{"operation":"document","citation":"CPF 42023041NOPV","title":"HOLLY ENERGY PARTNERS - OPERATING, L.P. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-03-24","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.583(a), 195.583(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023041nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023041nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023041nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42023041NOPV","body":"Notice of Probable Violation involving HOLLY ENERGY PARTNERS - OPERATING, L.P.. PHMSA's enforcement data identifies the cited regulations as 195.583(a),  195.583(b). The case was opened on 2023-03-24 and is reported as closed as of 2026-02-03. Proposed civil penalty: $108,700. Assessed civil penalty: $86,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42023041NOPV_Closure Letter_02032026_(22-235634).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023041NOPV/42023041NOPV_Closure%20Letter_02032026_(22-235634).pdf\n\n42023041NOPV_Closure Letter_02032026_(22-235634)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023041NOPV/42023041NOPV_Closure%20Letter_02032026_(22-235634)_text.pdf\n\n42023041NOPV_Consent Agreement and Order_09122023_(22-235634).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023041NOPV/42023041NOPV_Consent%20Agreement%20and%20Order_09122023_(22-235634).pdf\n\n42023041NOPV_Consent Agreement and Order_09122023_(22-235634)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023041NOPV/42023041NOPV_Consent%20Agreement%20and%20Order_09122023_(22-235634)_text.pdf\n\n42023041NOPV_Op Rsp to Not Req Hrng Prelim Stmt_04172023_(22-235634).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023041NOPV/42023041NOPV_Op%20Rsp%20to%20Not%20Req%20Hrng%20Prelim%20Stmt_04172023_(22-235634).pdf\n\n42023041NOPV_Operator Withdrawal of Hearing Request_09142023_(22-235634).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023041NOPV/42023041NOPV_Operator%20Withdrawal%20of%20Hearing%20Request_09142023_(22-235634).pdf\n\n42023041NOPV_PCO PCP_03242023_(22-235634).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023041NOPV/42023041NOPV_PCO%20PCP_03242023_(22-235634).pdf\n\n42023041NOPV_PCO PCP_03242023_(22-235634)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023041NOPV/42023041NOPV_PCO%20PCP_03242023_(22-235634)_text.pdf\n\n42023041NOPV_PHC Hearing Scheduled_05032023_(22-235634).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023041NOPV/42023041NOPV_PHC%20Hearing%20Scheduled_05032023_(22-235634).pdf\n\n42023041NOPV_PHC Hearing Scheduled_05032023_(22-235634)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023041NOPV/42023041NOPV_PHC%20Hearing%20Scheduled_05032023_(22-235634)_text.pdf\n\n42023041NOPV_PHC Hearing Scheduled_05032023_(22-235634)_text.pdf\n\nMay 3, 2023\nVIA ELECTRONIC MAIL TO: robert.jamieson@hollyenergy.com and\nbryan.lethcoe@dot.gov\nMr. Robert Jamieson\nSenior Vice President and Chief Operating Officer\nHolly Energy Partners – Operating, L.P.\n2828 N. Harwood Street, Suite 1300\nDallas Texas, 75201\nMr. Bryan Lethcoe\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n8701 South Gessner Road, Suite 630\nHouston, Texas 77074\nRe: Notice of Hearing, Holly Energy Partners – Operating, L.P.\nCPF No. 4-2023-041-NOPV\nDear Mr. Jamieson and Mr. Lethcoe:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline\nand Hazardous Materials Safety Administration in the above-referenced case. The hearing will take\nplace on September 13, 2023, beginning at 8:30 a.m. Central Time.\nThe hearing will take place at the PHMSA Southwest Region office, 8701 South Gessner Road,\nSuite 630, Houston, TX 77074. Upon arrival at the building, attendees will be required to present\nphoto identification to security personnel. A contact phone number for the day of the hearing is\n(713) 272-2859.\nAt least 10 calendar days prior to the hearing (or by September 5, 2023), both parties must submit\nand exchange any additional written materials they intend to present at the hearing and the name\nand email address of each attendee. This information should be provided electronically. Materials\nnot submitted by this date may be excluded.\n\n\n\nIf you have any questions, please do not hesitate to contact me.\nSincerely,\nLarry White\nPresiding Official\ncc: Mr. Michael Jennings, President, Holly Energy Partners – Operating, L.P.,\nmichael.jennings@hollyenergy.com\nMs. Lori Coupland, Holly Energy Partners – Operating, L.P.,\nlori.coupland@hollyenergy.com\nMr. Ian Curry, Esq., Counsel, Southwest Region, Office of Pipeline Safety,\nian.curry@dot.gov\n\n42023041NOPV_Consent Agreement and Order_09122023_(22-235634)_text.pdf\n\nSeptember 12, 2023\nVIA ELECTRONIC MAIL TO: robert.jamieson@hollyenergy.com\nRobert Jamieson\nSenior Vice President and Chief Operating Officer\nHolly Energy Partners – Operating, L.P.