----

----

| **UNITED                  STATES**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **SECURITIES                  AND EXCHANGE COMMISSION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Washington,                  D.C. 20549                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **FORM                  10-K**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ANNUAL                  REPORT PURSUANT TO SECTION 13 OR 15(d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| þ                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | OF                  THE SECURITIES EXCHANGE ACT OF 1934 |   |
| **For                  the Fiscal Year Ended: December 31, 2006**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| OR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| o                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | OF                  THE SECURITIES EXCHANGE ACT OF 1934 |   |
| For                  the transition period from . . . . to . . . .                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Commission                  File Number: 1-7627                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **FRONTIER                  OIL CORPORATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (Exact                  name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **Wyoming**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | **74-1895085** |
| (State                  or other jurisdiction of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (I.R.S.                  Employer |
| incorporation                  or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Identification                  No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **10000                  Memorial Drive, Suite 600**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | **77024-3411** |
| **Houston,                  Texas**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (Zip                  Code) |
| (Address                  of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Registrant’s                  telephone number, including area code: **(713)                  688-9600**                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Securities                  registered pursuant to Section 12(b) of the Act:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Name                  of Each Exchange |
| Title                  of Each Class                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | on                  Which Registered |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Common                  Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | New                  York Stock Exchange |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Securities                  registered pursuant to Section 12(g) of the Act:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Indicate                  by check mark if the registrant is a well-known seasoned issuer,                  as                  defined in Rule 405 of the Securities Act.                                                                                                                                                                                                                                                                                                                                                                                                |
| Yes þ                    No ¨                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Indicate                  by check mark if the registrant is not required to file reports                  pursuant                  to Section 13 or Section 15(d) of the Act.                                                                                                                                                                                                                                                                                                                                                                                                |
| Yes¨                    No þ                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Indicate                  by check mark whether the registrant (1) has filed all reports                  required to                  be filed by Section 13 or 15(d) of the Securities Exchange Act                  of 1934                  during the preceding 12 months (or for such shorter period that                  the                  registrant was required to file such reports), and (2) has been                  subject to                  such filing requirements for the past 90 days.Yes                  þ                    No ¨ |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Indicate                  by check mark if disclosure of delinquent filers pursuant to rule                  405 of                  Regulation S-K is not contained herein, and will not be contained,                  to the                  best of registrant’s knowledge, in definitive proxy or information                  statements incorporated by reference in Part III of this Form 10-K                  or any                  amendment to this Form 10-K. ü                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Indicate                  by check mark whether the registrant is a large accelerated filer,                  an                  accelerated filer, or a non-accelerated filer. See definition of                  “accelerated filer and large accelerated filer” in Rule 12b-2 of the                  Exchange Act.(Check                  one)                                                                                                                                                                                                                     |
| Large                  accelerated filer þ                     Accelerated filer  ¨                     Non-accelerated filer ¨                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Indicate                  by check mark whether the registrant is a shell company (as defined                  in                  Rule 12b-2 of the Exchange Act).                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Yes                  ¨                    No þ                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| The                  aggregate market value of the voting and non-voting common equity                  held by                  non-affiliates computed by reference to the price at which the                  common                  equity was last sold as of June 30, 2006 was $3.1                  billion.                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| The                  number of shares of common stock outstanding as of February 22,                  2007 was                  109,223,306.                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **DOCUMENTS                  INCORPORATED BY REFERENCE**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Portions                  of the Annual Proxy Statement for the registrant’s 2007 annual meeting of                  shareholders are incorporated by reference into Items 10 through                  14 of                  Part III.                                                                                                                                                                                                                                                                                                                                       |

----

----

**TABLE      OF CONTENTS**

| **Part                I**   |                                                                                                                                     |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------|
| Item                1.      | Business                                                                                                                                 |
|                        | Summary                and Overview                                                                                                      |
|                        | Refining                Operations                                                                                                       |
|                        | Marketing                and Distribution                                                                                                |
|                        | Competition                                                                                                                              |
|                        | Crude                Oil Supply                                                                                                          |
|                        | Safety                                                                                                                                   |
|                        | Government                Regulation                                                                                                     |
|                        | Employees                                                                                                                                |
| Item                1A.     | Risk                Factors Relating to Our Business                                                                                     |
| Item                1B.     | Unresolved                Staff Comments                                                                                                 |
| Item                2.      | Properties                                                                                                                               |
| Item                3.      | Legal                Proceedings                                                                                                         |
| Item                4.      | Submission                of Matters to a Vote of Security                Holders                                                        |
|                        |                                                                                                                                     |
|                        | **Available                Information**                                                                                                 |
|                        |                                                                                                                                     |
| **Part                II**  |                                                                                                                                     |
| Item                5.      | Market                for Registrant’s Common Equity, Related                Stockholder                                           |
|                        | Matters                and Issuer Purchasers of Equity                Securities                                                         |
| Item                6.      | Selected                Financial Data                                                                                                   |
| Item                7.      | Management’s                Discussion and Analysis of Financial Condition                and Results                of Operations |
| Item                7A.     | Quantitative                and Qualitative Disclosures About Market                Risk                                                 |
| Item                8.      | Financial                Statements and Supplementary                Data                                                                |
| Item                9.      | Changes                in and Disagreements with Accountants on Accounting                and                Financial Disclosure        |
| Item                9A.     | Controls                and Procedures                                                                                                   |
| Item                9B.     | Other                Information                                                                                                         |
|                        |                                                                                                                                     |
| **Part                III** |                                                                                                                                     |
|                        |                                                                                                                                     |
| **Part                IV**  |                                                                                                                                     |
| Item                15      | Exhibits                and Financial Statement                Schedules                                                                 |

**Forward-Looking      Statements**

| ·   | statements,                other than statements of historical fact, that address activities,                events                or developments that we expect, believe or anticipate will or may                occur in                the future; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | statements                relating to future financial performance, future capital sources                and other                matters; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | any                other statements preceded by, followed by or that include the words                “anticipates,” “believes,” “expects,” “plans,” “intends,” “estimates,”                “projects,” “could,” “should,” “may,” or similar                expressions. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART      I**

**Item      1.**
**Business**

**Summary**

**Overview**

**Cheyenne      Refinery.**

**El      Dorado Refinery.**

**Other      Assets.**

**Refining      Operations**

**Varieties      of Crude Oil and Products.**

**Refinery      Maintenance.**

**Marketing      and Distribution**

**Cheyenne      Refinery.**

**El      Dorado Refinery.**

**Competition**

**Cheyenne      Refinery.**

**El      Dorado Refinery. **

**Crude      Oil Supply**

**Cheyenne      Refinery.**

**El      Dorado Refinery.**

**Saf****e****ty**

**Government      Regulation**

**Environmental      Matters.**

**Centennial      Pipeline Regulation.**

**Employees**

**Item      1A.**
**Risk      Factors Relating to Our Business**

**Crude      oil prices and refining margins significantly impact our cash flow and have      fluctuated substantially in the past.**

**Our      profitability is affected by crude oil differentials, which increased slightly      in 2006 over 2005 levels. **

**External      factors beyond our control can cause fluctuations in demand for our products,      our prices and margins, which may negatively affect income and cash      flow.**

**We      are dependent on others to supply us with substantial quantities of raw      materials.**

**Our      Refineries face operating hazards,**
*** ***
**and      the potential limits on insurance coverage could expose us to significant      liability costs.**

**We      face substantial competition from other refining and pipeline companies, and      greater competition in the markets where we sell refined products could      adversely affect our sales and profitability. **

**Our      operations involve environmental risks that may require us to make substantial      capital expenditures to remain in compliance or that could give rise to material      liabilities.**

**Our      operations are subject to various laws and regulations relating to occupational      health and safety, which could give rise to increased costs and material      liabilities.**

**We      could incur substantial costs or disruptions in our business if we cannot obtain      or maintain necessary permits and authorizations. **

**Hurricanes      along the Gulf Coast could disrupt our supply of crude oil and our ability      to      complete capital improvement projects in a timely manner.**

**We      may have labor relations difficulties with some of our employees represented      by      unions.**

**Terrorist      attacks and threats or actual war may negatively impact our      business.**

**Item      1B.**
**Unresolved      Staff Comments**

**Item      2.**
**Properties**

**Refining      Operations**

**Other      Properties**

**Item      3. **
**Legal      Proceedings**

**Item      4. **
**Submission      of Matters to a Vote of Security      Holders**

**Available      Information**

----

**PART      II**

**Item      5.**
**Market      for Registrant’s Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities**

| **2006**                                                                                                           | **High**                                                                                                                             | **Low**                                                                                                                                         |
|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| Fourth                quarterThird                quarterSecond                quarterFirst                quarter | $                33.00                  37.80                  33.10                  30.98            | $                24.00                  24.33                  23.75                  18.99                       |
| **2005**                                                                                                           | **High**                                                                                                                             | **Low**                                                                                                                                         |
| Fourth                quarterThird                quarterSecond                quarterFirst                quarter | $                22.94                  23.09                  14.91                    9.23 | $                15.77                  13.28                    9.23                    5.98 |

| **Period**                                                                | **Total                Number of Shares Purchased** |   | **Average****Price                Paid Per Share** |   | **Total                Number of Shares Purchased as Part of Publicly Announced Plans or                Programs                (1)** |   | **Maximum                Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased                Under the Plans or Programs (2)** |
|---------------------------------------------------------------------------|-----------------------------------------------------|--------|----------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| October                1, 2006 to October                31, 2006         | 354,300                                             |   | $                24.8123                           |   | 354,300                                                                                                                               |   | 9,606,848                shares                                                                                                                    |
| November                1, 2006 to  November                30, 2006 | -                                                   |   | -                                                  |   | -                                                                                                                                     |   | $100                million                                                                                                                        |
| December                1, 2006 to  December                31, 2006 | -                                                   |   | -                                                  |   | -                                                                                                                                     |   | $100                million                                                                                                                        |
| Total                fourth quarter                                       | 354,300                                             |   | $                24.8123                           |   | 354,300                                                                                                                               |   | $100                million                                                                                                                        |

**Item      6.     Selected      Financial Data**

| **Five                  Year Financial Data**                                                     |   |                                                                |      |                             |   |                             |   |                             |      |                             |   |
|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|-----------|----------------------------------|--------|----------------------------------|--------|----------------------------------|-----------|----------------------------------|--------|
| **(Unaudited)**                                                                                   |   | **Years                  Ended December 31,**                       |      |
|                                                                                              |   | **2006**                                                            |      | **2005**                         |   | **2004**                         |   | **2003**                         |      | **2002**                         |   |
|                                                                                              |   |                                                                |      | **As                  Adjusted** |   | **As                  Adjusted** |   | **As                  Adjusted** |      | **As                  Adjusted** |   |
|                                                                                              |   |                                                                |      |  **(1)**                    |   | **(1)**                     |   | **(1)**                          |      | **(1)**                          |   |
|                                                                                              |   | *(Dollars                  in thousands, except per share amounts)* |      |                             |   |                             |   |                             |      |                             |   |
| Revenues                                                                                          |   | $                                                                   | 4,795,953 |                             | $      | 4,001,162                        |   | $                                | 2,861,716 |                             | $      | 2,170,503 |   | $ | 1,813,750 |   |
| Operating                  income                                                                 |   |                                                                | 574,194   |                             |   | 450,013                          |   |                             | 142,903   |                             |   | 53,437 |   |   | 30,030 |   |
| Cumulative                  effect of accounting                                                  |   |                                                                | -         |                             |   | (2,503                           | )      |                             | -         |                             |   | - |   |   | - |   |
| change,                  net of income taxes (2)                                                  |   |                                                                |      |                             |   |                             |   |                             |      |                             |   |   |   |   |   |   |
| Net                  income                                                                       |   |                                                                | 379,277   |                             |   | 275,158                          |   |                             | 69,392    |                             |   | 4,200 |   |   | 2,300 |   |
|  **Basic                  earnings per share:**                                              |   |                                                                |      |                             |   |                             |   |                             |      |                             |   |   |   |   |   |   |
| Before                  cumulative effect of accounting                  change                   |   |                                                                | 3.40      |                             |   | 2.51                             |   |                             | 0.65      |                             |   | 0.04 |   |   | 0.02 |   |
| Cumulative                  effect of accounting change                                           |   |                                                                | -         |                             |   | (0.02                            | )      |                             | -         |                             |   | - |   |   | - |   |
| Net                  income                                                                       |   |                                                                | 3.40      |                             |   | 2.49                             |   |                             | 0.65      |                             |   | 0.04 |   |   | 0.02 |   |
|  **Diluted                  earnings per share:**                                            |   |                                                                |      |                             |   |                             |   |                             |      |                             |   |   |   |   |   |   |
| Before                  cumulative effect of accounting                  change                   |   |                                                                | 3.37      |                             |   | 2.44                             |   |                             | 0.63      |                             |   | 0.04 |   |   | 0.02 |   |
| Cumulative                  effect of accounting change                                           |   |                                                                | -         |                             |   | (0.02                            | )      |                             | -         |                             |   | - |   |   | - |   |
| Net                  income                                                                       |   |                                                                | 3.37      |                             |   | 2.42                             |   |                             | 0.63      |                             |   | 0.04 |   |   | 0.02 |   |
|  Working                  capital (current assets less current                  liabilities) |   |                                                                | 479,518   |                             |   | 270,145                          |   |                             | 106,760   |                             |   | 45,049 |   |   | 116,187 |   |
| Total                  assets                                                                     |   |                                                                | 1,523,925 |                             |   | 1,223,057                        |   |                             | 770,177   |                             |   | 662,495 |   |   | 646,350 |   |
| Long-term                  debt                                                                   |   |                                                                | 150,000   |                             |   | 150,000                          |   |                             | 150,000   |                             |   | 168,689 |   |   | 207,966 |   |
| Shareholders’                  equity                                                       |   |                                                                | 775,854   |                             |   | 478,692                          |   |                             | 271,120   |                             |   | 200,656 |   |   | 198,669 |   |
| Dividends                  declared per common                  share                             |   |                                                                | 0.10      |                             |   | 0.575                            |   |                             | 0.055     |                             |   | 0.05 |   |   | 0.05 |   |
|                                                                                                   |   |                                                                |      |                             |   |                             |   |                             |      |                             |   |   |   |   |   |   |

**Item      7.     Management’s      Discussion and Analysis of Financial Condition and**
**Results      of Operations**

**General**

**Results      of Operations**

**Overview**

**2006      Compared with 2005**

**(2005      as Adjusted)**

**Overview      of Results**

**Specific      Variances**

**Refined      product revenues.**

**Manufactured      product yields.**

**Other      revenues.**

**Raw      material, freight and other costs.**

**Refinery      operating expenses.**

**Selling      and general expenses.**

**Depreciation      and amortization.**

**Interest      expense and other financing costs.**

**Interest      and investment income.**
**  **
**Provision      for income taxes.**

**2005      Compared with 2004**

**As      Adjusted**

**Overview      of Results**

**Specific      Variances**

**Refined      product revenues.**

**Manufactured      product yields.**

**Other      revenues.**

**Raw      material, freight and other costs.**

**Refinery      operating expenses.**

**Selling      and general expenses.**

**Merger      termination and legal costs. **

**Depreciation      and amortization. **

**Interest      expense and other financing costs.**

**Interest      and investment income.**

**Provision      for income taxes.**

**Liquidity      and Capital Resources**

**Cash      flows from operating activities.**

**Cash      flows used in investing activities.**

**Cash      flows used in financing activities.**

**Future      capital expenditures.**

**Contractual      Cash Obligations**

| **Contractual                Cash Obligations**                                                                                                  |   | **Payments                Due by Period** |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-----------|
|                                                                                                                                             |   | **Total**                                 |      | **Within****1                Year** |   | **Within****2-3                years** |   | **Within****4-5                years** |   | **After****5                years** |   |
|                                                                                                                                             |   | *(in                thousands)*      |      |
| Long-term                debt                                                                                                                    |   | $                                         | 150,000   |   | $ | - |   | $ | - |   | $ | 150,000 |   | $ | - |   |
| Interest                on long-term debt                                                                                                        |   |                                      | 47,204    |   |   | 9,938 |   |   | 19,875 |   |   | 17,391 |   |   | - |   |
| Operating                leases                                                                                                                  |   |                                      | 99,226    |   |   | 14,378 |   |   | 27,346 |   |   | 23,794 |   |   | 33,708 |   |
| Purchase                obligations:                                                                                                             |   |                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Baytex                crude supply (1)                                                                                                           |   |                                      | 290,829   |   |   | 290,829 |   |   | - |   |   | - |   |   | - |   |
| Other                crude supply, feedstocks andnatural                gas (1)                                                                  |   |                                      | 177,006   |   |   | 175,744 |   |   | 1,262 |   |   | - |   |   | - |   |
| Transportation,                terminalling andstorage                                                                                           |   |                                      | 318,780   |   |   | 41,900 |   |   | 86,854 |   |   | 68,573 |   |   | 121,453 |   |
| Refinery                capital projects (2)                                                                                                     |   |                                      | 85,570    |   |   | 85,570 |   |   | - |   |   | - |   |   | - |   |
| Other                goods and services                                                                                                          |   |                                      | 8,842     |   |   | 7,732 |   |   | 1,110 |   |   | - |   |   | - |   |
| Total                purchase obligations                                                                                                        |   |                                      | 881,027   |   |   | 601,775 |   |   | 89,226 |   |   | 68,573 |   |   | 121,453 |   |
| Other                long-term liabilities                                                                                                       |   |                                      | 13,746    |   |   | - |   |   | 8,521 |   |   | 1,014 |   |   | 4,211 |   |
| Pension                and post-retirement healthcare  and                other benefit plans funding  requirements                (3) |   |                                      | -         |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Total                contractual cash                                                                                                            |   | $                                         | 1,191,203 |   | $ | 626,091 |   | $ | 144,968 |   | $ | 260,772 |   | $ | 159,372 |   |

| (1)   | Baytex                crude supply and other crude supply, feedstocks and natural gas future                obligations were calculated using current market prices and/or prices                established in applicable contracts. Of these obligations, $208.8                million                relate to January and February 2007 feedstock and natural gas requirements                of the Refineries. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The                $85.6 million of Refinery capital projects primarily consists of                $71.9                million for the crude unit and vacuum tower expansion project at                our El                Dorado Refinery and $8.3 million for the coker expansion project                at our                Cheyenne Refinery. These amounts for refinery capital projects reflected                here relate to current commitments not accrued as of December 31,                2006,                not the total estimated costs of the                projects. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | No                pension funding will be required in 2007 for our cash balance pension                plan. Funding requirements for remaining years will be based on actuarial                estimates and actual experience. Our retiree health care plan is                unfunded.                Future payments for retiree health care benefits are estimated for                the                next ten years in Note 8 “Employee Benefit Plans” in the “Notes to                Consolidated Financial Statements.” |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Off-Balance      Sheet Arrangements**

