Document:

Exhibit

 Exhibit 10.26

                                            
AMENDED AND RESTATED 
UNLOADING AND BLENDING SERVICES AGREEMENT 
(Artesia)

This Amended and Restated Unloading and Blending Services Agreement (this “Agreement”) is dated as of January 18, 2017, to be effective as of the Effective Time, by and among HollyFrontier Refining & Marketing LLC (“HFRM”), Holly Energy Partners-Operating, L.P. (“HEP Operating”) and HEP Refining, L.L.C. (“HEP Refining”).  Each of HFRM, HEP Operating and HEP Refining is individually referred to herein as a “Party” and collectively as the “Parties.”

RECITALS:
WHEREAS, on or about March 12, 2015, the Parties entered into a certain Unloading and Blending Services Agreement (the “Original Agreement”) pursuant to which HEP Refining undertook certain construction projects, as more specifically set forth in Section 2 of the Original Agreement, related to constructing two tanks and related equipment for the unloading and blending of Ethanol and Biodiesel at the refined product truck rack located at the refinery owned by Navajo Refining Company, L.L.C. in Artesia, New Mexico (the “Facility”), with the volume capacities as set forth therein; and  
WHEREAS, in connection with the construction of the Facility, the Parties entered into the Original Agreement to, among other things, set forth the terms and conditions under which HEP Operating would provide certain unloading and blending services for HFRM at the Facility; and
WHEREAS, the Parties desire to amend and restate in its entirety the Original Agreement to reflect certain agreed upon changes in the scope of the construction project.
NOW, THEREFORE, in consideration of the covenants and obligations contained herein, the Parties hereby agree as follows:
Section 1.Definitions
Capitalized terms used throughout this Agreement and not otherwise defined herein shall have the meanings set forth on Appendix A.
Section 1.    Construction of the Facility and Related Assets.
In consideration of and in reliance upon HFRM’s execution and delivery of this Agreement, including the Minimum Revenue Commitment, HEP Refining agrees to use commercially reasonable efforts to complete the construction projects set forth on Exhibit B (the “Construction Projects”).  HEP Refining shall bear the costs of constructing the Construction Projects listed on Exhibit B.
Section 2.    Agreement to Use Services Relating to the Facility.

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The Parties intend to be strictly bound by the terms set forth in this Agreement, which sets forth revenues to HEP Operating to be paid by HFRM, and requires HEP Operating to provide certain unloading and blending services to HFRM. The principal objective of HEP Operating is for HFRM to meet or exceed its obligations with respect to the Minimum Revenue Commitment.  The principal objective of HFRM is for HEP Operating to provide services to HFRM in a manner that enables HFRM to have the Products unloaded and blended at the Facility.
(a)    Minimum Revenue Commitment. During the Term, following the Commencement Date, and subject to the terms and conditions of this Agreement, HFRM agrees as follows:
(i)    Capacity and Revenue Commitment.  Subject to Section 5, HFRM shall pay HEP Operating service tariffs set forth in this Agreement for use of the Facility that result in the payment of an amount that will satisfy the Minimum Revenue Commitment in exchange for HEP Operating providing HFRM a minimum aggregate capacity for unloading and blending services at the Facility equal to the Minimum Capacity Commitment.  The “Minimum Revenue Commitment” shall be an amount of revenue to HEP Operating for each Contract Quarter determined by multiplying the Minimum Throughput for such Contract Quarter, by the Base Tariff in effect for such Contract Quarter, as such Base Tariff may be revised pursuant to Section 3(a)(iii).  The “Minimum Capacity Commitment” means an amount equal to 450 bpd.
(ii)    Applicable Tariffs.  HFRM will pay the Base Tariff for all quantities of Products unloaded at the Facility in each Contract Quarter during the Term up to and including the Incentive Tariff Threshold, and shall pay the Incentive Tariff for all quantities in excess of the Incentive Tariff Threshold at the Facility during such Contract Quarter.  
(iii)    Adjustment of Tariffs.  
(A)    The Base Tariff and Incentive Tariff shall be adjusted upward on July 1 of each year during the Term commencing on July 1, 2015, by an amount equal to three percent (3%).
(B)    In the event that the actual, reasonable and necessary costs, or as otherwise approved in writing by HFRM (the “Actual Construction Costs”) incurred by HEP Refining to construct the Construction Projects are more or less than $5,300,000 (the “Construction Cost Estimate”), then the Base Tariff in effect shall automatically be increased or decreased, as applicable, by the same percentage by which the Actual Construction Costs exceeded or were less than the Construction Cost Estimate; provided, however, that in no event shall the amount of such overage or savings used to calculate the increase or decrease in the Base Tariff exceed 25% of the original Base Tariff.  For example:
(1)     if the Actual Construction Cost is $5,830,000 (10% above the Construction Cost Estimate), the Base Tariff would be increased to be $0.1133 per gallon (a 10% increase); 

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(2)     if the Actual Construction Cost is $4,770,000 (10% below the Construction Cost Estimate), the Base Tariff would be decreased to be $0.0927 per gallon (a 10% decrease);
(1)    if the Actual Construction Cost is $6,890,000 (30% above the Construction Cost Estimate), the Base Tariff would be increased to be $0.12875 per gallon (a 25% increase); or
(2)    if the Actual Construction Cost is $3,710,000 (30% below the Construction Cost Estimate), the Base Tariff would be decreased to be $0.07725 per gallon (a 25% decrease).
(iv)    Reduction for Non-Force Majeure Operational Difficulties.  If HFRM is unable to unload at the Facility the volumes of Products required to meet the Minimum Revenue Commitment for a particular Contract Quarter as a result of HEP Operating’s operational difficulties, prorationing, or the inability to provide sufficient capacity for the Minimum Throughput, then the Minimum Revenue Commitment applicable to the Contract Quarter during which HFRM is unable to unload such volumes of Products will be reduced by an amount equal to: (A) the volume of Products that HFRM was unable to unload at the Facility (but not to exceed the Minimum Throughput), as a result of HEP Operating’s operational difficulties, prorationing or inability to provide sufficient capacity at the Facility to achieve the Minimum Throughput, multiplied by (B) the Base Tariff.  This Section 3(a)(iv) shall not apply in the event HEP Operating gives notice of a Force Majeure event in accordance with Section 5, in which case the Minimum Revenue Commitment shall be suspended in accordance with and as provided in Section 5.
(v)    Pro-Rationing for Partial Periods.  Notwithstanding the other portions of this Section 3(a), in the event that the Commencement Date is any date other than the first day of a Contract Quarter, then the Minimum Revenue Commitment, Minimum Throughput, and Incentive Tariff Threshold for the initial partial Contract Quarter shall be prorated based upon the number of days actually in such partial Contract Quarter.  Similarly, notwithstanding the other portions of this Section 3(a), if the end of the Term is on a day other than the last day of a Contract Quarter, then the Minimum Revenue Commitment, Minimum Throughput, and Incentive Tariff Threshold for the final partial Contract Quarter shall be prorated based upon the number of days actually in such partial Contract Quarter.
(b)    Measurement of Unloaded Volumes.  Quantities unloaded at the Facility and subject to the tariffs, charges and other fees provided for in this Agreement shall be determined by measuring volumes of Products as the Products are offloaded as follows: (i) if the Product is Ethanol delivered by truck, then the Parties shall use the same measurement method(s) used to determine the volume of Product to be loaded into outbound trucks, and (ii) if the Product is from tanks at the Facility (into which HFRM has delivered Biodiesel by rail) and is offloaded into trucks at the Facility, then the Parties shall use the meter at the point such tanks are offloaded to such trucks.  During the Term, HFRM shall absorb all volumetric gains and be responsible for all volumetric losses for all Biodiesel Product delivered to the Facility by rail or in storage in tanks at the Facility.

