MAKOTI - A new frack sand transload facility to serve the Bakken Formation in the Williston Basin will be built in Makoti.
Smart Sand Inc., of Fairless Hills, Pa., and Canadian Pacific Railway, of Calgary, Alberta, announced the plans Wednesday to build the terminal as part of the two companies new partnership agreement to supply and ship premium Northern White frack sand to key North America-producing regions, including the North Dakota Bakken.
According to a news release from Smart Sand and CP, the construction of the facility in Makoti will be the two companies' first initiative. It is expected to be the region's largest and will begin serving the Bakken in early 2013, according to the companies.
"We believe the new North Dakota transload facility offers a unique combination of cost-effectiveness, reliability and product flexibility," said Charles Young, founder, president and board member of Smart Sand.
CP will be the rail service provider for the frack sand transload facility and also working with Smart Sand to develop the facility.
Jane O'Hagan, CP's executive vice president and chief marketing officer, said Smart Sand has prime resources and processing capabilities which align well with CP's shipping presence in the energy sector.
Smart Sand's primary facility opened in late June 2012 and is located on the CP rail line in Oakdale, Wis.
More details about the facility planned for Makoti were not available yet.
Makoti, about 43 miles southwest of Minot in southwest Ward County, also is the site of the Three Affiliated Tribes' new Thunder Butte Refinery to be built west of Makoti near N.D. Highway 23 and the CP Railway tracks. The tribes received the final permit approval in late June for the refinery project on the Fort Berthold Reservation.