\n2828 N. Harwood Street\nSuite 1300\nDallas Texas 75201\nCPF No. 4-2023-041-NOPV\nDear Mr. Jamieson:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement\nbetween the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Holly\nEnergy Partners – Operating, L.P., which was executed on August 31, 2023. Service of the\nConsent Order and Consent Agreement by electronic mail is deemed effective upon the date of\ntransmission and acknowledgement of receipt, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure: Consent Order and Consent Agreement\ncc: Mr. Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Michael Jennings, President, Holly Energy Partners, L.P.,\nmichael.jennings@hfsinclair.com\nMs. Lori Coupland, Vice President, Compliance and EHS, Holly Energy Partners, L.P.,\nlori.coupland@hollyenergy.com\n\n\n\nMr. James B. Curry, Counsel for Holly Energy Partners, L.P., Babst Calland,\njcurry@babstcalland.com\nMr. Lee Banse, Counsel for Holly Energy Partners, L.P., Babst Calland,\nlbanse@babstcalland.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nHolly Energy Partners – Operating, L.P., ) CPF No. 4-2023-041-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated March 24, 2023, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed\nCivil Penalty and Proposed Compliance Order (Notice) to Holly Energy Partners – Operating,\nL.P. (Holly, HEP, or Respondent).\nIn response to the Notice, Respondent requested a hearing on Item 1, contesting the underlying\nviolation, the proposed civil penalty, and the proposed compliance (Response). Holly also asked\nfor the opportunity to meet informally with PHMSA to discuss Item 1 in the Notice. Respondent\nand PHMSA (the Parties) subsequently met to discuss the issues raised in the Response. As a\nresult of those discussions, as explained in more detail below, the Parties have agreed to a\nConsent Agreement which revises the compliance order and reduces the penalty to $86,000.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. Holly is hereby ordered to comply with the terms of the Consent Agreement\npursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent\nOrder may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49\nC.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district court of\nthe United States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nSeptember 12, 2023\n_________________________________ ________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n)\nIn the Matter of )\n)\nHolly Energy Partners – Operating, L.P., ) CPF No. 4-2023-041-NOPV\n)\nRespondent. )\n)\nCONSENT AGREEMENT\nFrom February 28 to December 7, 2022, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of 49 United States Code (U.S.C.), inspected the following Holly Energy Partners –\nOperating, L.P. (Holly, HEP, or Respondent) assets: Osage Pipeline Company, LLC in\nOklahoma, and Kansas; El Dorado Tanks in Kansas; and UNEV Pipeline, LLC in Nevada, and\nUtah. Holly, through its subsidiaries and joint ventures, provides petroleum product and crude\noil transportation, terminalling, storage, and throughput services to the petroleum industry and\nowns and/or operates onshore petroleum product and crude oil pipelines, tankage and terminals\nin Colorado, Idaho, Iowa, Kansas, Missouri, Nevada, New Mexico, Oklahoma, Texas, Utah,\nWashington, and Wyoming.\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated March 24, 2023, a Notice of Probable Violation, Proposed Civil\nPenalty and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the\nNotice proposed finding that Holly violated 49 C.F.R. § 195.583(a) (Item 1), and proposed\nordering Respondent to take certain measures to correct the alleged violation and a civil penalty\nof $108,700.\nHolly responded to the Notice by letter dated April 17, 2023 (Response). The company\ncontested the underlying violation, the proposed civil penalty, and the proposed compliance\norder.\nPHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in the\nResponse. As a result of those discussions and as explained in more detail below, the Parties\nhave agreed to a Consent Agreement which revises the compliance order and reduces the penalty\nto $86,000.