing for a while that a talk about sand was about 25 00:01:07,000 --> 00:01:10,570 the last thing anybody was going to want to hear. 26 00:01:10,570 --> 00:01:14,274 But if you have at least paid any attention to the newspapers 27 00:01:14,274 --> 00:01:17,477 or listened to any of the media, you can't help but have heard 28 00:01:17,477 --> 00:01:20,980 about various controversy about hydrofracking and the production 29 00:01:20,980 --> 00:01:25,418 of oil and natural gas and about the fact that we've really 30 00:01:25,418 --> 00:01:29,723 undergone something very much akin to a gold rush in western 31 00:01:29,723 --> 00:01:35,128 Wisconsin in this last year in terms of companies coming in and 32 00:01:35,128 --> 00:01:39,466 opening up mines to get the type of sand that they need for 33 00:01:39,466 --> 00:01:42,769 hydrofracking. And I'm going to try to give you 34 00:01:42,769 --> 00:01:46,573 an idea tonight a little bit about why are they coming here. 35 00:01:46,573 --> 00:01:50,043 Why is our resource particularly better than elsewhere? 36 00:01:50,043 --> 00:01:53,380 I'm going to start with the basic process of frac sand, a 37 00:01:53,380 --> 00:01:56,583 little bit about what the characteristics of good material 38 00:01:56,583 --> 00:02:01,388 are, why Wisconsin is a major target, explain a bit about the 39 00:02:01,388 --> 00:02:05,492 geology of the state that has helped form this particular 40 00:02:05,492 --> 00:02:08,995 material and then go into a few of the issues that have come up 41 00:02:08,995 --> 00:02:15,969 in local zoning and in the counties coping with this huge 42 00:02:15,969 --> 00:02:19,372 influx. A lot of counties out in western 43 00:02:19,372 --> 00:02:25,512 Wisconsin basically were, their non-metallic mining regulation 44 00:02:25,512 --> 00:02:30,216 program was basically five or six big old hilltop limestone 45 00:02:30,216 --> 00:02:33,887 quarries, and that's about all they had to deal with. 46 00:02:33,887 --> 00:02:37,691 A county like Trempealeau suddenly has 20 applications for 47 00:02:37,691 --> 00:02:40,960 hydrofrac sand mines, and this has basically overwhelmed them 48 00:02:40,960 --> 00:02:44,464 and needless to say it's kept me pretty busy. 49 00:02:44,464 --> 00:02:49,703 So I'm going to start out with basically looking at what is 50 00:02:49,703 --> 00:02:53,640 hydrofracking and how do you hydrofrac a well. 51 00:02:53,640 --> 00:02:55,909 Well, the principles of hydrofracking are shown down 52 00:02:55,909 --> 00:02:58,878 here in the lower left. You have an oil well or a gas 53 00:02:58,878 --> 00:03:02,315 well. In the past, the basic 54 00:03:02,315 --> 00:03:05,118 technology was to vertical drill, and hydrofracking is not 55 00:03:05,118 --> 00:03:08,021 something that's new. This is a technology that's been 56 00:03:08,021 --> 00:03:12,759 around since just post-World War II, since the 1940s. 57 00:03:12,759 --> 00:03:15,595 Basically, it was a vertical drill hole, they would pump down 58 00:03:15,595 --> 00:03:21,468 pressure, fracture the formation a bit to help oil flow in. 59 00:03:21,468 --> 00:03:25,739 It was a useful technique for secondary recovery of oil and 60 00:03:25,739 --> 00:03:31,144 worked very well. Now the thing that is the new 61 00:03:31,144 --> 00:03:35,482 development in the last few years is horizontal drilling. 62 00:03:35,482 --> 00:03:38,418 We've got technology today, all of you have seen these little 63 00:03:38,418 --> 00:03:44,290 rigs that they drill in cables for putting in fiber optics or 64 00:03:44,290 --> 00:03:48,628 whatever else, but they can drill horizontally and follow 65 00:03:48,628 --> 00:03:51,231 pretty closely on a straight line. 66 00:03:51,231 --> 00:03:55,502 Well, these oil drillers that are currently developing the gas 67 00:03:55,502 --> 00:03:58,805 fields and oil fields where we're using most the hydrofrac 68 00:03:58,805 --> 00:04:02,375 sand, they can drill out a mile almost horizontally. 69 00:04:02,375 --> 00:04:04,911 So that gives them a chance to go right out through the 70 00:04:04,911 --> 00:04:09,482 formation and then they frac the formation by pumping down very 71 00:04:09,482 --> 00:04:15,288 high pressure fluids, a mixture of a number of things, water 72 00:04:15,288 --> 00:04:18,258 being the major ingredient with some polymers in there to help 73 00:04:18,258 --> 00:04:22,929 keep the sand in suspension, but all these trucks up here, if you 74 00:04:22,929 --> 00:04:29,336 see in this upper photo, these are all big compressor rigs from 75 00:04:29,336 --> 00:04:32,238 oil field service companies, all hooked in tandem to a well which 76 00:04:32,238 --> 00:04:35,241 is somewhere here in the middle. Most of these big trailers out 77 00:04:35,241 --> 00:04:38,712 here that you see on the outside are filled up with sand which is 78 00:04:38,712 --> 00:04:43,650 the hydrofrac sand. Have I got a mic that's not 79 00:04:43,650 --> 00:04:45,618 working here? 80 00:04:50,757 --> 00:04:53,059 All right, well that's a fair trade. 81 00:04:53,059 --> 00:04:55,795 [LAUGHTER] To me it doesn't sound 82 00:04:55,795 --> 00:04:59,132 much different. But anyway, what we have 83 00:04:59,132 --> 00:05:02,068 up here, a bunch of compressor trucks. 84 00:05:02,068 --> 00:05:06,172 These are all hooked in tandem pumping a very high pressure in 85 00:05:06,172 --> 00:05:10,777 this formation down here to the point where it actually 86 00:05:10,777 --> 00:05:14,848 fractures the rock around the borehole. 87 00:05:14,848 --> 00:05:17,851 It will break that rock up, which is usually a very what we 88 00:05:17,851 --> 00:05:21,654 call a tight shale. Shale is a very fine grained 89 00:05:21,654 --> 00:05:24,991 rock. Most of our oil and gas in the 90 00:05:24,991 --> 00:05:28,328 past was produced out of sandstone which is very porous 91 00:05:28,328 --> 00:05:33,833 and easy to extract the material from, but the shale is very high 92 00:05:33,833 --> 00:05:37,704 in hydrocarbon but it doesn't have any interconnected porosity 93 00:05:37,704 --> 00:05:40,540 so there's no way to get it out. And they create that porosity by 94 00:05:40,540 --> 00:05:44,177 the hydrofrac process. As soon as they get that pumped 95 00:05:44,177 --> 00:05:48,248 up, they start injecting the sand and the fluids down there. 96 00:05:48,248 --> 00:05:51,418 Basically what happens is sand goes out, goes into these cracks 97 00:05:51,418 --> 00:05:55,288 and when they back the pressure off, shut down those 98 00:05:55,288 --> 00:05:58,725 compressors, the sand stays out there and holds those cracks 99 00:05:58,725 --> 00:06:02,462 open. You hear the term proppant used 100 00:06:02,462 --> 00:06:05,131 every once and a while for hydrofrac sand and that's 101 00:06:05,131 --> 00:06:08,034 exactly what it means. It props open those cracks. 102 00:06:08,034 --> 00:06:12,038 Once they've let the pressure off, the controversial issue is 103 00:06:12,038 --> 00:06:14,507 you get a lot of fluid that comes back out of here, there's 104 00:06:14,507 --> 00:06:18,044 the big fluid ponds you can see over here, that will take on a 105 00:06:18,044 --> 00:06:20,613 lot of formation water and some of the material that's pumped 106 00:06:20,613 --> 00:06:23,750 down in before they can actually produce the gas. 107 00:06:23,750 --> 00:06:26,519 So what makes a good hydrofrac sand? 108 00:06:26,519 --> 00:06:29,489 Well, this is the kind of thing that they're looking for. 109 00:06:29,489 --> 00:06:32,926 These grains are almost perfectly spherical. 110 00:06:32,926 --> 00:06:36,763 Very round, well-rounded as we say. 111 00:06:36,763 --> 00:06:42,836 Almost entirely pure quartz. Very few, some have a little bit 112 00:06:42,836 --> 00:06:45,772 of iron staining on them but generally this stuff is almost 113 00:06:45,772 --> 00:06:48,341 perfectly clean, fine, even sized. 114 00:06:48,341 --> 00:06:51,011 There are some very tight specifications in terms of size 115 00:06:51,011 --> 00:06:54,314 gradation for different types of applications, but basically what 116 00:06:54,314 --> 00:06:58,118 they want is this good clean, pure, very round quartz so it 117 00:06:58,118 --> 00:07:01,988 won't hang up going out there into the cracks and the other 118 00:07:01,988 --> 00:07:05,625 thing is it has to have a very high compressive strength 119 00:07:05,625 --> 00:07:10,163 because when the pressure is left off and those pores tend to 120 00:07:10,163 --> 00:07:13,433 close up, they'll crush a grain that isn't high compressive 121 00:07:13,433 --> 00:07:15,468 strength. 122 00:07:18,505 --> 00:07:22,776 So here is what an ideal frac well would look like. 123 00:07:22,776 --> 00:07:29,249 It has a surface up here, maybe go down probably in this case 124 00:07:29,249 --> 00:07:32,652 6,000 to 8,000 feet where they're doing the fracking. 125 00:07:32,652 --> 00:07:35,855 In many bases it's down to 15,000 feet or more. 126 00:07:35,855 --> 00:07:38,324 Why? That's one of the reason they 127 00:07:38,324 --> 00:07:41,094 need the high compressive strength. 128 00:07:41,094 --> 00:07:43,730 The problems that have developed with hydrofracking, we've heard 129 00:07:43,730 --> 00:07:47,000 a lot of it in the news about contamination of surface 130 00:07:47,000 --> 00:07:51,237 aquifers, you see this little insert here shows the well head, 131 00:07:51,237 --> 00:07:55,475 and basically, key to the hole thing, and you can imagine if 132 00:07:55,475 --> 00:07:58,244 you're going to pump up a lot of pressure in here, you've got to 133 00:07:58,244 --> 00:08:00,547 have that well very well constructed. 134 00:08:00,547 --> 00:08:02,682 It's got to have a good casing and it's got to be well cemented 135 00:08:02,682 --> 00:08:05,151 in. You can't have a problem. 136 00:08:05,151 --> 00:08:07,721 You know what happens when you have a poor cement job, you get 137 00:08:07,721 --> 00:08:11,491 a blow out like the well in the Gulf of Mexico last year, and 138 00:08:11,491 --> 00:08:15,328 you can also get cases where this stuff leaks up around the 139 00:08:15,328 --> 00:08:19,265 casing and can contaminate some water aquifers. 140 00:08:19,265 --> 00:08:22,202 Chances are from the very deep depths you're not going to be 141 00:08:22,202 --> 00:08:27,907 fracking all the way up to where you're going to actually 142 00:08:27,907 --> 00:08:31,144 encounter that aquifer formation near the surface, but the chance 143 00:08:31,144 --> 00:08:33,246 of well failure is a lot greater. 144 00:08:33,246 --> 00:08:35,448 So it's a very important part of the whole thing is to make sure 145 00:08:35,448 --> 00:08:38,718 that these wells are constructed properly. 