New DJ Basin Sand Plant Could Cut Drilling Costs

Weld County commissioners have approved a frac sand plant that could save local drillers millions in transportation costs by eliminating the need to ship sand in by rail from out of state. The 2 million-ton-per-year Apex 70 facility will serve DJ Basin wells.

The facility tackles a cost problem for DJ Basin operators. "Rail-shipped Northern White sand carries extra transportation costs per ton per mile to DJ well sites," said David Bieber, geologist and Apex 70 co-founder. "The proposed facility changes the equation for frac sand in the DJ. The hard parts to mining frac sand in Colorado — quality reserves, high capacity permitting, and sufficient water — we've already solved. As for logistics, the math is straightforward."

Nearly 40% of the sand used to fracture wells in the DJ Basin currently comes from outside the region. "Almost 40% of the proppant pumped in the DJ Basin comes from out-of-basin," said Todd Kaul, a 35-year frac sand veteran in sales and operations. "DJ operators need competitive, in-basin proppant and we intend to deliver it."

Details on Apex 70's specific permit conditions will appear in Weld County's case file. Weld County Use by Special Review (USR) permits for mining typically require setbacks from homes and dust control. Road maintenance, water reporting, and liability insurance are standard conditions.

For more information, Apex 70 directs inquiries to [email protected].