**Environmental**

**Application      of Critical Accounting Policies**

**Turnarounds.      **
** **

**Inventories.**

**Asset      Retirement Obligations.**

**Environmental      Expenditures.**

**Pension      and Other Post-retirement Benefit Obligations.**

**New      Accounting Pronouncements**

**Market      Risks**

**Item      7A.     Quantitative      and Qualitative Disclosure About Market      Risk**

**Impact      of Changing Prices.**

**Price      Risk Management Activities.**
** **

**Operating      Data**

| ·   | WTI                Cushing crude oil price - the benchmark West Texas Intermediate crude                oil                priced at Cushing, Oklahoma (ConocoPhillips WTI crude oil posting                plus). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Charges                - the quantity of crude oil and other feedstock processed through                Refinery                units on a bpd basis. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Manufactured                product yields - the volumes of specific materials that are obtained                through the distilling of crude oil and the operations of other refinery                process units on a bpd basis. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gasoline                and diesel crack spreads - the average non-oxygenated gasoline and                diesel                net sales prices that we receive for each product less the average                WTI                Cushing crude oil price. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Cheyenne                light/heavy crude oil differential - the average differential between                the                WTI Cushing crude oil price and the heavy crude oil delivered to                the                Cheyenne Refinery. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | WTI/WTS                crude oil differential - the average differential between the WTI                Cushing                crude oil price and the West Texas sour crude oil priced at Midland,                Texas. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | El                Dorado Refinery light/heavy crude oil differential - the average                differential between the WTI Cushing crude oil price and the Canadian                heavy crude oil delivered to the El Dorado Refinery. This differential                is                only applicable beginning in 2006 when we began utilizing Canadian                crude                oil at the El Dorado Refinery. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Consolidated:**                                                                               |   |     |    |     |   |     |   |
|-------------------------------------------------------------------------------------------------|--------|----------|---------|----------|--------|----------|--------|
|                                                                                            |   |     |    |     |   |     |   |
| **Years                Ended December 31,**                                                     |   | **2006** |    | **2005** |   | **2004** |   |
| **Charges                (bpd)**                                                                |   |     |    |     |   |     |   |   |   |   |
| Light                crude                                                                      |   |     | 39,730  |     |   | 39,210   |   |   | 37,486 |   |
| Heavy                and intermediate crude                                                     |   |     | 114,743 |     |   | 113,439  |   |   | 110,662 |   |
| Other                feed and blend stocks                                                      |   |     | 17,346  |     |   | 15,955   |   |   | 16,609 |   |
| Total                                                                                           |   |     | 171,819 |     |   | 168,604  |   |   | 164,757 |   |
|                                                                                            |   |     |    |     |   |     |   |   |   |   |
| **Manufactured                product yields (bpd)**                                            |   |     |    |     |   |     |   |   |   |   |
| Gasoline                                                                                        |   |     | 81,484  |     |   | 83,574   |   |   | 82,944 |   |
| Diesel                and jet fuel                                                              |   |     | 57,678  |     |   | 55,151   |   |   | 53,093 |   |
| Asphalt                                                                                         |   |     | 6,032   |     |   | 7,434    |   |   | 7,475 |   |
| Other                                                                                           |   |     | 21,580  |     |   | 17,506   |   |   | 17,050 |   |
| Total                                                                                           |   |     | 166,774 |     |   | 163,665  |   |   | 160,562 |   |
|                                                                                            |   |     |    |     |   |     |   |   |   |   |
| **Total                product sales (bpd)**                                                    |   |     |    |     |   |     |   |   |   |   |
| Gasoline                                                                                        |   |     | 89,895  |     |   | 90,372   |   |   | 90,698 |   |
| Diesel                and jet fuel                                                              |   |     | 57,326  |     |   | 54,350   |   |   | 52,818 |   |
| Asphalt                                                                                         |   |     | 6,138   |     |   | 7,526    |   |   | 7,427 |   |
| Other                                                                                           |   |     | 18,679  |     |   | 18,133   |   |   | 15,046 |   |
| Total                                                                                           |   |     | 172,038 |     |   | 170,381  |   |   | 165,989 |   |
|                                                                                            |   |     |    |     |   |     |   |   |   |   |
| **Refinery                operating margin information (per sales barrel)**                     |   |     |    |     |   |     |   |   |   |   |
| Refined                products revenue                                                         |   | $        | 75.80   |     | $      | 64.32    |   | $ | 47.27 |   |
| Raw                material, freight and other costs (FIFO                inventory accounting) |   |     | 61.33   |     |   | 52.22    |   |   | 40.04 |   |
| Refinery                operating expenses, excluding depreciation                              |   |     | 4.41    |     |   | 3.88     |   |   | 3.63 |   |
| Depreciation                and amortization                                                    |   |     | 0.65    |     |   | 0.56     |   |   | 0.53 |   |
|                                                                                            |   |     |    |     |   |     |   |   |   |   |
| **Average                WTI crude oil price at Cushing, OK (per barrel)**                      |   | $        | 64.94   |     | $      | 55.77    |   | $ | 41.85 |   |
| **Average                gasoline crack spread (per barrel)**                                   |   |     | 14.10   |     |   | 11.67    |   |   | 8.61 |   |
| **Average                diesel crack spread (per barrel)**                                     |   |     | 21.35   |     |   | 17.13    |   |   | 7.35 |   |
|                                                                                            |   |     |    |     |   |     |   |   |   |   |
| **Average                sales price (per sales barrel)**                                       |   |     |    |     |   |          |   |   |  |   |
| Gasoline                                                                                        |   | $        | 80.79   |     | $      | 69.09    |   | $ | 51.70 |   |
| Diesel                and jet fuel                                                              |   |     | 86.62   |     |   | 73.61    |   |   | 49.81 |   |
| Asphalt                                                                                         |   |     | 37.68   |     |   | 26.72    |   |   | 24.11 |   |
| Other                                                                                           |   |     | 31.11   |     |   | 28.28    |   |   | 23.10 |   |

| **Years                Ended December 31,**                                                    |   | **2006** |   | **2005** |   | **2004** |   |
|------------------------------------------------------------------------------------------------|--------|----------|--------|----------|--------|----------|--------|
| **Cheyenne                Refinery:**                                                          |   |     |   |     |   |     |   |
| **Charges                (bpd)**                                                               |   |     |   |     |   |     |   |   |   |   |
| Light                crude                                                                     |   |     | 12,436 |     |   | 8,575    |   |   | 6,645 |   |
| Heavy                crude                                                                     |   |     | 33,563 |     |   | 38,347   |   |   | 38,408 |   |
| Other                feed and blend stocks                                                     |   |     | 1,694  |     |   | 4,399    |   |   | 4,392 |   |
| Total                                                                                          |   |     | 47,693 |     |   | 51,321   |   |   | 49,445 |   |
|                                                                                           |   |     |   |     |   |     |   |   |   |   |
| **Manufactured                product yields (bpd)**                                           |   |     |   |     |   |     |   |   |   |   |
| Gasoline                                                                                       |   |     | 19,089 |     |   | 21,035   |   |   | 20,039 |   |
| Diesel                                                                                         |   |     | 14,261 |     |   | 14,580   |   |   | 14,387 |   |
| Asphalt                                                                                        |   |     | 6,032  |     |   | 7,434    |   |   | 7,475 |   |
| Other                                                                                          |   |     | 6,283  |     |   | 6,285    |   |   | 5,839 |   |
| Total                                                                                          |   |     | 45,665 |     |   | 49,334   |   |   | 47,740 |   |
|                                                                                           |   |     |   |     |   |     |   |   |   |   |
| **Total                product sales (bpd)**                                                   |   |     |   |     |   |     |   |   |   |   |
| Gasoline                                                                                       |   |     | 26,569 |     |   | 27,186   |   |   | 26,744 |   |
| Diesel                                                                                         |   |     | 14,147 |     |   | 14,428   |   |   | 14,581 |   |
| Asphalt                                                                                        |   |     | 6,138  |     |   | 7,526    |   |   | 7,427 |   |
| Other                                                                                          |   |     | 4,662  |     |   | 6,124    |   |   | 5,044 |   |
| Total                                                                                          |   |     | 51,516 |     |   | 55,264   |   |   | 53,796 |   |
|                                                                                           |   |     |   |     |   |     |   |   |   |   |
| **Refinery                operating margin information (per sales barrel)**                    |   |     |   |     |   |     |   |   |   |   |
| Refined                products revenue                                                        |   | $        | 74.08  |     | $      | 61.16    |   | $ | 45.50 |   |
| Raw                material, freight and other costs(FIFO                inventory accounting) |   |     | 57.07  |     |   | 48.49    |   |   | 38.08 |   |
| Refinery                operating expenses, excluding depreciation                             |   |     | 5.42   |     |   | 3.91     |   |   | 3.72 |   |
| Depreciation                and amortization                                                   |   |     | 1.00   |     |   | 0.90     |   |   | 0.90 |   |
|                                                                                           |   |     |   |     |   |     |   |   |   |   |
| **Average                light/heavy crude oil differential (per barrel)**                     |   | $        | 16.21  |     | $      | 15.32    |   | $ | 9.90 |   |
| **Average                gasoline crack spread (per barrel)**                                  |   |     | 15.58  |     |   | 13.17    |   |   | 9.33 |   |
| **Average                diesel crack spread (per barrel)**                                    |   |     | 24.35  |     |   | 19.40    |   |   | 9.34 |   |
|                                                                                           |   |     |   |     |   |     |   |   |   |   |
| **Average                sales price (per sales barrel)**                                      |   |     |   |     |   |     |   |   |   |   |
| Gasoline                                                                                       |   | $        | 83.35  |     | $      | 71.14    |   | $ | 53.28 |   |
| Diesel                                                                                         |   |     | 89.99  |     |   | 75.57    |   |   | 52.35 |   |
| Asphalt                                                                                        |   |     | 37.68  |     |   | 26.72    |   |   | 24.11 |   |
| Other                                                                                          |   |     | 20.91  |     |   | 25.29    |   |   | 15.98 |   |

| **El                Dorado Refinery:**                                                          |   |   |    |   |   |    |   |
|-------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| **Charges                (bpd)**                                                                |   |   |    |   |   |    |   |   |   |   |
| Light                crude                                                                      |   |   | 27,295  |   |   | 30,635  |   |   | 30,841 |   |
| Heavy                and intermediate crude                                                     |   |   | 81,180  |   |   | 75,092  |   |   | 72,254 |   |
| Other                feed and blend stocks                                                      |   |   | 15,652  |   |   | 11,556  |   |   | 12,218 |   |
| Total                                                                                           |   |   | 124,127 |   |   | 117,283 |   |   | 115,313 |   |
|                                                                                            |   |   |    |   |   |    |   |   |   |   |
| **Manufactured                product yields (bpd)**                                            |   |   |    |   |   |    |   |   |   |   |
| Gasoline                                                                                        |   |   | 62,395  |   |   | 62,539  |   |   | 62,905 |   |
| Diesel                and jet fuel                                                              |   |   | 43,417  |   |   | 40,572  |   |   | 38,706 |   |
| Other                                                                                           |   |   | 15,297  |   |   | 11,222  |   |   | 11,212 |   |
| Total                                                                                           |   |   | 121,109 |   |   | 114,333 |   |   | 112,823 |   |
|                                                                                            |   |   |    |   |   |    |   |   |   |   |
| **Total                product sales (bpd)**                                                    |   |   |    |   |   |    |   |   |   |   |
| Gasoline                                                                                        |   |   | 63,327  |   |   | 63,186  |   |   | 63,954 |   |
| Diesel                and jet fuel                                                              |   |   | 43,179  |   |   | 39,922  |   |   | 38,237 |   |
| Other                                                                                           |   |   | 14,018  |   |   | 12,009  |   |   | 10,002 |   |
| Total                                                                                           |   |   | 120,524 |   |   | 115,117 |   |   | 112,193 |   |
|                                                                                            |   |   |    |   |   |    |   |   |   |   |
| **Refinery                operating margin information (per sales barrel)**                     |   |   |    |   |   |    |   |   |   |   |
| Refined                products revenue                                                         |   | $      | 76.53   |   | $      | 65.83   |   | $ | 48.12 |   |
| Raw                material, freight and other costs (FIFO                inventory accounting) |   |   | 63.15   |   |   | 54.01   |   |   | 40.98 |   |
| Refinery                operating expenses, excluding depreciation                              |   |   | 3.98    |   |   | 3.87    |   |   | 3.59 |   |
| Depreciation                and amortization                                                    |   |   | 0.50    |   |   | 0.40    |   |   | 0.35 |   |
|                                                                                            |   |   |    |   |   |    |   |   |   |   |
| **Average                WTI/WTS crude oil differential (per barrel)**                          |   | $      | 5.22    |   | $      | 4.51    |   | $ | 3.74 |   |
| **Average                light/heavy crude oil differential (per barrel)**                      |   |   | 18.13   |   |   | -       |   |   | - |   |
| **Average                gasoline crack spread (per barrel)**                                   |   |   | 13.48   |   |   | 11.02   |   |   | 8.31 |   |
| **Average                diesel crack spread (per barrel)**                                     |   |   | 20.37   |   |   | 16.31   |   |   | 6.59 |   |
|                                                                                            |   |   |    |   |   |    |   |   |   |   |
| **Average                sales price (per sales barrel)**                                       |   |   |    |   |   |    |   |   |   |   |
| Gasoline                                                                                        |   | $      | 79.72   |   | $      | 68.21   |   | $ | 51.03 |   |
| Diesel                and jet fuel                                                              |   |   | 85.51   |   |   | 72.90   |   |   | 48.84 |   |
| Other                                                                                           |   |   | 34.51   |   |   | 29.81   |   |   | 26.69 |   |

**Item      8. **
**Financial      Statements and Supplementary      Data**

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING      FIRM**

**To      the Board of Directors and Shareholders of Frontier Oil      Corporation:**

**DELOITTE      & TOUCHE LLP**

----

**MANAGEMENT’S      REPORT ON INTERNAL **

**CONTROL      OVER FINANCIAL REPORTING**

**James      R. Gibbs**

**Michael      C. Jennings**

**Nancy      J. Zupan**

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING      FIRM**

**To      the Board of Directors and Shareholders of Frontier Oil      Corporation:**

----

| **FRONTIER                OIL CORPORATION AND                SUBSIDIARIES**                                           |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|
| **Consolidated                Statements of Income**                                                                  |   |
|                                                                                                                  |   |   |   |   |   |   |   |
|                                                                                                                  |   | **Years                Ended December 31,** |   |
|                                                                                                                  |   | **2006**  |   | **2005****As                Adjusted (Note 3)** |   | **2004****As                Adjusted (Note 3)** |   |
|                                                                                                                  |   | *(in                thousands, except per share data)*  |   |
| **Revenues:**                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Refined                products                                                                                       |   | $ | 4,759,661 |   | $ | 3,999,935 |   | $ | 2,871,592 |   |
| Other                                                                                                                 |   |   | 36,292 |   |   | 1,227 |   |   | (9,876 | ) |
|                                                                                                                  |   |   | 4,795,953 |   |   | 4,001,162 |   |   | 2,861,716 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| **Costs                and expenses:**                                                                                |   |   |   |   |   |   |   |   |   |   |
| Raw                material, freight and other costs                                                                  |   |   | 3,850,937 |   |   | 3,247,372 |   |   | 2,432,461 |   |
| Refinery                operating expenses, excluding depreciation                                                    |   |   | 277,129 |   |   | 241,445 |   |   | 220,427 |   |
| Selling                and general expenses, excluding depreciation                                                   |   |   | 52,488 |   |   | 30,715 |   |   | 29,893 |   |
| Merger                termination and legal costs                                                                     |   |   | - |   |   | 48 |   |   | 3,824 |   |
| Depreciation                and amortization                                                                          |   |   | 41,213 |   |   | 35,213 |   |   | 32,208 |   |
| Gains                on sales of assets                                                                               |   |   | (8 | ) |   | (3,644 | ) |   | - |   |
|                                                                                                                  |   |   | 4,221,759 |   |   | 3,551,149 |   |   | 2,718,813 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| **Operating                income**                                                                                   |   |   | 574,194 |   |   | 450,013 |   |   | 142,903 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| Interest                expense and other financing costs                                                             |   |   | 12,139 |   |   | 10,341 |   |   | 37,573 |   |
| Interest                and investment income                                                                         |   |   | (18,059 | ) |   | (7,583 | ) |   | (1,716 | ) |
| Gain                on involuntary conversion of assets                                                               |   |   | - |   |   | - |   |   | (4,411 | ) |
|                                                                                                                  |   |   | (5,920 | ) |   | 2,758 |   |   | 31,446 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| **Income                before income taxes**                                                                         |   |   | 580,114 |   |   | 447,255 |   |   | 111,457 |   |
| Provision                for income taxes                                                                             |   |   | 200,837 |   |   | 169,594 |   |   | 42,065 |   |
| **Income                before cumulative effect of accounting change**                                               |   |   | 379,277 |   |   | 277,661 |   |   | 69,392 |   |
| **Cumulative                effect of accounting change, net of****income                taxes of $1,530**            |   |   | - |   |   | (2,503 | ) |   | - |   |
| **Net                income**                                                                                         |   | $ | 379,277 |   | $ | 275,158 |   | $ | 69,392 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| **Basic                earnings per share of common stock:**                                                          |   |   |   |   |   |   |   |   |   |   |
| Before                cumulative effect of accounting change                                                          |   | $ | 3.40 |   | $ | 2.51 |   | $ | 0.65 |   |
| Cumulative                effect of accounting change                                                                 |   |   | - |   |   | (0.02 | ) |   | - |   |
| Net                income                                                                                             |   | $ | 3.40 |   | $ | 2.49 |   | $ | 0.65 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| **Diluted                earnings per share of common stock:**                                                        |   |   |   |   |   |   |   |   |   |   |
| Before                cumulative effect of accounting change                                                          |   | $ | 3.37 |   | $ | 2.44 |   | $ | 0.63 |   |
| Cumulative                effect of accounting change                                                                 |   |   | - |   |   | (0.02 | ) |   | - |   |
| Net                income                                                                                             |   | $ | 3.37 |   | $ | 2.42 |   | $ | 0.63 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these consolidated financial                statements. |

----

| **FRONTIER                OIL CORPORATION AND                SUBSIDIARIES**                                               |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|
| **Consolidated                Balance Sheets**                                                                            |   |
|                                                                                                                      |   | **December                31,** |   |
|                                                                                                                      |   | **2006** |   | **2005****As                Adjusted (Note 3)** |   |
|                                                                                                                      |   | *(in                thousands, except share data)* |   |
| **ASSETS**                                                                                                                |   |   |   |   |   |   |   |
| Current                assets:                                                                                            |   |   |   |   |   |   |   |
| Cash                and cash equivalents                                                                                  |   | $ | 405,479 |   | $ | 356,065 |   |
| Trade                receivables, net of allowance of $500 in both years                                                  |   |   | 135,111 |   |   | 122,051 |   |
| Other                receivables                                                                                          |   |   | 2,351 |   |   | 7,584 |   |
| Inventory                of crude oil, products and other                                                                 |   |   | 374,576 |   |   | 247,621 |   |
| Deferred                tax assets                                                                                        |   |   | 3,237 |   |   | 2,004 |   |
| Other                current assets                                                                                       |   |   | 18,462 |   |   | 7,935 |   |
| Total                current assets                                                                                       |   |   | 939,216 |   |   | 743,260 |   |
| Property,                plant and equipment, at cost:                                                                    |   |   |   |   |   |   |   |
| Refineries,                terminal equipment and pipelines                                                               |   |   | 802,498 |   |   | 657,612 |   |
| Furniture,                fixtures and other equipment                                                                    |   |   | 11,084 |   |   | 10,510 |   |
|                                                                                                                      |   |   | 813,582 |   |   | 668,122 |   |
| Less                - accumulated depreciation and amortization                                                           |   |   | 276,777 |   |   | 238,184 |   |
|                                                                                                                      |   |   | 536,805 |   |   | 429,938 |   |
| Deferred                financing costs, net of amortization                                                              |   |   |   |   |   |   |   |
| of                $1,742 and $945 in 2006 and 2005, respectively                                                          |   |   | 2,752 |   |   | 3,549 |   |
| Commutation                account                                                                                        |   |   | 7,290 |   |   | 12,606 |   |
| Prepaid                insurance, net of amortization                                                                     |   |   | 2,120 |   |   | 3,331 |   |
| Other                intangible asset, net of amortization                                                                |   |   |   |   |   |   |   |
| of                $264 and $158 in 2006 and 2005, respectively $158                and $53 in 2005 and 2004, respectively |   |   | 1,316 |   |   | 1,422 |   |
| Deferred                charges and other assets                                                                          |   |   | 34,426 |   |   | 28,951 |   |
| Total                assets                                                                                               |   | $ | 1,523,925 |   | $ | 1,223,057 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**                                                             |   |   |   |   |   |   |   |
| Current                liabilities:                                                                                       |   |   |   |   |   |   |   |
| Accounts                payable                                                                                           |   | $ | 390,019 |   | $ | 359,577 |   |
| Contingent                income tax liabilities                                                                          |   |   | 28,271 |   |   | 21,517 |   |
| Accrued                dividends                                                                                          |   |   | 3,486 |   |   | 58,726 |   |
| Accrued                interest                                                                                           |   |   | 2,541 |   |   | 2,485 |   |
| Accrued                El Dorado Refinery contingent earn-out payment                                                     |   |   | 7,500 |   |   | 7,500 |   |
| Accrued                liabilities and other                                                                              |   |   | 27,881 |   |   | 23,310 |   |
| Total                current liabilities                                                                                  |   |   | 459,698 |   |   | 473,115 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| Long-term                debt                                                                                             |   |   | 150,000 |   |   | 150,000 |   |
| Post-retirement                employee liabilities                                                                       |   |   | 28,090 |   |   | 24,497 |   |
| Other                long-term liabilities                                                                                |   |   | 13,746 |   |   | 8,079 |   |
| Deferred                compensation liability                                                                            |   |   | 2,630 |   |   | 2,214 |   |
| Deferred                income taxes                                                                                      |   |   | 93,907 |   |   | 86,460 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| Commitments                and contingencies                                                                              |   |   |   |   |   |   |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| Shareholders’                equity:                                                                                |   |   |   |   |   |   |   |
| Preferred                stock, $100 par value, 500,000 shares authorized,                                                |   |   |   |   |   |   |   |
| no                shares issued                                                                                           |   |   | - |   |   | - |   |
| Common                stock, no par, 180,000,000 shares authorized, 134,509,256                and                        |   |   |   |   |   |   |   |
| 133,629,396                shares issued in 2006 and 2005, respectively                                                   |   |   | 57,802 |   |   | 57,780 |   |
| Paid-in                capital                                                                                            |   |   | 181,386 |   |   | 157,910 |   |
| Retained                earnings                                                                                          |   |   | 719,802 |   |   | 352,783 |   |
| Accumulated                other comprehensive income                                                                     |   |   | 256 |   |   | 27 |   |
| Treasury                stock, at cost, 24,164,808 and 20,930,828                                                         |   |   |   |   |   |   |   |
| shares                at December 31, 2006 and 2005, respectively                                                         |   |   | (183,392 | ) |   | (86,870 | ) |
| Deferred                compensation                                                                                      |   |   | - |   |   | (2,938 | ) |
| Total                shareholders’ equity                                                                           |   |   | 775,854 |   |   | 478,692 |   |
| Total                liabilities and shareholders’ equity                                                           |   | $ | 1,523,925 |   | $ | 1,223,057 |   |
|                                                                                                                      |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these consolidated financial                statements.     |