146 00:08:38,718 --> 00:08:42,756 So, where is the shale gas and oil? 147 00:08:42,756 --> 00:08:46,659 Well, here is a map that was done by the Department of Energy 148 00:08:46,659 --> 00:08:51,064 that basically shows you the regions in the US where we've 149 00:08:51,064 --> 00:08:56,069 had or have these tight shales that are very rich in 150 00:08:56,069 --> 00:09:00,840 hydrocarbon, usually natural gas but also oil as well. 151 00:09:00,840 --> 00:09:03,176 There's a big basin out here in the Appalachians and this is the 152 00:09:03,176 --> 00:09:07,881 area of the Marcellus shale and Utica shale. 153 00:09:07,881 --> 00:09:11,217 There's a few other small ones in the east but the big ones are 154 00:09:11,217 --> 00:09:14,287 like the Barnett down in Texas and Barnett and Woodford out in 155 00:09:14,287 --> 00:09:19,726 west Texas and into New Mexico. The Bakken shale up in North 156 00:09:19,726 --> 00:09:25,732 Dakota is a huge play, lots of formerly unrecoverable 157 00:09:25,732 --> 00:09:28,668 hydrocarbons up here and a number of others out in the 158 00:09:28,668 --> 00:09:32,105 Rocky Mountain basin. These are the areas where most 159 00:09:32,105 --> 00:09:38,378 of this material gets used. To give you an idea just how big 160 00:09:38,378 --> 00:09:42,682 this whole thing is, a colleague of mine from the DNR who is 161 00:09:42,682 --> 00:09:47,554 their point man on frac sand sent this to me the other day, 162 00:09:47,554 --> 00:09:50,690 and it's a satellite image. It's kind of neat. 163 00:09:50,690 --> 00:09:53,393 You can see the aurora up here and everything. 164 00:09:53,393 --> 00:09:55,762 Minneapolis, Minnesota, is over here. 165 00:09:55,762 --> 00:09:58,965 You can see the towns along the highways. 166 00:09:58,965 --> 00:10:03,069 This would be I94, Bismarck, this would be Fargo, probably 167 00:10:03,069 --> 00:10:06,039 Winnipeg up here. You get this huge area of light 168 00:10:06,039 --> 00:10:09,809 out here, light pollution basically. 169 00:10:09,809 --> 00:10:13,913 That's all the lights from the oil and gas rigs in the Bakken 170 00:10:13,913 --> 00:10:16,316 shale play. I've saw this thing and I 171 00:10:16,316 --> 00:10:18,685 thought this is absolutely amazing. 172 00:10:18,685 --> 00:10:21,621 Look at the size of that area. But I've had a couple friends 173 00:10:21,621 --> 00:10:23,957 that I know who have traveled out there through North Dakota 174 00:10:23,957 --> 00:10:26,359 this summer and they say it's just crazy. 175 00:10:26,359 --> 00:10:28,561 There's trucks all over the place. 176 00:10:28,561 --> 00:10:31,064 There's drill rigs. It's a huge venture that's going 177 00:10:31,064 --> 00:10:36,136 on right now. Well, flip back out here at the 178 00:10:36,136 --> 00:10:41,041 east, probably if you've watched any place in the news and heard 179 00:10:41,041 --> 00:10:43,510 about problems with hydrofracking, it's out here in 180 00:10:43,510 --> 00:10:49,482 what they call the Marcellus shale which is in the western 181 00:10:49,482 --> 00:10:54,320 part of Pennsylvania, southwestern part of New York. 182 00:10:54,320 --> 00:10:57,290 But I think you can see one thing that's very obvious on 183 00:10:57,290 --> 00:11:00,860 here is that in some areas like in New York this stuff is 184 00:11:00,860 --> 00:11:05,265 shallowing up to where the actual, these are contours on 185 00:11:05,265 --> 00:11:08,768 the base of the Marcellus are up to around 3,000 feet. 186 00:11:08,768 --> 00:11:11,905 When you're getting 3,000 feet and less, then you're getting 187 00:11:11,905 --> 00:11:16,343 into the realm where I think you can possibly start getting some 188 00:11:16,343 --> 00:11:21,981 problems from the actual fracking material or from the 189 00:11:21,981 --> 00:11:25,485 hydrofracking itself relieving pressure by getting up into 190 00:11:25,485 --> 00:11:29,022 formations that can be potentially water bearing. 191 00:11:29,022 --> 00:11:31,691 So this is the areas that they've really had to take a 192 00:11:31,691 --> 00:11:34,594 second look at it there's been a lot of study and is a lot of 193 00:11:34,594 --> 00:11:37,764 study going on with the Department of Energy and EPA and 194 00:11:37,764 --> 00:11:40,500 with the state geological surveys out east to see what 195 00:11:40,500 --> 00:11:45,672 they can do about getting this better regulated because the 196 00:11:45,672 --> 00:11:48,675 process, although it's a good one and we've been using it for, 197 00:11:48,675 --> 00:11:53,313 as I say, a lot of years, it may not be exactly suitable 198 00:11:53,313 --> 00:11:57,050 everywhere that we have the shale conditions that you can 199 00:11:57,050 --> 00:12:00,553 recover oil from. It's not much of a problem when 200 00:12:00,553 --> 00:12:03,423 you're out there in those big, deep basins, but it may be some 201 00:12:03,423 --> 00:12:06,793 problems in areas like the east. Now here is another example. 202 00:12:06,793 --> 00:12:13,133 This is from that Bakken shale out in North Dakota. 203 00:12:13,133 --> 00:12:16,236 And you can see this is basically what happens. 204 00:12:16,236 --> 00:12:21,107 They drill a whole series of these horizontal borings in the 205 00:12:21,107 --> 00:12:26,880 petroleum bearing or gas bearing strata away from a single well 206 00:12:26,880 --> 00:12:31,084 head, and then once they frac these things, they're on about a 207 00:12:31,084 --> 00:12:35,221 1300-foot spacing, and they frac for a radius of about 500 feet 208 00:12:35,221 --> 00:12:40,727 right around each bore hole here. 209 00:12:40,727 --> 00:12:44,064 And that's enough to increase the porosity to get a whole lot 210 00:12:44,064 --> 00:12:46,599 more recovered. The thing about this is this 211 00:12:46,599 --> 00:12:49,769 isn't to scale. If you look over here, actually 212 00:12:49,769 --> 00:12:52,639 you're looking at, this is 10,000 feet down below the 213 00:12:52,639 --> 00:12:55,709 surface that they're doing the fracking up there in North 214 00:12:55,709 --> 00:12:58,945 Dakota. But this is basically how it's 215 00:12:58,945 --> 00:13:02,382 done and what the process is all about. 216 00:13:02,382 --> 00:13:07,387 So now let's get into the frac sand and where does it come from 217 00:13:07,387 --> 00:13:10,423 and why are we here in Wisconsin looking for it. 218 00:13:10,423 --> 00:13:13,093 Where is the best frac sand? Well, I wonder if you can guess 219 00:13:13,093 --> 00:13:15,428 what color I've used to show that. 220 00:13:15,428 --> 00:13:17,997 [LAUGHTER] Basically, I took the 221 00:13:17,997 --> 00:13:23,069 US geologic map, manipulated it a bit with an arc map, put the 222 00:13:23,069 --> 00:13:26,706 Cambrian sandstone, it's a very mature, about 500-man-year-old 223 00:13:26,706 --> 00:13:33,079 Cambrian age sandstone in red. Good deal up here in Wisconsin, 224 00:13:33,079 --> 00:13:35,448 western Wisconsin, and over here into Minnesota, a little bit 225 00:13:35,448 --> 00:13:38,251 down around the Ozarks and there's some scattered areas out 226 00:13:38,251 --> 00:13:40,887 in the Appalachians, but basically a lot of these others 227 00:13:40,887 --> 00:13:45,392 are not extensive or they're quartzitic, they're a little 228 00:13:45,392 --> 00:13:47,560 tightly cemented and you can't really make good sand out of 229 00:13:47,560 --> 00:13:51,231 them. The best of the stuff is right 230 00:13:51,231 --> 00:13:55,468 here from Minnesota River Valley over through all of western 231 00:13:55,468 --> 00:13:58,638 Wisconsin. This is what's gotten their 232 00:13:58,638 --> 00:14:02,409 interest. So, again, the best stuff out 233 00:14:02,409 --> 00:14:08,415 there is very pure quartz, very highly rounded, good, in this 234 00:14:08,415 --> 00:14:17,524 case, very, these are nice, almost spherical grains. 235 00:14:17,524 --> 00:14:20,360 This stuff is a little bit less rounded, probably from a younger 236 00:14:20,360 --> 00:14:25,131 aged sand. Maybe a couple hundred man years 237 00:14:25,131 --> 00:14:27,834 old Cretaceous age or something like that. 238 00:14:27,834 --> 00:14:30,337 Generally doesn't have the level of maturity what we call, and it 239 00:14:30,337 --> 00:14:34,374 also has possibly rack-rock fragments in it. 240 00:14:34,374 --> 00:14:37,944 Glacial sand, we've got lots of in Wisconsin associated with 241 00:14:37,944 --> 00:14:41,147 glacial deposits, is absolutely unsuitable to use for frac sand 242 00:14:41,147 --> 00:14:43,616 because it's full of all kinds of stuff. 243 00:14:43,616 --> 00:14:45,552 The grains are angular. There's all kinds of rock 244 00:14:45,552 --> 00:14:47,887 fragments. There's all kinds of impurities 245 00:14:47,887 --> 00:14:50,423 and materials in here that wouldn't hold the crushing 246 00:14:50,423 --> 00:14:53,793 strength. It's not usable at all. 247 00:14:53,793 --> 00:14:57,130 So basically the eastern half of the state, the glacial deposits, 248 00:14:57,130 --> 00:14:59,766 I get asked every once in a while by counties over there, 249 00:14:59,766 --> 00:15:02,268 are we going to have frac sand companies coming in to look 250 00:15:02,268 --> 00:15:04,604 around. I say, nope, you're going to be 251 00:15:04,604 --> 00:15:07,140 pretty safe. But the western part, there 252 00:15:07,140 --> 00:15:11,678 you're in trouble. And this area of Minnesota is 253 00:15:11,678 --> 00:15:15,482 less desirable than Wisconsin. I had a call from one of my 254 00:15:15,482 --> 00:15:18,018 colleagues at the Minnesota Geological Survey not too long 255 00:15:18,018 --> 00:15:20,420 ago, and he was asking what's all the deal over there in 256 00:15:20,420 --> 00:15:23,556 Wisconsin, we're not really having all that much? 257 00:15:23,556 --> 00:15:26,226 But there's two things: a couple of our major formations over 258 00:15:26,226 --> 00:15:29,396 here in Wisconsin, which I'll talk about in a few minutes, are 259 00:15:29,396 --> 00:15:32,699 buried a little too deeply over in Minnesota, and also the main 260 00:15:32,699 --> 00:15:37,771 formations like the St. Peter and the Wonewoc are 261 00:15:37,771 --> 00:15:41,975 covered by glacial deposits over here west of the river. 262 00:15:41,975 --> 00:15:45,912 The advantage that we have in Wisconsin is that much of the 263 00:15:45,912 --> 00:15:50,016 most desirable material is in what we call the driftless area, 264 00:15:50,016 --> 00:15:53,019 or the area that the glaciers never actually covered. 265 00:15:53,019 --> 00:15:55,321 So it's right there at the surface. 266 00:15:55,321 --> 00:15:58,024 It's very easy to mine. You don't have to worry about a 267 00:15:58,024 --> 00:15:59,592 lot of overburden. 