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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. Holly Corporation has agreed to indemnify us in an aggregate amount not to exceed $15 million for ten years after the closing of this offering for environmental noncompliance and remediation liabilities which occurred or existed before the closing date with respect to the assets transferred to us. Regarding our recently acquired Alon USA logistic assets, we have entered into an environmental agreement with Alon with respect to pre-closing environmental costs and liabilities relating to the pipelines and terminals to be acquired from Alon, where Alon will indemnify us subject to a $100,000 deductible and a $20 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 on : 7/12/2005 |
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Did You Know? The events of the year 1865 launched a multitude of pipelines in the Pennsylvania oil region and neighboring oil-producing states. As soon as oilfields were found, pipelines were planned. More... |
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