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07-03-2013

Holly Energy proceeding with wxpansion of crude system in Southeastern New Mexico

Holly Energy Partners, L.P. announced today that it is proceeding with the expansion of its crude oil transportation system in southeastern New Mexico in response to increased crude oil production in the area. The project has been approved by HEP’s Board of Directors and has already received the necessary shipper support. The expansion will provide shippers with additional pipeline takeaway capacity to either common carrier pipeline stations for transportation to major crude oil markets or to HollyFrontier’s New Mexico refining facilities.

To complete the project, HEP will convert an existing refined products pipeline to crude oil service, construct several new pipeline segments, expand an existing pipeline, and build new truck unloading stations and crude storage capacity. Excluding the value of the existing pipeline to be converted, total capital expenditures are expected to be $35-40 million. HEP estimates the project will provide increased capacity of up to 100,000 barrels per day across its system and anticipates it will be in service no later than early 2014.

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