268 00:16:02,195 --> 00:16:07,300 So, here's the stratigraphic column in Wisconsin, aged to the 269 00:16:07,300 --> 00:16:09,936 different rocks. We go from Precambrian rocks 270 00:16:09,936 --> 00:16:13,206 down here at about three billion years all the way up to 271 00:16:13,206 --> 00:16:16,176 Devonian, our youngest rocks, over in the Milwaukee area. 272 00:16:16,176 --> 00:16:18,745 But our sands come from the lower part of the section down 273 00:16:18,745 --> 00:16:21,748 here basically. Mostly in the Cambrian, there's 274 00:16:21,748 --> 00:16:26,319 the Wonewoc sandstone, which is a good, very pure quartz 275 00:16:26,319 --> 00:16:31,024 sandstone and the Jordan sandstone, and the Jordan 276 00:16:31,024 --> 00:16:33,760 sandstone at the top of the Cambrian, which is just under 277 00:16:33,760 --> 00:16:36,229 the Prairie du Chien limestone. And then we have the St. 278 00:16:36,229 --> 00:16:38,431 Peter sandstone, which is slightly younger and occurs 279 00:16:38,431 --> 00:16:43,737 throughout much of southern Wisconsin and southwestern 280 00:16:43,737 --> 00:16:47,073 Wisconsin, but we're also seeing a little bit of interest grow in 281 00:16:47,073 --> 00:16:50,010 the Mt. Simon sandstone, which is at the 282 00:16:50,010 --> 00:16:53,046 very base of the section. And this is also a very mature 283 00:16:53,046 --> 00:16:56,216 sandstone. Why are these such good, pure 284 00:16:56,216 --> 00:16:59,552 sandstones? Basically, there was a huge, 285 00:16:59,552 --> 00:17:04,190 long period of weathering that occurred on the continent after 286 00:17:04,190 --> 00:17:08,762 the end of Precambrian time from about a billion years ago to 287 00:17:08,762 --> 00:17:11,865 around 500 million years when the continent was flooded and 288 00:17:11,865 --> 00:17:14,434 the Cambrian sands were deposited. 289 00:17:14,434 --> 00:17:16,736 And there was no vegetation around at the time, very intense 290 00:17:16,736 --> 00:17:20,140 weathering, this stuff got kicked around, blown around, 291 00:17:20,140 --> 00:17:23,243 washed around by streams. Most of the unstable rock 292 00:17:23,243 --> 00:17:27,113 fragments, unstable minerals all were destroyed in the time and 293 00:17:27,113 --> 00:17:30,016 you were left with nothing but the most durable stuff which is 294 00:17:30,016 --> 00:17:32,919 good, pure quartz and it was nicely rounded. 295 00:17:32,919 --> 00:17:38,258 So that's the stuff that got incorporated into the Cambrian 296 00:17:38,258 --> 00:17:41,461 sands, and that's the stuff that we've even got a little bit of 297 00:17:41,461 --> 00:17:44,097 it as late at the St. Peter. But that's what the sand 298 00:17:44,097 --> 00:17:48,168 industry is interested in. So let's start up in the north, 299 00:17:48,168 --> 00:17:51,171 and I'll show you a little bit of what we're looking at. 300 00:17:51,171 --> 00:17:55,408 This is in Barron County in northwestern Wisconsin. 301 00:17:55,408 --> 00:17:59,946 The Jordan sandstone is shown in here in an orange color. 302 00:17:59,946 --> 00:18:03,083 Up in this area and in the northern part of Chippewa County 303 00:18:03,083 --> 00:18:07,253 where we've had probably 10 or 15 different operations try to 304 00:18:07,253 --> 00:18:12,192 locate in the last year, half a dozen or more in Barron County, 305 00:18:12,192 --> 00:18:14,694 they're interested in mining this Jordan sandstone because 306 00:18:14,694 --> 00:18:18,598 it's very coarse, it will meet what's called the 20/40 size 307 00:18:18,598 --> 00:18:21,801 gradation which is about the coarsest of the frac sands, and 308 00:18:21,801 --> 00:18:24,771 it's exposed right near the surface. 309 00:18:24,771 --> 00:18:27,807 Even though this area is glaciated, there is a lot of 310 00:18:27,807 --> 00:18:31,544 exposure near the surface, and you don't have a cap over the 311 00:18:31,544 --> 00:18:34,147 top of the Prairie du Chien limestone which is shown over 312 00:18:34,147 --> 00:18:37,917 here in the blue color. So there's quite a bit of 313 00:18:37,917 --> 00:18:41,421 interest in development up here. One of the keys which I'll talk 314 00:18:41,421 --> 00:18:45,725 about quite a bit during the talk is transportation. 315 00:18:45,725 --> 00:18:47,827 This is a rail line coming down here. 316 00:18:47,827 --> 00:18:50,230 I don't know that it's complete all the way to Chippewa Falls 317 00:18:50,230 --> 00:18:52,332 anymore. They may have abandoned some of 318 00:18:52,332 --> 00:18:54,968 it. This section that has been 319 00:18:54,968 --> 00:18:57,737 abandoned out here west of Cameron and Barron, the DOT is 320 00:18:57,737 --> 00:19:01,007 actually talking about funding rebuilding that track out as far 321 00:19:01,007 --> 00:19:05,979 as Almena just to serve about three or four major sand mines 322 00:19:05,979 --> 00:19:09,983 that are going in out in the western part of Barron County. 323 00:19:09,983 --> 00:19:13,753 So, let's take a look. The geology in pre-boom 324 00:19:13,753 --> 00:19:17,023 production sites in west central Wisconsin looks something like 325 00:19:17,023 --> 00:19:19,659 this. This is a map that I worked on 326 00:19:19,659 --> 00:19:23,697 back in the 1980s. We had, up until a couple years 327 00:19:23,697 --> 00:19:28,034 ago, only three or four operations out there. 328 00:19:28,034 --> 00:19:31,471 We had two old mines over here along the river at Maiden Rock 329 00:19:31,471 --> 00:19:34,874 and at Bay City in Pierce County. 330 00:19:34,874 --> 00:19:37,544 And these were mines that mined the Jordan formation 331 00:19:37,544 --> 00:19:40,246 underground. They actually went in through a 332 00:19:40,246 --> 00:19:43,383 tunnel driven into the side of the bluff along the Mississippi 333 00:19:43,383 --> 00:19:46,720 River and mined the material out underground by what we called 334 00:19:46,720 --> 00:19:50,223 room and pillar method. And that way they could just get 335 00:19:50,223 --> 00:19:56,196 the very desirable, very coarse member of the Jordan. 336 00:19:56,196 --> 00:20:01,735 Other areas we had up in the north, Fairmount Minerals who 337 00:20:01,735 --> 00:20:05,238 came in and bought out these two old mines down here, started a 338 00:20:05,238 --> 00:20:09,442 new plant a year or two ago, or probably three or four years 339 00:20:09,442 --> 00:20:12,112 now, up in Menomonie. And they're in this other 340 00:20:12,112 --> 00:20:14,247 formation shown in red which is called the Wonewoc. 341 00:20:14,247 --> 00:20:18,051 This is the Wonewoc formation in red. 342 00:20:18,051 --> 00:20:20,520 The Jordan that I pointed out is in the gold color. 343 00:20:20,520 --> 00:20:23,656 If you notice, there's not as much area of Jordan. 344 00:20:23,656 --> 00:20:26,359 That's because it's a steep cliff former and forms long in 345 00:20:26,359 --> 00:20:29,362 the bluffs or on the steep sides of valleys and it's very 346 00:20:29,362 --> 00:20:33,166 inaccessible except to go in underground. 347 00:20:33,166 --> 00:20:36,670 Whereas, a lot of surface exposure of the Wonewoc and 348 00:20:36,670 --> 00:20:40,273 that's the target a lot of the companies are looking at. 349 00:20:40,273 --> 00:20:42,942 Badger Mining Company, which has been in business for Wisconsin 350 00:20:42,942 --> 00:20:47,313 for years and years, has a large mine over at Taylor in Jackson 351 00:20:47,313 --> 00:20:49,849 County. And this one has been there for 352 00:20:49,849 --> 00:20:54,220 about 30 years, and it produces a lot of frac sand plus foundry 353 00:20:54,220 --> 00:20:57,824 sand and various other industrial sand products. 354 00:20:57,824 --> 00:21:02,529 But that was where we were probably five years ago. 355 00:21:02,529 --> 00:21:04,898 But this gives you an idea of what the geology is out in the 356 00:21:04,898 --> 00:21:07,367 area that they're basically looking. 357 00:21:07,367 --> 00:21:11,905 The Mt. Simon sandstone is shown in the 358 00:21:11,905 --> 00:21:14,808 light tan color, and we're seeing a lot of interest in that 359 00:21:14,808 --> 00:21:18,144 down in the area around Tomah and Black River Falls where this 360 00:21:18,144 --> 00:21:23,850 material has been very heavily weathered and it's in part 361 00:21:23,850 --> 00:21:27,120 alluvial material as well as a bedrock material and it's being 362 00:21:27,120 --> 00:21:32,525 exploited as a waste product from cranberry bog development. 363 00:21:32,525 --> 00:21:36,062 It's being bought up by the frac sand miners. 364 00:21:36,062 --> 00:21:38,064 But basically most of the new mines that you hear about are 365 00:21:38,064 --> 00:21:40,700 going in areas like Buffalo and Trempealeau County are in this 366 00:21:40,700 --> 00:21:44,771 Wonewoc. Here's a little closer look at 367 00:21:44,771 --> 00:21:47,774 it. Badger in Taylor. 368 00:21:47,774 --> 00:21:51,511 There's now a brand new mine called Winn Bay Sands put in by 369 00:21:51,511 --> 00:21:54,914 a Canadian company down here at Blair in Trempealeau County. 370 00:21:54,914 --> 00:21:58,852 The one good advantage that these two operations have is 371 00:21:58,852 --> 00:22:01,421 they're located on what was the old Green Bay and western 372 00:22:01,421 --> 00:22:05,925 railroad route which goes down and connects with the northern 373 00:22:05,925 --> 00:22:08,261 Santa Fe along the Mississippi. So they do have rail shipping 374 00:22:08,261 --> 00:22:11,898 access. That's a very important thing as 375 00:22:11,898 --> 00:22:14,300 far as moving a bulk commodity like this. 376 00:22:14,300 --> 00:22:18,972 What's Wonewoc sandstone look like? 377 00:22:18,972 --> 00:22:21,307 It's fairly impressive and outcrops many places. 378 00:22:21,307 --> 00:22:26,546 If you've driven down, this is highway 14, junction with 35 379 00:22:26,546 --> 00:22:31,418 right south of La Crosse. That corner, this is all Wonewoc 380 00:22:31,418 --> 00:22:35,321 in this section. It's a very pure, if you go up 381 00:22:35,321 --> 00:22:38,158 and pick out a handful of it or break some of it as you can in 382 00:22:38,158 --> 00:22:44,230 this road cut which is just to the east on I90 over near west 383 00:22:44,230 --> 00:22:48,535 Salem, you can just pick this stuff up and break it up. 384 00:22:48,535 --> 00:22:51,104 It's friable enough that you can break it up with your hand, and 385 00:22:51,104 --> 00:22:53,740 it looks like just little tiny marbles if you look at it 386 00:22:53,740 --> 00:22:56,743 through a hand lens. But this is what the Wonewoc 387 00:22:56,743 --> 00:22:59,612 looks like. It's capped over on top by what 388 00:22:59,612 --> 00:23:02,182 we call the a tunnel city formation which is a very fine 389 00:23:02,182 --> 00:23:07,120 grained what we call glauconitic sandstone. 