----

| **FRONTIER                OIL CORPORATION AND                SUBSIDIARIES**                                           |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|
| **Consolidated                Statements of Cash Flows**                                                              |   |
|                                                                                                                  |   |   |   |   |   |   |   |
|                                                                                                                  |   | **Years                Ended December 31,** |   |
|                                                                                                                  |   | **2006** |   | **2005****As                Adjusted (Note 3)** |   | **2004****As                Adjusted (Note 3)** |   |
|                                                                                                                  |   | *(in                thousands)*  |   |
| **Cash                flows from operating activities:**                                                              |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                             |   | $ | 379,277 |   | $ | 275,158 |   | $ | 69,392 |   |
| Adjustments                to reconcile net income to net cash from                operating activities:              |   |   |   |   |   |   |   |   |   |   |
| Cumulative                effect of accounting change, net of income taxes                                            |   |   | - |   |   | 2,503 |   |   | - |   |
| Depreciation                and amortization                                                                          |   |   | 54,388 |   |   | 47,546 |   |   | 45,252 |   |
| Deferred                income taxes                                                                                  |   |   | 6,073 |   |   | 30,259 |   |   | 24,731 |   |
| Stock-based                compensation expense                                                                       |   |   | 18,029 |   |   | 1,363 |   |   | 1,180 |   |
| Excess                income tax benefits of stock-based compensation                                                 |   |   | (8,881 | ) |   | - |   |   | - |   |
| Deferred                financing cost and bond discount amortization                                                 |   |   | 797 |   |   | 785 |   |   | 5,484 |   |
| Gains                on sales of assets                                                                               |   |   | (8 | ) |   | (3,644 | ) |   | - |   |
| Gain                on involuntary conversion of assets                                                               |   |   | - |   |   | - |   |   | (4,411 | ) |
| Long-term                commutation account                                                                          |   |   | 5,316 |   |   | 3,832 |   |   | 3,712 |   |
| Amortization                of long-term prepaid insurance                                                            |   |   | 1,211 |   |   | 1,211 |   |   | 1,451 |   |
| Increase                in long-term accrued liabilities                                                              |   |   | 9,309 |   |   | 4,473 |   |   | 431 |   |
| Changes                in deferred charges and other                                                                  |   |   | (18,844 | ) |   | (17,316 | ) |   | (8,055 | ) |
| Changes                in components of working capital from operations:                                              |   |   |   |   |   |   |   |   |   |   |
| Decrease                (increase) in trade, note and other receivables                                               |   |   | (7,633 | ) |   | (43,707 | ) |   | 2,231 |   |
| Increase                in inventory                                                                                  |   |   | (126,955 | ) |   | (90,687 | ) |   | (32,935 | ) |
| Increase                in other current assets                                                                       |   |   | (10,527 | ) |   | (5,591 | ) |   | (370 | ) |
| Increase                in accounts payable                                                                           |   |   | 23,187 |   |   | 117,275 |   |   | 58,138 |   |
| Increase                in accrued liabilities and other                                                              |   |   | 15,778 |   |   | 36,877 |   |   | 11,668 |   |
| Net                cash provided by operating activities                                                              |   |   | 340,517 |   |   | 360,337 |   |   | 177,899 |   |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| **Cash                flows from investing activities:**                                                              |   |   |   |   |   |   |   |   |   |   |
| Additions                to property, plant and equipment                                                             |   |   | (129,703 | ) |   | (109,710 | ) |   | (46,502 | ) |
| Net                proceeds from insurance - involuntary conversion claim                                             |   |   | - |   |   | 2,142 |   |   | 3,395 |   |
| Proceeds                from sale of assets                                                                           |   |   | 8 |   |   | 5,500 |   |   | - |   |
| El                Dorado Refinery contingent earn-out payment                                                         |   |   | (7,500 | ) |   | (7,500 | ) |   | - |   |
| Net                cash used in investing activities                                                                  |   |   | (137,195 | ) |   | (109,568 | ) |   | (43,107 | ) |
|                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| **Cash                flows from financing activities:**                                                              |   |   |   |   |   |   |   |   |   |   |
| Purchase                of treasury stock                                                                             |   |   | (98,950 | ) |   | (34,819 | ) |   | (3,029 | ) |
| Proceeds                from issuance of common stock                                                                 |   |   | 3,672 |   |   | 23,616 |   |   | 3,923 |   |
| Dividends                paid                                                                                         |   |   | (67,498 | ) |   | (7,776 | ) |   | (5,664 | ) |
| Debt                issue costs and other                                                                             |   |   | (13 | ) |   | (114 | ) |   | (3,954 | ) |
| Excess                income tax benefits of stock-based compensation                                                 |   |   | 8,881 |   |   | - |   |   | - |   |
| (Repayments)                proceeds of revolving credit facility, net                                                |   |   | - |   |   | - |   |   | (45,750 | ) |
| Proceeds                from issuance of 6.625% Senior Notes                                                          |   |   | - |   |   | - |   |   | 150,000 |   |
| Repurchase                of 11.75% Senior Notes                                                                      |   |   | - |   |   | - |   |   | (170,449 | ) |
| Net                cash used in financing activities                                                                  |   |   | (153,908 | ) |   | (19,093 | ) |   | (74,923 | ) |
| Increase                in cash and cash equivalents                                                                  |   |   | 49,414 |   |   | 231,676 |   |   | 59,869 |   |
| Cash                and cash equivalents, beginning of period                                                         |   |   | 356,065 |   |   | 124,389 |   |   | 64,520 |   |
| Cash                and cash equivalents, end of period                                                               |   | $ | 405,479 |   | $ | 356,065 |   | $ | 124,389 |   |
|                                                                                                                  |
| The                accompanying notes are an integral part of these consolidated financial                statements. |

----

| **FRONTIER                  OIL CORPORATION AND                  SUBSIDIARIES**                                                               |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **Consolidated                  Statements of Changes in Shareholders’ Equity and Statements of                  Comprehensive Income** |   |
| ***(in                  thousands, except share data)***                                                                                      |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                          |   | **Common                  Stock** |   |   |   |   |   |   |   | **Treasury                  Stock** |   |   |   |   |   | **Total** |   |
|                                                                                                                                          |   | **Number                  of Shares Issued** |   | **Amount** |   | **Paid-in                  Capital** |   | **Comprehensive                  Income As Adjusted****(Note                  3)** |   | **Retained                  Earnings As Adjusted (Note 3)** |   | **Number                  of Shares** |   | **Amount** |   | **Deferred                  Compensation** |   | **Accumulated                  Other Comprehensive Income (Loss)** |   | **Number                  of Shares** |   | **Amount                  As Adjusted (Note 3)** |   |
| **December                  31, 2003, as reported**                                                                                           |   |   | **30,643,549** |   | **$** | **57,504** |   | **$** | **106,443** |   |   |   |   | **$** | **47,614** |   |   | **(4,264,673** | **)** | **$** | **(39,914** | **)** | **$** | **(1,446** | **)** | **$** | **(924** | **)** |   | **26,378,876** |   | **$** | **169,277** |   |
| Adjustment                  for the 2005 and 2006 stock splits                                                                                |   |   | 91,930,647 |   |   | - |   |   | - |   |   |   |   |   | - |   |   | (12,794,019 | ) |   | - |   |   | - |   |   | - |   |   | 79,136,628 |   |   | - |   |
| Change                  in accounting principle (Note 3)                                                                                      |   |   | - |   |   | - |   |   | - |   |   |   |   |   | 31,379 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 31,379 |   |
| **December                  31, 2003, as adjusted**                                                                                           |   |   | **122,574,196** |   | **$** | **57,504** |   | **$** | **106,443** |   |   |   |   | **$** | **78,993** |   |   | **(17,058,692** | **)** | **$** | **(39,914** | **)** | **$** | **(1,446** | **)** | **$** | **(924** | **)** |   | **105,515,504** |   | **$** | **200,656** |   |
| Shares                  issued under stock-based compensation plans                                                                           |   |   | 4,103,900 |   |   | 103 |   |   | 7,914 |   |   |   |   |   | - |   |   | 12,000 |   |   | 13 |   |   | - |   |   | - |   |   | 4,115,900 |   |   | 8,030 |   |
| Shares                  received under stock-based compensation plans                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,507,176 | ) |   | (7,123 | ) |   |   |   |   |   |   |   | (1,507,176 | ) |   | (7,123 | ) |
| Comprehensive                  income:                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                   |   |   | - |   |   | - |   |   | - |   | $ | 69,392 |   |   | 69,392 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 69,392 |   |
| Other                  comprehensive income:                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Minimum                  pension liability, net of tax benefit of $166                                                                        |   |   |   |   |   |   |   |   |   |   |   | (273 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive income                                                                                                   |   |   |   |   |   |   |   |   |   |   |   | (273 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   | (273 | ) |   | - |   |   | (273 | ) |
| Comprehensive                  income                                                                                                         |   |   |   |   |   |   |   |   |   |   | $ | 69,119 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  tax benefits of stock-based compensation                                                                              |   |   | - |   |   | - |   |   | 5,168 |   |   |   |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 5,168 |   |
| Stock-based                  compensation expense                                                                                             |   |   | - |   |   | - |   |   | - |   |   |   |   |   | - |   |   | - |   |   | - |   |   | 1,180 |   |   | - |   |   | - |   |   | 1,180 |   |
| Dividends                  declared                                                                                                           |   |   | - |   |   | - |   |   | - |   |   |   |   |   | (5,910 | ) |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (5,910 | ) |
| **December                  31, 2004**                                                                                                        |   |   | **126,678,096** |   | **$** | **57,607** |   | **$** | **119,525** |   |   |   |   | **$** | **142,475** |   |   | **(18,553,868** | **)** | **$** | **(47,024** | **)** | **$** | **(266** | **)** | **$** | **(1,197** | **)** |   | **108,124,228** |   | **$** | **271,120** |   |
| Shares                  issued under stock-based compensation plans                                                                           |   |   | 6,951,300 |   |   | 173 |   |   | 29,369 |   |   |   |   |   |   |   |   | 339,956 |   |   | 450 |   |   | (2,810 | ) |   |   |   |   | 7,290,896 |   |   | 27,182 |   |
| Issue                  of restricted stock units to directors                                                                                 |   |   | - |   |   | - |   |   | 1,224 |   |   |   |   |   | - |   |   | - |   |   | - |   |   | (1,224 | ) |   | - |   |   | - |   |   | - |   |
| Shares                  received under:                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  repurchase plans                                                                                                       |   |   | - |   |   | - |   |   | - |   |   |   |   |   |   |   |   | (1,441,600 | ) |   | (24,596 | ) |   | - |   |   | - |   |   | (1,441,600 | ) |   | (24,596 | ) |
| Stock-based                  compensation plans                                                                                               |   |   | - |   |   | - |   |   | - |   |   |   |   |   |   |   |   | (1,274,956 | ) |   | (15,700 | ) |   | - |   |   | - |   |   | (1,274,956 | ) |   | (15,700 | ) |
| Net                  income                                                                                                                   |   |   | - |   |   | - |   |   | - |   | $ | 275,158 |   |   | 275,158 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 275,158 |   |
| Other                  comprehensive income:                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Minimum                  pension liability, net of tax liability of $755                                                                      |   |   |   |   |   |   |   |   |   |   |   | 1,224 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive income                                                                                                   |   |   |   |   |   |   |   |   |   |   |   | 1,224 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,224 |   |   | - |   |   | 1,224 |   |
| Comprehensive                  income                                                                                                         |   |   |   |   |   |   |   |   |   |   | $ | 276,382 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  tax benefits of stock-based compensation, net of                  contingency                                         |   |   | - |   |   | - |   |   | 7,792 |   |   |   |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 7,792 |   |
| Stock-based                  compensation expense                                                                                             |   |   | - |   |   | - |   |   | - |   |   |   |   |   | - |   |   | - |   |   | - |   |   | 1,362 |   |   | - |   |   | - |   |   | 1,362 |   |
| Dividends                  declared                                                                                                           |   |   | - |   |   | - |   |   | - |   |   |   |   |   | (64,850 | ) |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (64,850 | ) |
| **December                  31, 2005**                                                                                                        |   |   | **133,629,396** |   | **$** | **57,780** |   | **$** | **157,910** |   |   |   |   | **$** | **352,783** |   |   | **(20,930,828** | **)** | **$** | **(86,870** | **)** | **$** | **(2,938** | **)** | **$** | **27** |   |   | **112,698,568** |   | **$** | **478,692** |   |
| Adoption                  of FAS No. 123(R)                                                                                                   |   |   | - |   |   | - |   |   | (2,938 | ) |   |   |   |   | - |   |   | - |   |   | - |   |   | 2,938 |   |   | - |   |   | - |   |   | - |   |
| Shares                  issued under stock-based compensation plans and other                                                                 |   |   | 879,860 |   |   | 22 |   |   | 3,134 |   |   |   |   |   | - |   |   | 389,846 |   |   | 516 |   |   | - |   |   | - |   |   | 1,269,706 |   |   | 3,672 |   |
| Shares                  received under:                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                  repurchase plans                                                                                                       |   |   | - |   |   | - |   |   | - |   |   |   |   |   | - |   |   | (3,482,088 | ) |   | (92,273 | ) |   | - |   |   | - |   |   | (3,482,088 | ) |   | (92,273 | ) |
| Stock-based                  compensation plans                                                                                               |   |   | - |   |   | - |   |   | - |   |   |   |   |   | - |   |   | (141,738 | ) |   | (4,765 | ) |   | - |   |   | - |   |   | (141,738 | ) |   | (4,765 | ) |
| Net                  income and comprehensive income                                                                                          |   |   |   |   |   |   |   |   |   |   | $ | 379,277 |   |   | 379,277 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 379,277 |   |
| Adjustment                  to initially apply FAS No. 158, net of tax liability of                  $141                                     |   |   | - |   |   | - |   |   | - |   |   |   |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 229 |   |   | - |   |   | 229 |   |
| Income                  tax benefits of stock-based compensation, net of                  contingency                                         |   |   | - |   |   | - |   |   | 5,251 |   |   |   |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 5,251 |   |
| Stock-based                  compensation expense                                                                                             |   |   | - |   |   | - |   |   | 18,029 |   |   |   |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 18,029 |   |
| Dividends                  declared                                                                                                           |   |   | - |   |   | - |   |   | - |   |   |   |   |   | (12,258 | ) |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (12,258 | ) |
| **December                  31, 2006**                                                                                                        |   |   | **134,509,256** |   | **$** | **57,802** |   | **$** | **181,386** |   |   |   |   | **$** | **719,802** |   |   | **(24,164,808** | **)** | **$** | **(183,392** | **)** |   | - |   | **$** | **256** |   |   | **110,344,448** |   | **$** | **775,854** |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of these consolidated financial                  statements.                     |

----

**FRONTIER      OIL CORPORATION AND      SUBSIDIARIES**

**Notes      To Consolidated Financial Statements**

**For      The Years Ended December 31, 2006, 2005 and 2004**

| **1.  ** | **Nature                of Operations** |
|--------------------|-----------------------------------------|

| **2.  ** | **Significant                Accounting Policies** |
|--------------------|----------------------------------------------------|

**Revenue      Recognition**

**Property,      Plant and Equipment**

| Refinery                  buildings and equipment    | 5                  to 50 years |
|------------------------------------------------------|--------------------------------|
| Pipelines                  and pipeline improvements | 5                  to 20 years |
| Furniture,                  fixtures and other       | 3                  to 10 years |

**Turnarounds**

**Inventories**

|                                                      |   | **December                31,** |    |
|-----------------------------------------------------------|--------|---------------------------------|---------|
|                                                      |   | **2006**                        |    | **2005** |   |
|                                                      |   | *(in                thousands)* |    |
| Crude                oil                                  |   | $                               | 182,215 |   | $ | 97,766 |   |
| Unfinished                products                        |   |                            | 84,682  |   |   | 53,200 |   |
| Finished                products                          |   |                            | 89,457  |   |   | 75,790 |   |
| Process                chemicals                          |   |                            | 1,009   |   |   | 5,441 |   |
| Repairs                and maintenance supplies and other |   |                            | 17,213  |   |   | 15,424 |   |
|                                                      |   | $                               | 374,576 |   | $ | 247,621 |   |

**Prepaid      Insurance**

**Income      Taxes**

**Environmental      Expenditures**

**Price      Risk Management Activities**

**Stock-based      Compensation**

|                                                      |   | **Years                Ended December 31,**                       |    |
|-----------------------------------------------------------|--------|-------------------------------------------------------------------|---------|
|                                                      |   | **2005****As                Adjusted****(Note                3)** |    | **2004****As                Adjusted****(Note                3)** |   |
|                                                      |   | (*in                thousands, except per share amounts*)         |    |
| Net                income                                 |   | $                                                                 | 275,158 |   | $ | 69,392 |   |
| Pro                forma compensation expense, net of tax |   |                                                              | (1,255  | ) |   | (2,029 | ) |
| Pro                forma net income                       |   | $                                                                 | 273,903 |   | $ | 67,363 |   |
| Basic                EPS:                                 |   |                                                              |    |   |   |   |   |
| As                reported                                |   | $                                                                 | 2.49    |   | $ | 0.65 |   |
| Pro                forma                                  |   |                                                              | 2.47    |   |   | 0.63 |   |
| Diluted                EPS:                               |   |                                                              |    |   |   |   |   |
| As                reported                                |   | $                                                                 | 2.42    |   | $ | 0.63 |   |
| Pro                forma                                  |   |                                                              | 2.41    |   |   | 0.61 |   |

**Asset      Retirement Obligations**

|                                                            |   | **Year                ended December 31,****2006** |   |
|-----------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                            |   | *(in                thousands)*                    |   |
| Asset                retirement obligation, beginning of period |   | $                                                  | 5,468  |   |
| Liabilities                settled                              |   |                                               | (255   | ) |
| Accretion                expense                                |   |                                               | 366    |   |
| Revisions                to estimated cash flows                |   |                                               | 385    |   |
| Asset                retirement obligation, end of period       |   | $                                                  | 5,964  |   |

**Principles      of Consolidation **

**Use      of Estimates**

**Cash      Equivalents**

**Related      Party Transactions**

**Supplemental      Cash Flow Information**

**Reclassifications**

**New      Accounting Pronouncements**

* *

| **3.  ** | **Change                in Accounting Principle - Turnarounds** |
|--------------------|-----------------------------------------------------------------|

|                                                                                                      |   |  **Year                ending December 31,**  |                                            |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-------------------------------------------------|
|                                                                                                      |   |                                                    | **2005**                                   |   | **2004**  |   |
|                                                                                                      |   |                                                    | **As                Originally Reported**  |   |   | **As                Adjusted**  |   |   | **Change**  |   |   | **As                Originally Reported**  |   |   | **As                Adjusted**  |   |   | **Change**  |   |
|                                                                                                      |   |  *(in                thousands)*                   |                                            |
| **Consolidated                Statements of Income:**                                                     |   |                                                    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Refinery                operating expenses, excluding                depreciation                         |   | $                                                       | 245,449                                         |   | $ | 241,445 |   | $ | (4,004 | ) | $ | 219,781 |   | $ | 220,427 |   | $ | 646 |   |
|                                                                                                      |   |                                                    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                before income taxes                                                                 |   |                                                    | 443,251                                         |   |   | 447,255 |   |   | 4,004 |   |   | 112,103 |   |   | 111,457 |   |   | (646 | ) |
| Provision                for income taxes                                                                 |   |                                                    | 168,216                                         |   |   | 169,594 |   |   | 1,378 |   |   | 42,339 |   |   | 42,065 |   |   | (274 | ) |
| Income                before cumulative effect of                accounting change                        |   |                                                    | 275,035                                         |   |   | 277,661 |   |   | 2,626 |   |   | 69,764 |   |   | 69,392 |   |   | (372 | ) |
| Net                income                                                                                 |   | $                                                       | 272,532                                         |   | $ | 275,158 |   | $ | 2,626 |   | $ | 69,764 |   | $ | 69,392 |   | $ | (372 | ) |
|                                                                                                      |   |                                                    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                earnings per share:                                                                  |   |                                                    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Before                cumulative effect of accounting                change                               |   | $                                                       | 2.48                                            |   | $ | 2.51 |   | $ | 0.03 |   | $ | 0.65 |   | $ | 0.65 |   | $ | - |   |
| Cumulative                effect of accounting change                                                     |   |                                                    | (0.02                                           | ) |   | (0.02 | ) |   | - |   |   | - |   |   | - |   |   | - |   |
| Net                income                                                                                 |   | $                                                       | 2.46                                            |   | $ | 2.49 |   | $ | 0.03 |   | $ | 0.65 |   | $ | 0.65 |   | $ | - |   |
|                                                                                                      |   |                                                    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per share:                                                                |   |                                                    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Before                cumulative effect of accounting                change                               |   | $                                                       | 2.42                                            |   | $ | 2.44 |   | $ | 0.02 |   | $ | 0.64 |   | $ | .63 |   | $ | (0.01 | ) |
| Cumulative                effect of accounting change                                                     |   |                                                    | (0.02                                           | ) |   | (0.02 | ) |   | - |   |   | - |   |   | - |   |   | - |   |
| Net                income                                                                                 |   | $                                                       | 2.40                                            |   | $ | 2.42 |   | $ | 0.02 |   | $ | 0.64 |   | $ | .63 |   | $ | (0.01 | ) |
|                                                                                                      |   |                                                    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Consolidated                Statements of Cash Flows:**                                                 |   |                                                    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                 |   | $                                                       | 272,532                                         |   | $ | 275,158 |   | $ | 2,626 |   | $ | 69,764 |   | $ | 69,392 |   | $ | (372 | ) |
| Adjustments                to reconcile net income tonet                income from operating activities: |   |                                                    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and amortization                                                              |   |                                                    | 35,213                                          |   |   | 47,546 |   |   | 12,333 |   |   | 32,208 |   |   | 45,252 |   |   | 13,044 |   |
| Deferred                income taxes                                                                      |   |                                                    | 28,881                                          |   |   | 30,259 |   |   | 1,378 |   |   | 25,005 |   |   | 24,731 |   |   | (274 | ) |
| Deferred                charges and other                                                                 |   |                                                    | (271                                            | ) |   | (17,316 | ) |   | (17,045 | ) |   | 2,458 |   |   | (8,055 | ) |   | (10,513 | ) |
| Increase                in long-term accrued                liabilities                                   |   |                                                    | 6,442                                           |   |   | 4,473 |   |   | (1,969 | ) |   | (2,645 | ) |   | 431 |   |   | 3,076 |   |
| Increase                in current accrued liabilities and                other                      |   |                                                    | 34,200                                          |   |   | 36,877 |   |   | 2,677 |   |   | 16,629 |   |   | 11,668 |   |   | (4,961 | ) |
|                                                                                                      |   |                                                    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                cash provided by****operating                activities**                            |   | $                                                       | 360,337                                         |   | $ | 360,337 |   | $ | - |   | $ | 177,899 |   | $ | 177,899 |   | $ | - |   |

|                                                                                  |   | **December                31, 2005**      |          |
|---------------------------------------------------------------------------------------|--------|-------------------------------------------|---------------|
|                                                                                  |   | **As                Originally Reported** |          |  **As                Adjusted** |   |  **Change** |   |
|                                                                                  |   | *(in                thousands)*           |          |
| **Consolidated                Balance Sheet:**                                        |   |                                      |          |   |   |   |   |   |   |   |
| Deferred                tax assets                                                    |   | $                                         | 6,819         |   | $ | 2,004 |   | $ | (4,815 | ) |
| Deferred                charges and other assets                                      |   |                                      | 2,588         |   |   | 28,951 |   |   | 26,363 |   |
|                                                                                  |   |                                      |          |   |   |   |   |   |   |   |
| **Total                assets**                                                       |   | **$**                                     | **1,201,509** |   | **$** | **1,223,057** |   | **$** | **21,548** |   |
|                                                                                  |   |                                      |          |   |   |   |   |   |   |   |
| Accrued                turnaround costs                                               |   | $                                    | 12,696        |   | $  | - |   | $  | (12,696 | ) |
| Long-term                accrued turnaround costs                                     |   |                                           | 15,122        |   |   | - |   |   | (15,122 | ) |
| Deferred                income taxes                                                  |   |                                      | 70,727        |   |   | 86,460 |   |   | 15,733 |   |
|                                                                                  |   |                                      |          |   |   |   |   |   |   |   |
| Retained                earnings                                                      |   |                                      | 319,150       |   |   | 352,783 |   |   | 33,633 |   |
| Total                shareholders’                equity                        |   |                                      | 445,059       |   |   | 478,692 |   |   | 33,633 |   |
|                                                                                  |   |                                      |          |   |   |   |   |   |   |   |
| **Total                liabilities and****shareholders’                equity** |   | **$**                                     | **1,201,509** |   | **$** | **1,223,057** |   | **$** | **21,548** |   |

| **4.  ** | **Long-term                Debt** |
|--------------------|-----------------------------------|

