DJ Basin’s 2M-Ton Sand Play Signals Shift

Apex 70’s new 2M-ton DJ Basin plant could cut transport costs and reshape local frac sand sourcing

23 Feb 2026

Colorado’s DJ Basin is poised for a notable supply chain shift. A newly approved 2 million ton per year frac sand plant promises to bring a key ingredient of hydraulic fracturing closer to the wells that need it.

Apex 70 Sand has secured a Use by Special Review permit from the Weld County Board of County Commissioners to build the facility, with approval granted in February 2026. The plant is designed to serve oil and gas producers operating across the Denver Julesburg Basin, where demand for proppant remains steady.

Frac sand plays a simple but critical role. It props open fractures in underground rock formations, allowing oil and gas to flow. For years, much of the DJ Basin’s supply has arrived by rail from out of state, including Northern White sand hauled over long distances. Those miles add up in cost per ton and can leave operators exposed to freight swings and delivery delays.

Apex 70 argues that sourcing sand within the basin can trim transportation expenses and offer more predictable logistics. In a business where completion designs often call for massive volumes of sand per well, proximity matters. Every saved mile can translate into tighter budgets and smoother operations.

The company’s leadership includes the founders of Apex Petroleum Engineering alongside veterans of the frac sand market. Their approach mirrors a broader industry trend that favors local supply when geology and economics line up. Several basins have already explored similar moves, seeking resilience rather than relying solely on distant mines.

It remains too early to measure the market impact. Drilling activity can fluctuate with commodity prices, and established suppliers are unlikely to cede ground without competitive pricing. Still, the permit approval signals confidence in continued DJ Basin development and a sharper focus on cost control.

If construction stays on track, the plant will give operators another sourcing option and potentially reshape local supply dynamics. For producers and investors alike, the message is clear. In shale, efficiency and proximity are no longer perks but priorities.