390 00:23:07,120 --> 00:23:09,622 Has a lot of phosphatic material in it. 391 00:23:09,622 --> 00:23:12,525 This material actually is a very good material if you don't have 392 00:23:12,525 --> 00:23:15,095 too much of it to give you problems. 393 00:23:15,095 --> 00:23:19,232 It's overburden is very good to use in your reclamation of a 394 00:23:19,232 --> 00:23:22,902 mine that you're trying to take out the Wonewoc. 395 00:23:24,104 --> 00:23:26,706 One of the best examples of a mine of the Wonewoc is the 396 00:23:26,706 --> 00:23:29,309 Badger operation in Taylor which, as I said, has been in 397 00:23:29,309 --> 00:23:31,644 business for many years. This is an old photo. 398 00:23:31,644 --> 00:23:34,047 If you take a look at it today, there's about twice as many 399 00:23:34,047 --> 00:23:36,916 buildings in here. One thing this operation has 400 00:23:36,916 --> 00:23:39,252 done, it's been here for many, many years, it's won many awards 401 00:23:39,252 --> 00:23:42,455 for reclamation, they've done a very good job of restoring the 402 00:23:42,455 --> 00:23:46,393 site. What they basically do in their 403 00:23:46,393 --> 00:23:50,764 mining operation is they wash this stuff down in a sump. 404 00:23:50,764 --> 00:23:55,035 They basically will bulldoze it or rip it because it's very 405 00:23:55,035 --> 00:23:57,570 soft. They don't have to blast much on 406 00:23:57,570 --> 00:24:00,273 it. Wash it down into a sump, pump 407 00:24:00,273 --> 00:24:03,243 it up in a slurry to the top of a tower like this where it goes 408 00:24:03,243 --> 00:24:06,680 through a process of washing through different screens and 409 00:24:06,680 --> 00:24:10,784 sieves and then it's dewatered in a series of a cyclone 410 00:24:10,784 --> 00:24:13,787 dewaterers down at the bottom and that's how they sort and 411 00:24:13,787 --> 00:24:19,526 classify the sand. The Jordan sandstone is another 412 00:24:19,526 --> 00:24:21,861 important formation out in western Wisconsin. 413 00:24:21,861 --> 00:24:24,330 A little bit younger than the Wonewoc. 414 00:24:24,330 --> 00:24:27,901 This is the Jordan right below the Prairie du Chien limestone. 415 00:24:27,901 --> 00:24:30,670 This is in a cut south of the town of Arcadia over in 416 00:24:30,670 --> 00:24:35,608 Trempealeau County. Jordan is a very good material, 417 00:24:35,608 --> 00:24:39,646 has the coarsest sand in it, highly desirable but you can 418 00:24:39,646 --> 00:24:43,817 have generally a good cap of limestone on top that, unless 419 00:24:43,817 --> 00:24:48,321 that's been quarried away as it has part way in this case, you 420 00:24:48,321 --> 00:24:50,957 have a hard time getting at that material unless you go in from 421 00:24:50,957 --> 00:24:54,661 an underground. And a lot of the sand companies 422 00:24:54,661 --> 00:24:57,731 are very, very leery of dealing with underground mining even 423 00:24:57,731 --> 00:25:00,200 though we've had a couple successful operations for 40 424 00:25:00,200 --> 00:25:03,670 years over in Pierce County. Problems you can get into in 425 00:25:03,670 --> 00:25:06,673 there. You can get cement. 426 00:25:06,673 --> 00:25:09,709 This is a silica cemented area within that. 427 00:25:09,709 --> 00:25:12,812 That's just as hard as the quartz site up at Baraboo. 428 00:25:12,812 --> 00:25:16,182 And if you run into this kind of material in a sand mine, this is 429 00:25:16,182 --> 00:25:21,988 going to give you no end of grief. 430 00:25:21,988 --> 00:25:24,591 And I'm very surprised that a lot of companies that I'm aware 431 00:25:24,591 --> 00:25:27,127 of that have come in and started looking and prospecting for sand 432 00:25:27,127 --> 00:25:30,196 in western Wisconsin, you'll ask them and they haven't done much 433 00:25:30,196 --> 00:25:33,566 drilling, they haven't done much evaluation work. 434 00:25:33,566 --> 00:25:36,903 They've just gone in here, look for unzoned town, basically, 435 00:25:36,903 --> 00:25:39,205 where they don't have to go through a lot of hassle, bought 436 00:25:39,205 --> 00:25:43,376 up property and gone to the county to get their reclamation 437 00:25:43,376 --> 00:25:47,480 permit which is required under law, and otherwise started out 438 00:25:47,480 --> 00:25:51,818 and are digging sand and hauling it down to Minnesota or wherever 439 00:25:51,818 --> 00:25:56,022 they've got a rail connection and mining it without really 440 00:25:56,022 --> 00:25:58,525 thinking too much about that. And I think we're going to have 441 00:25:58,525 --> 00:26:01,194 some in for a surprise one of these days. 442 00:26:01,194 --> 00:26:03,663 This is the underground mine in the Jordan over at Maiden Rock 443 00:26:03,663 --> 00:26:09,402 in Pierce County. The old mine at Bay City, which 444 00:26:09,402 --> 00:26:12,505 was recently reopened, was closed for a while and 445 00:26:12,505 --> 00:26:15,775 abandoned, and what they did basically was put in a culvert 446 00:26:15,775 --> 00:26:19,045 pipe with grading on there, and bats love to go in and hibernate 447 00:26:19,045 --> 00:26:22,415 in these things. And the bats are in here in the 448 00:26:22,415 --> 00:26:25,251 active mine down at Maiden Rock at the time. 449 00:26:25,251 --> 00:26:28,154 They go back off into corners that no one, where there's not 450 00:26:28,154 --> 00:26:30,290 much operation. It doesn't seem to bother them a 451 00:26:30,290 --> 00:26:32,726 bit. But basically the entire 452 00:26:32,726 --> 00:26:35,261 operation is carried on underground in here, in terms of 453 00:26:35,261 --> 00:26:39,165 the wet sieving process classification. 454 00:26:39,165 --> 00:26:43,370 It's pumped out in a series of pipes to the dry plant which is 455 00:26:43,370 --> 00:26:47,307 a drying kiln located right out here. 456 00:26:47,307 --> 00:26:50,443 To add it back into the mine is right back in here. 457 00:26:50,443 --> 00:26:53,413 If you go down, especially to this place again today, you'll 458 00:26:53,413 --> 00:26:55,648 see there's all kind of buildings around. 459 00:26:55,648 --> 00:26:57,951 It's expanded considerably since the boom started. 460 00:26:57,951 --> 00:27:00,520 But it's dried in this area in a kiln. 461 00:27:00,520 --> 00:27:02,889 And there's a conveyor system that takes it right under 462 00:27:02,889 --> 00:27:05,091 highway 35 where they can load directly on to the northern 463 00:27:05,091 --> 00:27:08,428 Santa Fe. So sand producing areas in 464 00:27:08,428 --> 00:27:11,164 western counties, let's just kind of sum this up. 465 00:27:11,164 --> 00:27:13,299 We've got Bay City and Maiden Rock, two old underground mines 466 00:27:13,299 --> 00:27:16,002 over here. One up in Menomonie. 467 00:27:16,002 --> 00:27:20,907 Taylor and the Wonewoc down at Jackson County. 468 00:27:20,907 --> 00:27:24,010 We also have a big mine located up near where the power plant is 469 00:27:24,010 --> 00:27:26,646 just south of Portage. It's owned by the Unimin 470 00:27:26,646 --> 00:27:30,083 Corporation. Portage and the Menomonie mines 471 00:27:30,083 --> 00:27:33,987 both are in Wonewoc, and the Wonewoc has a little more finer 472 00:27:33,987 --> 00:27:38,124 material in it but it's also very pure quartz. 473 00:27:38,124 --> 00:27:41,895 So they've been able, in both of these mines, to partner with 474 00:27:41,895 --> 00:27:45,732 Cardinal Glass Company, which is a major glass producer, has a 475 00:27:45,732 --> 00:27:49,235 plant in Portage and also one up in Menomonie, the material they 476 00:27:49,235 --> 00:27:53,273 can't use for hydrofrac sand, they can sell to the glass 477 00:27:53,273 --> 00:27:55,742 company. It's used as a basis for making 478 00:27:55,742 --> 00:27:56,876 glass. 479 00:28:02,682 --> 00:28:04,851 The other formation that's starting to show a little bit of 480 00:28:04,851 --> 00:28:07,053 interest is the Mt. Simon sandstone. 481 00:28:07,053 --> 00:28:09,356 And I'm a little bit surprised at this. 482 00:28:09,356 --> 00:28:12,025 This is the base of Mt. Simon right here, resting on the 483 00:28:12,025 --> 00:28:15,095 Precambrian, which is weathered granite, up at Chippewa Falls. 484 00:28:15,095 --> 00:28:18,365 Much of the lower part of Mt. Simon is full the clay streaks, 485 00:28:18,365 --> 00:28:22,302 it's got very pebbly material in it, but basically is pure enough 486 00:28:22,302 --> 00:28:25,271 quartz that they can sort this stuff out by the sieving process 487 00:28:25,271 --> 00:28:28,842 and whatever and concentrated material that they can use for 488 00:28:28,842 --> 00:28:33,146 sand. And once you get farther beyond 489 00:28:33,146 --> 00:28:36,383 the edge of the outcrop area of the Wonewoc, sort of up into 490 00:28:36,383 --> 00:28:40,020 central Wisconsin, this is the formation that's available to 491 00:28:40,020 --> 00:28:42,522 use. And when you hear about 492 00:28:42,522 --> 00:28:45,658 operations up in Wood County and areas like that, northern Clark 493 00:28:45,658 --> 00:28:48,028 County, they're in the Mt. Simon. 494 00:28:50,263 --> 00:28:55,535 Another type of operation that we're seeing and started a 495 00:28:55,535 --> 00:28:58,104 couple years ago, basically this is a processing plant over in 496 00:28:58,104 --> 00:29:01,207 the Tomah area, and you can see these if you drive up highway 94 497 00:29:01,207 --> 00:29:04,411 and you look north, about Oakdale and that area, you'll 498 00:29:04,411 --> 00:29:08,982 see these great big piles of sand, big piles of white sand. 499 00:29:08,982 --> 00:29:14,054 And a lot of this stuff is actually from waste material 500 00:29:14,054 --> 00:29:17,857 produced by cranberry growers. As they're expanding their 501 00:29:17,857 --> 00:29:20,827 cranberry bogs and they're excavating out these big ponds 502 00:29:20,827 --> 00:29:23,797 for water storage, they're coming up with a lot of sand. 503 00:29:23,797 --> 00:29:27,100 Well, a smart entrepreneur from Texas came up here from a 504 00:29:27,100 --> 00:29:30,337 company called Proppant Specialists, and he decided I 505 00:29:30,337 --> 00:29:35,141 could go in and buy this sand, I wouldn't have to mine it so I 506 00:29:35,141 --> 00:29:37,577 wouldn't have to worry about getting any kind of permits to 507 00:29:37,577 --> 00:29:42,349 mine, I wouldn't have to deal with mine safety and MSHA, and I 508 00:29:42,349 --> 00:29:45,318 wouldn't even have to get a NR 135 reclamation permit because 509 00:29:45,318 --> 00:29:47,754 I'm just buying agricultural waste here. 510 00:29:47,754 --> 00:29:51,458 And so he set up a plant and actually all the major producers 511 00:29:51,458 --> 00:29:53,927 in the state at the time hated him for it but it's a pretty 512 00:29:53,927 --> 00:29:56,463 good business plan. It's kind of clever. 