**Schedule      of Long-term Debt**

|                                              |   | **December                31,** |    |
|---------------------------------------------------|--------|---------------------------------|---------|
|                                              |   | **2006**                        |    | **2005** |   |
|                                              |   | *(in                thousands)* |    |
| 6.625%                Senior Notes, maturing 2011 |   | $                               | 150,000 |   | $ | 150,000 |   |

| **5.  ** | **Revolving                Credit Facility** |
|--------------------|----------------------------------------------|

| **6.  ** | **Income                Taxes** |
|--------------------|---------------------------------|

|                                    |   | **Years                ended December 31,** |    |
|-----------------------------------------|--------|---------------------------------------------|---------|
|                                    |   | **2006**                                    |    | **2005****As                Adjusted (Note 3)** |   | **2004****As                Adjusted (Note 3)** |   |
|                                    |   | *(in                thousands)*             |    |
| Current:                                |   |                                        |    |   |   |   |   |
| Federal                                 |   | $                                           | 168,950 |   | $ | 121,455 |   | $ | 13,959 |   |
| State                                   |   |                                        | 25,814  |   |   | 17,880 |   |   | 3,375 |   |
| Total                current provision  |   |                                        | 194,764 |   |   | 139,335 |   |   | 17,334 |   |
| Deferred:                               |   |                                        |    |   |   |   |   |   |   |   |
| Federal                                 |   |                                        | 5,269   |   |   | 28,065 |   |   | 23,166 |   |
| State                                   |   |                                        | 804     |   |   | 2,194 |   |   | 1,565 |   |
| Total                deferred provision |   |                                        | 6,073   |   |   | 30,259 |   |   | 24,731 |   |
| Total                provision          |   | $                                           | 200,837 |   | $ | 169,594 |   | $ | 42,065 |   |
|                                    |   |                                        |    |   |   |   |   |   |   |   |

|                                                                                                   |   |  **Years                ended December 31,** |    |
|--------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|
|                                                                                                   |   |  **2006**                               |    |  **2005**** ****As                Adjusted****(Note                3)**  |   |  **2004****As                Adjusted****(Note                3)**  |   |
|                                                                                                   |   |  *(in                thousands)*             |    |
| Provision                based on statutory rates                                                      |   | $                                                 | 203,040 |   | $ | 156,539 |   | $ | 39,010 |   |
| Increase                (decrease) resulting from:                                                     |   |                                              |    |   |   |   |   |   |   |   |
| State                income taxes                                                                      |   |                                              | 26,618  |   |   | 20,074 |   |   | 4,940 |   |
| Federal                tax effect of state income taxes                                                |   |                                              | (9,316  | ) |   | (7,026 | ) |   | (1,729 | ) |
| Benefit                of the Section 199 manufacturers production                activities deduction |   |                                              | (5,666  | ) |   | (3,229 | ) |   | - |   |
| Benefit                of ultra-low sulfur diesel tax credit                                           |   |                                              | (14,546 | ) |   | - |   |   | - |   |
| Release                of valuation allowance                                                          |   |                                              | -       |   |   | - |   |   | (955 | ) |
| Other,                including permanent book-tax differences                                         |   |                                              | 707     |   |   | 3,236 |   |   | 799 |   |
| Provision                as reported                                                                   |   | $                                                 | 200,837 |   | $ | 169,594 |   | $ | 42,065 |   |

|                                                        |   | **December                31, 2006**  |    |  **December                31, 2005****As                Adjusted (Note 3)** |   |
|-------------------------------------------------------------|--------|---------------------------------------|---------|-----------------------------------------------------------------------------------|--------|
|                                                        |   | **State**                             |    | **Federal**                                                                       |   | **Total** |   |  **State** |   | **Federal** |   | **Total** |   |
|                                                        |   | *(in                thousands)*  |    |
| Current                deferred tax assets:                 |   |                                  |    |                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                current assets:                        |   |                                  |    |                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accrued                bonuses                              |   | $                                     | 545     |                                                                              | $      | 4,240 |   | $ | 4,785 |   | $ | 356 |   | $ | 2,772 |   | $ | 3,128 |   |
| Stock-based                compensation                     |   |                                  | 94      |                                                                              |   | 734 |   |   | 828 |   |   | 24 |   |   | 183 |   |   | 207 |   |
| Other                                                       |   |                                  | 235     |                                                                              |   | 2,505 |   |   | 2,740 |   |   | 212 |   |   | 1,793 |   |   | 2,005 |   |
| Total                gross deferred tax assets              |   |                                  | 874     |                                                                              |   | 7,479 |   |   | 8,353 |   |   | 592 |   |   | 4,748 |   |   | 5,340 |   |
| Gross                current liabilities:                   |   |                                  |    |                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepaid                expenses                             |   |                                  | (374    | )                                                                                 |   | (2,902 | ) |   | (3,276 | ) |   | (342 | ) |   | (2,663 | ) |   | (3,005 | ) |
| State                income tax receivable or prepaid       |   |                                  | -       |                                                                              |   | (496 | ) |   | (496 | ) |   | - |   |   | (243 | ) |   | (243 | ) |
| State                deferred taxes                         |   |                                  | -       |                                                                              |   | (126 | ) |   | (126 | ) |   | - |   |   | (88 | ) |   | (88 | ) |
| Unrealized                gain on derivative contracts      |   |                                  | (139    | )                                                                                 |   | (1,079 | ) |   | (1,218 | ) |   | - |   |   | - |   |   | - |   |
| Total                current net deferred tax assets        |   | $                                     | 361     |                                                                              | $      | 2,876 |   | $ | 3,237 |   | $ | 250 |   | $ | 1,754 |   | $ | 2,004 |   |
|                                                        |   |                                  |    |                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                deferred tax liabilities:          |   |                                  |    |                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                long-term assets:                      |   |                                  |    |                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Pension                and other post-retirement benefits   |   | $                                     | 1,265   |                                                                              | $      | 9,832 |   | $ | 11,097 |   | $ | 1,090 |   | $ | 8,479 |   | $ | 9,569 |   |
| Stock-based                compensation                     |   |                                  | 628     |                                                                              |   | 4,878 |   |   | 5,506 |   |   | - |   |   | - |   |   | - |   |
| Environmental                liability accrual              |   |                                  | 315     |                                                                              |   | 2,450 |   |   | 2,765 |   |   | 67 |   |   | 525 |   |   | 592 |   |
| Asset                retirement obligations                 |   |                                  | 254     |                                                                              |   | 1,974 |   |   | 2,228 |   |   | 231 |   |   | 1,800 |   |   | 2,031 |   |
| Other                                                       |   |                                  | 172     |                                                                              |   | 1,340 |   |   | 1,512 |   |   | 144 |   |   | 1,120 |   |   | 1,264 |   |
| State                deferred taxes                         |   |                                  | -       |                                                                              |   | 3,879 |   |   | 3,879 |   |   | - |   |   | 3,553 |   |   | 3,553 |   |
| Total                gross long-term assets                 |   |                                  | 2,634   |                                                                              |   | 24,353 |   |   | 26,987 |   |   | 1,532 |   |   | 15,477 |   |   | 17,009 |   |
| Gross                long-term liabilities:                 |   |                                  |    |                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                |   |                                  | (12,606 | )                                                                                 |   | (98,554 | ) |   | (111,160 | ) |   | (10,495 | ) |   | (82,560 | ) |   | (93,055 | ) |
| Deferred                turnaround costs                    |   |                                  | (1,110  | )                                                                                 |   | (8,624 | ) |   | (9,734 | ) |   | (1,187 | ) |   | (9,227 | ) |   | (10,414 | ) |
| Total                long-term net deferred tax liabilities |   | $                                     | (11,082 | )                                                                                 | $      | (82,825 | ) | $ | (93,907 | ) | $ | (10,150 | ) | $ | (76,310 | ) | $ | (86,460 | ) |

| **7.  ** | **Common                Stock** |
|--------------------|---------------------------------|

**Stock      Splits **

**Dividends**

**Treasury      stock**

**Earnings      per Share**

|                                    |   | **2006**                                                 |    | **2005****As                Adjusted (Note 3)** |   | **2004****As                Adjusted (Note 3)** |   |
|-----------------------------------------|--------|----------------------------------------------------------|---------|-------------------------------------------------|--------|-------------------------------------------------|--------|
|                                    |   | **Income                (Num-erator)**                   |    | **Shares                (Denomi-nator)**        |   | **Per                Share Amount**             |   | **Income                (Num-erator)** |   | **Shares                (Denomi-nator)** |   | **Per                Share Amount** |   | **Income                (Num-erator)** |   | **Shares                (Denomi-nator)** |   | **Per                Share Amount** |   |
|                                    |   | (*in                thousands except per share amounts)* |    |
| Basic                EPS:               |   |                                                     |    |                                            |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income               |   | $                                                        | 379,277 |                                            |   | 111,408                                         |   | $ | 3.40 |   | $ | 275,158 |   |   | 110,724 |   | $ | 2.49 |   | $ | 69,392 |   |   | 106,692 |   | $ | 0.65 |   |
| **Dilutive                securities:** |   |                                                     |    |                                            |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                options            |   |                                                     | -       |                                            |   | 565                                             |   |   | - |   |   | - |   |   | 2,792 |   |   | - |   |   | - |   |   | 2,871 |   |   | - |   |
| Restricted                stock         |   |                                                     | -       |                                            |   | 539                                             |   |   | - |   |   | - |   |   | 120 |   |   | - |   |   | - |   |   | 41 |   |   | - |   |
| **Diluted                EPS:**         |   |                                                     |    |                                            |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income               |   | $                                                        | 379,277 |                                            |   | 112,512                                         |   | $ | 3.37 |   | $ | 275,158 |   |   | 113,636 |   | $ | 2.42 |   | $ | 69,392 |   |   | 109,604 |   | $ | 0.63 |   |

**Stock-based      Compensation **

|                                                                 |   | **Years                Ended December 31,** |   |
|----------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                 |   | **2006**                                    |   | **2005** |   | **2004** |   |
| Restricted                shares and units                           |   | $                                           | 8,539  |   | $ | 1,362 |   | $ | 1,180 |   |
| Stock                options                                         |   |                                        | 2,110  |   |   | - |   |   | - |   |
| Performance-based                awards                              |   |                                        | 7,290  |   |   | - |   |   | - |   |
| Stock                grant to retiring executive (3,030 shares)      |   |                                        | 90     |   |   | - |   |   | - |   |
| Total                stock-based compensation expense                |   | $                                           | 18,029 |   | $ | 1,362 |   | $ | 1,180 |   |
|                                                                 |   |                                        |   |   |   |   |   |   |   |   |
| Income                tax benefit recognized in the income statement |   | $                                           | 6,851  |   | $ | 518 |   | $ | 448 |   |

**Omnibus      Incentive Compensation Plan.**

**Stock      Options.**

|                                                                                                              |   | **2006**                            |      | **2005**                                                       |   | **2004**                                                                                       |   |
|-------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|-----------|----------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|
|                                                                                                              |   | **Number                of Awards** |      |   **Weighted-Average                Exercise Price** |   | **Aggregate                Intrinsic Value of Options****(*****in                thousands)*** |   | **Number                of Awards** |   | **Weighted-Average                Exercise Price** |   | **Number                of Awards** |   | **Weighted-Average                Exercise Price** |   |
| Outstanding                at beginning                of year                                                    |   |                                | 1,381,700 |                                                           | $      | 4.3515                                                                                         |   |   |   |   |   | 8,353,800 |   | $ | 3.9935 |   |   | 12,286,100 |   | $ | 3.3025 |   |
| Granted                                                                                                           |   |                                | 493,226   |                                                           |   | 29.3850                                                                                        |   |   |   |   |   | - |   |   | - |   |   | 180,000 |   |   | 4.6625 |   |
| Exercised                or issued                                                                                |   |                                | (842,800  | )                                                              |   | 4.3560                                                                                         |   |   |   |   |   | (6,935,300 | ) |   | 3.9195 |   |   | (4,103,900 | ) |   | 1.9538 |   |
| Expired                                                                                                           |   |                                | -         |                                                           |   | -                                                                                              |   |   |   |   |   | (36,800 | ) |   | 4.5005 |   |   | (8,400 | ) |   | 5.4625 |   |
| Outstanding                at end of                year                                                          |   |                                | 1,032,126 |                                                           |   |                                                                                           |   | $ | 13,147 |   |   | 1,381,700 |   |   | 4.3515 |   |   | 8,353,800 |   |   | 3.9935 |   |
| Vested                or expected to  vest                at end of year                                     |   |                                | 1,021,207 |                                                           |   |                                                                                           |   | $ | 13,147 |   |   | 1,381,700 |   |   |   |   |   | 8,353,800 |   |   |   |   |
| Exercisable                at end of                year                                                          |   |                                | 501,400   |                                                           |   |                                                                                           |   | $ | 12,444 |   |   | 640,700 |   |   | 4.5115 |   |   | 5,840,200 |   |   | 3.7555 |   |
| Weighted-average                fair  value                of options granted                during the year |   |                                |      |                                                           |   | 9.615                                                                                          |   |   |   |   |   |   |   |   | - |   |   |   |   |   | 1.9175 |   |

| **Stock                Options Outstanding at December 31, 2006** |
|-------------------------------------------------------------------|
| **Number                Outstanding**                             |   | **Weighted-Average                Remaining Contractual Life (Years)** |   | **Exercise                Price** |   | **Exercisable** |
| 493,226                                                           |   | 4.32 |   | $                29.3850 |   | - |
| 105,000                                                           |   | 2.15 |   |                     4.6625 |   |  67,500 |
| 399,100                                                           |   | 1.14 |   |                     4.1625 |   | 399,100 |
|  34,800                                                      |   | 0.32 |   |                     5.4625 |   |  34,800 |

**Restricted      Shares and Restricted Stock Units.**

|                                                         |   | **2006**                         |     | **2005**                                                    |   | **2004**                         |   |
|--------------------------------------------------------------|--------|----------------------------------|----------|-------------------------------------------------------------|--------|----------------------------------|--------|
|                                                         |   | **Shares/                Units** |     | **Weighted-Average                Grant-Date Market Value** |   | **Shares/                Units** |   | **Weighted-Average                Grant-Date Market Value** |   | **Shares/                Units** |   | **Weighted-Average                Grant-Date Market Value** |   |
| Nonvested                at beginning                of year |   |                             | 415,692  |                                                        | $      | 8.8870                           |   |   | 218,792 |   | $ | 4.8575 |   |   | 834,316 |   | $ | 3.1569 |   |
| Granted                                                      |   |                             | 459,966  |                                                        |   | 26.4773                          |   |   | 465,616 |   |   | 8.9124 |   |   | - |   |   | - |   |
| Vested                                                       |   |                             | (162,622 | )                                                           |   | 16.2865                          |   |   | (254,696 | ) |   | 5.5057 |   |   | (603,724 | ) |   | 2.5074 |   |
| Forfeited                                                    |   |                             | -        |                                                        |   | -                                |   |   | (14,020 | ) |   | 8.2750 |   |   | (11,800 | ) |   | 4.8575 |   |
| Nonvested                at end                of year       |   |                             | 713,036  |                                                        |   | 18.5465                          |   |   | 415,692 |   |   | 8.8870 |   |   | 218,792 |   |   | 4.8575 |   |

**Performance      Awards**

| **8.  ** | **Employee                Benefit Plans** |
|--------------------|-------------------------------------------|

**Contribution      Plans**

**Deferred      Compensation Plan**

**Executive      Retiree Medical**
**      Benefit Plan**

**Defined      Benefit Plans**

|                                                     |   |                            | **Pension                Benefits ** |                 |   | **Post-retirement                Healthcare and Other Benefits                (1)** |   |
|----------------------------------------------------------|--------|---------------------------------|-------------------------------------------|----------------------|--------|-------------------------------------------------------------------------------------|--------|
|                                                     |   |  **2006**             |                                      |  **2005**  |   | **2006**                                                                       |   |  **2005**  |   |
|                                                     |   | *(in                thousands)* |                                      |
| **Change                in benefit obligation:**         |   |                            |                                      |                 |   |                                                                                |   |   |   |   |   |   |   |
| Benefit                obligation at January 1           |   | $                               | 9,942                                     |                 | $      | 11,810                                                                              |   | $ | 41,181 |   | $ | 29,039 |   |
| Service                cost                              |   |                            | -                                         |                 |   | -                                                                                   |   |   | 1,011 |   |   | 1,130 |   |
| Interest                cost                             |   |                            | 541                                       |                 |   | 526                                                                                 |   |   | 2,075 |   |   | 2,093 |   |
| Plan                participant contributions            |   |                            | -                                         |                 |   | -                                                                                   |   |   | 49 |   |   | 25 |   |
| Actuarial                (gain)/losses                   |   |                            | (246                                      | )                    |   | (2,210                                                                              | )      |   | (2,772 | ) |   | 9,077 |   |
| Amendments                                               |   |                            | -                                         |                 |   | -                                                                                   |   |   | (13,115 | ) |   | - |   |
| Benefits                paid                             |   |                            | (266                                      | )                    |   | (184                                                                                | )      |   | (206 | ) |   | (183 | ) |
| Benefit                obligation at December 31         |   | $                               | 9,971                                     |                 | $      | 9,942                                                                               |   | $ | 28,223 |   | $ | 41,181 |   |
|                                                     |   |                            |                                      |                 |   |                                                                                |   |   |   |   |   |   |   |
| **Change                in plan assets:**                |   |                            |                                      |                 |   |                                                                                |   |   |   |   |   |   |   |
| Fair                value of plan assets at January 1    |   | $                               | 8,279                                     |                 | $      | 6,915                                                                               |   | $ | - |   | $ | - |   |
| Actual                return on plan assets              |   |                            | 963                                       |                 |   | 374                                                                                 |   |   | - |   |   | - |   |
| Employer                contribution                     |   |                            | 692                                       |                 |   | 1,174                                                                               |   |   | 156 |   |   | 158 |   |
| Plan                participant contributions            |   |                            | -                                         |                 |   | -                                                                                   |   |   | 50 |   |   | 25 |   |
| Benefits                paid                             |   |                            | (266                                      | )                    |   | (184                                                                                | )      |   | (206 | ) |   | (183 | ) |
| Fair                value of plan assets at December 31  |   | $                               | 9,668                                     |                 | $      | 8,279                                                                               |   | $ | - |   | $ | - |   |
|                                                     |   |                            |                                      |                 |   |                                                                                |   |   |   |   |   |   |   |
| Funded                status at December 31              |   | $                               | (303                                      | )                    | $      | (1,663                                                                              | )      | $ | (28,223 | ) | $ | (41,181 | ) |
| Unrecognized                net actuarial (gain) loss    |   |                            | -                                         |                 |   | (43                                                                                 | )      |   | - |   |   | 17,174 |   |
| Net                amount recognized                     |   | $                               | (303                                      | )                    | $      | (1,706                                                                              | )      | $ | (28,223 | ) | $ | (24,007 | ) |
|                                                     |   |                            |                                      |                 |   |                                                                                |   |   |   |   |   |   |   |
| Amounts                recognized in the balance sheets: |   |                            |                                      |                 |   |                                                                                |   |   |   |   |   |   |   |
| Current                liabilities and other             |   | $                               | -                                         |                 |   | n/a                                                                                 |   | $ | (436 | ) |   | n/a |   |
| Post-retirement                employee liabilities      |   |                            | (303                                      | )                    |   | n/a                                                                                 |   |   | (27,787 | ) |   | n/a |   |
| Net                amount recognized                     |   | $                               | (303                                      | )                    |   | n/a                                                                                 |   | $ | (28,223 | ) |   | n/a |   |
|                                                     |   |                            |                                      |                 |   |                                                                                |   |   |   |   |   |   |   |
| Amounts                recognized in accumulated OCI:    |   |                            |                                      |                 |   |                                                                                |   |   |   |   |   |   |   |
| (Gain)                loss                               |   | $                               | (611                                      | )                    | $      | (43                                                                                 | )      | $ | 13,314 |   | $ | - |   |
| Amendments                (gain) (3)                     |   |                            | -                                         |                 |   | -                                                                                   |   |   | (13,115 | ) |   | - |   |
|                                                     |   | $                               | (611                                      | )                    | $      | (43                                                                                 | )      | $ | 199 |   | $ | - |   |

