HollyFrontier 2013 Annual Report Download - page 26

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• one refined product terminal near Mountain Home, Idaho, with a capacity of 120,000 barrels, that serves a nearby United
States Air Force Base;
• two refined product terminals, located in Wichita Falls and Abilene, Texas, and one tank farm in Orla, Texas with aggregate
capacity of approximately 500,000 barrels, that are integrated with HEP's refined product pipelines that serve Alon's Big
Spring, Texas refinery;
• a refined product loading rack facility at each of our El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross Refineries,
heavy product / asphalt loading rack facilities at our Tulsa East facility, Navajo Refinery Lovington facility and Cheyenne
Refinery, LPG loading rack facilities at our El Dorado Refinery, Tulsa West facility and Cheyenne Refinery, lube oil
loading racks at our Tulsa West facility and crude oil Leased Automatic Custody Transfer (“LACT”) units located at our
Cheyenne Refinery;
• on-site crude oil tankage at our Tulsa, Navajo, Cheyenne and Woods Cross Refineries having an aggregate storage capacity
of approximately 1,200,000 barrels; and
• on-site refined and intermediate product tankage at our El Dorado, Tulsa and Cheyenne Refineries having an aggregate
storage capacity of approximately 8,400,000 barrels.
Additionally, HEP owns a 75% interest in UNEV, which owns the UNEV Pipeline, a 12-inch refined products pipeline from Salt
Lake City, Utah to Las Vegas, Nevada together with terminal facilities in the Cedar City, Utah and North Las Vegas areas, and a
25% interest in SLC Pipeline LLC, which owns a 95-mile intrastate pipeline system that serves refineries in the Salt Lake City
area.
ADDITIONAL OPERATIONS AND OTHER INFORMATION
Corporate Offices
We lease approximately 60,000 square feet for our principal corporate offices in Dallas, Texas. The lease for our principal corporate
offices expires in 2021. Functions performed in the Dallas office include overall corporate management, refinery and HEP
management, planning and strategy, corporate finance, crude acquisition, logistics, contract administration, marketing, investor
relations, governmental affairs, accounting, tax, treasury, information technology, legal and human resources support functions.
Employees and Labor Relations
As of December 31, 2013, we had 2,662 employees, of which 886 are currently covered by collective bargaining agreements
having various expiration dates between 2015 and 2018. We consider our employee relations to be good.
Regulation
Refinery and pipeline operations are subject to numerous federal, state and local laws regulating the discharge of substances into
the environment or otherwise relating to the protection of the environment. Permits are required under these laws for the operation
of our refineries, pipelines and related facilities, and these permits are subject to revocation, modification and renewal. Over the
years, there have been and continue to be ongoing communications, including notices of violations, and discussions about
environmental matters between us and federal and state authorities, some of which have resulted or will result in changes to
operating procedures and in capital expenditures. Compliance with applicable environmental laws, regulations and permits will
continue to have an impact on our operations, the results of operations, and our capital requirements. We believe that our current
operations are in substantial compliance with applicable federal, state, and local environmental laws, regulations, and permits.
Our operations and many of the products we manufacture are subject to certain requirements of the Federal Clean Air Act (“CAA”)
as well as related state and local laws and regulations. Certain CAA regulatory programs applicable to our refineries require capital
expenditures for the installation of certain air pollution control devices. Additionally, the EPA has the authority under the CAA to
modify the formulation of the refined transportation fuel products we manufacture in order to limit the emissions associated with
their final use. Subsequent rulemaking authorized by the CAA or similar laws, or new agency interpretations of existing laws and
regulations, may necessitate additional expenditures in future years.
Also, we are subject to the EPA's new Control of Hazardous Air Pollutants from Mobile Sources (“MSAT2”) regulations on
gasoline that impose reductions in the benzene content of our produced gasoline. Our refineries currently purchase a portion of
their benzene credits to meet these requirements. If economically justified, we could implement additional benzene reduction
projects to eliminate the need to purchase benzene credits.
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