513 00:29:56,463 --> 00:29:59,532 They still are producing a lot of sand out of this. 514 00:29:59,532 --> 00:30:02,369 And this is in part alluvial material and it's in part 515 00:30:02,369 --> 00:30:05,472 bedrock material. It would be Mt. Simon 516 00:30:05,472 --> 00:30:08,808 bedrock in this area, but if you look around some of the 517 00:30:08,808 --> 00:30:11,945 high hills in there, like the bluffs you see up at Camp 518 00:30:11,945 --> 00:30:15,849 Douglas area and around there, these are big bluffs of 519 00:30:15,849 --> 00:30:20,153 Galesville or Wonewoc sandstone, and they're sitting out there on 520 00:30:20,153 --> 00:30:22,822 a plain of Mt. Simon, and this stuff was all 521 00:30:22,822 --> 00:30:26,526 reworked and weathered during the glacial times when that area 522 00:30:26,526 --> 00:30:29,195 was filled with Glacial Lake Wisconsin. 523 00:30:29,195 --> 00:30:32,098 And Glacial Lake Wisconsin on the eastern side, the sands over 524 00:30:32,098 --> 00:30:35,869 in, say, Portage, Adams County, that area, are all full of 525 00:30:35,869 --> 00:30:38,738 glacial material and not suitable, but since this stuff 526 00:30:38,738 --> 00:30:42,509 is all locally derived and is right there and is already very 527 00:30:42,509 --> 00:30:47,814 much disaggregated soft material, it's a natural for 528 00:30:47,814 --> 00:30:51,484 development. And we've had probably about 529 00:30:51,484 --> 00:30:56,823 five or six companies come in looking at developing sand mines 530 00:30:56,823 --> 00:31:01,127 and plants within using this type of material in particularly 531 00:31:01,127 --> 00:31:06,132 the area of Monroe County. So let's take a look at the 532 00:31:06,132 --> 00:31:09,235 St. Peter sandstone. This is the youngest of the 533 00:31:09,235 --> 00:31:11,504 bunch. The St. Peter in our area 534 00:31:11,504 --> 00:31:14,074 up here is a little bit finer grain than it 535 00:31:14,074 --> 00:31:16,643 is in areas like down in Illinois. 536 00:31:16,643 --> 00:31:19,813 It hasn't really received much interest as far as being used 537 00:31:19,813 --> 00:31:23,249 for frac sand. The big production areas are 538 00:31:23,249 --> 00:31:28,054 over here in Green Lake County. There used to be several old 539 00:31:28,054 --> 00:31:31,424 abandoned operations. There's a big one, Badger's 540 00:31:31,424 --> 00:31:35,662 Fairwater plant over here at a place called Utley near 541 00:31:35,662 --> 00:31:39,132 Fairwater on the border with Fond du Lac County. 542 00:31:39,132 --> 00:31:43,870 There's Gelhar Company has a mine at Markesan. 543 00:31:43,870 --> 00:31:49,009 There's a number of old abandoned foundry sand 544 00:31:49,009 --> 00:31:52,012 operations west of New Glarus and down near Hanover in Rock 545 00:31:52,012 --> 00:31:56,616 County. 546 00:32:00,820 --> 00:32:03,490 Out here west of Madison and Dane County, there was a large 547 00:32:03,490 --> 00:32:07,027 foundry sand mine out there. But a lot of St. Peter 548 00:32:07,027 --> 00:32:09,863 is exposed down here in the southern part of the state. 549 00:32:09,863 --> 00:32:12,866 In general, the interest in St. Peter has been, as I say, for a 550 00:32:12,866 --> 00:32:15,902 foundry sand because it's not coarse enough grain and it 551 00:32:15,902 --> 00:32:19,539 doesn't have quite as much compressive strength as the 552 00:32:19,539 --> 00:32:23,576 Cambrian sands so it's not as suitable for a frac sand, but 553 00:32:23,576 --> 00:32:29,616 they're having, right now, a shortage of foundry sands 554 00:32:29,616 --> 00:32:32,419 because many of the producers in other areas that could convert 555 00:32:32,419 --> 00:32:35,288 over to producing frac sand because the market has been so 556 00:32:35,288 --> 00:32:37,824 hot in the last year have given up on production of foundry 557 00:32:37,824 --> 00:32:41,561 sand. So we're really getting a lot of 558 00:32:41,561 --> 00:32:44,798 demand for foundry sand over in this part of the state. 559 00:32:44,798 --> 00:32:47,701 A number of companies are looking at expanding their 560 00:32:47,701 --> 00:32:50,170 resources. And you wonder, well, with a 561 00:32:50,170 --> 00:32:53,440 down economy, why is there such a big deal for foundry sand? 562 00:32:53,440 --> 00:32:56,743 We're the manhole cover capitol of the world here in Wisconsin. 563 00:32:56,743 --> 00:32:59,879 You see all the Nina Foundry and Brillion Iron Works out there on 564 00:32:59,879 --> 00:33:04,384 every manhole and drain out there in the streets. 565 00:33:04,384 --> 00:33:10,023 But basically one of the company people was telling me that 566 00:33:10,023 --> 00:33:13,727 companies like Oshkosh Truck that have gotten these big 567 00:33:13,727 --> 00:33:16,229 multimillion dollar contracts from the government to produce 568 00:33:16,229 --> 00:33:18,965 armored vehicles and such for the military are using a lot of 569 00:33:18,965 --> 00:33:22,168 castings, and that's one of the sources that there's a shortage 570 00:33:22,168 --> 00:33:26,439 of actual good foundry sand on the market right now. 571 00:33:29,743 --> 00:33:32,212 So St. Peter, this is what St. Peter 572 00:33:32,212 --> 00:33:34,447 basically looks like. Down in Iowa County you can see 573 00:33:34,447 --> 00:33:36,549 these big bluffs in a lot of places. 574 00:33:36,549 --> 00:33:39,586 Down south of Madison it's believed that it was actually a 575 00:33:39,586 --> 00:33:43,523 dune sand. Aeolian origin in some areas in 576 00:33:43,523 --> 00:33:46,993 here. You'll see these very big broad 577 00:33:46,993 --> 00:33:49,396 cross beds. Generally, the St. Peter 578 00:33:49,396 --> 00:33:52,465 is a very soft material. You can walk up to an outcrop, 579 00:33:52,465 --> 00:33:56,436 pull it out. It's frosted very, it looks like 580 00:33:56,436 --> 00:33:59,272 sugar when you pick it up. Very fine grained and very 581 00:33:59,272 --> 00:34:02,742 rounded. But it doesn't quite have the 582 00:34:02,742 --> 00:34:05,278 characteristics for frac sand that the old Cambrian sandstones 583 00:34:05,278 --> 00:34:08,081 do. One of our bigger operations of 584 00:34:08,081 --> 00:34:11,017 the St. Peter is up at the Badger 585 00:34:11,017 --> 00:34:14,421 Fairwater plant. Basically, there they're doing 586 00:34:14,421 --> 00:34:19,225 entirely hydraulic mining. They basically push sand or 587 00:34:19,225 --> 00:34:22,862 disaggregated St. Peter sandstone down into a sump 588 00:34:22,862 --> 00:34:26,299 and suck it up the same way as they do over at Taylor, pump 589 00:34:26,299 --> 00:34:29,636 that up to a plant where it goes through and is processed and 590 00:34:29,636 --> 00:34:33,473 then put into stockpiles and shipped for delivery primarily 591 00:34:33,473 --> 00:34:37,911 to the foundry industry. St. Peter 592 00:34:37,911 --> 00:34:40,413 is a very difficult formation to work, whereas over 593 00:34:40,413 --> 00:34:43,783 in the west, the Jordan and the Wonewoc are fairly uniform 594 00:34:43,783 --> 00:34:46,586 thickness. The St. Peter 595 00:34:46,586 --> 00:34:49,255 can go, it was formed in channels that were cut into the 596 00:34:49,255 --> 00:34:53,193 underlying Prairie du Chien limestone, and it can actually 597 00:34:53,193 --> 00:34:57,731 vary from nothing here in this quarry down at Markesan in 598 00:34:57,731 --> 00:35:00,934 southern Green Lake County. This is a Prairie du Chien 599 00:35:00,934 --> 00:35:03,970 formation down here. Platteville formation above. 600 00:35:03,970 --> 00:35:08,842 That little rusty sort of line horizon in there is St. Peter. 601 00:35:08,842 --> 00:35:15,482 Five miles north of there this is the AF Gelhar Sand plant and 602 00:35:15,482 --> 00:35:21,187 mine just north of Markesan, and he has over 200 feet of material 603 00:35:21,187 --> 00:35:25,158 here that he's mining for foundry sand. 604 00:35:25,158 --> 00:35:28,194 Once you get down to the base of the St. Peter, 605 00:35:28,194 --> 00:35:30,397 it's pretty easy to tell when you're running out of it 606 00:35:30,397 --> 00:35:33,400 because you get into a very red shale which is just reworked 607 00:35:33,400 --> 00:35:38,071 material from that weathering surface on the top of the 608 00:35:38,071 --> 00:35:43,176 Prairie du Chien before the St. Peter was actually deposited. 609 00:35:43,176 --> 00:35:47,414 So, what are the prospects for sand mining in south western 610 00:35:47,414 --> 00:35:51,017 Wisconsin? Right now I'm getting ready for 611 00:35:51,017 --> 00:35:54,587 Friday. I'm going down for a meeting 612 00:35:54,587 --> 00:35:56,990 with the Lower Wisconsin Riverway Commission is having a 613 00:35:56,990 --> 00:36:00,360 meeting down in Spring Green in which we're going to talk about 614 00:36:00,360 --> 00:36:03,496 potential for sand development down here in the lower Wisconsin 615 00:36:03,496 --> 00:36:09,369 valley. The Jordan is exposed in a lot 616 00:36:09,369 --> 00:36:14,908 of the bluffs along these valleys by Boscobel, areas stuff 617 00:36:14,908 --> 00:36:17,444 as that. St. Peter is shown in that dark 618 00:36:17,444 --> 00:36:22,315 green color, potential is still down there. 619 00:36:22,315 --> 00:36:24,984 One good thing about it, they have the service of that 620 00:36:24,984 --> 00:36:29,856 Wisconsin central line that goes west of Madison down to bridge 621 00:36:29,856 --> 00:36:33,560 port along the river, and this has been a key to getting people 622 00:36:33,560 --> 00:36:37,897 thinking about development. There's other issues down here 623 00:36:37,897 --> 00:36:41,134 in terms of preserving the riverway and various aesthetic 624 00:36:41,134 --> 00:36:45,839 issues, and I'm not sure just where this is going to go, but 625 00:36:45,839 --> 00:36:48,808 there have been some serious inquiries from some companies as 626 00:36:48,808 --> 00:36:52,312 to what the resources are down here and a number of landowners 627 00:36:52,312 --> 00:36:55,148 have been approached. Much of the area of south 628 00:36:55,148 --> 00:36:58,518 western Wisconsin, which exposes a lot of St. Peter 629 00:36:58,518 --> 00:37:01,087 sandstone in many of the valleys down here in the 630 00:37:01,087 --> 00:37:05,792 Kickapoo and Platte Rivers and various others, is not 631 00:37:05,792 --> 00:37:13,833 accessible because the railroads basically ended in, used to have 632 00:37:13,833 --> 00:37:16,169 rails through much of that area but it ends at Monroe at this 633 00:37:16,169 --> 00:37:18,738 time. I wouldn't doubt that there 634 00:37:18,738 --> 00:37:21,007 would be some interest in development, say, in Rock and 635 00:37:21,007 --> 00:37:26,012 eastern Green County. Taking a closer look at Iowa 636 00:37:26,012 --> 00:37:29,949 County. This is map recently completed. 