|                                                                                                             |   | **Pension                  Benefits** |   | **Post-retirement                  Healthcare****and                  Other Benefits** |   |
|------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|----------------------------------------------------------------------------------------|--------|
|                                                                                                             |   | **2006**                              |   | **2005**                                                                               |   | **2004** |   | **2006** |   | **2005** |   | **2004** |   |
|                                                                                                             |   | *(in                  thousands)*     |   |
| **Components                  of net periodic benefit****cost                  for the year ended December 31:** |   |                                  |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service                  cost                                                                                    |   | $                                     | -      |                                                                                   | $      | - |   | $ | - |   | $ | 1,011 |   | $ | 1,130 |   | $ | 863 |   |
| Interest                  cost                                                                                   |   |                                  | 541    |                                                                                   |   | 526 |   |   | 632 |   |   | 2,075 |   |   | 2,093 |   |   | 1,460 |   |
| Expected                  return on plan assets                                                                  |   |                                  | (640   | )                                                                                      |   | (606 | ) |   | (479 | ) |   | - |   |   | - |   |   | - |   |
| Recognized                  net actuarial loss                                                                   |   |                                  | -      |                                                                                   |   | - |   |   | 22 |   |   | 1,087 |   |   | 1,525 |   |   | 490 |   |
| Net                  periodic benefit cost                                                                       |   | $                                     | (99    | )                                                                                      | $      | (80 | ) | $ | 175 |   | $ | 4,173 |   | $ | 4,748 |   | $ | 2,813 |   |
|                                                                                                             |   |                                  |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| **Weighted                  average assumptions:**                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Benefit                  obligation discount rate as                  of December 31                     |   |   | 5.75   | %      |   | 5.50   | %      |   | 5.50   | %      |   | 5.75   | %      |   | 5.50 | % |   | 5.50 | % |
| Net                  periodic benefit cost discount rate for                  the year ended December 31 |   |   | 5.50   | %      |   | 5.50   | %      |   | 6.00   | %      |   | 5.50   | %      |   | 5.50 | % |   | 6.00 | % |
| Expected                  return on plan assets (2)                                                      |   |   | 7.50   | %      |   | 8.00   | %      |   | 8.00   | %      |   | -      |   |   | - |   |   | - |   |
| Salary                  increases                                                                        |   |   | n/a    |   |   | n/a    |   |   | n/a    |   |   | -      |   |   | - |   |   | - |   |

| (1) | The                disclosed post-retirement healthcare obligations and net periodic                costs                for 2006 and 2005 reflect government subsidies for prescription drugs                as                allowed under the Medicare Prescription Drug, Improvement and                Modernization Act. The subsidy reduced the benefit obligation at                December                31, 2006 and 2005, by approximately $5.3 million and $4.8 million,                respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The                cash balance pension plan assumes a 7.5% expected long-term rate                of return                on assets based on a blend of historic returns of equity and debt                securities. Actual returns on the Company’s plan assets have averaged                nearly the same as expected returns for the two years ended December                31,                2006. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                    |   | **Post-retirement                Healthcare****and                Other Benefits** |                            |
|-------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|---------------------------------|
|                                                                    |   |  **2006**                                                                     |                            | **2005** |   | **2004** |   |
|                                                                    |   |  *(dollars                in thousands)*                                      |
| **Healthcare                cost-trend rate:**                          |   |                                                                               | 10.00                           | % |   | 11.00 | % |   | 13.00 | % |
|                                                                    |   |                                                                               | ratable                to  |   |   | ratable                to |   |   | ratable                to |   |
|                                                                    |   |                                                                               | 5.00                            | % |   | 5.00 | % |   | 5.00 | % |
|                                                                         |   |                                                                               | from2012                   |   |   | from2008 |   |   | from2008 |   |
| **Sensitivity                Analysis:**                                |   |                                                                               |                            |   |   |   |   |   |   |   |
| Effect                of 1% (-1%) change in healthcare cost-trend rate: |   |                                                                               |                            |   |   |   |   |   |   |   |
| Year-end                benefit obligation                              |   | $                                                                                  | 4,761                           |   | $ | 8,641 |   | $ | 6,094 |   |
|                                                                    |   |                                                                               | (3,852                          | ) |   | (6,784 | ) |   | (4,767 | ) |
| Total                service and interest cost                          |   |                                                                               | 662                             |   |   | 720 |   |   | 502 |   |
|                                                                    |   |                                                                               | (519                            | ) |   | (560 | ) |   | (392 | ) |

| **Estimated                future benefit payments****for                years ending December 31,*****(in                thousands)*** |   |   **Pension                Benefits** |   |  **Post-retirement                Healthcare****and                Other Benefits** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|
|                                                                                                                                    |   | Payment                                         |   | Payment                                                                                  |   | Subsidy                Receipts |   |
| 2007                                                                                                                                    |   | $                                               | 189    |                                                                                     | $      | 436 |   | $ | - |   |
| 2008                                                                                                                                    |   |                                            | 151    |                                                                                     |   | 693 |   |   | 21 |   |
| 2009                                                                                                                                    |   |                                            | 245    |                                                                                     |   | 992 |   |   | 28 |   |
| 2010                                                                                                                                    |   |                                            | 352    |                                                                                     |   | 1,294 |   |   | 41 |   |
| 2011                                                                                                                                    |   |                                            | 512    |                                                                                     |   | 1,653 |   |   | 53 |   |
| Next                5 fiscal years thereafter                                                                                           |   |                                            | 5,620  |                                                                                     |   | 12,581 |   |   | 662 |   |
|                                                                                                                                    |   |                                            |   |                                                                                     |   |   |   |   |   |   |

| **December                31, 2006:**                 |   | **Before                Application of FAS No. 158** |    | **Adjustments** |   | **After                Application of FAS No. 158** |   |
|-------------------------------------------------------|--------|------------------------------------------------------|---------|-----------------|--------|-----------------------------------------------------|--------|
|                                                  |   | *(in                thousands)*                      |    |
| Post-retirement                employee liabilities   |   | $                                                    | 28,460  |            | $      | (370                                                | )      | $ | 28,090 |   |
| Deferred                income taxes                  |   |                                                 | 93,766  |            |   | 141                                                 |   |   | 93,907 |   |
| Accumulated                other comprehensive income |   |                                                 | 27      |            |   | 229                                                 |   |   | 256 |   |
| Total                shareholders’ equity       |   |                                                 | 775,625 |            |   | 229                                                 |   |   | 775,854 |   |

**Plan      Assets**

|                                           |   | **Percentage                of Plan Assets****at                December 31,** |   |
|------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|                                           |   | **2006**                                                                       |   | **2005** |   |
| Asset                Category:                 |   |                                                                           |   |   |   |   |   |
| Cash                equivalents                |   |                                                                           | 7      | % |   | 10 | % |
| Equity                common trust funds       |   |                                                                           | 69     | % |   | 52 | % |
| Fixed                income common trust funds |   |                                                                           | 24     | % |   | 26 | % |
| Stock                fund common trust funds   |   |                                                                           | -      |   |   | 8 | % |
| Common                stock                    |   |                                                                           | -      |   |   | 4 | % |
| Total                                          |   |                                                                           | 100    | % |   | 100 | % |

| ·   | except                for limitations on investing Fund assets in Company securities or                real                property, the trustee may invest and reinvest in any property, real,                personal or mixed, wherever situated, including, without limitation,                common and preferred stocks, bonds, notes, debentures, mutual funds,                leaseholds, mortgages, certificates of deposit, and oil, mineral                or gas                properties, royalties, interests or                rights; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | to                make commingled, collective or common investments and to invest or                reinvest all or any portion of the pension plan assets with funds                of other                pension and profit sharing trusts exempt from tax under section 501(a)                of                the Internal Revenue Code; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | to                deposit or invest all or a part of the Fund in savings accounts,                certificates of deposit or other deposits which bear a reasonable                rate of                interest in a bank or similar financial institution, including the                commercial department of the                trustee. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **9.  ** | **Commitments                and Contingencies** |
|--------------------|--------------------------------------------------|

**Lease      and Other Commitments**

**Litigation      **

**Beverly      Hills Lawsuits. **

**Other**
**.**

**Concentration      of Credit Risk**

**Environmental**

| ·   | New                Source Review (“NSR”) - a program requiring permitting of certain facility                modifications, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | New                Source Performance Standards - a program establishing emission standards                for new emission sources as defined in the regulations, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Benzene                Waste National Elimination System for Hazardous Air Pollutants (“NESHAPS”)                - a program limiting the amount of benzene allowable in industrial                wastewaters, and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Leak                Detection and Repair (“LDAR”) - a program designed to control hydrocarbon                emissions from refinery pipes, pumps and valves. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Cheyenne      Refinery.**

**El      Dorado Refinery.**

**Collective      Bargaining Agreements **

| **10.  ** | **Fair                Value of Financial                Instruments** |
|---------------------|-----------------------------------------------------------------------|

| **11.  ** | **Price                Risk Management Activities** |
|---------------------|-----------------------------------------------------|

**Trading      Activities**

| ·   | **Crude                Purchases.**                As                of December 31, 2006, the Company had open derivative contracts held                on                Frontier’s behalf by Utexam on 1,050,000 barrels of crude oil to hedge                in-transit Canadian crude oil costs for the El Dorado Refinery. At                December 31, 2006, these positions had a $1.2 million unrealized                gain.                During the year ended December 31, 2006, the Company reported in“Other                revenues” $14.6 million (including the previously mentioned $1.2 million                unrealized amount), in net gains on positions to hedge in-transit                crude                oil, mainly Canadian crude oil for the El Dorado Refinery. During                the year                ended December 31, 2005, the Company reported in “Other revenues” a net                $461,000 loss on positions to hedge in-transit Canadian crude oil for                the El Dorado Refinery. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Derivative                contracts on barrels of crude oil to hedge excess intermediate, finished                product and crude oil inventory for both the Cheyenne and El Dorado                Refineries.** As                of December 31, 2006, the Company had open derivative contracts on                1,649,000 barrels of crude oil to hedge crude oil, intermediate or                finished product inventory. At                December 31, 2006, these positions had a $1.3 million unrealized                gain.                During the year ended December 31, 2006, the Company reported in“Other                revenues” $15.9 million (including the previously mentioned $1.3 million                unrealized amount), in net gains on positions                to                hedge crude oil, intermediate or finished product inventory. During                the                years ended December 31, 2005 and 2004, the Company recorded a $1.4                million gain and an $8.1 million loss, respectively, on these types                of                positions. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Derivative                contracts to fix the heavy crude differential to the New York Mercantile                Exchange light crude oil contract price for a portion of the committed                purchases under the Company’s crude oil supply agreement with                Baytex.**                During the years ended December 31, 2006 and 2005, the Company did                not                purchase any derivative contracts for this purpose. During                the year ended December 31, 2004, the Company recorded losses of                approximately $2.5 million on contracts purchased for this purpose. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Hedging      Activities **

**Crude      purchases in-transit.**

**12.**
**Subsequent      Event - Acquisition of Ethanol Management Company**

**13.**
**Consolidating      Financial Statements**

----

| **CONSOLIDATING                FINANCIAL STATEMENTS**                        |   |
|-----------------------------------------------------------------------------------|--------|
| **FRONTIER                OIL CORPORATION**                                       |   |
| **Condensed                Consolidating Statement of Income**                    |   |
| **For                the Year Ended December 31, 2006**                           |   |
| *(in                thousands)*                                              |   |
|                                                                              |   | **FOC                (Parent)** |   | **FHI                (Guarantor Subsidiaries)** |   | **Other                Non-Guarantor Subsidiaries** |   | **Eliminations** |   | **Consolidated** |   |
| **Revenues:**                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Refined                products                                                   |   | $ | - |   | $ | 4,759,661 |   | $ | - |   | $ | - |   | $ | 4,759,661 |   |
| Other                                                                             |   |   | 4 |   |   | 36,146 |   |   | 142 |   |   | - |   |   | 36,292 |   |
|                                                                              |   |   | 4 |   |   | 4,795,807 |   |   | 142 |   |   | - |   |   | 4,795,953 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Costs                and expenses:**                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Raw                material, freight and other costs                              |   |   | - |   |   | 3,850,937 |   |   | - |   |   | - |   |   | 3,850,937 |   |
| Refinery                operating expenses,excluding                depreciation  |   |   | - |   |   | 277,129 |   |   | - |   |   | - |   |   | 277,129 |   |
| Selling                and general expenses,excluding                depreciation |   |   | 30,194 |   |   | 22,294 |   |   | - |   |   | - |   |   | 52,488 |   |
| Depreciation                and amortization                                      |   |   | 88 |   |   | 41,502 |   |   | - |   |   | (377 | ) |   | 41,213 |   |
| Gains                on sales of assets                                           |   |   | (8 | ) |   | - |   |   | - |   |   | - |   |   | (8 | ) |
|                                                                              |   |   | 30,274 |   |   | 4,191,862 |   |   | - |   |   | (377 | ) |   | 4,221,759 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                income (loss)**                                        |   |   | (30,270 | ) |   | 603,945 |   |   | 142 |   |   | 377 |   |   | 574,194 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense and other financing                costs          |   |   | 11,978 |   |   | 3,835 |   |   | - |   |   | (3,674 | ) |   | 12,139 |   |
| Interest                and investment income                                     |   |   | (12,102 | ) |   | (5,957 | ) |   | - |   |   | - |   |   | (18,059 | ) |
| Equity                in earnings of subsidiaries                                 |   |   | (609,265 | ) |   | - |   |   | - |   |   | 609,265 |   |   | - |   |
|                                                                              |   |   | (609,389 | ) |   | (2,122 | ) |   | - |   |   | 605,591 |   |   | (5,920 | ) |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                before income taxes**                                     |   |   | 579,119 |   |   | 606,067 |   |   | 142 |   |   | (605,214 | ) |   | 580,114 |   |
| Provision                for income taxes                                         |   |   | 199,842 |   |   | 209,951 |   |   | 55 |   |   | (209,011 | ) |   | 200,837 |   |
| **Net                income**                                                     |   | $ | 379,277 |   | $ | 396,116 |   | $ | 87 |   | $ | (396,203 | ) | $ | 379,277 |   |
|                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **FRONTIER                OIL CORPORATION**                                                      |   |
|--------------------------------------------------------------------------------------------------|--------|
| **Condensed                Consolidating Statement of Income**                                   |   |
| **For                the Year Ended December 31, 2005****As                Adjusted (Note 3)**   |   |
| *(in                thousands)*                                                             |   |
|                                                                                             |   | **FOC                (Parent)** |   | **FHI                (Guarantor Subsidiaries)** |   | **Other                Non-Guarantor Subsidiaries** |   | **Eliminations** |   | **Consolidated** |   |
| **Revenues:**                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Refined                products                                                                  |   | $ | - |   | $ | 3,999,935 |   | $ | - |   | $ | - |   | $ | 3,999,935 |   |
| Other                                                                                            |   |   | (6 | ) |   | 1,143 |   |   | 90 |   |   | - |   |   | 1,227 |   |
|                                                                                             |   |   | (6 | ) |   | 4,001,078 |   |   | 90 |   |   | - |   |   | 4,001,162 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Costs                and expenses:**                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Raw                material, freight and other costs                                             |   |   | - |   |   | 3,247,372 |   |   | - |   |   | - |   |   | 3,247,372 |   |
| Refinery                operating expenses,excluding                depreciation                 |   |   | - |   |   | 241,445 |   |   | - |   |   | - |   |   | 241,445 |   |
| Selling                and general expenses,excluding                depreciation                |   |   | 14,681 |   |   | 16,034 |   |   | - |   |   | - |   |   | 30,715 |   |
| Merger                termination and legal costs                                                |   |   | 48 |   |   | - |   |   | - |   |   | - |   |   | 48 |   |
| Depreciation                and amortization                                                     |   |   | 69 |   |   | 35,700 |   |   | - |   |   | (556 | ) |   | 35,213 |   |
| Gains                on sales of assets                                                          |   |   | (3 | ) |   | (3,641 | ) |   | - |   |   | - |   |   | (3,644 | ) |
|                                                                                             |   |   | 14,795 |   |   | 3,536,910 |   |   | - |   |   | (556 | ) |   | 3,551,149 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                income (loss)**                                                       |   |   | (14,801 | ) |   | 464,168 |   |   | 90 |   |   | 556 |   |   | 450,013 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense and other financing                costs                         |   |   | 10,593 |   |   | 2,009 |   |   | - |   |   | (2,261 | ) |   | 10,341 |   |
| Interest                and investment income                                                    |   |   | (5,905 | ) |   | (1,678 | ) |   | - |   |   | - |   |   | (7,583 | ) |
| Equity                in earnings of subsidiaries                                                |   |   | (462,027 | ) |   | - |   |   | - |   |   | 462,027 |   |   | - |   |
|                                                                                             |   |   | (457,339 | ) |   | 331 |   |   | - |   |   | 459,766 |   |   | 2,758 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                before income taxes**                                                    |   |   | 442,538 |   |   | 463,837 |   |   | 90 |   |   | (459,210 | ) |   | 447,255 |   |
| Provision                for income taxes                                                        |   |   | 168,910 |   |   | 171,921 |   |   | - |   |   | (171,237 | ) |   | 169,594 |   |
| **Income                before cumulative effect of****accounting                change**        |   |   | 273,628 |   |   | 291,916 |   |   | 90 |   |   | (287,973 | ) |   | 277,661 |   |
| **Cumulative                effect of accounting****change,                net of income taxes** |   |   | 1,530 |   |   | (2,503 | ) |   | - |   |   | (1,530 | ) |   | (2,503 | ) |
| **Net                income**                                                                    |   | $ | 275,158 |   | $ | 289,413 |   | $ | 90 |   | $ | (289,503 | ) | $ | 275,158 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **FRONTIER                OIL CORPORATION**                                                    |   |
|------------------------------------------------------------------------------------------------|--------|
| **Condensed                Consolidating Statement of Income**                                 |   |
| **For                the Year Ended December 31, 2004****As                Adjusted (Note 3)** |   |
| *(in                thousands)*                                                           |   |
|                                                                                           |   | **FOC                (Parent)** |   | **FHI                (Guarantor Subsidiaries)** |   | **Other                Non-Guarantor Subsidiaries** |   | **Eliminations** |   | **Consolidated** |   |
| **Revenues:**                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Refined                products                                                                |   | $ | - |   | $ | 2,871,592 |   | $ | - |   | $ | - |   | $ | 2,871,592 |   |
| Other                                                                                          |   |   | (6 | ) |   | (9,932 | ) |   | 62 |   |   | - |   |   | (9,876 | ) |
|                                                                                           |   |   | (6 | ) |   | 2,861,660 |   |   | 62 |   |   | - |   |   | 2,861,716 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Costs                and expenses:**                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Raw                material, freight and other costs                                           |   |   | - |   |   | 2,432,461 |   |   | - |   |   | - |   |   | 2,432,461 |   |
| Refinery                operating expenses, excluding                depreciation              |   |   | - |   |   | 220,427 |   |   | - |   |   | - |   |   | 220,427 |   |
| Selling                and general expenses, excluding                depreciation             |   |   | 15,590 |   |   | 14,303 |   |   | - |   |   | - |   |   | 29,893 |   |
| Merger                termination and legal costs                                              |   |   | 3,824 |   |   | - |   |   | - |   |   | - |   |   | 3,824 |   |
| Depreciation                and amortization                                                   |   |   | 75 |   |   | 32,688 |   |   | - |   |   | (555 | ) |   | 32,208 |   |
|                                                                                           |   |   | 19,489 |   |   | 2,699,879 |   |   | - |   |   | (555 | ) |   | 2,718,813 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                income (loss)**                                                     |   |   | (19,495 | ) |   | 161,781 |   |   | 62 |   |   | 555 |   |   | 142,903 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense and other financing                costs                       |   |   | 35,004 |   |   | 2,609 |   |   | - |   |   | (40 | ) |   | 37,573 |   |
| Interest                and investment income                                                  |   |   | (1,545 | ) |   | (171 | ) |   | - |   |   | - |   |   | (1,716 | ) |
| Equity                in earnings of subsidiaries                                              |   |   | (164,392 | ) |   | - |   |   | - |   |   | 164,392 |   |   | - |   |
| Gain                on involuntary conversion of assets                                        |   |   | - |   |   | (4,411 | ) |   | - |   |   | - |   |   | (4,411 | ) |
|                                                                                           |   |   | (130,933 | ) |   | (1,973 | ) |   | - |   |   | 164,352 |   |   | 31,446 |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                before income taxes**                                                  |   |   | 111,438 |   |   | 163,754 |   |   | 62 |   |   | (163,797 | ) |   | 111,457 |   |
| Provision                for income taxes                                                      |   |   | 42,046 |   |   | 62,155 |   |   | - |   |   | (62,136 | ) |   | 42,065 |   |
| **Net                income**                                                                  |   | $ | 69,392 |   | $ | 101,599 |   | $ | 62 |   | $ | (101,661 | ) | $ | 69,392 |   |