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(c)    Obligations of HEP Operating and HEP Refining.  During the Term and subject to the terms and conditions of this Agreement, including Section 13(b), HEP Operating and HEP Refining agree to: 
(i)    own or lease, operate and maintain the Facility and all related assets necessary to handle the Products from HFRM; 
(ii)     make available to HFRM’s use the capacity of the Facility equal to at least the Minimum Capacity Commitment; 
(iii)    provide the services required under this Agreement and perform all operations relating to the Facility; 
(iv)    maintain adequate property and liability insurance covering the Facility and any related assets owned by HEP Operating and necessary for the operation of the Facility; and
(v)    provide blending services for the Products at the Facility to the specifications of HFRM, as such specifications may be adjusted by HFRM in writing from time to time.  
Notwithstanding the first sentence of this Section 3(c), subject to Section 13(b) of this Agreement and Article V of the Omnibus Agreement, HEP Operating and HEP Refining are free to sell any of their respective assets, including assets that provide services under this Agreement, and HFRM is free to merge with another entity and to sell all of its assets or equity to another entity at any time.  
(d)    Notification of Utilization.  Upon request by HEP Operating, HFRM will provide to HEP Operating written notification of HFRM’s reasonable good faith estimate of its anticipated future utilization of the Facility as soon as reasonably practicable after receiving such request.
(e)    Scheduling.  HEP Operating will use its reasonable commercial efforts to schedule unloading and blending the Products in a manner that is consistent with the historical dealings between the Parties and their Affiliates to support HFRM’s gasoline and diesel rack sales, as such dealings may change from time to time.
(f)    Taxes.  HFRM will pay all taxes, import duties, license fees and other charges by any Governmental Authority levied on or with respect to the Products delivered by HFRM for unloading and blending by HEP Operating; provided that HFRM shall not be responsible for any income taxes payable by HEP Operating relating to such services.  Should any Party be required to pay or collect any taxes, duties, charges and or assessments pursuant to any Applicable Law or authority now in effect or hereafter to become effective which are payable by the any other Party pursuant to this Section 3(f) the proper Party shall promptly reimburse the other Party therefor.
(g)    Timing of Payments.  HFRM will make payments to HEP Operating by electronic payment with immediately available funds on a quarterly basis during the Term with respect to services rendered or reimbursable costs or expenses incurred by HEP Operating under this 

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Agreement in the prior quarter.  Payments not received by HEP Operating on or prior to the applicable payment date will accrue interest at the Prime Rate from the applicable payment date until paid.
(h)    Increases in Tariff Rates.  If new Applicable Laws are enacted that require HEP Operating to make capital expenditures with respect to the Facility, HEP Operating may amend the Base Tariff and the Incentive Tariff in order to recover HEP Operating’s cost of complying with such new Applicable Laws (as determined in good faith and including a reasonable return).  HFRM and HEP Operating shall use their reasonable commercial efforts to comply with such new Applicable Laws, and shall negotiate in good faith to mitigate the impact of such new Applicable Laws and to determine the amount of the new tariff rates.  If HFRM and HEP Operating are unable to agree on the amount of the new tariff rates that HEP Operating will charge, such tariff rates will be determined by binding arbitration in accordance with Section 13(e).  Schedule I or any other applicable exhibit or schedule to this Agreement will be updated, amended or revised, as applicable, in accordance with this Agreement to reflect any changes in tariff rates agreed to in accordance with this Section 3(h).
(i)    No Guaranteed Minimum Shipments.  Notwithstanding anything to the contrary set forth in this Agreement, there is no requirement that HFRM deliver any minimum quantity of Products at the Facility, it being understood that HFRM’s obligation for failing to unload sufficient quantities of Products to satisfy the Minimum Revenue Commitment is to make Deficiency Payments as provided in Section 10.
Section 3.    Agreement to Remain Shipper
With respect to any Products that are transported to and from the Facility by HFRM, HFRM agrees that it will act in the capacity of the shipper of record for any such Products for its own account at all times that such Products are being transported to and from the Facility.
Section 4.    Force Majeure
In the event that any Party is rendered unable, wholly or in part, by a Force Majeure event from performing its obligations under this Agreement, then, upon the delivery of notice and full particulars of the Force Majeure event in writing within a reasonable time after the occurrence of the Force Majeure event relied on (“Force Majeure Notice”), the obligations of the Parties, so far as they are affected by the Force Majeure event, shall be suspended for the duration of any inability so caused.  Any suspension of the obligations of the Parties as a result of this Section 5 for a period of more than thirty (30) consecutive days shall extend the Term (to the extent so affected) for a period equivalent to the duration of the inability set forth in the Force Majeure Notice.  HFRM will be required to pay any amounts accrued and due under this Agreement at the time of the Force Majeure event.  The cause of the Force Majeure event shall so far as possible be remedied with all reasonable dispatch, except that no Party shall be compelled to resolve any strikes, lockouts or other industrial disputes other than as it shall determine to be in its best interests.  In the event a Force Majeure event prevents a Party from performing substantially all of their respective obligations under this Agreement for a period of more than one (1) year, this Agreement may be terminated by HEP Operating and HEP Refining, on the one hand, or HFRM, on the other hand, by providing written notice thereof to the other Parties.  

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Section 5.    [Reserved]
Section 6.    Effectiveness and Term
This Agreement shall be effective as of the Effective Time, and shall terminate at 12:01 a.m. Dallas, Texas, time on the day that is twenty (20) years from the Commencement Date, unless extended pursuant to Section 5 or by written mutual agreement of the Parties or as set forth in Section 8 (the “Term”).  The Party desiring to extend this Agreement pursuant to this Section 7 shall provide prior written notice to the other Parties of its desire to so extend this Agreement; such written notice shall be provided not more than twenty-four (24) months and not less than the later of twelve (12) months prior to the date of termination or ten (10) days after receipt of a written request from the other Party (which request may be delivered no earlier than twelve (12) months prior to the date of termination) to provide any such notice or lose such right.
Section 7.    Right to Enter into a New Agreement
(a)    In the event that HFRM provides prior written notice to HEP Operating of the desire of HFRM to extend this Agreement by written mutual agreement of the Parties pursuant to Section 7, the Parties shall negotiate in good faith to extend this Agreement by written mutual agreement, but, if such negotiations fail to produce a written mutual agreement for extension by a date six (6) months prior to the termination date, then HEP Operating shall have the right to negotiate to enter into one or more services agreements for HFRM’s Minimum Capacity Commitment for the Facility with one or more third parties to begin after the date of termination, provided, however, that until the end of one year following termination without renewal of this Agreement, HFRM will have the right to enter into a new services agreement with HEP Operating with respect to its Minimum Capacity Commitment on the date of termination on commercial terms that substantially match the terms upon which HEP Operating propose to enter into an agreement with a third party for similar services with respect to all or a material portion of such capacity of the Facility.  In such circumstances, HEP Operating shall give HFRM forty-five (45) days prior written notice of any proposed new services agreement with a third party, and such notice shall inform HFRM of the fee schedules, tariffs, duration and any other material terms of the proposed third party agreement and HFRM shall have forty-five (45) days following receipt of such notice to agree to the terms specified in the notice or HFRM shall lose the rights specified by this Section 8(a) with respect to the capacity that is the subject of such notice.
(b)    In the event that HFRM fails to provide prior written notice to HEP Operating of the desire of HFRM to extend this Agreement by written mutual agreement of the Parties pursuant to Section 7, HEP Operating shall have the right, during the period from the date of HFRM’s failure to provide written notice pursuant to Section 7 to the date of termination of this Agreement, to negotiate to enter into one or more services agreements for HFRM’s Minimum Capacity Commitment for the Facility with one or more third parties to begin after the date of termination; provided, however, that at any time during the twelve (12) months prior to the expiration of the Term, HFRM will have the right to enter into a new services agreement with HEP Operating with respect to its existing Minimum Capacity Commitment at such time on commercial terms that substantially match the terms upon which HEP Operating proposes to enter into an agreement with a third party for similar services with respect to all or a material portion of such capacity at the 

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Facility.  In such circumstances, HEP Operating shall give HFRM forty-five (45) days prior written notice of any proposed new services agreement with a third party, and such notice shall inform HFRM of the fee schedules, tariffs, duration and any other material terms of the proposed third party agreement and HFRM shall have forty-five (45) days following receipt of such notice to agree to the terms specified in the notice or HFRM shall lose the rights specified by this Section 8(b) with respect to the capacity that is the subject of such notice.
Section 8.    Notices
(a)    Any notice or other communication given under this Agreement shall be in writing and shall be (i) delivered personally, (ii) sent by documented overnight delivery service, (iii) sent by email transmission, or (iv) sent by first class mail, postage prepaid (certified or registered mail, return receipt requested).  Such notice shall be deemed to have been duly given (x) if received, on the date of the delivery, with a receipt for delivery, (y) if refused, on the date of the refused delivery, with a receipt for refusal, or (z) with respect to email transmissions, on the date the recipient confirms receipt.  Notices or other communications shall be directed to the following addresses:  
Notices to HFRM:

HollyFrontier Refining & Marketing LLC
2828 N. Harwood, Suite 1300
Dallas, Texas  75201
Attn:  President
Email address:  president@hollyfrontier.com

with a copy, which shall not constitute notice, but is required in order to give proper notice, to:

HollyFrontier Refining & Marketing LLC
2828 N. Harwood, Suite 1300
Dallas, Texas  75201
Attn:  General Counsel
Email address:  generalcounsel@hollyfrontier.com

