Holly Corporation Announces Pipeline Commitment for Canadian Crude Oil

DALLAS, July 22 /PRNewswire-FirstCall/ -- Holly Corporation ("Holly")
(NYSE: HOC) announced today that its wholly-owned refining subsidiary, Holly
Refining & Marketing Company ("HRM") has completed negotiations and entered
into a definitive agreement to ship crude oil on the Centurion Pipeline, a
pipeline owned and operated by Centurion Pipeline L.P, a subsidiary of
Occidental Petroleum Corporation. The Centurion Pipeline will deliver crude
oil from Cushing, OK to Slaughter, Texas, which is near the Texas New Mexico
border. HRM has previously entered into shipping commitments on both the
Keystone and the Spearhead pipelines, which will transport Canadian crude oil
from Canada to Cushing, OK.
Holly and Holly Energy Partners ("HEP") (NYSE: HEP) are presently
evaluating the best pipeline plan to deliver crude from the terminus point of
the Centurion pipeline at Slaughter, TX to the Navajo Refinery complex in New
Mexico, which will include approximately 70 miles of additional pipeline.
These pipeline commitments will complement Holly's Navajo refinery capital
improvement projects to increase feedstock flexibility by providing the option
for the delivery of heavy Canadian and/or other crudes to the Navajo refinery.
The feedstock flexibility projects are expected to allow the Navajo refinery
to process 40,000 barrels per stream day ("bpsd") of heavy Canadian type
crudes and are expected to be mechanically completed in the fourth quarter of
2009. Holly is also expanding the crude capacity at the Navajo refinery from
85,000 to 100,000 bpsd which is expected to be mechanically complete in the
first quarter of 2009.
"Our pipeline commitments and plans bring us one step closer to completing
our refinery expansion and crude reconfiguration at Navajo, which helps us
drive down our raw material cost and improve our overall level of gross margin
and profitability in the Southwest region," said Matt Clifton and Dave Lamp,
Chairman and President of Holly respectively in a joint statement.
About Holly Corporation
Holly Corporation, headquartered in Dallas, Texas, is an independent
petroleum refiner and marketer that produces high value light products such as
gasoline, diesel fuel and jet fuel. Holly operates through its subsidiaries an
85,000 barrels per day ("bpd") refinery located in Artesia, New Mexico and a
26,000 bpd refinery in Woods Cross, Utah. Holly also owns a 46% interest
(including the general partner interest) in Holly Energy Partners, L.P.
About Holly Energy Partners, L.P.:
Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides
transportation and terminal services to the petroleum industry, including
Holly Corporation, which currently owns a 46% interest in the Partnership. The
Partnership owns and operates crude and product pipelines and terminals
located in Texas, New Mexico, Oklahoma, Arizona, Washington, Idaho and Utah.
In addition, the Partnership owns a 70% interest in Rio Grande Pipeline
Company, a transporter of LPGs from West Texas to Northern Mexico.
The following is a "safe harbor" statement under the Private Securities
Litigation Reform Act of 1995: The statements in this press release relating
to matters that are not historical facts are "forward-looking statements"
within the meaning of the federal securities laws. These statements are based
on our beliefs and assumptions using currently available information and
expectations as of the date hereof, are not guarantees of future performance
and involve certain risks and uncertainties, including those contained in our
filings made from time to time with the Securities and Exchange Commission.
Although we believe that the expectations reflected in these forward-looking
statements are reasonable, we cannot assure you that our expectations will
prove correct. Therefore, actual outcomes and results could materially differ
from what is expressed, implied or forecast in these statements. The
forward-looking statements speak only as of the date made and, other than as
required by law, we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
SOURCE Holly Corporation; Holly Energy Partners, L.P.

Bruce R. Shaw, Senior Vice President & CFO, or M. Neale Hickerson, Vice
President, Investor Relations, both of Holly Corporation, Holly Energy
Partners, +1-214-871-3555