----

| **FRONTIER                OIL CORPORATION**                                    |   |
|--------------------------------------------------------------------------------|--------|
| **Condensed                Consolidating Balance Sheet**                       |   |
| **As                of December 31, 2006**                                     |   |
| *(in                thousands)*                                           |   |
|                                                                           |   | **FOC                (Parent)** |   | **FHI                (Guarantor Subsidiaries)** |   | **Other                Non-Guarantor Subsidiaries** |   | **Eliminations** |   | **Consolidated** |   |
| **ASSETS**                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                assets:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                and cash equivalents                                       |   | $ | 215,049 |   | $ | 190,430 |   | $ | - |   | $ | - |   | $ | 405,479 |   |
| Trade                and other receivables                                     |   |   | 1,363 |   |   | 136,099 |   |   | - |   |   | - |   |   | 137,462 |   |
| Receivable                from affiliated                companies             |   |   | - |   |   | 1,254 |   |   | 251 |   |   | (1,505 | ) |   | - |   |
| Inventory                                                                      |   |   | - |   |   | 374,576 |   |   | - |   |   | - |   |   | 374,576 |   |
| Deferred                tax assets                                             |   |   | 3,237 |   |   | 7,846 |   |   | - |   |   | (7,846 | ) |   | 3,237 |   |
| Other                current assets                                            |   |   | 2,082 |   |   | 16,380 |   |   | - |   |   | - |   |   | 18,462 |   |
| Total                current assets                                            |   |   | 221,731 |   |   | 726,585 |   |   | 251 |   |   | (9,351 | ) |   | 939,216 |   |
| Property,                plant and equipment, at cost:                         |   |   | 1,301 |   |   | 817,332 |   |   | - |   |   | (5,051 | ) |   | 813,582 |   |
| Less                - accumulated depreciationand                amortization  |   |   | 1,054 |   |   | 284,034 |   |   | - |   |   | (8,311 | ) |   | 276,777 |   |
|                                                                           |   |   | 247 |   |   | 533,298 |   |   | - |   |   | 3,260 |   |   | 536,805 |   |
| Deferred                financing costs, net                                   |   |   | 2,293 |   |   | 459 |   |   | - |   |   | - |   |   | 2,752 |   |
| Commutation                account                                             |   |   | 7,290 |   |   | - |   |   | - |   |   | - |   |   | 7,290 |   |
| Prepaid                insurance, net                                          |   |   | 2,120 |   |   | - |   |   | - |   |   | - |   |   | 2,120 |   |
| Other                intangible assets, net                                    |   |   | - |   |   | 1,316 |   |   | - |   |   | - |   |   | 1,316 |   |
| Deferred                charges and other assets                               |   |   | 2,734 |   |   | 31,692 |   |   | - |   |   | - |   |   | 34,426 |   |
| Investment                in subsidiaries                                      |   |   | 831,082 |   |   | - |   |   | - |   |   | (831,082 | ) |   | - |   |
| Total                assets                                                    |   | $ | 1,067,497 |   | $ | 1,293,350 |   | $ | 251 |   | $ | (837,173 | ) | $ | 1,523,925 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |
| Current                Liabilities:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts                payable                                                |   | $ | 1,436 |   | $ | 388,583 |   | $ | - |   | $ | - |   | $ | 390,019 |   |
| Contingent                income tax liabilities                               |   |   | 28,271 |   |   | - |   |   | - |   |   | - |   |   | 28,271 |   |
| Accrued                dividends                                               |   |   | 3,486 |   |   | - |   |   | - |   |   | - |   |   | 3,486 |   |
| Accrued                interest                                                |   |   | 2,484 |   |   | 57 |   |   | - |   |   | - |   |   | 2,541 |   |
| Accrued                liabilities and other                                   |   |   | 7,924 |   |   | 27,268 |   |   | 189 |   |   | - |   |   | 35,381 |   |
| Total                current liabilities                                       |   |   | 43,601 |   |   | 415,908 |   |   | 189 |   |   | - |   |   | 459,698 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                debt                                                  |   |   | 150,000 |   |   | - |   |   | - |   |   | - |   |   | 150,000 |   |
| Long-term                accrued and other liabilities                         |   |   | - |   |   | 41,836 |   |   | - |   |   | - |   |   | 41,836 |   |
| Deferred                compensation liability and                other        |   |   | 2,630 |   |   | - |   |   | - |   |   | - |   |   | 2,630 |   |
| Deferred                income taxes                                           |   |   | 93,907 |   |   | 97,620 |   |   |   |   |   | (97,620 | ) |   | 93,907 |   |
| Payable                to affiliated companies                                 |   |   | 1,505 |   |   | 44,644 |   |   | 55 |   |   | (46,204 | ) |   | - |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders’                equity                                      |   |   | 775,854 |   |   | 693,342 |   |   | 7 |   |   | (693,349 | ) |   | 775,854 |   |
| Total                liabilities and shareholders’                equity |   | $ | 1,067,497 |   | $ | 1,293,350 |   | $ | 251 |   | $ | (837,173 | ) | $ | 1,523,925 |   |

----

| **FRONTIER                  OIL CORPORATION**                           |   |
|-------------------------------------------------------------------------|--------|
| **Condensed                  Consolidating Balance Sheet**              |   |
| **As                  of December 31, 2005**                            |   |
| **As                  Adjusted (Note 3)**                               |   |
| *(in                  thousands)*                                       |   |
|                                                                    |   | **FOC                  (Parent)** |   | **FHI                  (Guarantor Subsidiaries)** |   | **Other                  Non-Guarantor Subsidiaries** |   | **Eliminations** |   | **Consolidated** |   |
| **ASSETS**                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                  assets:                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                  and cash equivalents                              |   | $ | 244,357 |   | $ | 111,708 |   | $ | - |   | $ | - |   | $ | 356,065 |   |
| Trade                  and other receivables                            |   |   | 6,381 |   |   | 123,254 |   |   | - |   |   | - |   |   | 129,635 |   |
| Receivable                  from affiliated companies                   |   |   | - |   |   | 4,556 |   |   | 189 |   |   | -4,745 |   |   | - |   |
| Inventory                                                               |   |   | - |   |   | 247,621 |   |   | - |   |   | - |   |   | 247,621 |   |
| Deferred                  tax assets                                    |   |   | 2,004 |   |   | 2,699 |   |   | - |   |   | -2,699 |   |   | 2,004 |   |
| Other                  current assets                                   |   |   | 499 |   |   | 7,436 |   |   | - |   |   | - |   |   | 7,935 |   |
| Total                  current assets                                   |   |   | 253,241 |   |   | 497,274 |   |   | 189 |   |   | -7,444 |   |   | 743,260 |   |
| Property,                  plant and equipment, at cost:                |   |   | 1,235 |   |   | 675,639 |   |   | - |   |   | -8,752 |   |   | 668,122 |   |
| Less                  – accumulated depreciation and amortization |   |   | 988 |   |   | 245,157 |   |   | - |   |   | -7,961 |   |   | 238,184 |   |
|                                                                    |   |   | 247 |   |   | 430,482 |   |   | - |   |   | -791 |   |   | 429,938 |   |
| Deferred                  financing costs, net                          |   |   | 2,775 |   |   | 774 |   |   | - |   |   | - |   |   | 3,549 |   |
| Commutation                  account                                    |   |   | 12,606 |   |   | - |   |   | - |   |   | - |   |   | 12,606 |   |
| Prepaid                  insurance, net                                 |   |   | 3,331 |   |   | - |   |   | - |   |   | - |   |   | 3,331 |   |
| Other                  intangible assets, net                           |   |   | - |   |   | 1,422 |   |   | - |   |   | - |   |   | 1,422 |   |
| Deferred                  charges and other assets                      |   |   | 2,508 |   |   | 26,443 |   |   | - |   |   | - |   |   | 28,951 |   |
| Investment                  in subsidiaries                             |   |   | 537,947 |   |   | - |   |   | - |   |   | -537,947 |   |   | - |   |
| Total                  assets                                           |   | $ | 812,655 |   | $ | 956,395 |   | $ | 189 |   |   | ($546,182 | ) | $ | 1,223,057 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **LIABILITIES                  AND SHAREHOLDERS’ EQUITY**         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                  Liabilities:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts                  payable                                       |   | $ | 2,480 |   | $ | 357,097 |   | $ | - |   | $ | - |   | $ | 359,577 |   |
| Contingent                  income tax liabilities                      |   |   | 21,517 |   |   | - |   |   | - |   |   | - |   |   | 21,517 |   |
| Accrued                  dividends                                      |   |   | 58,726 |   |   | - |   |   | - |   |   | - |   |   | 58,726 |   |
| Accrued                  interest                                       |   |   | 2,485 |   |   | - |   |   | - |   |   | - |   |   | 2,485 |   |
| Accrued                  liabilities and other                          |   |   | 5,336 |   |   | 25,205 |   |   | 269 |   |   | - |   |   | 30,810 |   |
| Total                  current liabilities                              |   |   | 90,544 |   |   | 382,302 |   |   | 269 |   |   | - |   |   | 473,115 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                  debt                                         |   |   | 150,000 |   |   | - |   |   | - |   |   | - |   |   | 150,000 |   |
| Long-term                  accrued and other liabilities                |   |   | - |   |   | 32,576 |   |   | - |   |   | - |   |   | 32,576 |   |
| Deferred                  compensation liability and other              |   |   | 2,214 |   |   | - |   |   | - |   |   | - |   |   | 2,214 |   |
| Deferred                  income taxes                                  |   |   | 86,460 |   |   | 87,296 |   |   | - |   |   | -87,296 |   |   | 86,460 |   |
| Payable                  to affiliated companies                        |   |   | 4,745 |   |   | 7,026 |   |   | - |   |   | -11,771 |   |   | - |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders’                  equity                             |   |   | 478,692 |   |   | 447,195 |   |   | -80 |   |   | -447,115 |   |   | 478,692 |   |
| Total                  liabilities and shareholders’ equity       |   | $ | 812,655 |   | $ | 956,395 |   | $ | 189 |   |   | ($546,182 | ) | $ | 1,223,057 |   |

----

| **FRONTIER                  OIL CORPORATION**                                                                |   |
|--------------------------------------------------------------------------------------------------------------|--------|
| **Condensed                  Consolidating Statement of Cash Flows**                                         |   |
| **For                  the Year Ended December 31, 2006**                                                    |   |
| *(in                  thousands)*                                                                            |   |
|                                                                                                         |   | **FOC****(Parent)** |   | **FHI                  (Guarantor****Subsidiaries** |   | **Other                  Non-Guarantor Subsidiaries** |   | **Eliminations** |   | **Consolidated** |   |
| **Cash                  flows from operating activities:**                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                  |   | $ | 379,277 |   | $ | 396,116 |   | $ | 87 |   |   | ($396,203 | ) | $ | 379,277 |   |
| Adjustments                  to reconcile net income to net cash from operating                  activities: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                  in earnings of subsidiaries                                                          |   |   | (609,265 | ) |   | - |   |   | - |   |   | 609,265 |   |   | - |   |
| Depreciation                  and amortization                                                               |   |   | 88 |   |   | 54,677 |   |   | - |   |   | (377 | ) |   | 54,388 |   |
| Deferred                  income taxes                                                                       |   |   | 6,073 |   |   | - |   |   | - |   |   | - |   |   | 6,073 |   |
| Stock-based                  compensation expense                                                            |   |   | 18,029 |   |   | - |   |   | - |   |   | - |   |   | 18,029 |   |
| Excess                  income tax benefits of stock-based compensation                                      |   |   | (8,881 | ) |   | - |   |   | - |   |   | - |   |   | (8,881 | ) |
| Income                  taxes eliminated in Consolidation                                                    |   |   | - |   |   | 208,956 |   |   | 55 |   |   | (209,011 | ) |   | - |   |
| Deferred                  finance cost amortization                                                          |   |   | 482 |   |   | 315 |   |   | - |   |   | - |   |   | 797 |   |
| Gains                  on sales of assets                                                                    |   |   | (8 | ) |   | - |   |   | - |   |   | - |   |   | (8 | ) |
| Long-term                  commutation account                                                               |   |   | 5,316 |   |   | - |   |   | - |   |   | - |   |   | 5,316 |   |
| Amortization                  of long-term prepaid insurance                                                 |   |   | 1,211 |   |   | - |   |   | - |   |   | - |   |   | 1,211 |   |
| Increase                  in long-term accrued liabilities                                                   |   |   | 416 |   |   | 8,893 |   |   | - |   |   | - |   |   | 9,309 |   |
| Deferred                  charges and other                                                                  |   |   | (420 | ) |   | (18,424 | ) |   | - |   |   | - |   |   | (18,844 | ) |
| Changes                  in components of working capital                                                    |   |   | 19,089 |   |   | (124,306 | ) |   | (80 | ) |   | (853 | ) |   | (106,150 | ) |
| Net                  cash provided by (used in) operating activities                                         |   |   | (188,593 | ) |   | 526,227 |   |   | 62 |   |   | 2,821 |   |   | 340,517 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                  flows from investing activities:**                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Additions                  to property, plant and equipment                                                  |   |   | (88 | ) |   | (126,794 | ) |   | - |   |   | (2,821 | ) |   | (129,703 | ) |
| El                  Dorado Refinery contingent earn-out payment                                              |   |   | - |   |   | (7,500 | ) |   | - |   |   | - |   |   | (7,500 | ) |
| Proceeds                  from sale of assets                                                                |   |   | 8 |   |   | - |   |   | - |   |   | - |   |   | 8 |   |
| Net                  cash used in investing activities                                                       |   |   | (80 | ) |   | (134,294 | ) |   | - |   |   | (2,821 | ) |   | (137,195 | ) |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                  flows from financing activities:**                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Excess                  income tax benefits of stock-based compensation                                      |   |   | 8,881 |   |   | - |   |   | - |   |   | - |   |   | 8,881 |   |
| Proceeds                  from issuance of common stock                                                      |   |   | 3,672 |   |   | - |   |   | - |   |   | - |   |   | 3,672 |   |
| Purchase                  of treasury stock                                                                  |   |   | (98,950 | ) |   | - |   |   | - |   |   | - |   |   | (98,950 | ) |
| Dividends                  paid                                                                              |   |   | (67,498 | ) |   | - |   |   | - |   |   | - |   |   | (67,498 | ) |
| Other                                                                                                        |   |   | - |   |   | (13 | ) |   | - |   |   | - |   |   | (13 | ) |
| Intercompany                  transactions                                                                   |   |   | 313,260 |   |   | (313,198 | ) |   | (62 | ) |   | - |   |   | - |   |
| Net                  cash provided by (used in) financing activities                                         |   |   | 159,365 |   |   | (313,211 | ) |   | (62 | ) |   | - |   |   | (153,908 | ) |
| Increase                  in cash and cash equivalents                                                       |   |   | (29,308 | ) |   | 78,722 |   |   | - |   |   | - |   |   | 49,414 |   |
| Cash                  and cash equivalents, beginning of period                                              |   |   | 244,357 |   |   | 111,708 |   |   | - |   |   | - |   |   | 356,065 |   |
| Cash                  and cash equivalents, end of period                                                    |   | $ | 215,049 |   | $ | 190,430 |   | $ | - |   | $ | - |   | $ | 405,479 |   |

----

| **FRONTIER                OIL CORPORATION**                                                                                   |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|
| **Condensed                Consolidating Statement of Cash Flows**                                                            |   |
| **For                the Year Ended December 31, 2005 - As Adjusted (Note                3)**                                 |   |
| *(in                thousands)*                                                                                               |   |
|                                                                                                                          |   | **FOC****(Parent)** |   | **FHI                (Guarantor Subsidiaries)** |   | **Other                Non-Guarantor Subsidiaries** |   | **Eliminations** |   | **Consolidated** |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                flows from operating activities:**                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                     |   | $ | 275,158 |   | $ | 289,413 |   | $ | 90 |   | $ | (289,503 | ) | $ | 275,158 |   |
| Adjustments                to reconcile net income                to net cash from operating                 activities: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                in earnings of subsidiaries                                                                             |   |   | (462,027 | ) |   | - |   |   | - |   |   | 462,027 |   |   | - |   |
| Cumulative                effect of accounting change,                net of income taxes                                     |   |   | (1,530 | ) |   | 2,503 |   |   | - |   |   | 1,530 |   |   | 2,503 |   |
| Depreciation                and amortization                                                                                  |   |   | 69 |   |   | 48,033 |   |   | - |   |   | (556 | ) |   | 47,546 |   |
| Deferred                income taxes                                                                                          |   |   | 30,259 |   |   | - |   |   | - |   |   | - |   |   | 30,259 |   |
| Income                taxes eliminated in consolidation                                                                       |   |   | - |   |   | 171,237 |   |   | - |   |   | (171,237 | ) |   | - |   |
| Deferred                finance cost amortization                                                                             |   |   | 483 |   |   | 302 |   |   | - |   |   | - |   |   | 785 |   |
| Stock-based                compensation expense                                                                               |   |   | 1,363 |   |   | - |   |   | - |   |   | - |   |   | 1,363 |   |
| Gains                on sales of assets                                                                                       |   |   | (3 | ) |   | (3,641 | ) |   | - |   |   | - |   |   | (3,644 | ) |
| Long-term                commutation account                                                                                  |   |   | 3,832 |   |   | - |   |   | - |   |   | - |   |   | 3,832 |   |
| Amortization                of long-term prepaid                insurance                                                     |   |   | 1,211 |   |   | - |   |   | - |   |   | - |   |   | 1,211 |   |
| Increase                in long-term accrued                liabilities                                                       |   |   | 698 |   |   | 3,775 |   |   |   |   |   |   |   |   | 4,473 |   |
| Deferred                charges and other                                                                                     |   |   | (206 | ) |   | (17,110 | ) |   | - |   |   | - |   |   | (17,316 | ) |
| Changes                in components of working                capital                                                        |   |   | 32,645 |   |   | (18,478 | ) |   | - |   |   | - |   |   | 14,167 |   |
| Net                cash provided by (used in) operating                activities                                             |   |   | (118,048 | ) |   | 476,034 |   |   | 90 |   |   | 2,261 |   |   | 360,337 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                flows from investing activities:**                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Additions                to property, plant and equipment                                                                     |   |   | (143 | ) |   | (107,306 | ) |   | - |   |   | (2,261 | ) |   | (109,710 | ) |
| El                Dorado Refinery contingent earn-out                payment                                                  |   |   | - |   |   | (7,500 | ) |   | - |   |   | - |   |   | (7,500 | ) |
| Proceeds                from sale of assets                                                                                   |   |   | 3 |   |   | 5,497 |   |   | - |   |   | - |   |   | 5,500 |   |
| Net                proceeds from insurance - involuntary                conversion claim                                      |   |   | - |   |   | 2,142 |   |   | - |   |   | - |   |   | 2,142 |   |
| Net                cash used in investing activities                                                                          |   |   | (140 | ) |   | (107,167 | ) |   | - |   |   | (2,261 | ) |   | (109,568 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                flows from financing activities:**                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                from issuance of common                stock                                                          |   |   | 23,616 |   |   | - |   |   | - |   |   | - |   |   | 23,616 |   |
| Purchase                of treasury stock                                                                                     |   |   | (34,819 | ) |   | - |   |   | - |   |   | - |   |   | (34,819 | ) |
| Dividends                paid                                                                                                 |   |   | (7,776 | ) |   | - |   |   | - |   |   | - |   |   | (7,776 | ) |
| Debt                issue costs and other                                                                                     |   |   | (100 | ) |   | (14 | ) |   | - |   |   | - |   |   | (114 | ) |
| Intercompany                transactions                                                                                      |   |   | 276,215 |   |   | (276,125 | ) |   | (90 | ) |   | - |   |   | - |   |
| Net                cash provided by (used in) financing                activities                                             |   |   | 257,136 |   |   | (276,139 | ) |   | (90 | ) |   | - |   |   | (19,093 | ) |
| Increase                in cash and cash equivalents                                                                          |   |   | 138,948 |   |   | 92,728 |   |   | - |   |   | - |   |   | 231,676 |   |
| Cash                and cash equivalents, beginning                of period                                                  |   |   | 105,409 |   |   | 18,980 |   |   | - |   |   | - |   |   | 124,389 |   |
| Cash                and cash equivalents, end                of period                                                        |   | $ | 244,357 |   | $ | 111,708 |   | $ | - |   | $ | - |   | $ | 356,065 |   |