637 00:37:29,949 --> 00:37:34,287 There's Lone Rock, Spring Green. The Jordan outcrop is shown. 638 00:37:34,287 --> 00:37:38,091 Everything else has been shown in the tan color here in the 639 00:37:38,091 --> 00:37:41,161 rest of the formation. The Jordan outcrop area is shown 640 00:37:41,161 --> 00:37:44,097 in that red color which indicates there's a lot of it 641 00:37:44,097 --> 00:37:46,599 available up to down these valleys. 642 00:37:46,599 --> 00:37:51,037 And once you get on top, the St. Peter is shown in the green. 643 00:37:51,037 --> 00:37:54,074 So there's definitely potential resource down there. 644 00:37:54,074 --> 00:37:57,510 So let's look at some of the issues that surround sand mining 645 00:37:57,510 --> 00:38:01,014 today and just where we're going with it. 646 00:38:01,014 --> 00:38:05,785 Some of the advantages that you can't ignore: local jobs and 647 00:38:05,785 --> 00:38:09,389 economic growth. There's probably an average of 648 00:38:09,389 --> 00:38:12,425 20 people associated or more with working in one of these 649 00:38:12,425 --> 00:38:16,463 mines, 20-30 jobs. Quite a lot of jobs in the 650 00:38:16,463 --> 00:38:19,065 construction industry right now, particularly up in Chippewa 651 00:38:19,065 --> 00:38:21,835 Valley and areas like that and constructing some of the bigger, 652 00:38:21,835 --> 00:38:26,239 newer plants. The demand for natural gas as a 653 00:38:26,239 --> 00:38:29,843 clean fuel, I think, is going to be around for a while. 654 00:38:29,843 --> 00:38:32,212 The time it will take us to phase out petroleum, even with 655 00:38:32,212 --> 00:38:35,482 our best intentions, if we want to get away from petroleum based 656 00:38:35,482 --> 00:38:38,551 fuels, I don't care what you say, we're not going to be able 657 00:38:38,551 --> 00:38:42,856 to do it overnight, and there's going to be an interest to 658 00:38:42,856 --> 00:38:47,494 develop our own resources here. So I think, number one, the 659 00:38:47,494 --> 00:38:52,999 increasing use of natural gas as a fuel for generation of 660 00:38:52,999 --> 00:38:57,637 electricity to replace coal is something that we've got not a 661 00:38:57,637 --> 00:39:00,940 whole lot of choices, burn more coal, build more nukes, whatever 662 00:39:00,940 --> 00:39:07,247 else, but gas has proven to be a good, clean fuel. 663 00:39:07,247 --> 00:39:10,550 We're looking 5-10 years ago at importing liquified petroleum 664 00:39:10,550 --> 00:39:16,022 gas from the Middle East. Today, with this technology and 665 00:39:16,022 --> 00:39:18,625 some of those basins out in the west, we have the potential of 666 00:39:18,625 --> 00:39:21,561 actually being self-sufficient in terms of our natural gas 667 00:39:21,561 --> 00:39:24,964 supply. 668 00:39:28,134 --> 00:39:30,470 Wisconsin has a hundred-year-plus history of 669 00:39:30,470 --> 00:39:33,006 industrial sand mining. We've been mining sand, as I 670 00:39:33,006 --> 00:39:36,276 say, for the foundry industry probably since the mid-19th 671 00:39:36,276 --> 00:39:40,780 century with very few environmental or any other kind 672 00:39:40,780 --> 00:39:45,585 of problems. And when we compare sand mining 673 00:39:45,585 --> 00:39:49,522 to other types of mining, basically industrial sand mining 674 00:39:49,522 --> 00:39:52,258 has a minimum environmental impact. 675 00:39:52,258 --> 00:39:57,263 Sand mines are among the easier types of operations to reclaim. 676 00:39:57,263 --> 00:39:59,532 If you've heard a little bit about the iron mine proposed up 677 00:39:59,532 --> 00:40:04,537 north, that would be a definite contrast in terms of ease of 678 00:40:04,537 --> 00:40:10,777 reclamation, but sand mining, basically, are fairly easy to 679 00:40:10,777 --> 00:40:14,080 reclaim back into agricultural land or wild life habit, 680 00:40:14,080 --> 00:40:18,485 whatever, and reclamation is now required by law in Wisconsin. 681 00:40:18,485 --> 00:40:24,157 There's no way that you can mine without ultimately reclaiming. 682 00:40:24,157 --> 00:40:26,993 Potential problems and issues that are out there, and you hear 683 00:40:26,993 --> 00:40:31,064 these raised a lot. Groundwater usage and potential 684 00:40:31,064 --> 00:40:33,900 for groundwater contamination. 685 00:40:36,002 --> 00:40:39,372 You hear various concerns about the amount of water that some of 686 00:40:39,372 --> 00:40:42,776 these operations use to process the sand. 687 00:40:42,776 --> 00:40:47,013 As I'll say a little bit later, they're very efficient in terms 688 00:40:47,013 --> 00:40:51,384 of how they recycle the water. Air quality is an issue that 689 00:40:51,384 --> 00:40:54,220 there's been a lot of information and a lot of 690 00:40:54,220 --> 00:40:57,390 misinformation put out about. Fugitive dust, risk from 691 00:40:57,390 --> 00:41:01,928 breathing crystalline silica, these are all real things to 692 00:41:01,928 --> 00:41:07,167 consider, but I think in the end we'll find they're very minor 693 00:41:07,167 --> 00:41:13,640 when compared to other issues involved. 694 00:41:13,640 --> 00:41:16,643 A huge one, which nobody really anticipated and has caused an 695 00:41:16,643 --> 00:41:19,813 awful lot of concern, particularly political concern 696 00:41:19,813 --> 00:41:23,917 among the town associations, county associations, various 697 00:41:23,917 --> 00:41:27,020 local governments, is truck traffic. 698 00:41:27,020 --> 00:41:30,490 Up until this time, all of our big operations, Badger, 699 00:41:30,490 --> 00:41:35,395 operations over along the river, the underground mines, the mines 700 00:41:35,395 --> 00:41:38,798 up in the east in the St. Peter have all been based on the 701 00:41:38,798 --> 00:41:42,702 rail and rail transport. Now we're looking at a lot of 702 00:41:42,702 --> 00:41:45,739 operations in places like Chippewa and Barron County where 703 00:41:45,739 --> 00:41:50,543 they build a centralized plant and are going to truck this 704 00:41:50,543 --> 00:41:55,548 material in from a series of different mines out here. 705 00:41:55,548 --> 00:41:59,152 And there's a large plant by a company called EOG that's just 706 00:41:59,152 --> 00:42:01,721 been built on the north side of Chippewa Falls, and they're 707 00:42:01,721 --> 00:42:05,592 anticipating a truck a minute hauling into that plant during 708 00:42:05,592 --> 00:42:09,195 their producing season. It's going through a roundabout, 709 00:42:09,195 --> 00:42:12,098 one of my favorite traffic control devices, on the north 710 00:42:12,098 --> 00:42:17,437 side of Chippewa Falls at highway 124 and S. And this is 711 00:42:17,437 --> 00:42:20,006 going to be one a minute of these trucks going in there and 712 00:42:20,006 --> 00:42:23,309 empties coming back. This is posing problems that 713 00:42:23,309 --> 00:42:26,446 we've never had to deal with before which is one thing that's 714 00:42:26,446 --> 00:42:29,749 going to be a lot of concern. Blasting and potential damage, 715 00:42:29,749 --> 00:42:32,919 everybody's worried about that, but there's very little blasting 716 00:42:32,919 --> 00:42:36,389 involved in sand mining. Noise levels, hours of 717 00:42:36,389 --> 00:42:40,193 operation, these are things that where you do have zoning are 718 00:42:40,193 --> 00:42:42,796 dealt with in the conditional use permit. 719 00:42:42,796 --> 00:42:45,598 Reclamation and subsequent land use, there's always some 720 00:42:45,598 --> 00:42:48,168 disagreements about that but there's no disagreement about 721 00:42:48,168 --> 00:42:52,105 reclamation because reclamation is a requirement by law in the 722 00:42:52,105 --> 00:42:54,774 state of Wisconsin. Any property before it can be 723 00:42:54,774 --> 00:42:58,244 even opened and started is required to have a reclamation 724 00:42:58,244 --> 00:43:01,481 plan in place. So how serious are the problems 725 00:43:01,481 --> 00:43:05,151 and how do we deal with them? Groundwater use, DNR regulates 726 00:43:05,151 --> 00:43:08,455 high capacity wells very closely, and high capacity wells 727 00:43:08,455 --> 00:43:12,659 are wells that draw anything more than 70 gallons a minute. 728 00:43:12,659 --> 00:43:15,495 This includes most industrial wells and irrigation wells, such 729 00:43:15,495 --> 00:43:19,666 things as that. Permits are required to get a 730 00:43:19,666 --> 00:43:25,405 fairly extensive review. I took part in a program up in 731 00:43:25,405 --> 00:43:29,743 Barron County talking to their board and Laura Lynch from the 732 00:43:29,743 --> 00:43:32,879 DNR who does a lot of the approval work gave a very good 733 00:43:32,879 --> 00:43:36,516 summary of the procedures that go through and evaluating the 734 00:43:36,516 --> 00:43:39,853 effects on trout streams and surface water and whatever else 735 00:43:39,853 --> 00:43:43,723 in their municipal water supplies, so there's quite a bit 736 00:43:43,723 --> 00:43:47,160 of review that goes into the water process. 737 00:43:47,160 --> 00:43:51,364 When you look at it, I was involved up in Dune County and 738 00:43:51,364 --> 00:43:54,868 permitting the original mine east of Menomonie and people 739 00:43:54,868 --> 00:43:57,604 were looking out there and saying if this thing goes in 740 00:43:57,604 --> 00:44:00,240 there, they're going to dry up everything we've got, they're 741 00:44:00,240 --> 00:44:03,176 going to take all of our water. And you can see out from the 742 00:44:03,176 --> 00:44:05,679 window probably about eight big center pivot irrigation wells 743 00:44:05,679 --> 00:44:08,782 out there. And I said every time a farmer 744 00:44:08,782 --> 00:44:11,885 turns one of those on, he's going to be using more water in 745 00:44:11,885 --> 00:44:14,854 an hour than these guys are going to use in probably a day 746 00:44:14,854 --> 00:44:19,025 or more or closer to a week's time. 747 00:44:19,025 --> 00:44:22,529 But anyway, impact of private wells, this is something that 748 00:44:22,529 --> 00:44:25,031 always an issue, it's an issue with aggregate mining, whatever 749 00:44:25,031 --> 00:44:28,902 you're doing. We've had very good success in 750 00:44:28,902 --> 00:44:31,738 the aggregate industry with companies and especially the 751 00:44:31,738 --> 00:44:34,641 larger companies that come in who'll agree to do a well survey 752 00:44:34,641 --> 00:44:37,410 and basically guarantee the water supply for their closer 753 00:44:37,410 --> 00:44:40,146 neighbors. If something goes wrong that 754 00:44:40,146 --> 00:44:42,916 they cause their water supply to dry up or they contaminate it or 755 00:44:42,916 --> 00:44:46,319 whatever, they'll drill them a new well. 756 00:44:46,319 --> 00:44:49,356 This time of arrangement has really worked very successfully. 