\n\n\n\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation and will serve the public interest by promoting safety and protection of the\nenvironment, pursuant to 49 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent\nand agreement, the Parties hereby agree as follows:\nI. General Provisions\n1. Respondent acknowledges that as the operator of the pipeline facilities subject to\nthe Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the\nFederal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative\norders issued thereunder. For purposes of this Consent Agreement (Agreement), Respondent\nacknowledges that it received proper notice of PHMSA’s action in this proceeding and that the\nNotice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq.,\nand the regulations and orders issued thereunder.\n2. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending\nthat the Associate Administrator adopt the terms of this Agreement by issuing an administrative\norder (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of this Agreement.\n3. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except for the Dispute Resolution\nprovisions set forth herein. Respondent agrees to withdraw its request for an administrative\nhearing regarding the Notice.\n4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Respondent’s officers, employees, and agents\nwhose duties might reasonably include compliance with this Agreement.\n5. This Agreement constitutes the final, complete and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement.\nThe Parties acknowledge that there are no representations, agreements or understandings relating\nto settlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n6. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101,\net seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\nPHMSA’s right of access, entry, inspection, and information gathering or PHMSA’s authority to\n\n\n\nbring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n7. For all transfers of ownership or operating responsibility of Respondent’s pipeline\nsystem referenced herein, Respondent will provide a copy of this Agreement to the prospective\ntransferee at least 30 days prior to such transfer. Respondent will provide written notice of the\ntransfer to the Director no later than 60 days after the transfer occurs.\n8. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a\npermit, or a modification of any permit, under any Federal, State, or local laws or regulations.\nRespondent remains responsible for achieving and maintaining compliance with all applicable\nFederal, State, and local laws, regulations and permits.\n9. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Respondent\nagrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,\nand representatives from any and all causes of action arising from any acts or omissions of\nRespondent or its contractors in carrying out any work required by this Agreement.\n10. Except as set forth herein, this Agreement does not constitute a finding of\nviolation of any other federal law or regulation and may not be used in any civil proceeding of\nany kind as evidence or proof of any fact, fault or liability, or as evidence of a violation of any\nlaw, rule, regulation, or requirement, except in a proceeding to enforce the provisions of this\nAgreement or in future PHMSA enforcement actions.\nII. Finding of Violation:\n11. Item 1 - 49 C.F.R. § 195.583(a) & (b): The Notice alleged that Holly failed to\ninspect each pipeline or portion of the pipeline that is exposed to the atmosphere for evidence of\natmospheric corrosion at least once every 3 calendar years, but with intervals not exceeding 39\nmonths, paying particular attention to pipe under thermal insulation. Specifically, the Notice\nalleged that Holly failed at a receiver at HEP’s facilities in El Dorado, Kansas to conduct adequate\natmospheric corrosion control inspections in 2017 and 2020 for corrosion monitoring locations and\nfailed to remove the thermal insulation to conduct its inspections. Therefore, PHMSA finds that\nHolly violated 49 C.F.R. § 195.583(a) & (b).\n12. Item 1 will be considered by PHMSA as a prior offense in any future PHMSA\nenforcement action taken against Respondent for the five (5)-year period following the Effective\nDate of this Agreement.\nIII. Civil Penalty:\n13. Item 1: The Notice proposed assessing a civil penalty in the amount of $108,700\nfor Item 1. Respondent requested a reduction of the proposed civil penalty and PHMSA agrees\n\n\n\nto reduce the civil penalty. With respect to gravity, PHMSA agrees to reduce the penalty\nbecause Holly agreed to ensure that the pipe under thermal insulation is inspected and promptly\nremediated. Respondent agrees to pay a reduced civil penalty in the amount of $86,000 for the\nviolation in Item 1.\n14. Respondent shall pay an adjusted civil penalty in the amount of $86,000, pursuant\nto the payment instructions at 49 C.F.R. § 190.227(a), to be paid in full no later than 20 days\nfrom the Effective Date of this Agreement.