HOLLY ENERGY PARTNERS - OPERATING, L.P. — Notice of Amendment

42023040NOA_Notice of Amendment_03062023_(22-235634)_text.pdf, page 1Official PDFNOTICE OF AMENDMENT VIA ELECTRONIC MAIL March 6, 2023 Michael Jennings President, Holly Energy Partners Holly Energy Partners – Operating, L.P. 2828 N. Harwood Street Suite 1300 Dallas Texas 75201 CPF 4-2023-040-NOA Dear Mr. Jennings: From February 28 to December 7, 2022, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected Holly Energy Partners – Operating, L.P.’s (Holly) written operations and maintenance procedures in Dallas, Texas. As a result of the inspection, PHMSA has identified apparent inadequacies found within Holly’s procedures. The item inspected and inadequacies are described below: 1. § 195.402 Procedural manual for operations, maintenance, and emergencies. (a) . . . . (c) Maintenance and normal operations. The manual required by paragraph (a) of this section must include procedures for the following to provide safety during maintenance and normal operations: (1) . . . . (3) Operating, maintaining, and repairing the pipeline system in accordance with each of the requirements of this subpart and subpart H of this part. § 195.414 Inspections of pipelines in areas affected by extreme weather and natural disasters. (a) . . . . (d) Remedial action. An operator must take prompt and#

42023040NOA_Notice of Amendment_03062023_(22-235634)_text.pdf, page 2appropriate remedial action to ensure the safe operation of a pipeline based on the information obtained as a result of performing the inspection required under paragraph (a) of this section. Such actions might include, but are not limited to: (1) Reducing the operating pressure or shutting down the pipeline; (2) Modifying, repairing, or replacing any damaged pipeline facilities; (3) Preventing, mitigating, or eliminating any unsafe conditions in the pipeline right-of-way; (4) Performing additional patrols, surveys, tests, or inspections; (5) Implementing emergency response activities with Federal, State, or local personnel; and (6) Notifying affected communities of the steps that can be taken to ensure public safety. Holly’s written procedures for conducting operations, maintenance, and emergency preparedness and response activities were inadequate to assure safe operation of a pipeline facility in accordance with § 195.402(c)(3). Specifically, Holly’s procedure, Operations and Maintenance Procedure, HEP-A-195.000 Pipeline Safety Manual, Section 195.414, dated 1/1/2022 (O&M Procedure), failed to include the remedial actions it must take following an extreme weather event in accordance with § 195.414(d). During the inspection, PHMSA reviewed the portions of Holly’s O&M Procedure pertaining to extreme weather events and natural disasters. The procedure paraphrases the regulations but does not detail the necessary steps that must be taken following specific extreme weather events and does not clearly describe the process employees must follow when referencing supporting procedures. The procedure references the Holly Integrity Management Program Manual, dated 5/12/2021, Appendix E.9 for earthquakes, but does not reference the Natural Events Response Procedure, dated 9/23/2020, which addresses flooding, wildfires, and earthquakes. Holly’s O&M Procedures must be amended to include specific guidance for responding to different extreme weather events and natural disasters, including specific criteria to determine what remedial actions must be taken following extreme weather events to ensure the safe operation of its pipeline systems. Holly’s O&M Procedures regarding extreme weather events and natural disasters must be amended to accurately reference each separate procedure and provide a clear process for employees when referencing supporting procedures. Appendix E-9 is incorrectly titled and is not marked as an appendix of the IMP. Therefore, Holly’s written procedures for conducting operations, maintenance, and emergency preparedness and response activities were inadequate to assure safe operation of a pipeline facility in accordance with § 195.402(c)(3). Holly must revise its procedures as specified above.#

42023040NOA_Notice of Amendment_03062023_(22-235634)_text.pdf, page 3Response to this Notice This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. Be advised that all material you submit in response to this enforcement action is subject to being made publicly available. If you believe that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualify for confidential treatment redacted and an explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. § 552(b). Following the receipt of this Notice, you have 30 days to submit written comments, revised procedures, or a request for a hearing under § 190.211. If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue an Order Directing Amendment. If your plans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this Notice, we propose that you submit your amended procedures to my office within 60 days of receipt of this Notice. This period may be extended by written request for good cause. Once the inadequacies identified herein have been addressed in your amended procedures, this enforcement action will be closed. It is requested (not mandated) that Holly maintain documentation of the safety improvement costs associated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures) and submit the total to Bryan Lethcoe, Director, Southwest Region, Pipeline and Hazardous Materials Safety Administration. In correspondence concerning this matter, please refer to CPF 4- 2023-040-NOA and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Bryan Lethcoe Director, Southwest Region Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Enforcement Proceedings#