Notices to HEP Operating or HEP Refining:

c/o Holly Energy Partners, L.P.
2828 N. Harwood, Suite 1300
Dallas, Texas  75201
Attn:  President
Email address:  president-HEP@hollyenergy.com

with a copy, which shall not constitute notice, but is required in order to give proper notice, to:

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c/o Holly Energy Partners, L.P.
2828 N. Harwood, Suite 1300
Dallas, Texas  75201
Attn:  General Counsel
Email address:  general.counsel@hollyenergy.com

(b)    Any Party may at any time change its address for service from time to time by giving notice to the other Parties in accordance with this Section 9.
Section 9.    Deficiency Payments
(a)    Following the Commencement Date, as soon as practicable following the end of each Contract Quarter under this Agreement, HEP Operating shall deliver to HFRM a written notice (the “Deficiency Notice”) detailing any failure of HFRM to meet its Minimum Revenue Commitment obligations under Section 3(a)(i); provided, however, that HFRM’s obligations pursuant to the Minimum Revenue Commitment shall be assessed on a quarterly basis for the purposes of this Section 10.  The Deficiency Notice shall (i) specify in reasonable detail the nature of any deficiency and (ii) specify the approximate dollar amount that HEP Operating believes would have been paid by HFRM to HEP Operating if HFRM had complied with its Minimum Revenue Commitment obligations pursuant to Section 3(a)(i) (the “Deficiency Payment”).  HFRM shall pay the Deficiency Payment to HEP Operating upon the later of: (A) ten (10) days after its receipt of the Deficiency Notice and (B) thirty (30) days following the end of the related Contract Quarter.
(b)    If HFRM disagrees with the Deficiency Notice, then, following the payment of the undisputed portion of the Deficiency Payment to HEP Operating, if any, HFRM shall send written notice thereof regarding the disputed portion of the Deficiency Payment to HEP Operating and a senior officer of HFRM and a senior officer of HEP Operating shall meet or communicate by telephone at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary and shall negotiate in good faith to attempt to resolve any differences that they may have with respect to matters specified in the Deficiency Notice.  During the 30-day period following the payment of the Deficiency Payment, HFRM shall have access to the working papers of HEP Operating relating to the Deficiency Notice.  If such differences are not resolved within thirty (30) days following HFRM’s receipt of the Deficiency Notice, HFRM and HEP Operating shall, within forty-five (45) days following HFRM’s receipt of the Deficiency Notice, submit any and all matters which remain in dispute and which were properly included in the Deficiency Notice to arbitration in accordance with Section 13(e).
(c)    If it is finally determined pursuant to this Section 10 that HFRM is required to pay any or all of the disputed portion of the Deficiency Payment, HFRM shall promptly pay such amount to HEP Operating, together with interest thereon at the Prime Rate, in immediately available funds.
(d)    The fact that HFRM has exceeded or fallen short of the Minimum Revenue Commitment with respect to any Contract Quarter shall not be considered in determining whether HFRM meets, exceeds or falls short of the Minimum Revenue Commitment with respect to any other Contract Quarter, and the amount of any such excess or shortfall shall not be counted towards or against the Minimum Revenue Commitment with respect to any other Contract Quarter.

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Section 10.    Right of First Refusal.  The Parties acknowledge the right of first refusal of HollyFrontier with respect to the Facility as provided in the Omnibus Agreement.
Section 11.    Limitation of Damages.
(a)    NOTWITHSTANDING ANYTHING CONTAINED TO THE CONTRARY IN ANY OTHER PROVISION OF THIS AGREEMENT AND EXCEPT FOR CLAIMS MADE BY THIRD PARTIES WHICH SHALL NOT BE LIMITED BY THIS PARAGRAPH, THE PARTIES AGREE THAT THE RECOVERY BY ANY PARTY OF ANY LIABILITIES, DAMAGES, COSTS OR OTHER EXPENSES SUFFERED OR INCURRED BY IT AS A RESULT OF ANY BREACH OR NONFULFILLMENT BY A PARTY OF ANY OF ITS REPRESENTATIONS, WARRANTIES, COVENANTS, AGREEMENTS OR OTHER OBLIGATIONS UNDER THIS AGREEMENT, OR IN CONNECTION WITH A CLAIM FOR INDEMNIFICATION UNDER THIS SECTION 12 SHALL BE LIMITED TO ACTUAL DAMAGES AND SHALL NOT INCLUDE OR APPLY TO, NOR SHALL ANY PARTY BE ENTITLED TO RECOVER, ANY INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, ANY DAMAGES ON ACCOUNT OF LOST PROFITS OR OPPORTUNITIES OR BUSINESS INTERRUPTION OR DIMINUTION IN VALUE) SUFFERED OR INCURRED BY ANY PARTY; PROVIDED, HOWEVER, THAT SUCH RESTRICTION AND LIMITATION SHALL NOT APPLY (x) AS A RESULT OF A THIRD PARTY CLAIM FOR SUCH INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES OR (y) TO INDIRECT, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, ANY DAMAGES ON ACCOUNT OF LOST PROFITS OR OPPORTUNITIES OR BUSINESS INTERRUPTION OR DIMINUTION IN VALUE) THAT ARE A RESULT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE BREACHING OR NONFULFILLING PARTY OR ITS AFFILIATES.
(b)    HFRM shall indemnify, defend, and hold harmless HEP Operating, HEP Refining and their Affiliates from and against any losses, damages, liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, costs, and expenses (including, without limitation, court costs and reasonable attorneys’ fees) of any and every kind or character, known or unknown, fixed or contingent, suffered or incurred by HEP Operating, HEP Refining and their Affiliates to the extent resulting or arising from, or attributable to, acts or omissions of HFRM and its Affiliates in connection with the performance of HFRM’s obligations under this Agreement that constitute negligence.
(c)    HEP Operating shall indemnify, defend, and hold harmless HFRM and its Affiliates from and against any losses, damages, liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, costs, and expenses (including, without limitation, court costs and reasonable attorneys’ fees) of any and every kind or character, known or unknown, fixed or contingent, suffered or incurred by HFRM and its Affiliates, including loss of Products from the Facility, to the extent resulting or arising from, or attributable, to (i) events and conditions associated with the operation of the Facility, or (ii) acts or omissions of HEP Operating and its Affiliates in connection with the performance of HEP Operating’s obligations under this Agreement that constitute negligence; provided, however, that, with respect to loss of Products from the Facility, 

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HEP Operating will only be liable for losses in excess of 0.25% of the total throughput of Products with respect to each individual incident of loss of Products.
(d)    HEP Refining shall indemnify, defend, and hold harmless HFRM and its Affiliates from and against any losses, damages, liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, costs, and expenses (including, without limitation, court costs and reasonable attorneys’ fees) of any and every kind or character, known or unknown, fixed or contingent, suffered or incurred by HFRM and its Affiliates, to the extent resulting or arising from, or attributable, to acts or omissions of HEP Refining and its Affiliates in connection with the performance of HEP Refining’s obligations under this Agreement that constitute negligence. 
Section 12.    Miscellaneous
(a)    Amendments and Waivers.  No amendment or modification of this Agreement shall be valid unless it is in writing and signed by the Parties.  No waiver of any provision of this Agreement shall be valid unless it is in writing and signed by the Party against whom the waiver is sought to be enforced.  Any of the exhibits or schedules to this Agreement may be amended, modified, revised or updated by the Parties if each of the Parties executes an amended, modified, revised or updated exhibit or schedule, as applicable, and attaches it to this Agreement.  Such amended, modified, revised or updated exhibits or schedules shall be sequentially numbered (e.g. Schedule I-1, Schedule I-2, etc.), dated and appended as an additional exhibit or schedule to this Agreement and shall replace the prior exhibit or schedule, as applicable, in its entirety, after its date of effectiveness, except as specified therein.  No failure or delay in exercising any right hereunder, and no course of conduct, shall operate as a waiver of any provision of this Agreement.  No single or partial exercise of a right hereunder shall preclude further or complete exercise of that right or any other right hereunder.
(b)    Successors and Assigns.  This Agreement shall inure to the benefit of, and shall be binding upon, HFRM, HEP Operating, HEP Refining and their respective successors and permitted assigns.  Neither this Agreement nor any of the rights or obligations hereunder shall be assigned without the prior written consent of HFRM (in the case of any assignment by HEP Operating or HEP Refining) or HEP Operating and HEP Refining (in the case of any assignment by HFRM), in each case, such consent is not to be unreasonably withheld or delayed; provided, however, that (i) HEP Operating and HEP Refining may make such an assignment (including a partial pro rata assignment) to an Affiliate of HEP Operating or HEP Refining without HFRM’s consent, (ii) HFRM may make such an assignment (including a pro rata partial assignment) to an Affiliate of HFRM without HEP Operating’s or HEP Refining’s consent, (iii) HFRM may make a collateral assignment of its rights and obligations hereunder and/or grant a security interest in its rights and obligations hereunder, and HEP Operating and HEP Refining shall execute an acknowledgement of such collateral assignment in such form as may from time-to-time be reasonably requested, and (iv) HEP Operating and HEP Refining may make a collateral assignment of its rights hereunder and/or grant a security interest in its rights and obligations hereunder to a bona fide third party lender or debt holder, or trustee or representative for any of them, without HFRM’s consent, if such third party lender, debt holder or trustee shall have executed and delivered to HFRM a non-disturbance agreement in such form as is reasonably satisfactory to HFRM and such third party lender, debt holder or trustee, and HFRM executes an acknowledgement of such collateral assignment in such 