\nIV. Compliance Order:\n15. Item 1: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in the Notice. Respondent contested the Proposed Compliance Order and\nsuggested alternative corrective measures to resolve the violation. PHMSA agrees with\nRespondent’s request to revise the Proposed Compliance Order because it requires Holly to\ninspect pipe under thermal insulation and promptly remediate corrosion. As such, Respondent\nagrees to undertake the following corrective measures:\na. HEP agrees to complete an insulation survey of its Part 195-regulated\npipeline systems and submit a copy of the survey to the Director within three (3)\nmonths of the Effective Date.\nb. Within twelve (12) months following the Effective Date, HEP will (i)\ncomplete the removal of insulation HEP deems unnecessary, (ii) deploy\nremovable, seasonal insulation where HEP determines it is needed, and (iii) install\nAccess Plug Flanges (APF) on any remaining permanent insulation pursuant to\nHEP’s EP 21-7-1 Atmospheric Corrosion Monitoring, and Mitigation Procedure.\nHEP will provide updates to the Director every other month on the progress of\nthese actions.\nc. HEP will remediate any atmospheric corrosion discovered following the\ncompletion of the insulation survey described in paragraph (a) and inform the\nDirector of all remediations within twelve (12) months of the Effective Date.\nd. HEP will conduct a pilot study to determine the feasibility of using certain\nscreening tools, which may include, but are not limited to, eddy current or guided\nwave technology, to locate optimal APF placements on pipe that will remain\npermanently insulated after completion of the survey and submit a copy of the\nstudy to the Director within eighteen (18) months of the Effective Date.\ne. If HEP determines that using certain screening tools described in paragraph\n(d) is feasible and provides actionable data, HEP will incorporate a program based\non the study into its procedures within 60 days of conducting the pilot study and\nsubmit the updated procedures to the Director. HEP will measure the effectiveness\nof the pilot program based on whether the tools used can reliably locate corrosion\nunder insulation. If the tools are ineffective, HEP will locate APFs on the bottom\nof insulated pipe segments, where external corrosion generally appears.\n\n\n\nf. HEP will utilize its Pipeline Safety Management System to implement the\nabove corrective measures.\ng. The Director may grant an extension of time to comply with any of the\nrequired actions in Section IV upon a written request submitted by HEP\ndemonstrating good cause for an extension at least 30 days before the applicable\ndeadline.\nV. Enforcement:\n16. This Agreement is subject to all enforcement authorities available to PHMSA\nunder 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties\nunder 49 U.S.C. § 60122, of up to $257,664 per violation for each day the violation continues and\nreferral of the case to the Attorney General for judicial enforcement, if PHMSA determines that\nRespondent is not complying with the terms of this Agreement in accordance with the\ndeterminations made by the Director, or in accordance with decisions of the Associate\nAdministrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil\npenalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223. All work plans and\nassociated schedules set forth or referenced in Section IV are automatically incorporated into this\nAgreement and are enforceable in the same manner.\nVI. Review and Approval Process:\n17. With respect to any submission under Section IV (Compliance Order) of this\nAgreement that requires the approval of the Director, the Director may: (a) approve, in whole or\nin part, the submission; (b) approve the submission on specified, reasonable conditions; (c)\ndisapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the\nDirector approves, approves in part, or approves with conditions, Respondent will take all\nactions as approved by the Director, subject to Respondent’s right to invoke the dispute\nresolution procedures with respect to any conditions the Director identifies. If the Director\ndisapproves all or any portion of the submission, the Director will provide Respondent a written\nnotice of the deficiencies. Respondent will correct all deficiencies within the time specified by\nthe Director and resubmit it for approval.