Our refined product terminals receive products from pipelines connected to HollyFrontier's refineries and Delek's Big Spring refinery. We then distribute them to HollyFrontier and third parties, who in turn deliver them to end-users and retail outlets. Our terminals are generally complementary to our pipeline assets and serve HollyFrontier's and Delek's marketing activities. Terminals play a key role in moving product to the end-user market by providing the following services:

  • distribution;
  • blending to achieve specified grades of gasoline and diesel, including the blending of butane, ethanol, and biodiesel;
  • other ancillary services that include the injection of additives and filtering of jet fuel; and
  • storage and inventory management.

Typically, our refined product terminal facilities consist of multiple storage tanks and are equipped with automated truck loading equipment that operates 24 hours a day. This automated system provides for control of security, allocations, and credit and carrier certification by remote input of data by our customers. In addition, nearly all of our terminals are equipped with truck loading racks capable of providing automated blending to individual customer specifications.

Our refined product terminals derive most of their revenues from terminalling fees paid by customers. We charge a fee for transferring refined products from the terminal to trucks or to pipelines connected to the terminal. In addition to terminalling fees, we generate revenues by charging our customers fees for blending, injecting additives, and filtering jet fuel. HollyFrontier currently accounts for the substantial majority of our refined product terminal revenues.

Our crude terminal receives crude from the Osage pipeline and derives most of its revenues from throughput charges.