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form as may from time to time be reasonably requested.  Any attempt to make an assignment otherwise than as permitted by the foregoing shall be null and void.  The Parties agree to require their respective successors, if any, to expressly assume, in a form of agreement reasonably acceptable to the other Parties, their obligations under this Agreement.
(c)    Severability.  If any provision of this Agreement shall be held invalid or unenforceable by a court or regulatory body of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect.
(d)    Choice of Law.  This Agreement shall be subject to and governed by the laws of the State of Delaware, excluding any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another state.
(e)    Arbitration Provision.  Any and all Arbitrable Disputes must be resolved through the use of binding arbitration using three arbitrators, in accordance with the Commercial Arbitration Rules of the American Arbitration Association, as supplemented to the extent necessary to determine any procedural appeal questions by the Federal Arbitration Act (Title 9 of the United States Code).  If there is any inconsistency between this Section 13(e) and the Commercial Arbitration Rules or the Federal Arbitration Act, the terms of this Section 13(e) will control the rights and obligations of the Parties.  Arbitration must be initiated within the time limits set forth in this Agreement, or if no such limits apply, then within a reasonable time or the time period allowed by the applicable statute of limitations.  Arbitration may be initiated by a Party (“Claimant”) serving written notice on the other Party (“Respondent”) that the Claimant elects to refer the Arbitrable Dispute to binding arbitration.  Claimant’s notice initiating binding arbitration must identify the arbitrator Claimant has appointed.  The Respondent shall respond to Claimant within thirty (30) days after receipt of Claimant’s notice, identifying the arbitrator Respondent has appointed.  If the Respondent fails for any reason to name an arbitrator within the 30-day period, Claimant shall petition the American Arbitration Association for appointment of an arbitrator for Respondent’s account.  The two arbitrators so chosen shall select a third arbitrator within thirty (30) days after the second arbitrator has been appointed.  The Claimant will pay the compensation and expenses of the arbitrator named by it, and the Respondent will pay the compensation and expenses of the arbitrator named by or for it.  The costs of petitioning for the appointment of an arbitrator, if any, shall be paid by Respondent.  The Claimant and Respondent will each pay one-half of the compensation and expenses of the third arbitrator.  All arbitrators must (i) be neutral parties who have never been officers, directors or employees of any of HFRM, HEP Operating, HEP Refining or any of their Affiliates and (ii) have not less than seven (7) years’ experience in the petroleum transportation industry.  The hearing will be conducted in Dallas, Texas and commence within thirty (30) days after the selection of the third arbitrator.  HFRM, HEP Operating, HEP Refining and the arbitrators shall proceed diligently and in good faith in order that the award may be made as promptly as possible.  Except as provided in the Federal Arbitration Act, the decision of the arbitrators will be binding on and non-appealable by the Parties hereto.  The arbitrators shall have no right to grant or award indirect, consequential, punitive or exemplary damages of any kind.  The Arbitrable Disputes may be arbitrated in a common proceeding along with disputes under other agreements between HFRM, HEP Operating, HEP Refining or their Affiliates to the extent that the issues raised in such disputes are related.  Without 

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 Exhibit 10.26

the written consent of the Parties, no unrelated disputes or third party disputes may be joined to an arbitration pursuant to this Agreement.
(f)    Rights of Limited Partners.  The provisions of this Agreement are enforceable solely by the Parties, and no limited partner of the Partnership shall have the right, separate and apart from the Partnership, to enforce any provision of this Agreement or to compel any Party to comply with the terms of this Agreement.  
(g)    Further Assurances.  In connection with this Agreement and all transactions contemplated by this Agreement, each signatory Party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions.
(h)    Headings.  Headings of the Sections of this Agreement are for convenience of the Parties only and shall be given no substantive or interpretative effect whatsoever.  All references in this Agreement to Sections are to Sections of this Agreement unless otherwise stated.
Section 13.    Guarantee by HollyFrontier
(a)    Payment Guaranty.  HollyFrontier unconditionally, absolutely, continually and irrevocably guarantees, as principal and not as surety, to HEP Operating and HEP Refining the punctual and complete payment in full when due of all amounts due from HFRM under this Agreement (collectively, the “HFRM Payment Obligations”).  HollyFrontier agrees that HEP Operating and HEP Refining shall be entitled to enforce directly against HollyFrontier any of the HFRM Payment Obligations.
(b)    Guaranty Absolute.  HollyFrontier hereby guarantees that the HFRM Payment Obligations will be paid strictly in accordance with the terms of the Agreement.  The obligations of HollyFrontier under this Agreement constitute a present and continuing guaranty of payment, and not of collection or collectability.  The liability of HollyFrontier under this Agreement shall be absolute, unconditional, present, continuing and irrevocable irrespective of:
(i)    any assignment or other transfer of this Agreement or any of the rights thereunder of HEP Operating or HEP Refining;
(ii)    any amendment, waiver, renewal, extension or release of or any consent to or departure from or other action or inaction related to this Agreement;
(iii)    any acceptance by HEP Operating or HEP Refining of partial payment or performance from HFRM;
(iv)    any bankruptcy, insolvency, reorganization, arrangement, composition, adjustment, dissolution, liquidation or other like proceeding relating to HFRM or any action taken with respect to this Agreement by any trustee or receiver, or by any court, in any such proceeding;

[Page 12 to the Amended and Restated Unloading and Blending Services Agreement (Artesia)]

 Exhibit 10.26

(v)    any absence of any notice to, or knowledge of, HollyFrontier, of the existence or occurrence of any of the matters or events set forth in the foregoing subsections (i) through (iv); or
(vi)    any other circumstance which might otherwise constitute a defense available to, or a discharge of, a guarantor.
The obligations of HollyFrontier hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the HFRM Payment Obligations or otherwise.
(c)    Waiver.  HollyFrontier hereby waives promptness, diligence, all setoffs, presentments, protests and notice of acceptance and any other notice relating to any of the HFRM Payment Obligations and any requirement for HEP Operating or HEP Refining to protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaust any right or take any action against HFRM, any other entity or any collateral.
(d)    Subrogation Waiver.  HollyFrontier agrees that for so long as there is a current or ongoing default or breach of this Agreement by HFRM, HollyFrontier shall not have any rights (direct or indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment or recovery from HFRM for any payments made by HollyFrontier under this Section 14, and HollyFrontier hereby irrevocably waives and releases, absolutely and unconditionally, any such rights of subrogation, contribution, reimbursement, indemnification and other rights of payment or recovery it may now have or hereafter acquire against HFRM during any period of default or breach of this Agreement by HFRM until such time as there is no current or ongoing default or breach of this Agreement by HFRM.
(e)    Reinstatement.  The obligations of HollyFrontier under this Section 14 shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment of any of the HFRM Payment Obligations is rescinded or must otherwise be returned to HFRM or any other entity, upon the insolvency, bankruptcy, arrangement, adjustment, composition, liquidation or reorganization of HFRM or such other entity, or for any other reason, all as though such payment had not been made.
(f)    Continuing Guaranty.  This Section 14 is a continuing guaranty and shall (i) remain in full force and effect until the first to occur of the indefeasible payment in full of all of the HFRM Payment Obligations, (ii) be binding upon HollyFrontier, its successors and assigns and (iii) inure to the benefit of and be enforceable by HEP Operating, HEP Refining and their respective successors, transferees and assigns.
(g)    No Duty to Pursue Others.  It shall not be necessary for HEP Operating or HEP Refining (and HollyFrontier hereby waives any rights which HollyFrontier may have to require HEP Operating or HEP Refining), in order to enforce such payment by HollyFrontier, first to (i) institute suit or exhaust its remedies against HFRM or others liable on the HFRM Payment 

[Page 13 to the Amended and Restated Unloading and Blending Services Agreement (Artesia)]