757 00:44:49,356 --> 00:44:52,058 We've had a number of cases over in eastern Wisconsin with deep 758 00:44:52,058 --> 00:44:56,930 limestone mines. This has worked quite well. 759 00:44:56,930 --> 00:44:59,466 And when you think about it when a company comes in and is going 760 00:44:59,466 --> 00:45:02,335 to invest millions of dollars in a operation like this, it's a 761 00:45:02,335 --> 00:45:06,239 very small amount to avoid future problems with your 762 00:45:06,239 --> 00:45:10,176 neighbors. Water quality, where runoff and 763 00:45:10,176 --> 00:45:13,346 surface water impact is regulated by the DNR just like 764 00:45:13,346 --> 00:45:16,282 it is for any other kind of construction site or mining 765 00:45:16,282 --> 00:45:19,586 operation. Sand mining really doesn't have 766 00:45:19,586 --> 00:45:21,955 much more potential for groundwater impact than a 767 00:45:21,955 --> 00:45:24,357 limestone quarry or a gravel pit. 768 00:45:24,357 --> 00:45:28,094 It's just maybe a larger scale operation but in terms of any 769 00:45:28,094 --> 00:45:32,298 kind of nasty materials that are used or anything, not much 770 00:45:32,298 --> 00:45:37,003 difference. One issue that's of some concern 771 00:45:37,003 --> 00:45:39,673 is the potential contamination from flocculants that are used 772 00:45:39,673 --> 00:45:42,676 in the settling ponds because one of the things they do is 773 00:45:42,676 --> 00:45:44,911 they recycle a lot of their water and they have to settle 774 00:45:44,911 --> 00:45:47,580 out the fines. So they add flocculants, I think 775 00:45:47,580 --> 00:45:53,086 it's polyacrylamides, and nobody is really quite sure where this 776 00:45:53,086 --> 00:45:55,722 stuff goes or what happens to it. 777 00:45:55,722 --> 00:45:58,258 There's no specific regulations on it. 778 00:45:58,258 --> 00:46:02,762 But there's never been any problems on record with it, and 779 00:46:02,762 --> 00:46:06,332 if you think about it, many of those same chemicals, if you 780 00:46:06,332 --> 00:46:09,769 drink Milwaukee's water, that's the same thing they're using in 781 00:46:09,769 --> 00:46:15,442 that to basically settle out the sediment. 782 00:46:18,745 --> 00:46:23,116 Air quality issues are something that's really gotten to be a big 783 00:46:23,116 --> 00:46:26,720 issue in western Wisconsin. One thing about it, frac sand 784 00:46:26,720 --> 00:46:30,757 requires clean, round, unbroken grains. 785 00:46:30,757 --> 00:46:33,426 Process involves disaggregation and screening. 786 00:46:33,426 --> 00:46:36,563 It's usually done wet rather than any kind of grinding or 787 00:46:36,563 --> 00:46:39,199 crushing operation because the last thing you want to do is 788 00:46:39,199 --> 00:46:41,935 break grains, make them angular, then their not going to meet 789 00:46:41,935 --> 00:46:44,371 your specks. Frac sand plant will produce 790 00:46:44,371 --> 00:46:48,508 probably less angular crystalline silica dust than a 791 00:46:48,508 --> 00:46:51,911 quarry that crushes quartzite, say up at Baraboo or anywhere 792 00:46:51,911 --> 00:46:55,482 like that, or a gravel pit for that matter that dry crushes 793 00:46:55,482 --> 00:47:01,121 fairly coarse cobble material and does it without any 794 00:47:01,121 --> 00:47:05,759 particular dust control measures. 795 00:47:05,759 --> 00:47:11,531 Most plants are just a matter of a lot of the processing, as I 796 00:47:11,531 --> 00:47:14,734 say in the initial screening, is done wet in the first place. 797 00:47:14,734 --> 00:47:18,338 There are standard ways to minimize dust which is very 798 00:47:18,338 --> 00:47:21,508 important, good industry practices. 799 00:47:21,508 --> 00:47:24,678 Such as watering them down haul roads, paving roads, spraying 800 00:47:24,678 --> 00:47:29,382 conveyor belts, even installing wash baths for truck tires. 801 00:47:29,382 --> 00:47:31,718 This is a very successful technique that we've seen used 802 00:47:31,718 --> 00:47:35,422 in a lot of limestone quarries where tracking this dust 803 00:47:35,422 --> 00:47:39,359 material out on to a highway or something and then having 804 00:47:39,359 --> 00:47:41,861 traffic kick it up has caused all kind of problems. 805 00:47:41,861 --> 00:47:44,898 They build a shallow pan, maybe eight inches deep full of water 806 00:47:44,898 --> 00:47:48,468 that the trucks drive through, washes their wheels clean. 807 00:47:48,468 --> 00:47:53,106 They have no problems with it. But the DNR is very fussy in 808 00:47:53,106 --> 00:47:57,143 their air quality standards about controlling fugitive dust, 809 00:47:57,143 --> 00:48:00,246 and complaints about these kinds of things will generally result 810 00:48:00,246 --> 00:48:04,317 in the DNR coming in there and requiring some of these 811 00:48:04,317 --> 00:48:08,388 techniques be used. Most major operators do this as 812 00:48:08,388 --> 00:48:12,425 a matter of routine. For the actual workplace 813 00:48:12,425 --> 00:48:16,396 conditions, Mine Safety Administration and OSHA have 814 00:48:16,396 --> 00:48:22,702 very strict workplace standards and very tight restrictions on 815 00:48:22,702 --> 00:48:27,307 how much particulate silica can be in a cubic meter of air in 816 00:48:27,307 --> 00:48:33,613 the work environment. And if it's that clean at the 817 00:48:33,613 --> 00:48:36,282 site, you're probably not going to have a whole lot of problems 818 00:48:36,282 --> 00:48:40,720 at distances, although there's some probably necessary studies 819 00:48:40,720 --> 00:48:44,391 to be done to collect some of that data. 820 00:48:44,391 --> 00:48:46,659 Operating issues, really blasting, everybody is concerned 821 00:48:46,659 --> 00:48:49,162 about it. It's regulating by the 822 00:48:49,162 --> 00:48:51,398 Department of Commerce. If you've got a complaint, 823 00:48:51,398 --> 00:48:53,600 that's where you go. Blasting is used only to loosen 824 00:48:53,600 --> 00:48:56,069 material. I know of a number of companies 825 00:48:56,069 --> 00:48:58,938 that have used it to break up rock and loosen it a bit and 826 00:48:58,938 --> 00:49:02,208 then they go in there and basically drive a Cat back and 827 00:49:02,208 --> 00:49:04,978 forth a few times and get the stuff broken up enough that they 828 00:49:04,978 --> 00:49:10,350 can get it into the wash plant. But if it's too heavily cemented 829 00:49:10,350 --> 00:49:13,453 to where you've got to use a lot of powder to blast it, it's not 830 00:49:13,453 --> 00:49:17,691 even going to make specks for frac sand. 831 00:49:17,691 --> 00:49:21,895 The traffic operating schedule, road maintenance, these things 832 00:49:21,895 --> 00:49:25,198 are best handle on conditional use permit. 833 00:49:25,198 --> 00:49:28,034 But the problem is that an awful lot of places that mining 834 00:49:28,034 --> 00:49:30,670 companies will come into just because of the convenience have 835 00:49:30,670 --> 00:49:33,773 no zoning. I was talking about a town's 836 00:49:33,773 --> 00:49:38,945 association earlier this year and one of the executives there 837 00:49:38,945 --> 00:49:42,082 was saying a lot of these towns used to be very militant about 838 00:49:42,082 --> 00:49:45,719 this idea of we don't want zoning, we aren't going to have 839 00:49:45,719 --> 00:49:48,421 anybody telling us what we're going to do for our land use. 840 00:49:48,421 --> 00:49:50,924 We're not going to have anybody in here telling us we've got to 841 00:49:50,924 --> 00:49:53,693 keep it all as prime agriculture, whatever. 842 00:49:53,693 --> 00:49:56,296 But then as soon as somebody comes in and proposes a 500-acre 843 00:49:56,296 --> 00:50:00,266 sand mine, they start to sing a little bit different tune. 844 00:50:00,266 --> 00:50:05,839 But anyway, there's generally an opportunity to sit down, 845 00:50:05,839 --> 00:50:08,908 particularly with many of the bigger companies, and make some 846 00:50:08,908 --> 00:50:12,112 negotiations. Town of Howard up in Chippewa 847 00:50:12,112 --> 00:50:14,981 County is very successful at this and there's several others 848 00:50:14,981 --> 00:50:17,550 since that have done that. Reclamation. 849 00:50:17,550 --> 00:50:19,919 People think that these outfits can walk away afterward if 850 00:50:19,919 --> 00:50:22,989 something goes wrong. Reclamation is regulated under 851 00:50:22,989 --> 00:50:26,960 NR 135 in the Department of Natural Resources. 852 00:50:26,960 --> 00:50:30,296 Reclamation plan is subject to public comment and approval. 853 00:50:30,296 --> 00:50:33,433 You've got to have a public hearing associated with it. 854 00:50:33,433 --> 00:50:37,203 It is required to be submitted before you can ever turn a spade 855 00:50:37,203 --> 00:50:40,440 of dirt at one of these operations, and a company has to 856 00:50:40,440 --> 00:50:44,811 post financial assurance in the form of a bond that's an 857 00:50:44,811 --> 00:50:48,882 irrevocable bond. You can't say, well, some other 858 00:50:48,882 --> 00:50:52,085 creditor will take that when they go broke. 859 00:50:52,085 --> 00:50:55,955 No, it has to be specifically set aside for reclamation so 860 00:50:55,955 --> 00:50:59,059 that the county or the local government, whatever, is not 861 00:50:59,059 --> 00:51:01,661 going to get stuck with the cost of cleaning up a site. 862 00:51:01,661 --> 00:51:07,100 That has to be in place before any mining begins. 863 00:51:07,100 --> 00:51:10,503 The good news is that we've had a hundred-year history of sand 864 00:51:10,503 --> 00:51:13,873 mining with very few problems. Most environmental issues can be 865 00:51:13,873 --> 00:51:17,544 dealt with under existing regulations and by using 866 00:51:17,544 --> 00:51:21,815 existing technology and applying best industry standard 867 00:51:21,815 --> 00:51:25,819 practices. Many new mines now, this is the 868 00:51:25,819 --> 00:51:28,855 one that, as I said earlier, is really the problem that's 869 00:51:28,855 --> 00:51:32,592 causing troubles out there, rely on truck transport. 870 00:51:32,592 --> 00:51:34,961 This means traffic and safety issues, potential road 871 00:51:34,961 --> 00:51:38,131 maintenance issues need to be resolved. 