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Glenwood City Council listens to report from Vista Sand

GLENWOOD CITY — The city council entertained two representatives from Vista Sand at their regular monthly meeting Monday night. Joe McKie of Vista Sand and attorney Andres Helquist of the law firm of Weld, Riley, Prenn and Ricci, SC of Eau Claire, addressed the council with an update on Vista Sand’s plans.

However, they no more got started when council member Ken Peterson questioned them about different names that appear on documents regarding Vista Sand’s agreement with the city.

Peterson noted that the original pre-annexation agreement was signed by the city and Vista Sand, LTD. But, Peterson, then noted, the amendment to the pre-annexation agreement was signed by Lone Star Prospects, LTD.

Peterson also noted names of GRJ Holdings and Vista Sand, LTD were all involved in materials that he found. All of these firms are Texas identities, but Vista Sand LTD was not listed with the Texas Secretary of State. At this point Peterson said, “We should not speak any further until our attorney, Terry Dunst, is here.” McKie tried to explain how the business structure was constructed and that GRJ Holding was the main company doing business as Vista Sand.

Peterson also questioned who signed the agreement with the school on the Memorandum of Understanding. Peterson said, “Without the proper paperwork, I don’t believe any of it now. Continuing, I want to make sure it’s legal and it’s a sound agreement.” Peterson noted that as part of the agreement, Vista Sand was to make a quarterly report to the city, which they apparently have not done. Council member Steve Lee indicated that, “the documents have all been laid out and the council has signed them.”

Peterson provided this newspaper with his information from the Texas Secretary of State on a taxable entity search which indicated that GRJ Holdings, LLC and Lonestar Prospects, LTD, do exists, but that Vista Sand, LTD does not exist and Peterson wrote: both the Pre-Annexation Agreement, and the Amended and Restated agreement were entered into with Vista Sand, LTD, a Texas Limited Company, which by all indications, does not exist. This is my frustration.” He also questioned if the Memorandum of Understanding (MOU) with the school is valid because it is with Vista Sand, LTD and Peterson stated, “I am unsure if the MOU is valid, since I have not seen proof that Vista Sand, LTD does indeed exist.”

Mayor John Larson noted to Peterson that, “you have made your point, and it’s a valid point.” The attorneys will get together in an attempt to have answers for all the questions.

When will they start?

Several members of the council questioned McKie about any information as to when they might start the Frac Sand Mining. But McKie stated, “It’s all about jobs,” and that they need to make a profit to keep running. He noted that with oil prices below the fifty-dollar mark, “we don’t feel it’s the right time with the way oil prices are right now.” He noted, that oil prices need to be above $65. He also indicated to the council that they would attempt to make a monthly report to the City Council on their activities.

Trucks may not be used

McKie reported to the council that they are in talks with the railroad about shipping sand by rail. They would pipe the sand to the rail line for shipment. “If we connect with the railroad, this would allow us to remove trucking altogether and ship by rail.”