 Exhibit 10.26

Obligations or any other person, (ii) enforce HEP Operating’s and HEP Refining’s rights against any other guarantors of the HFRM Payment Obligations, (iii) join HFRM or any others liable on the HFRM Payment Obligations in any action seeking to enforce this Section 14, (iv) exhaust any remedies available to HEP Operating or HEP Refining against any security which shall ever have been given to secure the HFRM Payment Obligations, or (v) resort to any other means of obtaining payment of the HFRM Payment Obligations.
Section 14.    Guarantee by the Partnership.
(a)    Payment and Performance Guaranty.  The Partnership unconditionally, absolutely, continually and irrevocably guarantees, as principal and not as surety, to HFRM the punctual and complete payment in full when due of all amounts due from HEP Operating or HEP Refining under this Agreement (collectively, the “HEP Payment Obligations”) and the punctual and complete performance of all other obligations of HEP Operating and HEP Refining under this Agreement (collectively, the “HEP Performance Obligations”, together with the HEP Payment Obligations, the “HEP Obligations”).  The Partnership agrees that HFRM shall be entitled to enforce directly against the Partnership any of the HEP Obligations.
(b)    Guaranty Absolute.  The Partnership hereby guarantees that the HEP Payment Obligations will be paid, and the HEP Performance Obligations will be performed, strictly in accordance with the terms of this Agreement.  The obligations of the Partnership under this Agreement constitute a present and continuing guaranty of payment and performance, and not of collection or collectability.  The liability of the Partnership under this Agreement shall be absolute, unconditional, present, continuing and irrevocable irrespective of:
(i)    any assignment or other transfer of this Agreement or any of the rights thereunder of HFRM;
(ii)    any amendment, waiver, renewal, extension or release of or any consent to or departure from or other action or inaction related to this Agreement;
(iii)    any acceptance by HFRM of partial payment or performance from HEP Operating or HEP Refining;
(iv)    any bankruptcy, insolvency, reorganization, arrangement, composition, adjustment, dissolution, liquidation or other like proceeding relating to HEP Operating or HEP Refining or any action taken with respect to this Agreement by any trustee or receiver, or by any court, in any such proceeding;
(v)    any absence of any notice to, or knowledge of, the Partnership, of the existence or occurrence of any of the matters or events set forth in the foregoing subsections (i) through (iv); or
(vi)    any other circumstance which might otherwise constitute a defense available to, or a discharge of, a guarantor.

[Page 14 to the Amended and Restated Unloading and Blending Services Agreement (Artesia)]

 Exhibit 10.26

The obligations of the Partnership hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the HEP Obligations or otherwise.
(c)    Waiver.  The Partnership hereby waives promptness, diligence, all setoffs, presentments, protests and notice of acceptance and any other notice relating to any of the HEP Payment Obligations and any requirement for HFRM to protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaust any right or take any action against HEP Operating, HEP Refining, any other entity or any collateral.
(d)    Subrogation Waiver.  The Partnership agrees that for so long as there is a current or ongoing default or breach of this Agreement by HEP Operating or HEP Refining, the Partnership shall not have any rights (direct or indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment or recovery from HEP Operating or HEP Refining for any payments made by the Partnership under this Section 15, and the Partnership hereby irrevocably waives and releases, absolutely and unconditionally, any such rights of subrogation, contribution, reimbursement, indemnification and other rights of payment or recovery it may now have or hereafter acquire against HEP Operating or HEP Refining during any period of default or breach of this Agreement by HEP Operating or HEP Refining until such time as there is no current or ongoing default or breach of this Agreement by HEP Operating or HEP Refining.
(e)    Reinstatement.  The obligations of the Partnership under this Section 15 shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment of any of the HEP Payment Obligations is rescinded or must otherwise be returned to HEP Operating, HEP Refining or any other entity, upon the insolvency, bankruptcy, arrangement, adjustment, composition, liquidation or reorganization of HEP Operating, HEP Refining or such other entity, or for any other reason, all as though such payment had not been made.
(f)    Continuing Guaranty.  This Section 15 is a continuing guaranty and shall (i) remain in full force and effect until the first to occur of the indefeasible payment and/or performance in full of all of the HEP Obligations, (ii) be binding upon the Partnership and each of its respective successors and assigns and (iii) inure to the benefit of and be enforceable by HFRM and their respective successors, transferees and assigns.
(g)    No Duty to Pursue Others.  It shall not be necessary for HFRM (and the Partnership hereby waives any rights which the Partnership may have to require HFRM), in order to enforce such payment by the Partnership, first to (i) institute suit or exhaust its remedies against HEP Operating, HEP Refining or others liable on the HEP Obligations or any other person, (ii) enforce HFRM’s rights against any other guarantors of the HEP Obligations, (iii) join HEP Operating, HEP Refining or any others liable on the HEP Obligations in any action seeking to enforce this Section 15, (iv) exhaust any remedies available to HFRM against any security which shall ever have been given to secure the HEP Obligations, or (v) resort to any other means of obtaining payment of the HEP Obligations.

[Page 15 to the Amended and Restated Unloading and Blending Services Agreement (Artesia)]

 Exhibit 10.26

[Remainder of page intentionally left blank.  Signature pages follow.]IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement as of the date first written above to be effective as of the Effective Time. 
HEP OPERATING:

Holly Energy Partners-Operating, L.P.

By:      /s/ Mark A. Plake    
Mark A. Plake
President

HEP REFINING:

HEP Refining, L.L.C.

By:    /s/ Mark A. Plake    
Mark A. Plake
President

HFRM:

HollyFrontier Refining & Marketing LLC

By:  /s/ George J. Damiris    
George J. Damiris
Chief Executive Officer and President

[Page 16 to the Amended and Restated Unloading and Blending Services Agreement (Artesia)]

 Exhibit 10.26

ACKNOWLEDGED AND AGREED 
FOR PURPOSES OF Section 10(b) 
AND Section 14:

HOLLYFRONTIER CORPORATION

By: /s/ George J. Damiris    
George J. Damiris
Chief Executive Officer and President

ACKNOWLEDGED AND AGREED 
FOR PURPOSES OF Section 10(b)
AND Section 15:

HOLLY ENERGY PARTNERS, L.P.

By:    HEP Logistics Holdings, L.P.,
its General Partner

By:    Holly Logistic Services, L.L.C.,
its General Partner

By: /s/ Mark A. Plake    
Mark A. Plake
President

[Page 17 to the Amended and Restated Unloading and Blending Services Agreement (Artesia)]

Exhibit 10.26

Appendix A
Definitions
“Affiliate” means, with to respect to a specified person, any other person controlling, controlled by or under common control with that first person.  As used in this definition, the term “control” includes %4. with respect to any person having voting securities or the equivalent and elected directors, managers or persons performing similar functions, the ownership of or power to vote, directly or indirectly, voting securities or the equivalent representing 50% or more of the power to vote in the election of directors, managers or persons performing similar functions, %4.ownership of 50% or more of the equity or equivalent interest in any person and %4. the ability to direct the business and affairs of any person by acting as a general partner, manager or otherwise.  Notwithstanding the foregoing, for purposes of this Agreement, HFRM, on the one hand, and HEP Operating and HEP Refining, on the other hand, shall not be considered affiliates of each other.
“Agreement” has the meaning set forth in the preamble to this Agreement.
“Applicable Law” means any applicable statute, law, regulation, ordinance, rule, judgment, rule of law, order, decree, permit, approval, concession, grant, franchise, license, agreement, requirement, or other governmental restriction or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued under any of the foregoing by, or any determination of, any Governmental Authority having or asserting jurisdiction over the matter or matters in question, whether now or hereafter in effect and in each case as amended (including, without limitation, all of the terms and provisions of the common law of such Governmental Authority), as interpreted and enforced at the time in question.
“Arbitrable Dispute” means any and all disputes, Claims, controversies and other matters in question between the Parties, arising out of or relating to this Agreement or the alleged breach hereof, or in any way relating to the subject matter of this Agreement regardless of whether (a) allegedly extra-contractual in nature, (b) sounding in contract, tort or otherwise, (c) provided for by Applicable Law or otherwise or (d) seeking damages or any other relief, whether at law, in equity or otherwise.
“Base Tariff” means the amount set forth as such on Schedule I attached hereto, as the same may be adjusted by the terms of this Agreement, including Section 3(a)(iii).
“Biodiesel” means diesel fuel that qualifies for the generation of Renewable identification Numbers (RINs) under the Renewable Fuel Standard Regulations, 40 CFR § 80.1400 et seq., as amended from time to time.
“bpd” means barrels per day.
“Claim” means any existing or threatened future claim, demand, suit, action, investigation, proceeding, governmental action or cause of action of any kind or character (in each case, whether civil, criminal, investigative or administrative), known or unknown, under any theory, including those based on theories of contract, tort, statutory liability, strict liability, employer liability, premises liability, products liability, breach of warranty or malpractice.

