I used the 3m S grade in brown for a short time. Yes, the grains are coated with some unpleasant substances. I think the sand works fine in aquariums, but my concern was and still is that rays ingest sand and the digestive process removes the coating from the sand grains. I found grains of the 3M sand in the gut of a dead ray that had very little color left on them.
I switched to Estes Ultra reef in black and observed one of my rays pooping out a pile of sand. After looking closely, there were several grains in the pile that were white (the black coating was gone). Further observation revealed lots of white sand grains scattered throughout the tank. I now use fine gravel that I collected from a local river.