Holly Energy Enters Pipleline Agreement With Plains All American

Holly Energy Partners, L.P. has announced today that it has entered into a letter of intent with Plains All American Pipeline, L.P. for Holly Energy Partners to own a 25 percent joint venture interest in a new 95-mile intrastate pipeline system, now being constructed by Plains, for the shipment of up to 120,000 barrels per day of crude oil into the Salt Lake City area.

The pipeline would be owned by a new joint venture company which would be owned 75 percent by Plains and 25 percent by HEP. Subject to the actual construction cost, HEP would purchase its interest for between $22.0 million and $25.5 million in the first quarter of 2008 when the new pipeline system is expected to become fully operational.

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