Appendix A-1

Exhibit 10.26

“Commencement Date” means the date on which the Facility is available for service and operating as expected in unloading and blending the Products, which date has been specified in written notice from HEP Operating to HFRM at least 60 days prior to such Commencement Date; provided, however, that if the Facility is, in the discretion of HEP Operating, substantially complete, then the parties may agree in writing to a commencement date prior to the Facility being fully completed.  The Commencement Date was September 16, 2016.
“Contract Quarter” means a three-month period that commences on January 1, April 1, July 1 or October 1 and ends on March 31, June 30, September 30, or December 31, respectively.
“Effective Time” means 12:01 a.m., Dallas, Texas time, on September 16, 2016.
“Ethanol” means ethyl alcohol fuel or fuel additive.
“Facility” has the meaning set forth in the recitals to this Agreement.
“Force Majeure” means acts of God, strikes, lockouts or other industrial disturbances, acts of the public enemy, wars, blockades, insurrections, riots, storms, floods, washouts, arrests, the order of any Governmental Authority having jurisdiction while the same is in force and effect, civil disturbances, explosions, breakage, accident to machinery, storage tanks or lines of pipe, inability to obtain or unavoidable delay in obtaining material or equipment, and any other causes whether of the kind herein enumerated or otherwise not reasonably within the control of the Party claiming suspension and which by the exercise of due diligence such Party is unable to prevent or overcome.  Notwithstanding anything in this Agreement to the contrary, inability of a Party to make payments when due, be profitable or to secure funds, arrange bank loans or other financing, obtain credit or have adequate capacity or production (other than for reasons of Force Majeure) shall not be regarded as events of Force Majeure. 
“Governmental Authority” means any federal, state, local or foreign government or any provincial, departmental or other political subdivision thereof, or any entity, body or authority exercising executive, legislative, judicial, regulatory, administrative or other governmental functions or any court, department, commission, board, bureau, agency, instrumentality or administrative body of any of the foregoing.
“HEP Operating” has the meaning set forth in the preamble to this Agreement.
“HEP Refining” has the meaning set forth in the preamble to this Agreement.
“HFRM” has the meaning set forth in the preamble to this Agreement.
“HollyFrontier” means HollyFrontier Corporation, a Delaware corporation.
“Incentive Tariff” means the amount set forth as such on Schedule I attached hereto, as the same may be adjusted by the terms of this Agreement, including Section 3(a)(iii).
“Incentive Tariff Threshold” means 550 bpd of Products, in the aggregate, on average, for each Contract Quarter, as the same may be adjusted by the terms of this Agreement.

Appendix A-2

Exhibit 10.26

“Minimum Throughput” means 450 bpd of Products, in the aggregate, on average, for each Contract Quarter, as such amount may be adjusted by the terms of this Agreement. 
“Omnibus Agreement” means the Seventeenth Amended and Restated Omnibus Agreement, dated effective as of January 1, 2017, by and among HollyFrontier, the Partnership and certain of their respective subsidiaries. 
“Parties” or “Party” has the meaning set forth in the preamble to this Agreement.
“Partnership” means Holly Energy Partners, L.P., a Delaware limited partnership.
“Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.
“Prime Rate” means the prime rate per annum announced by Union Bank, N.A. or its successor, or if Union Bank, N.A. or its successor no longer announces a prime rate for any reason, the prime rate per annum announced by the largest U.S. bank measured by deposits from time to time as its base rate on corporate loans, automatically fluctuating upward or downward with each announcement of such prime rate.
“Products” means Ethanol and Biodiesel.
In addition, the following terms have the meanings given to them in the Sections indicated in the following table:
	
			
	Term
	 
	Section

	Actual Construction Costs
Claimant
Construction Cost Estimate
	 
	Section 3(a)(iii)(B)
Section 13(e)
Section 3(a)(iii)(B)

	Construction Projects
	 
	Section 2

	Deficiency Notice
	 
	Section 10(a)

	Deficiency Payment
	 
	Section 10(a)

	Facility
	 
	Recitals

	Force Majeure Notice
	 
	Section 5

	HEP Obligations
	 
	Section 15(a)

	HEP Payment Obligations
	 
	Section 15(a)

	HEP Performance Obligations
	 
	Section 15(a)

	HFRM Payment Obligations
	 
	Section 14(a)

	Minimum Capacity Commitment
	 
	Section 3(a)(i)

	Minimum Revenue Commitment
	 
	Section 3(a)(i)

	Respondent
	 
	Section 13(e)

	Term
	 
	Section 7

Appendix A-3

Exhibit 10.26

Appendix A-4

Exhibit 10.26

EXHIBIT A
Volume Capacities

		
	•
	Two (2) 5,000 barrel tanks for unloading and blending Ethanol and Biodiesel at the Facility with a maximum capacity of approximately 1,200 bpd of unloading for Ethanol and Biodiesel combined

Exhibit A-1

Exhibit 10.26

EXHIBIT B

Construction Projects
		
	2.
	Tankage (nominal 5,000 bbls) for storing B99 Biodiesel

		
	3.
	Pump, metering and blending equipment for loading B5 to B20 Biodiesel at three load arms (one arm on Lane 1 and two arms on Lane 2

		
	4.
	Included in the B99 facilities are heating and heat tracing of B99 tank and piping

		
	5.
	Facilities for offloading Ethanol into tankage

		
	6.
	Tankage (nominal 5,000 bbls) for storing Ethanol

		
	7.
	Pump, metering and blending equipment for loading Ethanol blended gasoline (10% Ethanol).  The blended gasoline can be loaded on three gasoline load arms (two arms on Lane 1 and one arm on Lane 2)

		
	8.
	All control, metering, and automation equipment required to operate facilities listed above

SCHEDULE I
TARIFFS

	
	
	Base Tariff

	$0.1093 per gallon

	
	
	Incentive Tariff

	$0.0053 per gallon

Schedule IExhibit

Exhibit 10.27

 

    
THIRD AMENDED AND RESTATED
MASTER THROUGHPUT AGREEMENT
(including Tankage and Loading Racks)

by and between

HOLLYFRONTIER REFINING & MARKETING LLC 

and

HOLLY ENERGY PARTNERS-OPERATING, L.P.
    

Effective as of January 1, 2017 

TABLE OF CONTENTS 

ARTICLE 1  DEFINITIONS AND INTERPRETATIONS    2
1.1    DEFINITIONS    2
1.2    INTERPRETATION    2
ARTICLE 2  AGREEMENT TO USE SERVICES    2
2.1    INTENT    2
2.2    MINIMUM REVENUE COMMITMENTS    2
2.3    MEASUREMENT OF SHIPPED VOLUMES    3
2.4    VOLUMETRIC GAINS AND LOSSES; LINE FILL; HIGH-API OIL SURCHARGE    3
2.5    OBLIGATIONS OF HEP OPERATING    4
2.6    DRAG REDUCING AGENTS AND ADDITIVES    4
		
	2.7
	CHANGE IN THE DIRECTION; PRODUCT SERVICE OR ORIGINATION AND DESTINATION OF THE PIPELINE SYSTEM    4

2.8    NOTIFICATION OF UTILIZATION    5
2.9    SCHEDULING AND ACCEPTING MOVEMENT    5
2.10    TAXES    5
2.11    TIMING OF PAYMENTS    5

 [Page 1 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

2.12    INCREASES IN TARIFF RATES    5
2.13    REMOVAL OF TANK FROM SERVICE    5
2.14    NO GUARANTEED MINIMUM    6
ARTICLE 3  AGREEMENT TO REMAIN SHIPPER    6
ARTICLE 4  NOTIFICATION OF REFINERY SHUT-DOWN OR RECONFIGURATION    6
ARTICLE 5  FORCE MAJEURE    6
ARTICLE 6  AGREEMENT NOT TO CHALLENGE PIPELINE TARIFFS    7
ARTICLE 7  EFFECTIVENESS AND TERM    7
ARTICLE 8  RIGHT TO ENTER INTO A NEW AGREEMENT    7
8.1    NEGOTIATION PURSUANT TO WRITTEN NOTICE    7
8.2    NEGOTIATION IN THE ABSENCE OF WRITTEN NOTICE    8
ARTICLE 9  NOTICES    8
ARTICLE 10  DEFICIENCY PAYMENTS    8
10.1    DEFICIENCY NOTICE; DEFICIENCY PAYMENTS    8
10.2    DISPUTED DEFICIENCY NOTICES    9
10.3    PAYMENT OF AMOUNTS NO LONGER DISPUTED    9
10.4    CONTRACT QUARTERS INDEPENDENT    9

