“We’re happy that EOG chose Refugio for the phase II site,” said Lenny Anzaldua, director of economic development for the county. “That choice largely had to do with the welcome they received.”
A new coating plant is being erected on site and is expected to be operational by April 2012.
The plant is expected to employ 15 to 20 full-time EOG employees.
“Most will be hired from the local area,” said James Kress, EOG facility manager, in a press release last week.
The facility will be used to coat sand with a special resin which improves the effectiveness in well completion operations.
The sand will be shipped by rail from several EOG-owned Wisconsin sand mines.
“The first unit trains are expected to deliver sand to the facility in the third quarter of 2011,” Kress said.
The plant will have 39,000 feet of train track on its grounds.
Phase I began in November 2011 and is expected to be completed in July.
Approximately 40-50 workers per day have been employed, with as many as 100 during construction of the silos. A contract firm will operate the facility with 20 to 25 workers.
In addition, 70 truck drivers will be needed for work generated by the plant.
“The sand is to be used in the company’s Texas crude oil and natural gas well completion operations, primarily in the South Texas Eagle Ford and East Texas Haynesville plays,” Kress wrote.
The coating plant’s annual production capacity of resin-coated sand is estimated between 250,000 to 300,000 tons. One million tons of sand is expected to be handled annually when the facility is fully operational.
The 222-acre facility will generate an estimated $750,000 in annual property and sales tax revenue, according to Kress.