\nVII. Dispute Resolution:\n18. The Director and Respondent will informally attempt to resolve any disputes\narising under this Agreement, including any decision of the Director under the terms of Section\nIV. If Respondent and the Director are unable to informally resolve the dispute within 15\ncalendar days after the dispute is first raised, in writing, to the Director, Respondent may submit\na written request for a determination resolving the dispute from the Associate Administrator for\nPipeline Safety, PHMSA. Such request must be made in writing and provided to the Director,\ncounsel for the Southwest Region, and to the Associate Administrator for Pipeline Safety, no\nlater than 10 calendar days from the 15-day deadline for informal resolution referenced in this\nparagraph. Along with its request, Respondent must provide the Associate Administrator with\nall information Respondent believes is relevant to the dispute. Decisions of the Associate\nAdministrator under this paragraph will constitute final agency action. The existence of a\n\n\n\ndispute and PHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend\nany term or timeframe for completion of any work to be performed under this Agreement during\nthe pendency of the dispute resolution process except as agreed by the Director or Associate\nAdministrator in writing.\nVIII. Effective Date:\n19. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.\nIX. Recordkeeping and Information Disclosure:\n20. Unless otherwise required in this Agreement, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement for a period of at\nleast five (5) years following completion of all work to be performed. For any reports, plans, or\nother deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent\nmay assert a claim of business confidentiality or other protections applicable to the release of\ninformation by PHMSA, covering part or all of the information required to be submitted to\nPHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must\nmark the claim of confidentiality in writing on each page, and include a statement specifying the\ngrounds for each claim of confidentially. PHMSA determines release of any information\nsubmitted pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of\nInformation Act, 5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations\nand Executive Orders.\nX. Modification:\n21. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\nXI. Termination:\n22. This Agreement will remain in effect until the Civil Penalty is paid in full and the\nCompliance Order in Section IV is satisfied, as determined by the Director. The Agreement\nshall not terminate until the Director confirms, in writing, that the Agreement is terminated in\naccordance with this paragraph. Nothing in this Agreement prevents Respondent from\ncompleting any of the obligations earlier than the deadlines provided for in this Agreement.\n\n\n\nXII. Ratification:\n23. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n24. The Parties hereby agree to all findings, conditions, and terms of this Agreement.\nFor Holly Energy Partners – Operating, L.P.:\nRobert Jamieson\nSenior Vice President and Chief Operating Officer\nDate\nFor PHMSA:\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nDate\n\n42023041NOPV_Closure Letter_02032026_(22-235634)_text.pdf\n\nU.S. Department of Transportation\nPipeline and Hazardous Materials\nSafety Administration 8701 S. Gessner, Suite 630\nHouston TX 77074\nVIA ELECTRONIC MAIL TO: valerie.pompa@hfsinclair.com\nFebruary 3, 2026\nValerie Pompa\nExecutive Vice President, Operations\nHF Sinclair Midstream\n2323 Victory Avenue\nSuite 1400\nDallas, Texas 75219\nCPF 4-2023-041-NOPV\nDear Ms. Pompa:\nFrom February 28 to December 7, 2022, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.) inspected the following Holly Energy Partners – Operating, L.P.\n(Holly) assets: Osage Pipeline Company, LLC in Oklahoma, and Kansas; El Dorado Tanks in\nKansas; and UNEV Pipeline, LLC in Nevada, and Utah. As of December 1, 2023, Holly Energy\nPartners, L.P. (HEP) is now a wholly owned subsidiary of HF Sinclair Corporation (HF Sinclair),\ndoing business as HF Sinclair Midstream (HFSM).\nOn September 12, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Holly Energy Partners a Consent Order (Order) in the above-referenced case. This Order\nincluded a Compliance Order and Civil Penalty assessment.\nBased on our review of the documentation you provided and confirmation of payment of the civil\npenalty, it has been determined that you have complied with the terms of the Consent Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Eric Kaysen, Vice President of Health & Safety, HF Sinclair Corporation,\neric.kaysen@hfsinclair.com\nCharles Curl, Director Pipeline Excellence and Compliance, HF Sinclair Corporation,\ncharles.curl@hfsinclair.com","truncated":false,"body_characters":27034}