ARTICLE 11  RIGHT OF FIRST REFUSAL    9
ARTICLE 12  INDEMNITY; LIMITATION OF DAMAGES    9
12.1    INDEMNITY; LIMITATION OF LIABILITY    9
12.2    SURVIVAL    10
ARTICLE 13  MISCELLANEOUS    10
13.1    AMENDMENTS AND WAIVERS    10
13.2    SUCCESSORS AND ASSIGNS    10
13.3    SEVERABILITY    10
13.4    CHOICE OF LAW    10
13.5    RIGHTS OF LIMITED PARTNERS    10
13.6    FURTHER ASSURANCES    11
13.7    HEADINGS    11
ARTICLE 14  GUARANTEE BY HOLLYFRONTIER    11
14.1    PAYMENT GUARANTY    11
14.2    GUARANTY ABSOLUTE    11
14.3    WAIVER    12
14.4    SUBROGATION WAIVER    12
14.5    REINSTATEMENT    12
14.6    CONTINUING GUARANTY    12
14.7    NO DUTY TO PURSUE OTHERS    12
ARTICLE 15  GUARANTEE BY THE PARTNERSHIP    12
15.1    PAYMENT AND PERFORMANCE GUARANTY    12
15.2    GUARANTY ABSOLUTE    13

 [Page 2 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

15.3    WAIVER    13
15.4    SUBROGATION WAIVER    13
15.5    REINSTATEMENT    14
15.6    CONTINUING GUARANTY    14
15.7    NO DUTY TO PURSUE OTHERS    14

EXHIBITS

Exhibit A – Definitions
Exhibit B – Interpretation
Exhibit C – Applicable Assets, Product, Minimum Capacity Commitment, Tariffs, Tariff 
                   Adjustments and Applicable Terms
Exhibit D – Measurement of Shipped Volumes
Exhibit E - Volumetric Gains and Losses; Line Fill; High-API Oil Surcharge
Exhibit F - Increases in Tariff Rates as a Result of Changes in Applicable Law
Exhibit G - Special Provisions:  Malaga Pipeline System
Exhibit G-1 - Map of Pipeline System and Pipeline System Capacity by Segment
Exhibit G-2 – Construction Projects
Exhibit G-3 – Devon Lease Connections
Exhibit H – Special Provisions: El Dorado Assets
Exhibit H-1 - El Dorado Loading Rack
Exhibit H-2 – El Dorado Tankage
Exhibit H-3 – Specifications for New Tank
Exhibit I - Special Provisions:  Cheyenne Assets
Exhibit I-1 - Cheyenne Loading Rack
Exhibit I-2 - Cheyenne Receiving Assets
Exhibit I-3 – Cheyenne Tankage
Exhibit J – Special Provisions:  Tulsa East Assets
Exhibit J-1 - Tulsa Group 1 Loading Rack
Exhibit J-2 - Tulsa Group 1 Pipeline
Exhibit J-3 – Tulsa Group 1 Tankage
Exhibit J-4 – Tulsa Group 2 Loading Rack
Exhibit J-5 – Tulsa Group 2 Tankage
Exhibit K – Special Provisions: El Dorado Crude Tank Farm Assets
Exhibit K-1 – El Dorado Crude Tankage and Jayhawk Tankage
Exhibit K-2 – El Dorado Terminal Quality Specifications
Exhibit L-1 – Tulsa West Tankage
Exhibit L-2 – Special Provisions: Tulsa West Tankage

 [Page 3 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

THIRD AMENDED AND RESTATED 
MASTER THROUGHPUT AGREEMENT 

This Third Amended and Restated Master Throughput Agreement (this “Agreement”) is dated as of January 18, 2017, to be effective as of the Effective Time (as defined below) by and between HOLLYFRONTIER REFINING & MARKETING LLC (“HFRM”) and HOLLY ENERGY PARTNERS-OPERATING, L.P. (“HEP Operating”).  Each of HFRM and HEP Operating are collectively referred to herein as the “Parties.”

RECITALS:

A.    In connection with that certain Pipeline Throughput Agreement (Roadrunner), dated as of December 1, 2009, between HFRM (as successor in interest to HollyFrontier Navajo) and HEP Operating, HEP Operating agreed to provide certain transportation services for HFRM on the Roadrunner Pipeline, as defined below.

B.    In connection with that certain Loading Rack Throughput Agreement (Lovington), dated as of March 31, 2010, between HFRM (as successor in interest to HollyFrontier Navajo) and HEP Operating (as successor in interest to Holly Energy Storage-Lovington LLC), HEP Operating agreed to provide certain loading services for HFRM with respect to the Lovington Loading Rack, as defined below.

C.    In connection with that Second Amended and Restated Pipelines, Tankage and Loading Rack Throughput Agreement (Tulsa East), dated as of August 31, 2011, between HFRM (as successor in interest to Holly Refining and Marketing-Tulsa LLC) and HEP Operating (as successor in interest to HEP Tulsa LLC and Holly Energy Storage - Tulsa LLC), HEP Operating agreed to provide certain transportation, storage and loading services to HFRM with respect to the Tulsa Interconnecting Pipelines, as defined below.

D.    In connection with that certain First Amended and Restated Tankage, Loading Rack and Crude Oil Receiving Throughput Agreement (Cheyenne), dated as of January 11, 2012 between HFRM (as successor in interest to Frontier Refining LLC) and HEP Operating (as successor in interest to Cheyenne Logistics LLC), HEP Operating agreed to provide certain storage and loading services to HFRM with respect to the Cheyenne Assets, as defined below.

E.    In connection with that certain Second Amended and Restated Pipeline Delivery, Tankage and Loading Rack Throughput Agreement (El Dorado), dated as of January 7, 2014 between HFRM (as successor in interest to Frontier El Dorado Refining LLC) and HEP Operating (as successor in interest to El Dorado Logistics LLC), HEP Operating agreed to provide certain transportation, storage and loading services to HFRM with respect to the El Dorado Assets, as defined below.

F.    In connection with that certain Amended and Restated Transportation Services Agreement (Malaga), dated September 26, 2014, between HFRM and HEP Operating, HEP Operating agreed to provide certain transportation services to HFRM with respect to the Malaga Pipeline System, as defined below.

G.    HEP Operating owns certain other pipelines, tankage and other assets which it desires to utilize to provide transportation, storage and loading services for HFRM.

 [Page 4 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

H.    The Parties entered into that certain Master Throughput Agreement, effective January 1, 2015 (the “Original Master Throughput Agreement”) pursuant to which HEP Operating agreed to provide certain transportation, storage and loading services with respect to the Applicable Assets, as defined below, and pursuant to which the Parties agreed that such services would no longer be provided pursuant to the Prior Agreements.

I.    The Original Master Throughput Agreement has been further amended and restated, resulting in that certain Second Amended and Restated Master Throughput Agreement, effective March 31, 2016 (the “Previous Amended and Restated Master Throughput Agreement”). 

J.    The Parties now desire to amend and restate the Previous Amended and Restated Master Throughput Agreement in its entirety as follows.

NOW, THEREFORE, in consideration of the covenants and obligations contained herein, the Parties hereby agree as follows:

ARTICLE 1 
DEFINITIONS AND INTERPRETATIONS

1.1    Definitions.  Capitalized terms used throughout this Agreement and not otherwise defined herein shall have the meanings set forth on Exhibit A.  

1.2    Interpretation.  Matters relating to the interpretation of this Agreement are set forth on Exhibit B.

ARTICLE 2 
AGREEMENT TO USE SERVICES 

2.1    Intent.  The Parties intend to be strictly bound by the terms set forth in this Agreement, which sets forth revenues to HEP Operating to be paid by HFRM, and requires HEP Operating to provide certain transportation, storage and loading services to HFRM. The principal objective of HEP Operating is for HFRM to meet or exceed its obligations with respect to the Minimum Revenue Commitment.  The principal objective of HFRM is for HEP Operating to provide services to HFRM in a manner that enables HFRM to transport, store and/or load Products on, in or at the Applicable Assets.  It is the Parties’ further intent that the terms and provisions of this Agreement shall be effective and govern from and after the Effective Time.  Any matter first arising prior to the Effective Time shall be governed by the respective agreement relating thereto referenced in the Recitals.  