----

| **FRONTIER                  OIL CORPORATION**                                                                |   |
|--------------------------------------------------------------------------------------------------------------|--------|
| **Condensed                  Consolidating Statement of Cash Flows**                                         |   |
| **For                  the Year Ended December 31, 2004 - As Adjusted (Note                  3)**            |   |
| *(in                  thousands)*                                                                            |   |
|                                                                                                         |   | **FOC                  (Parent)** |   | **FHI                  (Guarantor Subsidiaries)** |   | **Other                  Non-Guarantor Subsidiaries** |   | **Eliminations** |   | **Consolidated** |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                  flows from operating activities:**                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                  |   | $ | 69,392 |   | $ | 101,599 |   | $ | 62 |   |   | ($101,661 | ) | $ | 69,392 |   |
| Adjustments                  to reconcile net income to net cash from operating                  activities: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                  in earnings of subsidiaries                                                          |   |   | (164,392 | ) |   | - |   |   | - |   |   | 164,392 |   |   | - |   |
| Depreciation                  and amortization                                                               |   |   | 75 |   |   | 45,732 |   |   | - |   |   | (555 | ) |   | 45,252 |   |
| Deferred                  income taxes                                                                       |   |   | 24,731 |   |   | - |   |   | - |   |   | - |   |   | 24,731 |   |
| Income                  taxes eliminated in consolidation                                                    |   |   | - |   |   | 62,136 |   |   | - |   |   | (62,136 | ) |   | - |   |
| Deferred                  finance cost and bond discount                  amortization                       |   |   | 5,180 |   |   | 304 |   |   | - |   |   | - |   |   | 5,484 |   |
| Stock-based                  compensation expense                                                            |   |   | 1,180 |   |   | - |   |   | - |   |   | - |   |   | 1,180 |   |
| Gain                  on involuntary conversion of                  assets                                   |   |   | - |   |   | (4,411 | ) |   | - |   |   | - |   |   | (4,411 | ) |
| Long-term                  commutation account                                                               |   |   | 3,712 |   |   | - |   |   | - |   |   | - |   |   | 3,712 |   |
| Amortization                  of long-term prepaid                  insurance                                |   |   | 1,451 |   |   | - |   |   | - |   |   | - |   |   | 1,451 |   |
| Increase                  (decrease) in long-term accrued                  liabilities                       |   |   | (2,207 | ) |   | 2,638 |   |   | - |   |   | - |   |   | 431 |   |
| Deferred                  charges and other                                                                  |   |   | 2,789 |   |   | (10,844 | ) |   | - |   |   | - |   |   | (8,055 | ) |
| Changes                  in components of working                  capital                                   |   |   | (496 | ) |   | 39,231 |   |   | (3 | ) |   | - |   |   | 38,732 |   |
| Net                  cash provided by (used in) operating                  activities                        |   |   | (58,585 | ) |   | 236,385 |   |   | 59 |   |   | 40 |   |   | 177,899 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                  flows from investing activities:**                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Additions                  to property, plant and equipment                                                  |   |   | (3 | ) |   | (46,459 | ) |   | - |   |   | (40 | ) |   | (46,502 | ) |
| Net                  proceeds from insurance – involuntary                  conversion claim           |   |   | - |   |   | 3,395 |   |   | - |   |   | - |   |   | 3,395 |   |
| Net                  cash used in investing activities                                                       |   |   | (3 | ) |   | (43,064 | ) |   | - |   |   | (40 | ) |   | (43,107 | ) |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                  flows from financing activities:**                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                  from issuance of 6.625%                  Senior Notes                              |   |   | 150,000 |   |   | - |   |   | - |   |   | - |   |   | 150,000 |   |
| Repurchase                  of 11.75% Senior Notes                                                           |   |   | (170,449 | ) |   | - |   |   | - |   |   | - |   |   | (170,449 | ) |
| Repayments                  of revolving credit facility,                  net                               |   |   | - |   |   | (45,750 | ) |   | - |   |   | - |   |   | (45,750 | ) |
| Proceeds                  from issuance of common                  stock                                     |   |   | 3,923 |   |   | - |   |   | - |   |   | - |   |   | 3,923 |   |
| Purchase                  of treasury stock                                                                  |   |   | (3,029 | ) |   | - |   |   | - |   |   | - |   |   | (3,029 | ) |
| Dividends                  paid                                                                              |   |   | (5,664 | ) |   | - |   |   | - |   |   | - |   |   | (5,664 | ) |
| Debt                  issue costs and other                                                                  |   |   | (3,279 | ) |   | (675 | ) |   | - |   |   | - |   |   | (3,954 | ) |
| Intercompany                  transactions                                                                   |   |   | 132,649 |   |   | (132,590 | ) |   | (59 | ) |   | - |   |   | - |   |
| Net                  cash provided by (used in) financing                  activities                        |   |   | 104,151 |   |   | (179,015 | ) |   | (59 | ) |   | - |   |   | (74,923 | ) |
| Increase                  in cash and cash equivalents                                                       |   |   | 45,563 |   |   | 14,306 |   |   | - |   |   | - |   |   | 59,869 |   |
| Cash                  and cash equivalents, beginning                  of period                             |   |   | 59,846 |   |   | 4,674 |   |   | - |   |   | - |   |   | 64,520 |   |
| Cash                  and cash equivalents, end                  of period                                   |   | $ | 105,409 |   | $ | 18,980 |   | $ | - |   | $ | - |   | $ | 124,389 |   |

----

**14.**
**Selected        Quarterly Financial and Operating Data**

| **As                  adjusted, except for the fourth quarter of 2006                  (3)** |   |       |      |      |   |       |   |      |      |       |   |      |   |       |      |      |   |
|----------------------------------------------------------------------------------------------|--------|------------|-----------|-----------|--------|------------|--------|-----------|-----------|------------|--------|-----------|--------|------------|-----------|-----------|--------|
| *(Dollars                  in thousands, except per share and per bbl)*                      |   |       |      |      |   |       |   |      |      |       |   |      |   |       |      |      |   |
|                                                                                         |   | **2006**   |      | **2005**  |   |
| **Unaudited**                                                                                |   | **Fourth** |      | **Third** |   | **Second** |   | **First** |      | **Fourth** |   | **Third** |   | **Second** |      | **First** |   |
| Revenues                                                                                     |   | $          | 1,087,267 |      | $      | 1,381,127  |   | $         | 1,315,366 |       | $      | 1,012,193 |   | $          | 1,150,315 |      | $      | 1,185,927 |   | $ | 972,280 |   | $ | 692,640 |   |
| Operating                  income                                                            |   |       | 75,486    |      |   | 180,762    |   |      | 226,355   |       |   | 91,591    |   |       | 103,466   |      |   | 178,656 |   |   | 108,145 |   |   | 59,746 |   |
| Cumulative                  effect of accounting change                                      |   |       | -         |      |   | -          |   |      | -         |       |   | -         |   |       | (2,503    | )         |   | - |   |   | - |   |   | - |   |
| Net                  income                                                                  |   |       | 52,434    |      |   | 123,626    |   |      | 145,864   |       |   | 57,353    |   |       | 63,043    |      |   | 110,148 |   |   | 66,243 |   |   | 35,724 |   |
| Basic                  earnings per share:                                                   |   |       |      |      |   |       |   |      |      |       |   |      |   |       |      |      |   |   |   |   |   |   |   |   |   |
| Before                  cumulative effect of accounting change                               |   |       | 0.48      |      |   | 1.11       |   |      | 1.30      |       |   | 0.51      |   |       | 0.58      |      |   | 0.98 |   |   | 0.60 |   |   | 0.33 |   |
| Cumulative                  effect of accounting change                                      |   |       | -         |      |   | -          |   |      | -         |       |   | -         |   |       | (0.02     | )         |   | - |   |   | - |   |   | - |   |
| Net                  income                                                                  |   |       | 0.48      |      |   | 1.11       |   |      | 1.30      |       |   | 0.51      |   |       | 0.56      |      |   | 0.98 |   |   | 0.60 |   |   | 0.33 |   |
| Diluted                  earnings per share:                                                 |   |       |      |      |   |       |   |      |      |       |   |      |   |       |      |      |   |   |   |   |   |   |   |   |   |
| Before                  cumulative effect of accounting change                               |   |       | 0.47      |      |   | 1.10       |   |      | 1.29      |       |   | 0.51      |   |       | 0.57      |      |   | 0.96 |   |   | 0.58 |   |   | 0.32 |   |
| Cumulative                  effect of accounting change                                      |   |       | -         |      |   | -          |   |      | -         |       |   | -         |   |       | (0.02     | )         |   | - |   |   | - |   |   | - |   |
| Net                  income                                                                  |   |       | 0.47      |      |   | 1.10       |   |      | 1.29      |       |   | 0.51      |   |       | 0.55      |      |   | 0.96 |   |   | 0.58 |   |   | 0.32 |   |
| Refining                  operations:                                                        |   |       |      |      |   |       |   |      |      |       |   |      |   |       |      |      |   |   |   |   |   |   |   |   |   |
| Total                  charges (bpd) (1)                                                     |   |       | 173,613   |      |   | 175,907    |   |      | 171,426   |       |   | 166,202   |   |       | 175,589   |      |   | 176,566 |   |   | 171,316 |   |   | 150,580 |   |
| Gasoline                  yields (bpd) (2)                                                   |   |       | 83,283    |      |   | 79,298     |   |      | 79,817    |       |   | 83,564    |   |       | 92,850    |      |   | 85,827 |   |   | 88,306 |   |   | 67,006 |   |
| Diesel                  and jet fuel yields (bpd) (2)                                        |   |       | 60,950    |      |   | 62,137     |   |      | 54,857    |       |   | 52,627    |   |       | 57,926    |      |   | 55,409 |   |   | 58,060 |   |   | 49,111 |   |
| Total                  product sales (bpd)                                                   |   |       | 174,252   |      |   | 174,803    |   |      | 173,642   |       |   | 164,661   |   |       | 181,437   |      |   | 177,196 |   |   | 176,514 |   |   | 145,911 |   |
| Average                  gasoline crack spread (per bbl)                                     |   | $          | 7.96      |      | $      | 18.38      |   | $         | 20.92     |       | $      | 9.22      |   | $          | 8.59      |      | $      | 18.11 |   | $ | 12.50 |   | $ | 7.28 |   |
| Average                  diesel crack spread (per bbl)                                       |   |       | 20.21     |      |   | 26.21      |   |      | 23.49     |       |   | 15.51     |   |       | 24.69     |      |   | 18.38 |   |   | 15.51 |   |   | 9.92 |   |
| Cheyenne                  average light/heavy crude oil differential (per bbl)               |   |       | 14.35     |      |   | 16.30      |   |      | 15.19     |       |   | 18.99     |   |       | 18.11     |      |   | 14.93 |   |   | 14.15 |   |   | 14.10 |   |
| Average                  WTI/WTS crude oil differential (per bbl)                            |   |       | 4.84      |      |   | 4.69       |   |      | 5.04      |       |   | 6.44      |   |       | 5.56      |      |   | 3.13 |   |   | 4.67 |   |   | 4.68 |   |

| (1) | Charges                are the quantity of crude oil and other feedstock processed through                refinery units. |
|-----|---------------------------------------------------------------------------------------------------------------------------|

| (2) | Manufactured                product yields are the volumes of specific materials that are obtained                through the distilling of crude oil and the operations of other refinery                process units. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | During                the fourth quarter of 2006, the Company adopted a change in accounting                method for the costs for turnarounds from the accrual method to the                deferral method. The new method of accounting for turnarounds was                in order                to adhere to FSP No. AUG AIR-1 “Accounting for Planned Major Maintenance                Activities” which prohibits the accrual method of accounting for planned                major maintenance activities. The Company elected to early adopt                the FSP.                See Note 3 in the “Notes to the Consolidated Financial Statements” for                further information. The following consolidated financial statement                line                items for each of the quarters 2005 and the first three quarters                of 2006                were affected by the change in accounting                principle. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   | **2006**                                                  |    |
|-------------------------------------------|--------|-----------------------------------------------------------|---------|
| **Unaudited**                             |   | **Third                Quarter**                          |    | **Second                Quarter** |   |
|                                      |   | **As                Originally Reported**                 |    |  **As                Adjusted** |   |  **Change** |   | **As                Originally Reported** |   |  **As                Adjusted** |   |  **Change** |   |
|                                      |   | *(in                thousands, except per share amounts)* |    |
| Operating                income           |   | $                                                         | 176,501 |   | $ | 180,762 |   | $ | 4,261 |   | $ | 222,291 |   | $ | 226,355 |   | $ | 4,064 |   |
| Net                income                 |   |                                                      | 120,884 |   |   | 123,626 |   |   | 2,742 |   |   | 143,342 |   |   | 145,864 |   |   | 2,522 |   |
| Basic                earnings per share   |   |                                                      | 1.09    |   |   | 1.11 |   |   | 0.02 |   |   | 1.28 |   |   | 1.30 |   |   | 0.02 |   |
| Diluted                earnings per share |   |                                                      | 1.08    |   |   | 1.10 |   |   | 0.02 |   |   | 1.26 |   |   | 1.29 |   |   | 0.03 |   |

| **Unaudited**                             |   | **First                Quarter 2006**                     |   |
|-------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                      |   | **As****Originally****Reported**                          |   |  **As                Adjusted** |   |   **Change** |   |
|                                      |   | *(in                thousands, except per share amounts)* |   |
| Operating                income           |   | $                                                         | 92,021 |   | $ | 91,591 |   | $ | (430 | ) |
| Net                income                 |   |                                                      | 57,620 |   |   | 57,353 |   |   | (267 | ) |
| Basic                earnings per share   |   |                                                      | 0.51   |   |   | 0.51 |   |   | - |   |
| Diluted                earnings per share |   |                                                      | 0.51   |   |   | 0.51 |   |   | - |   |

|                                      |   | **2005**                                                  |    |
|-------------------------------------------|--------|-----------------------------------------------------------|---------|
| **Unaudited**                             |   | **Fourth                Quarter**                         |    | **Third                Quarter** |   |
|                                      |   | **As                Originally Reported**                 |    |  **As                Adjusted** |   |  **Change** |   | **As                Originally Reported** |   |  **As                Adjusted** |   |  **Change** |   |
|                                      |   | *(in                thousands, except per share amounts)* |    |
| Operating                income           |   | $                                                         | 103,408 |   | $ | 103,466 |   | $ | 58 |   | $ | 177,250 |   | $ | 178,656 |   | $ | 1,406 |   |
| Net                income                 |   |                                                      | 62,950  |   |   | 63,043 |   |   | 93 |   |   | 109,185 |   |   | 110,148 |   |   | 963 |   |
| Basic                earnings per share   |   |                                                      | 0.56    |   |   | 0.56 |   |   | - |   |   | 0.98 |   |   | 0.98 |   |   | - |   |
| Diluted                earnings per share |   |                                                      | 0.55    |   |   | 0.55 |   |   | - |   |   | 0.95 |   |   | 0.96 |   |   | 0.01 |   |

|                                      |   | **2005**                                                  |    |
|-------------------------------------------|--------|-----------------------------------------------------------|---------|
| **Unaudited**                             |   | **Second                Quarter**                         |    | **First                Quarter** |   |
|                                      |   | **As                Originally Reported**                 |    |  **As                Adjusted** |   |  **Change** |   | **As                Originally Reported** |   |  **As                Adjusted** |   |  **Change** |   |
|                                      |   | *(in                thousands, except per share amounts)* |    |
| Operating                income           |   | $                                                         | 107,688 |   | $ | 108,145 |   | $ | 457 |   | $ | 57,663 |   | $ | 59,746 |   | $ | 2,083 |   |
| Net                income                 |   |                                                      | 65,961  |   |   | 66,243 |   |   | 282 |   |   | 34,436 |   |   | 35,724 |   |   | 1,288 |   |
| Basic                earnings per share   |   |                                                      | 0.60    |   |   | 0.60 |   |   | - |   |   | 0.32 |   |   | 0.33 |   |   | 0.01 |   |
| Diluted                earnings per share |   |                                                      | 0.58    |   |   | 0.58 |   |   | - |   |   | 0.31 |   |   | 0.32 |   |   | 0.01 |   |

**Item      9.**
**Changes      in and Disagreements With Accountants on Accounting and      Financial Disclosure**

**Item      9A. **
**Controls      And Procedures**

**Item      9B. **
**Other      Information**

**PART      III**

**PART      IV**

**Item      15. Exhibits and Financial Statement      Schedules**

| (a)1. Financial                Statements and Supplemental Data                                                                  |
|---------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                  |
| Reports                of Independent Registered Public Accounting                Firm                                                |
| Management’s                Report on Internal                Controls                                                          |
| Consolidated                Statements of Income                                                                                      |
| Consolidated                Balance Sheets                                                                                            |
| Consolidated                Statements of Cash                Flows                                                                   |
| Consolidated                Statements of Changes in Shareholders’ Equity and Statements                of Comprehensive Income |
| Notes                to Consolidated Financial                Statements                                                              |

| (a)2. Financial                Statements Schedules                                                                                                                                                                                                                                   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                       |
| Schedule                I - Condensed Financial Information of                Registrant                                                                                                                                                                                                   |
| Schedule                II - Valuation and Qualifying                Accounts                                                                                                                                                                                                              |
| Other                Schedules are omitted because of the absence of the conditions under                which                they are required or because the required information is included                in the                financial statements or notes                thereto. |