872 00:51:38,131 --> 00:51:40,867 We're seeing some real progress among some of the western 873 00:51:40,867 --> 00:51:43,236 counties. There's even some that are 874 00:51:43,236 --> 00:51:46,706 trying to make an assessment on companies to help pay for the 875 00:51:46,706 --> 00:51:49,676 road costs. But the DOT is also very 876 00:51:49,676 --> 00:51:53,913 concerned about this too because it's putting a lot of extra wear 877 00:51:53,913 --> 00:51:57,884 and loading on to state roads. So there's quite a bit being 878 00:51:57,884 --> 00:52:00,653 done about this right now to work the issues out. 879 00:52:00,653 --> 00:52:03,990 Operational issues can usually be resolved by the zoning or by 880 00:52:03,990 --> 00:52:07,460 negotiation. And as new mines come into 881 00:52:07,460 --> 00:52:11,131 production, I think the big thing is that we've just seen a 882 00:52:11,131 --> 00:52:15,301 huge rush in the last year that's basically overwhelmed a 883 00:52:15,301 --> 00:52:18,071 lot of the western counties and they haven't be able to really 884 00:52:18,071 --> 00:52:21,141 keep up with it, but as some of these new mines come into 885 00:52:21,141 --> 00:52:23,877 production, particularly some of the large ones up in the 886 00:52:23,877 --> 00:52:28,048 Chippewa County area, the demand should be met and the pace of 887 00:52:28,048 --> 00:52:31,251 development should slow down in time to work out the remaining 888 00:52:31,251 --> 00:52:34,888 issues. One thing I might add at this 889 00:52:34,888 --> 00:52:37,624 point is that Wisconsin is not the only place that does have 890 00:52:37,624 --> 00:52:40,093 sand that is suitable for frac sand. 891 00:52:40,093 --> 00:52:43,697 There is other sands of lesser qualities, and a number of 892 00:52:43,697 --> 00:52:46,499 companies are pouring a lot of money into developing these 893 00:52:46,499 --> 00:52:49,669 resources in areas like Texas and Oklahoma, which are actually 894 00:52:49,669 --> 00:52:53,373 closer in some cases, transportation wise, to the 895 00:52:53,373 --> 00:52:58,011 actual oil and gas fields. The difference is that most of 896 00:52:58,011 --> 00:53:02,449 those sands are down there around 4,000 PSI or 6,000 PSI 897 00:53:02,449 --> 00:53:06,453 crushing strength, and they can't meet the standards that we 898 00:53:06,453 --> 00:53:09,322 have which go up as high as 12,000 and 14,000 for some of 899 00:53:09,322 --> 00:53:13,827 the best of the sands from the Jordan formation in western 900 00:53:13,827 --> 00:53:16,496 Wisconsin. But there's going to be a big 901 00:53:16,496 --> 00:53:19,632 shake out in the industry, I predict, within the next year or 902 00:53:19,632 --> 00:53:24,804 so because as this comes online, we're going to see, right now 903 00:53:24,804 --> 00:53:30,677 you could go buy a farm out in Trempealeau County, Bubba's 904 00:53:30,677 --> 00:53:33,413 Trucking and Excavating. He's got a back hoe and two or 905 00:53:33,413 --> 00:53:35,849 three dump trucks. He can go out there, start 906 00:53:35,849 --> 00:53:39,386 digging sand out of some farmer's backyard, hauling it 907 00:53:39,386 --> 00:53:43,723 down to Winona, Minnesota, loading it on the Union Pacific 908 00:53:43,723 --> 00:53:47,260 and selling it to a sand company down there that has a loading 909 00:53:47,260 --> 00:53:49,729 facility, and that stuff is going down there and selling for 910 00:53:49,729 --> 00:53:53,199 $300 or $400 a ton which at the wellhead which is pretty 911 00:53:53,199 --> 00:53:55,669 amazing. Once they process it, they can 912 00:53:55,669 --> 00:54:00,140 haul it down there, process it down in Texas and sell it at the 913 00:54:00,140 --> 00:54:02,776 wellhead. Well, as soon as the supply 914 00:54:02,776 --> 00:54:06,212 starts to come up, there's going to be some major changes in the 915 00:54:06,212 --> 00:54:09,215 economics. We've got some huge capacity 916 00:54:09,215 --> 00:54:12,786 being built into some of the big plants like EOG up in Chippewa 917 00:54:12,786 --> 00:54:17,624 Falls, Winn Bay Sands in Trempealeau County, Badger has 918 00:54:17,624 --> 00:54:21,895 put a lot in into expanding their capacity, and I think 919 00:54:21,895 --> 00:54:24,497 we're going to see a settling out of the industry in the next 920 00:54:24,497 --> 00:54:29,269 couple years. So what can we expect? 921 00:54:29,269 --> 00:54:31,571 The sandstone formations in Wisconsin and Minnesota are the 922 00:54:31,571 --> 00:54:34,774 best. Well, that's a fact of life. 923 00:54:34,774 --> 00:54:37,143 It just happened to be because we've got the good stuff that's 924 00:54:37,143 --> 00:54:39,779 available very easily and mineable at the surface. 925 00:54:39,779 --> 00:54:42,649 As long as fracking is the best available technology, which 926 00:54:42,649 --> 00:54:46,119 right now it is for producing previously unrecoverable natural 927 00:54:46,119 --> 00:54:50,390 gas, frac sand mining is going to continue to be a big business 928 00:54:50,390 --> 00:54:52,759 in our region. There's going to be a demand for 929 00:54:52,759 --> 00:54:56,129 it. And I think that I'm not sure 930 00:54:56,129 --> 00:54:59,833 what kind of technology will ever replace it, but the fact 931 00:54:59,833 --> 00:55:04,404 that it has brought us from total dependence to almost 932 00:55:04,404 --> 00:55:09,376 self-sufficiency on natural gas and it's released a tremendous 933 00:55:09,376 --> 00:55:13,513 amount more petroleum that we won't be dependent on foreign 934 00:55:13,513 --> 00:55:17,851 imports, I think there's going to be a demand for it for a 935 00:55:17,851 --> 00:55:21,254 while, at least into the future. Interest in Wisconsin sands 936 00:55:21,254 --> 00:55:25,725 growing but the boom took us by surprise. 937 00:55:25,725 --> 00:55:28,228 Counties were overwhelmed with applications. 938 00:55:28,228 --> 00:55:30,964 The scale is what really has presented problems that we 939 00:55:30,964 --> 00:55:33,433 haven't dealt with before, like I mentioned early, the guy in 940 00:55:33,433 --> 00:55:37,203 Trempealeau County had four or five little stone quarries to 941 00:55:37,203 --> 00:55:41,074 deal with, now he finds he's got 20 sand mines. 942 00:55:43,810 --> 00:55:47,247 But he's actually doing a very good job of dealing with it. 943 00:55:47,247 --> 00:55:50,950 So conclusions that we can come to out of this, I'm going to 944 00:55:50,950 --> 00:55:54,120 wrap it up here. Mother nature didn't give us any 945 00:55:54,120 --> 00:55:56,756 of the oil and gas. We don't have any energy, 946 00:55:56,756 --> 00:55:59,659 basically, in Wisconsin. We're strictly a consumer state. 947 00:55:59,659 --> 00:56:02,662 But we did get the sand that's now exactly what they want and 948 00:56:02,662 --> 00:56:07,867 need to produce what they could never produce before. 949 00:56:07,867 --> 00:56:10,704 There's a few problems in the process, but I think ultimately 950 00:56:10,704 --> 00:56:14,874 that will get worked out. It produces material very 951 00:56:14,874 --> 00:56:18,945 efficiently. You think about back when I took 952 00:56:18,945 --> 00:56:22,615 petroleum geology, you used to hear that we were only 953 00:56:22,615 --> 00:56:25,552 recovering something like 20% of the potential from a particular 954 00:56:25,552 --> 00:56:30,090 oil field. So we're really increasing our 955 00:56:30,090 --> 00:56:34,461 efficiency and wasting less fuel. 956 00:56:34,461 --> 00:56:38,231 Frac sand mining should really be continued as a strong a 957 00:56:38,231 --> 00:56:41,034 stable industry as long as there's a demand for 958 00:56:41,034 --> 00:56:45,538 hydrocarbons and we wish to reduce our dependence on 959 00:56:45,538 --> 00:56:48,375 imports. And I think that's a goal that 960 00:56:48,375 --> 00:56:51,644 everybody has. We would like to reduce our 961 00:56:51,644 --> 00:56:54,581 dependence on hydrocarbons, but I think it's going to take us a 962 00:56:54,581 --> 00:56:57,484 number of years, realistically, before we can really wean 963 00:56:57,484 --> 00:57:00,086 ourselves completely away from it. 964 00:57:00,086 --> 00:57:03,189 But I think the current boom is going to settle down as supply 965 00:57:03,189 --> 00:57:06,526 catches up with demand. And this is going to happen, it 966 00:57:06,526 --> 00:57:12,899 may happen as a pretty big event at the time because I think 967 00:57:12,899 --> 00:57:15,835 we're going to see a lot of these little guys who are 968 00:57:15,835 --> 00:57:18,238 producing, small producers out there, either being swallowed up 969 00:57:18,238 --> 00:57:20,774 by the larger companies or they're going to be put out of 970 00:57:20,774 --> 00:57:23,777 business because you can't afford the truck haul of hauling 971 00:57:23,777 --> 00:57:28,448 this and paying for diesel fuel to haul this stuff by truck when 972 00:57:28,448 --> 00:57:34,287 you have some large companies who had their own rail siding, 973 00:57:34,287 --> 00:57:38,191 own their own cars and locomotives, they can basically 974 00:57:38,191 --> 00:57:41,294 spot a 60-car unit train on there that the railroad just 975 00:57:41,294 --> 00:57:43,630 comes and picks up and ships out. 976 00:57:43,630 --> 00:57:46,332 And that's the way you get your best rates on shipping. 977 00:57:46,332 --> 00:57:50,904 And any of this kind of stuff, the one big factor in there is 978 00:57:50,904 --> 00:57:54,708 transportation. Efficient producers are going to 979 00:57:54,708 --> 00:57:57,510 be some of the larger companies that have been in the business a 980 00:57:57,510 --> 00:57:59,846 long time. We've got about three types of 981 00:57:59,846 --> 00:58:02,215 companies. We've got the old time sand 982 00:58:02,215 --> 00:58:05,819 companies like Unimin, US Silica, Badger Mining, Gelhar, 983 00:58:05,819 --> 00:58:08,221 these people know what they're doing. 984 00:58:08,221 --> 00:58:10,457 They've been in the business a long time. 985 00:58:10,457 --> 00:58:12,992 We've got the carpetbaggers who've come in who are, in many 986 00:58:12,992 --> 00:58:16,129 cases, oil companies who've tried to cut the middle man out, 987 00:58:16,129 --> 00:58:19,866 and all they want to do is get their own source of sand. 988 00:58:19,866 --> 00:58:22,535 They may or may not stay in that business, and then we've got all 989 00:58:22,535 --> 00:58:25,905 the small guys out there who are making a killing right now 990 00:58:25,905 --> 00:58:29,042 because of the high price for sand, but they're going to be 991 00:58:29,042 --> 00:58:33,146 put out, I think, of business by the lack of access to rail. 992 00:58:33,146 --> 00:58:36,216 The survivors are going to be the ones that can ship the 993 00:58:36,216 --> 00:58:39,386 product efficiently, and that's going to be one of the major 994 00:58:39,386 --> 00:58:42,455 factors. So with that, I will conclude. 995 00:58:42,455 --> 00:58:44,791 [APPLAUSE]