Patriot Rail Corp., a privately held short-line and regional freight railroad company, announced its Louisiana and North West Railroad subsidiary has entered into a long-term lease and rail freight services agreement with Pro Sands Processing LLC to serve the Haynesville Shale natural gas field in northwest Louisiana.
Pro Sands, a “frac” sand supply, storage and delivery services company that serves the oil and gas industry, has a five-year agreement to lease 10 acres of property at LNW’s newly constructed Iron Bridge Road transload facility in Gibsland.
LNW will deliver freight carloads of frac sand to Pro Sands at the Iron Bridge Road facility, where the product will be dried, processed and loaded on trucks for delivery to energy customers in the region.
In hydraulic fracturing, sand, chemicals and water are injected into the ground under enormous pressure, cracking the rock and propping it open. The oil or natural gas escapes through those openings.
Pro Sands has committed to moving a minimum of 2,400 carloads of freight annually into the facility. Once the Pro Sands facility at Iron Bridge Road is fully operational, it is anticipated that LNW will move up to 5,000 annual carloads of frac sand.
Over the past year, Patriot has invested more than $3 million to develop and construct the Iron Bridge Road facility, a 40-acre transloading site located adjacent to the Haynesville Shale natural gas field region in northwest Louisiana and southwest Arkansas.
“We are pleased to have Pro Sands join other shippers at our newly constructed Iron Bridge Road transload facility,” said Patriot Chairman, President and CEO Gary O. Marino.
“Pro Sands is a well-known and established frac sand supplier, and at this location will be positioned to serve the energy-related customers in the Haynesville shale region. This new business allows Patriot to fully utilize its assets at the LNW and generate significant carloads and guaranteed revenue,” Marino said.