| * | 2.1 | Asset                Purchase and Sale Agreement, dated as of October 19, 1999, among                Frontier                El Dorado Refining Company, as buyer, the Company, as Guarantor,                and                Equilon Enterprises LLC, as seller (Exhibit 10.1 to Form 8-K, File                Number                1-07627, filed December 1, 1999). |
|---|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 3.1 | Restated                Articles of Incorporation of Wainoco Oil Corporation (now Frontier                Oil                Corporation) dated August 5, 1987 (Exhibit 3.1.1 to Registration                Statement                No. 333-120643, filed November 19,                2004). |
|---|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 3.2 | Articles                of Amendment to the Restated Articles of Incorporation of Wainoco                Oil                Corporation (now Frontier Oil Corporation) dated June 14, 1988 (Exhibit                3.1.2 to Registration Statement Number 333-120643, filed November                19,                2004). |
|---|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 3.3 | Articles                of Amendment to the Restated Articles of Incorporation of Wainoco                Oil                Corporation (now Frontier Oil Corporation) dated April 24, 1992 (Exhibit                3.1.3 to Registration Statement Number 333-120643, filed November                19,                2004). |
|---|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 3.4 | Articles                of Amendment to the Restated Articles of Incorporation of Wainoco                Oil                Corporation (now Frontier Oil Corporation) dated April 27, 1998 (Exhibit                3.1.4 to Registration Statement Number 333-120643, filed November                19,                2004). |
|---|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 3.5 | Articles                of Amendment to the Restated Articles of Incorporation of Frontier                Oil                Corporation dated May 23, 2005 (Exhibit 3.1 to Form 8-K, File Number                1-07627, filed May 24, 2005). |
|---|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 3.6 | Articles                of Amendment to the Restated Articles of Incorporation of Frontier                Oil                Corporation dated June 12, 2006 (Exhibit 3.1 to Form 8-K, File Number                1-07627, filed June 15, 2006). |
|---|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 3.7 | Fourth                Restated Bylaws of Wainoco Oil Corporation (now Frontier Oil Corporation),                as amended through February 20, 2002 (Exhibit 3.2 to Wainoco Oil                Corporation’s Annual Report on Form 10-K, File Number 1-07627, filed March                10, 1993). |
|---|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 4.1 | Indenture,                dated as of October 1, 2004, among the Company, as issuer, the guarantors                party thereto and Wells Fargo Bank, N.A., as trustee relating to                the                Company’s 6.625% Senior Notes due 2011 (Exhibit 4.1 to Form 8-K, File                Number1-07627, filed October 4,                2004). |
|---|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.1 | Frontier                Deferred Compensation Plan (previously named Wainoco Deferred Compensation                Plan dated October 29, 1993 and filed as Exhibit 10.19 to Form 10-K,                File                Number 1-07627, filed March 17, 1995). |
|---------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.2 | Frontier                Deferred Compensation Plan for Directors (previously named Wainoco                Deferred Compensation Plan for Directors dated May 1, 1994 and filed                as                Exhibit 10.20 to Form 10-K, File Number 1-07627, filed March 17,                1995). |
|---------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.3 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and James R. Gibbs (Exhibit 10.1 to Form 8-K, File Number                1-07627, filed February 2, 2006). |
|---------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.4 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and W. Reed Williams (Exhibit 10.2 to Form 8-K, File                Number                1-07627, filed February 2, 2006). |
|---------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.5 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and Michael C. Jennings (Exhibit 10.3 to Form 8-K, File                Number                1-07627, filed February 2, 2006). |
|---------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.6 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and Doug S. Aron (Exhibit 10.4 to Form 8-K, File Number                1-07627, filed February 2, 2006). |
|---------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.7 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and J. Currie Bechtol (Exhibit 10.5 to Form 8-K, File                Number                1-07627, filed February 2, 2006). |
|---------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.8 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and Gerald B. Faudel (Exhibit 10.6 to Form 8-K, File                Number                1-07627, filed February 2, 2006). |
|---------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.9 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and Jon D. Galvin (Exhibit 10.7 to Form 8-K, File Number                1-07627, filed February 2, 2006). |
|---------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.10 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and Nancy J. Zupan (Exhibit 10.8 to Form 8-K, File Number                1-07627, filed February 2, 2006). |
|---------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.11 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and Penny S. Newmark (Exhibit 10.9 to Form 8-K, File                Number                1-07627, filed February 2, 2006). |
|---------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.12 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and Lloyd J. Nordhausen (Exhibit 10.10 to Form 8-K, File                Number 1-07627, filed February 2,                2006). |
|---------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.13 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and Kent A. Olsen (Exhibit 10.11 to Form 8-K, File Number                1-07627, filed February 2, 2006). |
|---------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.14 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and Joel W. Purdy (Exhibit 10.12 to Form 8-K, File Number                1-07627, filed February 2, 2006). |
|---------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.15 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and Billy N. Rigby (Exhibit 10.13 to Form 8-K, File Number                1-07627, filed February 2, 2006). |
|---------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.16 | Executive                Change in Control Severance Agreement effective December 30, 2005,                between                the Company and James M. Stump (Exhibit 10.14 to Form 8-K, File Number                1-07627, filed February 2, 2006). |
|---------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.17 | Executive                Change in Control Severance Agreement, effective December 30, 2005,                between the Company and Leo J. Hoonakker (Exhibit 10.1 to Form 8-K,                File                Number 1-07627, filed March 9,                2006). |
|---------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.18 | Executive                Change in Control Severance Agreement, effective as of May 30, 2006,                by                and between the Company and W. Paul Eisman (Exhibit 10.1 to Form                8-K,                filed May 31, 2006). |
|---------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.19 | Form                of Executive Severance Agreement, effective as of May 30, 2006, by                and                between the Company and each of James R. Gibbs, W. Paul Eisman, Michael                C.                Jennings, Doug S. Aron, J. Currie Bechtol, Gerald B. Faudel, Jon                D.                Galvin, Nancy J. Zupan, Leo J. Hoonakker, Penny S. Newmark, Lloyd                J.                Nordhausen, Kent A. Olsen, Joel W. Purdy, Billy N. Rigby, and James                M.                Stump (Exhibit 10.2 to Form 8-K, File Number 1-07627, filed May 31,                2006). |
|---------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 10.20 | Crude                Oil Supply Agreement dated October 15, 2002, between Baytex Energy                Ltd.                and Frontier Oil and Refining Company (Exhibit 10.2 to Form 10-Q,                File                Number 1-07627, filed October 30, 2002). On November 28, 2002, this                agreement was assigned by Baytex Energy Ltd. to its wholly-owned                subsidiary, Baytex Marketing Ltd. |
|---|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 10.21 | Master                Crude Oil Purchase and Sale Contract, dated March 10, 2006, among                Utexam                Limited, Frontier Oil and Refining Company and the Company (Exhibit                10.1                to Form 8-K, File Number 1-07627, filed March 14,                2006). |
|---|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 10.22 | Guaranty,                dated March 10, 2006, by the Company in favor of Utexam Limited (Exhibit                10.2 to Form 8-K, File Number 1-07627, filed March 14,                2006). |
|---|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 10.23 | Second                Amended and Restated Revolving Credit Agreement dated November 22,                2004,                among the Company, Frontier Oil and Refining Company, as borrower,                the                lenders named therein, Union Bank of California, N.A., as administrative                agent, and PNB Paribas, as syndication agent (Exhibit 10.1 to Form                8-K,                File Number 1-07627, filed November 24,                2004). |
|---|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 10.24 | First                Amendment to Second                Amended and                Restated Revolving Credit Agreement, dated February 3, 2006, by Frontier                Oil and Refining Company, the Company, each of the financial institutions                party thereto and Union Bank of California, N.A. (Exhibit 10.1 to                Form                10-Q, File Number 1-07627, filed May 8,                2006). |
|---|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | 10.25 | Second                Amendment to Second Amended and                Restated Revolving Credit Agreement, dated March 10, 2006, by Frontier                Oil                and Refining Company, the Company, each of the financial institutions                party thereto and Union Bank of California, N.A. (Exhibit 10.2 to                Form                10-Q, File Number 1-07627, filed May 8,                2006). |
|---|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.26 | Directors’                Compensation Summary Sheet (Exhibit 10.1 to Form 8-K, File Number                1-07627,                filed April 20, 2005). |
|---------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.27 | Frontier                Oil Corporation Omnibus Incentive Compensation Plan (Annex A to Proxy                Statement, File Number 1-07627, filed March 21,                2006). |
|---------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.28 | Form                of Frontier Oil Corporation Omnibus Incentive Compensation Plan Stock                Unit/Restricted Stock Agreement (Exhibit 4.8 to Form S-8, File Number                333-133595, filed April 27, 2006). |
|---------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.29 | Form                of Frontier Oil Corporation Omnibus Incentive Compensation Plan                Nonqualified Stock Option Agreement (Exhibit 4.9 to Form S-8, File                Number                333-133595, filed April 27, 2006). |
|---------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.30 | Form                of Non-Employee Director Restricted Stock Unit Grant Agreement (Exhibit                10.1 to Form 8-K, File Number 1-07627, filed April 7,                2006). |
|---------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.31 | Form                of First Amendment to Restricted Stock Unit Grant (Exhibit 10.1 to                Form                10-Q, File Number 1-07627, filed August 7,                2006). |
|---------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.32 | Form                of Restricted Stock Agreement (Exhibit 10.2 to Form 8-K, File Number                1-07627, filed April 7, 2006). |
|---------|-------|----------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.33 | Summary                of Management Incentive Compensation Plan (Exhibit 10.2 to Form 8-K,                File                Number 1-07627, filed May 6, 2005). |
|---------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.34 | Summary                of Long-Term Incentive Compensation Plan for 2005 (Exhibit 10.3 to                Form                8-K, File Number 1-07627, filed May 6,                2005). |
|---------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.35 | Letter                Agreement dated May 20, 2005, between the Company and Ms. Julie H.                Edwards                (Exhibit 10.1 to Form 8-K, File Number 1-07627, filed May 24,                2005). |
|---------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.36 | Separation                Agreement and Release, effective as of March 7, 2006, between W.                Reed                Williams and the Company (Exhibit 10.1 to Form 8-K, File Number 1-07627,                filed March 15, 2006). |
|---------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.37 | Executive                Retiree Medical Benefit Plan (Exhibit 10.3 to Form 10-Q, File Number                1-07627, filed May 8, 2006). |
|---------|-------|-------------------------------------------------------------------------------------------------------------------------------------------|

| *² | 10.38 | Management                Incentive Compensation Plan for 2006 (Exhibit 10.1 to Form 8-K, File                Number 1-07627, filed February 28,                2007). |
|---------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ² | 10.39 | Summary                of Compensation for Non-Employee Directors. |
|--------------|-------|--------------------------------------------------------------------|

|  ² | 10.40 | Summary                of Compensation for Executive                Officers. |
|--------------|-------|-------------------------------------------------------------------------------|

|  ² | 10.41 | Form                of Indemnification Agreement by and between the                Company and each of its officers and                directors. |
|--------------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21 | Subsidiaries                of the                Registrant. |
|--------|----|---------------------------------------------------------------|

|   | 23 | Consent                of Deloitte & Touche                LLP. |
|--------|----|---------------------------------------------------------------------|

|   | 31.1 | Certification                by Chief Executive Officer pursuant to 18                U.S.C. Section 1350, as adopted pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification                by Chief Financial Officer pursuant to 18                U.S.C. Section 1350, as adopted pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification                pursuant to 18 U.S.C. Section 1350, as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification                pursuant to 18 U.S.C. Section 1350, as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of                2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Exhibits |
|-----|----------|

----

| **Frontier                Oil Corporation**                      |   |   |   |
|------------------------------------------------------------------|--------|--------|--------|
| **Condensed                Financial Information of Registrant** |   |   |   |
| **Balance                Sheets**                                |   |   |   |

|                                                            |   |                                            |         |
|-----------------------------------------------------------------|--------|-------------------------------------------------|--------------|
|                                                            |   | ** Schedule                I  ** |    |
|                                                            |   | **December                31,**                 |         |
|                                                            |   | **2006**                                        |         | **2005****As                Adjusted****(Note                3)** |   |
| **ASSETS**                                                      |   | *(in                thousands)*                 |
| Current                assets:                                  |   |                                            |         |   |   |   |   |
| Cash                and cash equivalents                        |   | $                                               | 215,049      |   | $ | 244,357 |   |
| Trade                and other receivables                      |   |                                            | 1,363        |   |   | 6,381 |   |
| Deferred                tax assets                              |   |                                            | 3,237        |   |   | 2,004 |   |
| Other                current assets                             |   |                                            | 2,082        |   |   | 499 |   |
| Total                current assets                             |   |                                            | 221,731      |   |   | 253,241 |   |
| Property,                plant and equipment, at cost:          |   |                                            |         |   |   |   |   |
| Furniture,                fixtures and other                    |   |                                            | 1,301        |   |   | 1,235 |   |
| Less                - accumulated depreciation                  |   |                                            | 1,054        |   |   | 988 |   |
|                                                            |   |                                            | 247          |   |   | 247 |   |
| Deferred                financing costs, net                    |   |                                            | 2,293        |   |   | 2,775 |   |
| Commutation                account                              |   |                                            | 7,290        |   |   | 12,606 |   |
| Prepaid                insurance, net                           |   |                                            | 2,120        |   |   | 3,331 |   |
| Other                assets                                     |   |                                            | 2,734        |   |   | 2,508 |   |
| Investment                in subsidiaries                       |   |                                            | 831,082      |   |   | 537,947 |   |
|                                                            |   |                                            |         |   |   |   |   |
| Total                assets                                     |   | $                                               | 1,067,497    |   | $ | 812,655 |   |
|                                                            |   |                                            |         |   |   |   |   |
| **LIABILITIES                AND SHAREHOLDERS’ EQUITY**   |   |                                            |         |   |   |   |   |
| Current                liabilities:                             |   |                                            |         |   |   |   |   |
| Contingent                income tax liabilities                |   | $                                               | 28,271       |   | $ | 21,517 |   |
| Accounts                payable                                 |   |                                            | 1,436        |   |   | 2,480 |   |
| Accrued                interest                                 |   |                                            | 2,484        |   |   | 2,485 |   |
| Accrued                dividends                                |   |                                            | 3,486        |   |   | 58,726 |   |
| Accrued                liabilities and other                    |   |                                            | 7,924        |   |   | 5,336 |   |
| Total                current liabilities                        |   |                                            | 43,601       |   |   | 90,544 |   |
|                                                            |   |                                            |         |   |   |   |   |
| Long-term                debt                                   |   |                                            | 150,000      |   |   | 150,000 |   |
| Deferred                compensation liability                  |   |                                            | 2,630        |   |   | 2,214 |   |
| Deferred                income taxes                            |   |                                            | 93,907       |   |   | 86,460 |   |
| Payable                to affiliated companies                  |   |                                            | 1,505        |   |   | 4,745 |   |
|                                                            |   |                                            |         |   |   |   |   |
| Shareholders’                equity                       |   |                                            | 775,854      |   |   | 478,692 |   |
|                                                            |   |                                            |         |   |   |   |   |
| Total                liabilities and shareholders’ equity |   | $                                               | 1,067,497    |   | $ | 812,655 |   |

----

| **Frontier                Oil Corporation**                      |   |   |   |   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|
| **Condensed                Financial Information of Registrant** |   |   |   |   |   |
| **Statements                of Income**                          |   |   |   |   |   |

|                                                                                        |   |  **Schedule                I **   |     |
|---------------------------------------------------------------------------------------------|--------|---------------------------------------------|----------|
|                                                                                        |   |                                        |     |
|                                                                                        |   | **Years                Ended December 31,** |     |
|                                                                                        |   | **2006**                                    |     | **2005****As                Adjusted (Note 3)** |   | **2004****As                Adjusted (Note 3)** |   |
|                                                                                        |   | *(in                thousands)*             |     |
|                                                                                        |   |                                        |     |   |   |   |   |
| Revenues                                                                                    |   | $                                           | 4        |   | $ | (6 | ) | $ | (6 | ) |
|                                                                                        |   |                                        | 4        |   |   | (6 | ) |   | (6 | ) |
| Costs                and expenses:                                                          |   |                                        |     |   |   |   |   |   |   |   |
| Selling                and general expenses, excluding depreciation                         |   |                                        | 30,194   |   |   | 14,681 |   |   | 15,590 |   |
| Merger                termination and legal costs                                           |   |                                        | -        |   |   | 48 |   |   | 3,824 |   |
| Depreciation                                                                                |   |                                        | 88       |   |   | 69 |   |   | 75 |   |
| Gain                on sale of assets                                                       |   |                                        | (8       | ) |   | (3 | ) |   | - |   |
|                                                                                        |   |                                        | 30,274   |   |   | 14,795 |   |   | 19,489 |   |
|                                                                                        |   |                                        |     |   |   |   |   |   |   |   |
| Operating                income                                                             |   |                                        | (30,270  | ) |   | (14,801 | ) |   | (19,495 | ) |
|                                                                                        |   |                                        |     |   |   |   |   |   |   |   |
| Interest                expense and other financing costs                                   |   |                                        | 11,978   |   |   | 10,593 |   |   | 35,004 |   |
| Interest                and investment income                                               |   |                                        | (12,102  | ) |   | (5,905 | ) |   | (1,545 | ) |
| Equity                in earnings of subsidiaries                                           |   |                                        | (609,265 | ) |   | (462,027 | ) |   | (164,392 | ) |
|                                                                                        |   |                                        | (609,389 | ) |   | (457,339 | ) |   | (130,933 | ) |
|                                                                                        |   |                                        |     |   |   |   |   |   |   |   |
| Income                before income taxes                                                   |   |                                        | 579,119  |   |   | 442,538 |   |   | 111,438 |   |
| Provision                for income taxes                                                   |   |                                        | 199,842  |   |   | 168,910 |   |   | 42,046 |   |
|                                                                                        |   |                                        |     |   |   |   |   |   |   |   |
| Income                before cumulative effect of accounting change                         |   |                                        | 379,277  |   |   | 273,628 |   |   | 69,392 |   |
| Income                tax benefit for cumulative effect of                accounting change |   |                                        | -        |   |   | 1,530 |   |   | - |   |
| Net                income                                                                   |   | $                                           | 379,277  |   | $ | 275,158 |   | $ | 69,392 |   |

----

| **Frontier                Oil Corporation**                      |   |   |   |   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|
| **Condensed                Financial Information of Registrant** |
| **Statements                of Cash Flows**                      |   |   |   |   |   |

|                                                                                      |   |  **Schedule                I **   |     |
|-------------------------------------------------------------------------------------------|--------|---------------------------------------------|----------|
|                                                                                      |   |                                        |     |
|                                                                                      |   | **Years                Ended December 31,** |     |
|                                                                                      |   | **2006**                                    |     | **2005****As                Adjusted (Note 3)** |   | **2004****As                Adjusted (Note 3)** |   |
|                                                                                      |   | *(in                thousands)*             |     |
| Operating                Activities                                                       |   |                                        |     |   |   |   |   |   |   |   |
| Net                income                                                                 |   | $                                           | 379,277  |   | $ | 275,158 |   | $ | 69,392 |   |
| Equity                in earnings of subsidiaries                                         |   |                                        | (609,265 | ) |   | (462,027 | ) |   | (164,392 | ) |
| Cumulative                effect of accounting change, net                of income taxes |   |                                        | -        |   |   | (1,530 | ) |   | - |   |
| Depreciation                                                                              |   |                                        | 88       |   |   | 69 |   |   | 75 |   |
| Deferred                income taxes                                                      |   |                                        | 6,073    |   |   | 30,259 |   |   | 24,731 |   |
| Stock-based                compensation expense                                           |   |                                        | 18,029   |   |   | 1,363 |   |   | 1,180 |   |
| Excess                income tax benefits of stock-based compensation                     |   |                                        | (8,881   | ) |   | - |   |   | - |   |
| Deferred                finance cost and bond discount amortization                       |   |                                        | 482      |   |   | 483 |   |   | 5,180 |   |
| Long-term                commutation account                                              |   |                                        | 5,316    |   |   | 3,832 |   |   | 3,712 |   |
| Amortization                of long-term prepaid insurance                                |   |                                        | 1,211    |   |   | 1,211 |   |   | 1,451 |   |
| Increase                (decrease) in long-term accrued liabilities                       |   |                                        | 416      |   |   | 698 |   |   | (2,207 | ) |
| Other                                                                                     |   |                                        | (428     | ) |   | (209 | ) |   | 2,789 |   |
| Changes                in components of working capital                                   |   |                                        | 19,089   |   |   | 32,645 |   |   | (496 | ) |
| Net                cash used by operating activities                                      |   |                                        | (188,593 | ) |   | (118,048 | ) |   | (58,585 | ) |
|                                                                                      |   |                                        |     |   |   |   |   |   |   |   |
| Investing                Activities                                                       |   |                                        |     |   |   |   |   |   |   |   |
| Additions                to property, plant and equipment                                 |   |                                        | (88      | ) |   | (143 | ) |   | (3 | ) |
| Proceeds                from sale of assets                                               |   |                                        | 8        |   |   | 3 |   |   | - |   |
| Net                cash used by investing activities                                      |   |                                        | (80      | ) |   | (140 | ) |   | (3 | ) |
|                                                                                      |   |                                        |     |   |   |   |   |   |   |   |
| Financing                Activities                                                       |   |                                        |     |   |   |   |   |   |   |   |
| Proceeds                from issuance of common stock                                     |   |                                        | 3,672    |   |   | 23,616 |   |   | 3,923 |   |
| Purchase                of treasury stock                                                 |   |                                        | (98,950  | ) |   | (34,819 | ) |   | (3,029 | ) |
| Dividends                paid to shareholders                                             |   |                                        | (67,498  | ) |   | (7,776 | ) |   | (5,664 | ) |
| Intercompany                transactions, net                                             |   |                                        | (3,240   | ) |   | 4,215 |   |   | (202 | ) |
| Dividends                received from subsidiaries                                       |   |                                        | 316,500  |   |   | 272,000 |   |   | 132,851 |   |
| Excess                income tax benefits of stock-based compensation                     |   |                                        | 8,881    |   |   | - |   |   | - |   |
| Debt                issue costs                                                           |   |                                        | -        |   |   | (100 | ) |   | (3,279 | ) |
| Proceeds                from issuance of 6.625% Senior Notes                              |   |                                        | -        |   |   | - |   |   | 150,000 |   |
| Repurchases                of 11.75% Senior Notes                                         |   |                                        | -        |   |   | - |   |   | (170,449 | ) |
| Net                cash provided by financing activities                                  |   |                                        | 159,365  |   |   | 257,136 |   |   | 104,151 |   |
|                                                                                      |   |                                        |     |   |   |   |   |   |   |   |
| Increase                (decrease) in cash and cash equivalents                           |   |                                        | (29,308  | ) |   | 138,948 |   |   | 45,563 |   |
| Cash                and cash equivalents, beginning of period                             |   |                                        | 244,357  |   |   | 105,409 |   |   | 59,846 |   |
|                                                                                      |   |                                        |     |   |   |   |   |   |   |   |
| Cash                and cash equivalents, end of period                                   |   | $                                           | 215,049  |   | $ | 244,357 |   | $ | 105,409 |   |

----

| **Frontier                Oil Corporation**                              |   |                                              |   |          |   |           |   |                                        |   |
|--------------------------------------------------------------------------|--------|---------------------------------------------------|--------|---------------|--------|----------------|--------|---------------------------------------------|--------|
| **Valuation                and Qualifying Accounts**                     |   |                                              |   |
| **For                the three years ended December 31,**           |   |   **Schedule                II**        |   |
|                                                                     |   |                                              |   |          |   |           |   |                                        |   |
|                                                                     |   |                                              |   |          |   |           |   |                                        |   |
| **Description**                                                          |   | **Balance                at beginning of period** |   | **Additions** |   | **Deductions** |   | **Balance                at end of period** |   |
|                                                                     |   | *(in                thousands)*              |   |
| **2006**                                                                 |   |                                              |   |          |   |           |   |                                        |   |   |   |   |   |
| Allowance                for doubtful accounts                           |   | $                                                 | 500    |          | $      | 26             |   | $                                           | 26     |   | $ | 500 |   |
|                                                                     |   |                                              |   |          |   |           |   |                                        |   |   |   |   |   |
| **2005**                                                                 |   |                                              |   |          |   |           |   |                                        |   |   |   |   |   |
| Allowance                for doubtful accounts                           |   |                                              | 500    |          |   | -              |   |                                        | -      |   |   | 500 |   |
|                                                                     |   |                                              |   |          |   |           |   |                                        |   |   |   |   |   |
| **2004**                                                                 |   |                                              |   |          |   |           |   |                                        |   |   |   |   |   |
| Allowance                for doubtful accounts                           |   |                                              | 500    |          |   | -              |   |                                        | -      |   |   | 500 |   |
| Valuation                allowance on deferred tax                assets |   |                                              | 1,555  |          |   | -              |   |                                        | 1,555  |   |   | - |   |

----

**SIGNATURES**

**FRONTIER        OIL CORPORATION**

----

| /s/                      James R. Gibbs                   |   | /s/                      T. Michael Dossey |   |
|-----------------------------------------------------------|--------|--------------------------------------------|--------|
| James                      R. Gibbs                       |   | T.                      Michael Dossey     |   |
| Chairman                      of the Board, President and |   | Director                                   |   |
| Chief                      Executive Officer and Director |   |                                       |   |
| (chief                      executive officer)            |   |                                       |   |
|                                                      |   |                                       |   |
| /s/                      Michael C. Jennings              |   | /s/                      James H. Lee      |   |
| Michael                      C. Jennings                  |   | James                      H. Lee          |   |
| Executive                      Vice President             |   | Director                                   |   |
| Chief                      Financial Officer              |   |                                       |   |
| (principal                      financial officer)        |   |                                       |   |
|                                                      |   |                                       |   |
| /s/                      Nancy J. Zupan                   |   | /s/                      Paul B. Loyd, Jr. |   |
| Nancy                      J. Zupan                       |   | Paul                      B. Loyd, Jr.     |   |
| Vice                      President - Controller          |   | Director                                   |   |
| (principal                      accounting officer)       |   |                                       |   |
|                                                      |   |                                       |   |
| /s/                      Douglas Y. Bech                  |   | /s/                      Michael E. Rose   |   |
| Douglas                      Y. Bech                      |   | Michael                      E. Rose       |   |
| Director                                                  |   | Director                                   |   |
|                                                      |   |                                       |   |
| /s/                      G. Clyde Buck                    |   |                                       |   |
| G.                      Clyde Buck                        |   |                                       |   |
| Director                                                  |   |                                       |   |