Holly Energy Partners (HEP) will undertake two expansion projects to provide 60,000 barrels per day of additional crude pipeline take-away capacity resulting from increased Delaware Basin drilling activity in southeast New Mexico. The first project will boost one of HEP’s existing crude oil trunk lines from 35,000 BPD to 60,000 BPD. This 35mi pipeline transports crude oil from HEP’s extensive lease gathering system in southeast New Mexico to the HollyFrontier Corporation (HFC) New Mexico refining facilities. As per the contract, the scope of the project includes the replacement of 5mi of existing pipe with larger diameter pipe and the addition of a higher horsepower pump. Work will be completed during the first half of 2012. The second project entails the reactivation and conversion to crude oil service of a 70mi, 8in petroleum products pipeline owned by HEP. Once in service, this pipeline will have the capacity to transport up to 35,000 BPD of crude oil from the Delaware Basin production in the Carlsbad, New Mexico area. From there, it will go to either a third-party common carrier pipeline station for transport to major crude oil markets or to HollyFrontier’s New Mexico refining facilities. Subject to receipt of acceptable shipper support and board approval, it is anticipated that this project could also be completed during the first half of 2012. The cost of these two projects is currently estimated at around USD 15 million.