HOLLY ENERGY PARTNERS - OPERATING, L.P. — Warning Letter

520085021w_warning letter_07082008_text.pdf, page 1Official PDFO U. S. Department of Transportation Pipe)ine and Hazardous Materials Safety Administration 12300 W Dakota Ave, Suite 110 Lakewood, CO 80228 WARNING LETTER CERTIFIED MAIL - RETURN RECEIPT RE UESTED July 8, 2008 Mark Cunningham Vice President Holly Energy Partners-Operating, L. P 100 Crescent Court, Suite 1600 Dallas, TX 75201 CPF 5-2008-5021W Dear Mr Cunnmgham: On April 28 — May 1, 2008, a representative of the Pipeline and Hazardous Materials Safety A(hninistration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your Salt Lake City Refinery Pipelines in Salt Lake City, Utah. As a result of the inspection, it appears that you have committed a probable violation of the Pipehne Safety Regulations, Title 49, Code of Federal Regulations. The item inspected and the probable violation is. $195. 583 What must I do to monitor atmospheric corrosion control? (a) You must inspect each pipeline or portion of pipeline that is exposed to the atmosphere for evidence of atmospheric corrosion, as follows: If the pipeline is located: Onshore Then the frequency of inspection is: At least once every 3 calendar years, but with intervals not exceeding 39 months At the time of the mspection, there were no atmospheric corrosion monitoring records available for review.#

520085021w_warning letter_07082008_text.pdf, page 2Under 49 United States Code, ) 60122, you are subject to a civil penalty not to exceed $100, 000 for each violation for each day the violation persists up to a maximum of $1, 000, 000 for any related series of violations. We have reviewed the circumstances and supporting documents involved in this case, and have decided not to conduct additional enforcement action or penalty assessment proceedings at this time. We advise you to correct the items identified in this letter Failure to do so will result in Holly Energy Partners-Operating, L P. being subject to additional enforcement action. No reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 5-2008-5021W. Be advised that all material you submit m response to this enforcement action is subject to being made pubhcly available If you beheve that any portion of your responsive material quahfies 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 beheve the redacted information quahfies for confidential treatment under 5 U. S. C. 552(b) Sincerely, Chris oidal Director, Western Region Pipehne and Hazardous Materials Safety Administration cc PHP-60 Compliance Registry PHP-500 B. Brown (¹120793)#