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Long-time stewards of the environment, Holly Energy Partners have invested a great deal of thought, money, and effort into making our pipelines and terminals environmentally safe and accident-proof. We maintain our assets in strict compliance with all applicable laws and regulations - and have done so from a maintenance standpoint even before these laws and regulations were in place! We work hard to keep our operation of pipelines, terminals, and associated facilities compliant with a series of stringent and complex federal, state, and local laws and regulations governing the discharge of materials into the environment or otherwise relating to the protection of the environment. We also believe that our operations comply with the OSHA (Occupational Safety and Health Act) requirements, including general industry standards, record-keeping requirements, and monitoring of occupational exposure to regulated substances. Aware of the importance of routine maintenance, we inspect our pipelines regularly using state of the art inspection equipment from third party suppliers. Third parties also assist us in interpreting the inspection results. Though compliance with existing and anticipated laws and regulations increases our overall costs, including our capital costs to construct, maintain, and upgrade equipment and facilities, we are fully committed to keeping our operations in compliance with all applicable environmental laws and regulations. Beyond the extensive proactive measures and preventative actions we have taken to promote safety and avoid accidents, we have an agreement with our parent company that further protects our business. We have an agreement with Holly Corporation that provides to indemnify us up to certain aggregate amounts for any environmental noncompliance and remediation liabilities associated with assets transferred to us and occurring or existing prior to the date of such transfers. The Omnibus Agreement provides environmental indemnification of up to $15.0 million through 2014 for the assets transferred to us at the time of our initial public offering in 2004 and up to $2.5 million through 2015 for the Intermediate Pipelines acquired in July 2005. In February 2008, Holly amended the Omnibus Agreement to provide an additional $7.5 million of indemnification through 2023 for environmental noncompliance and remediation liabilities specific to the Crude Pipelines and Tankage Assets. Additionally, we have an environmental agreement with Alon with respect to pre-closing environmental costs and liabilities relating to the pipelines and terminals acquired from Alon in 2005, under which Alon, for a ten year term expiring in 2015, will indemnify us subject to a $100,000 deductible and a $20.0 million maximum liability cap. For more detailed information about our philosophical and financial commitment to health, safety and the environment, please refer to our SEC filings. For more information on pipeline safety you can go to http://www.pipelineawareness.org/. Page last updated: 3/17/09 |
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Did You Know? The development of railroad tank cars also took place in 1865 and underwent much modification in a short time. Railroads were undergoing enormous expansion. The impetus for this growth was the oil industry - particularly the pipelines. More... |
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