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Two Wisconsin Frac Sand Mines Resume Operation

Slow Growth In Demand Driving Market Optimism

By
Steve Karnowski/AP Photo

Two frac sand mines have resumed operations near Eau Claire and Menomonie after more than a yearlong downturn in demand for the sand used in drilling for oil and natural gas.

Texas-based Hi-Crush Proppants has reopened its Augusta facility while Ohio-based Fairmount Santrol has reopened a mine and processing center in Menomonie. Both shut down after prices and demand for Wisconsin’s “northern white” industrial sand crashed in 2015. Fairmount Operations Manager Rich Budinger is optimistic demand is beginning to rebound.

“We’re bringing back a one-shift operation, essentially seven employees are coming back to work in that location and then we’re going to be producing industrial, recreation products is going to be our focus,” Budinger said.

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That means instead of just producing sand for oil and gas drillers, the Menomonie plant will focus on sand used in applications like golf courses, foundries and glass-making.

At the peak of the United States fracking boom in 2014, Fairmount Santrol employed more than 100 employees at three mines in Menomonie, Bay City and Maiden Rock. Budinger said reopening the Menomonie mine also positions the company for any increases in demand for sand used in hydrofracking.

“The price of oil is still fluctuating, so it’s not a consistent demand that we’re seeing, but we are starting to see a positive trend as far as an increase in demand for hydrofracking sands in the North America oil and gas industry,” he said.

Hi-Crush Proppants didn’t immediately respond to requests for comment. In October 2015, the company announced it was closing its Augusta facility, which resulted in 27 layoffs.

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