HollyFrontier 2013 Annual Report Download - page 24

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NK Asphalt Partners
We manufacture and market commodity and modified asphalt products in Arizona, New Mexico, Oklahoma, Kansas, Missouri,
Texas and northern Mexico. We have three manufacturing facilities located in Glendale, Arizona; Albuquerque, New Mexico; and
Artesia, New Mexico. Our Albuquerque and Artesia facilities manufacture modified hot asphalt products and commodity emulsions
from base asphalt materials provided by our refineries and third-party suppliers. Our Glendale facility manufactures modified hot
asphalt products from base asphalt materials provided by our refineries and third-party suppliers. Our products are shipped via
third-party trucking companies to commercial customers that provide asphalt based materials for commercial and government
projects.
Other Assets
We own a 50% joint venture interest in Sabine Biofuels II, LLC, a 30 million gallon per year biodiesel production facility located
near Port Arthur, Texas.
HOLLY ENERGY PARTNERS, L.P.
HEP is a Delaware limited partnership that trades on the New York Stock Exchange under the trading symbol “HEP.” HEP was
formed to acquire, own and operate substantially all of the refined product pipeline and terminalling assets that support our refining
and marketing operations in the Mid-Continent, Southwest and Rocky Mountain regions of the United States.
HEP generates revenues by charging tariffs for transporting petroleum products and crude oil through its pipelines, by leasing
certain pipeline capacity to Alon, by charging fees for terminalling refined products and other hydrocarbons and by storing and
providing other services at its storage tanks and terminals. HEP does not take ownership of products that it transports or terminals;
therefore, it is not directly exposed to changes in commodity prices.
HEP's recent acquisitions (2009 through present) are summarized below:
UNEV Interest Transaction
On July 12, 2012, HEP acquired from us our 75% interest in UNEV. We received consideration consisting of $260.0 million in
cash and 1.0 million HEP common units. UNEV owns the UNEV Pipeline, a 12-inch refined products pipeline running from Salt
Lake City, Utah to Las Vegas, Nevada together with terminal facilities in Cedar City, Utah and North Las Vegas. The UNEV
Pipeline was completed in late 2011 and became operational during the first quarter of 2012.
Legacy Frontier Pipeline and Tankage Asset Transaction
On November 9, 2011, HEP acquired from us certain tankage, loading rack and crude receiving assets located at our El Dorado
and Cheyenne Refineries. We received non-cash consideration consisting of promissory notes with an aggregate principal amount
of $150.0 million and 3.8 million HEP common units.
Tulsa East / Lovington Storage Asset Transaction
On March 31, 2010, HEP acquired from us certain storage assets for $93.0 million, consisting of hydrocarbon storage tanks having
approximately 2.0 million barrels of storage capacity, a rail loading rack and a truck unloading rack located at our Tulsa East
facility and an asphalt loading rack facility located at our Navajo Refinery facility located in Lovington, New Mexico.
Sinclair Logistics and Storage Assets Transaction
On December 1, 2009, HEP acquired from Sinclair storage tanks having approximately 1.4 million barrels of storage capacity and
loading racks at what is now our Tulsa East facility for $79.2 million.
Roadrunner / Beeson Pipelines Transaction
Also on December 1, 2009, HEP acquired our two newly constructed pipelines for $46.5 million, consisting of a 65-mile, 16-inch
crude oil pipeline (the “Roadrunner Pipeline”) that connects our Navajo Refinery Lovington facility to a terminus of Centurion
Pipeline L.P.'s pipeline extending between west Texas and Cushing, Oklahoma and a 37-mile, 8-inch crude oil pipeline that connects
HEP's New Mexico crude oil gathering system to our Navajo Refinery Lovington facility (the “Beeson Pipeline”).
Tulsa West Loading Racks Transaction
On August 1, 2009, HEP acquired from us, certain truck and rail loading/unloading facilities located at our Tulsa West facility for
$17.5 million.
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