42023040NOA_Closure Letter_05242023_(22-235634)_text.pdf, page 1Official PDFVIA ELECTRONIC MAIL May 24, 2023 Michael Jennings President, Holly Energy Partners Holly Energy Partners – Operating, L.P. 2828 N. Harwood Street Suite 1300 Dallas, Texas 75201 CPF 4-2023-040-NOA Dear Mr. Jennings: From February 28 to December 7, 2022, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected Holly Energy Partners – Operating, L.P.’s (Holly) written operations and maintenance procedures in Dallas, Texas. On March 6, 2023, PHMSA issued the Notice, CPF 4-2023-040-NOA, to Holly requiring amendments of its operations and maintenance procedures. On March 29, 2023, Holly requested a time extension to respond to the Notice. PHMSA granted the time extension on April 4, 2023 granting the extension from April 5, 2023 to April 28, 2023. Holly submitted its amended procedures on April 28, 2023. PHMSA reviewed the amended procedures, and it appears that the inadequacies outlined in this Notice of Amendment have been corrected. This letter is to inform you no further action is necessary and this case is now closed. Thank you for your cooperation. Sincerely, Bryan Lethcoe Director, Southwest Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: Lori Coupland, Vice President Compliance & EHS, lori.coupland@hollyenergy.com#

42023040NOA_Op Rsp to Notice and Req Time Ext_03292023_(22-235634).pdf, page 1Official PDFHOLLY ENERGY PARTNERS. March 29, 2023 Mr. Bryan Lethcoe, Director Southwest Region Pipeline and Hazardous Materials Safety Administration 8701 South Gessner Road #630 Houston, Texas 77074 RE: Pipeline and Hazardous Materials Safety Administration Notice of Amendment # CPF 4- 2023-040-NOA. Holly Energy Partners (HEP) is in receipt of the Pipeline and Hazardous Materials Safety Administration (PHMSA) Notice of Amendment # CPF 4-2023-040-NOA, received as of March 6, 2023. Please see the following regarding HEP's response to noted procedure inadequacies: Related to Item #1): § 195.402 Procedural manual for operations, maintenance, and emergencies (a)... (c) Maintenance and normal operations. The manual required by paragraph (a) of this section must include procedures for the following to provide safety during maintenance and normal operations: (1).... (3) Operating, maintaining, and repairing the pipeline system in accordance with each of the requirements of this subpart and subpart H of this part. And, § 195.414 Inspections of pipelines in areas affected by extreme weather and natural disasters. (a)... (d) Remedial action. An operator must take prompt and appropriate remedial action to ensure the safe operation of a pipeline based on the information obtained as a result of performing the inspection required under paragraph (a) of this section. Such actions might include, but are not limited to: (1) Reducing the operating pressure or shutting down the pipeline; (2) Modifying, repairing, or replacing any damaged pipeline facilities; (3) Preventing, mitigating, or eliminating any unsafe conditions in the pipeline right- of-way; 2828 N. Harwood, Suite 1300 Dallas, TX 75201 214-871-3555#

42023040NOA_Op Rsp to Notice and Req Time Ext_03292023_(22-235634).pdf, page 2(4) Performing additional patrols, surveys, tests, or inspections; (5) Implementing emergency response activities with Federal, State, or local personnel; and (6) Notifying affected communities of the steps that can be taken to ensure public safety. Cited Procedure Inadequacies #1: Respondent's procedures for conducting operations, maintenance, and emergency preparedness and response activities were inadequate to assure safe operation of a pipeline facility in accordance with § 195.402(c)(3). Specifically, Holly's procedure, Operations and Maintenance Procedure, HEP-A-195.000 Pipeline Safety Manual, Section 195.414, dated 1/1/2022 (O&M Procedure), failed to include the remedial actions it must take following an extreme weather event in accordance with § 195.414(d). HEP Response: HEP recognizes the importance of thoroughly reviewing all applicable procedures to better ascertain revisions potentially needed. As a result, certain amendments may have an affect on several other procedures; therefore, HEP respectfully requests a 30-day extension from the date of this response letter to allow for a more thorough review of procedures in order to amend and prepare a final response to PHMSA. Should there be any questions related to HEP's response to this Notice of Amendment and request for extension, please contact Bridgette Taylor at (214) 954-6652 or via email at Bridgette.Taylor@hollyenergy.com. Sincerely, You coupland Lori Coupland, VP, Compliance & EHS Holly Energy Partners CC: Rob Jamieson, SVP and COO, Holly Energy Partners Bridgette Taylor, Pipeline Regulatory Manager 2828 N. Harwood, Sulte 1300 Dallas, TX 75201 214-871-3555#