TCEQ Issues Air Permit for Cadre Material Products’ Sand Mine and Processing Plant

Cadre Material Products, LLC (“Cadre”), an operating company of Cadre Services, Inc., announced today that the Texas Commission on Environmental Quality (“TCEQ”) has issued the final air permit for Cadre’s proposed multi-million dollar sand mine and processing facility near Voca, Texas, enabling construction to begin immediately. Completion of the plant is expected in the first quarter of 2011.

Under the direction of Matt Stafford, general manager, the sand mine and processing plant will be capable of producing over 800,000 tons annually of API-quality proppant used to enhance the production of oil and gas wells. Product will be available for shipment by truck at the plant or by rail at Cadre’s trans-load facility in Brady, Texas.

“Advances in technology, coupled with the growth in oil and gas production in shale formations across the US, have significantly increased the demand for Brady sand. This fully automated, state-of-the-art plant located adjacent to the sand mine will enable Cadre to provide high quality products to our customers at competitive terms, while creating maximum profitability,” said Maury Dumba, president and CEO.

USA Tank Storage Systems of Seneca, Missouri has been selected as the engineering procurement constructor (“EPC”) for the project. Construction is expected to take five to seven months. When fully operational the plant will create nearly 100 new jobs in McCulloch County, Texas.

Frac–sand proppants are hard, spherical particles that are mixed with a fluid and pumped into wells at very high pressure. The proppants fracture hydrocarbon-bearing rock to create channels through which oil and natural gas reserves flow more easily. Proppants remain in place after the fracture job is completed, propping open the cracks and creating a highly permeable pathway for oil and gas flow.

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