2.2    Minimum Revenue Commitments.  During the Applicable Term and subject to the terms and conditions of this Agreement, and as further set forth in Exhibit C, HFRM agrees as follows:

(a)    Capacity and Revenue Commitment.  Subject to Article 4, HFRM shall pay HEP Operating Applicable Tariffs for use of the Applicable Assets and associated services as provided herein that result in the payment of an amount that will satisfy the Minimum Revenue Commitment in exchange for HEP Operating providing HFRM a minimum capacity in each of the Applicable Assets equal to the Minimum Capacity Commitment.  The “Minimum Revenue Commitment” shall be the aggregate sum of the revenue to HEP Operating for each Contract Quarter determined by multiplying the Minimum Throughput Commitment for each Applicable Asset for such Contract Quarter, by the Base Tariff for such Applicable 

 [Page 5 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

Asset in effect for such Contract Quarter.  The “Minimum Capacity Commitment” means the amount set forth on Exhibit C for each Applicable Asset.

(b)    Applicable Tariffs.  HFRM shall pay (i) the applicable Base Tariffs for all quantities of Product transported, stored or loaded at, on or through the Applicable Assets in each Contract Quarter during the Applicable Term up to and including the applicable Incentive Tariff Threshold for such Applicable Asset set forth on Exhibit C, (ii) the applicable Incentive Tariff for quantities in excess of the Incentive Tariff Threshold and, (iii) if applicable, the Excess Tariff for the Applicable Asset for quantities in excess of the Excess Tariff Threshold.

(c)    Adjustment of Applicable Tariffs.  The Applicable Tariffs shall be adjusted in the manner set forth on Exhibit C.  To evidence the Parties’ agreement to each adjusted Applicable Tariff, the Parties may, but shall not be required to, execute an amended, modified, revised or updated Exhibit C and attach it to this Agreement.  If executed, such amended, modified, revised or updated Exhibit C shall be sequentially numbered (e.g. Exhibit C-1, Exhibit C-2, etc.), dated and appended as an additional exhibit to this Agreement and shall replace the prior version of Exhibit C in its entirety, after its date of effectiveness.

(d)    Reduction for Non-Force Majeure Operational Difficulties.  If HFRM is unable to transport, store and/or load on, in or at any Applicable Asset the volumes of Products required to meet the Minimum Revenue Commitment for such Applicable Asset for a particular Contract Quarter as a result of HEP Operating’s operational difficulties, prorationing, or the inability to provide sufficient capacity for the Minimum Throughput Commitment, then the Minimum Revenue Commitment applicable to the Contract Quarter during which HFRM is unable to transport, store and/or load such volumes of Products will be reduced by an amount equal to: (A) the volume of Products that HFRM was unable to transport, store and/or load on, in or at such Applicable Assets (but not to exceed the Minimum Throughput Commitment), as a result of HEP Operating’s operational difficulties, prorationing or inability to provide sufficient capacity on the Applicable Assets to achieve the Minimum Throughput Commitment, multiplied by (B) the applicable Base Tariff.  This Section 2.2(d) shall not apply in the event HEP Operating gives notice of a Force Majeure event in accordance with the terms of the Omnibus Agreement, in which case the Minimum Revenue Commitment shall be suspended to the extent contemplated in Article IX of the Omnibus Agreement.

(e)    Pro-Rationing for Partial Periods.  Notwithstanding the other portions of this Section 2.2, in the event that the commencement date of the Applicable Term for any group of Applicable Assets is any date other than the first day of a Contract Quarter, then the Minimum Revenue Commitment, Minimum Throughput Commitment, and any applicable Incentive Tariffs for the initial partial Contract Quarter with respect to such group of Applicable Assets shall be prorated based upon the number of days actually in such partial Contract Quarter.  Similarly, notwithstanding the other portions of this Section 2.2 if the last day of the Applicable Term for any group of Applicable Assets is on a day other than the last day of a Contract Quarter, then the Minimum Revenue Commitment, Minimum Throughput Commitment, and any applicable Incentive Tariff for the final partial Contract Quarter with respect to such group of Applicable Assets shall be prorated based upon the number of days actually in such partial Contract Quarter and the initial Contract Quarter.

2.3    Measurement of Shipped Volumes.  Matters with respect to the measurement of shipped volumes are set forth on Exhibit D. 

2.4    Volumetric Gains and Losses; Line Fill; High-API Oil Surcharge.  Matters with respect to volumetric gains and losses, line fill and high-API oil surcharges are set forth on Exhibit E.

 [Page 6 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

2.5    Obligations of HEP Operating.  During the Applicable Term and subject to the terms and conditions of this Agreement, HEP Operating agrees to: 

(a)    own or lease, operate and maintain (directly or through a Subsidiary) the Applicable Assets and all related assets necessary to handle the applicable Products from HFRM;  

(b)    make available for HFRM’s use the capacity of the Applicable Assets of at least the Minimum Capacity Commitment;

(c)    provide the services required under this Agreement and perform all operations relating to the Applicable Assets, including tank gauging, tank maintenance, loading trucks, interaction with third party pipelines and customer interface for access agreements (as applicable) and performance of all operations and maintenance for the Applicable Assets; 

(d)    maintain adequate property and liability insurance covering the Applicable Assets and any related assets owned by HEP Operating or its affiliates and necessary for the operation of the Applicable Assets; and

(e)    at the request of HFRM, and subject in any case to any applicable common carrier proration duties and commitments to other third-party shippers, use commercially reasonable efforts to transport, store and/or load on the Applicable Assets for HFRM each month during the Applicable Term the quantity of Products that HFRM designates from time to time, but in no event less than the Minimum Capacity Commitment.  

Notwithstanding the first sentence of this Section 2.5, subject to the dispute resolution provisions of the Omnibus Agreement and with respect to the Tulsa Assets, the Tulsa Purchase Agreements, HEP Operating or its Affiliate is free to sell any of its assets, including any Applicable Assets, and HFRM is free to merge with another entity and to sell all of its assets or equity to another entity at any time. 
2.6    Drag Reducing Agents and Additives.  If HEP Operating determines that adding drag reducing agents (“DRA”) to the Products is reasonably required to move the Products in the quantities necessary to meet HFRM’s schedule or as may be otherwise be required to safely move such quantities of Products or that additives should be used in the operation of the Applicable Assets, HEP Operating shall provide HFRM with an analysis of the proposed cost and benefits thereof.  In the event that HFRM agrees to use such additives as proposed by HEP Operating, HFRM shall reimburse HEP Operating for the costs of adding any DRA or additives.  If HEP Operating reasonably determines that additives or chemicals must be added to any of the pipelines included in the Applicable Assets to prevent or control internal corrosion of the pipe, then HFRM shall reimburse HEP Operating for the direct cost of the chemical and associated injection equipment. 

2.7    Change in the Direction; Product Service or Origination and Destination of the Pipeline System.  Without HFRM’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed), HEP Operating shall not (i) reverse the direction of flow of any Pipeline; (ii) change, alter or modify the Product service of any Pipeline; or (iii) change, alter or modify the origination or destination of any Pipeline; provided, however, that HEP Operating may take any necessary emergency action to prevent or remedy a release of Products from a Pipeline without obtaining the consent required by this Section 2.7.  HFRM shall have the right to reverse the direction of flow of any segment of a Pipeline where it is the sole shipper of Products if, in each case, HFRM agrees to (1) reimburse HEP Operating for the additional costs and expenses incurred by HEP Operating as a result of such change in direction (both to reverse and re-

 [Page 7 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

reverse); (2) reimburse HEP Operating for all costs arising out of HEP Operating’s inability to perform under any transportation service contract due to the reversal of the direction of flow of the Pipeline; and (3) pay the Applicable Tariffs in accordance with this Agreement, for any such flow reversal.  With respect to the Malaga Pipeline System, the foregoing shall apply regardless of whether the Product shipped in such manner reaches an injection point for the Centurion Pipeline or Plains Pipeline.  HEP Operating shall not acquire any right, title or interest in the Products, and all title to and ownership of the Products while the same is in the possession of HEP Operating shall be and shall remain exclusively in HFRM.  HEP Operating shall not represent itself to any third party as the owner of any of the Products and shall hold the same in trust for HFRM.  HFRM shall advise HEP Operating in writing of any change in Product ownership while in the Applicable Assets.  If any of HFRM’s Product is sold, exchanged, or otherwise changes ownership while in the Applicable Assets, HFRM shall nonetheless be responsible for the terms and conditions of this Agreement the same as if Products had been owned by HFRM.

2.8    Notification of Utilization.  Upon request by HEP Operating, HFRM will provide to HEP Operating written notification of HFRM’s reasonable good faith estimate of its anticipated future utilization of the Applicable Assets as soon as reasonably practicable after receiving such request.

2.9    Scheduling and Accepting Movement.  HEP Operating will use its reasonable commercial efforts to schedule and accept movements of Products in a manner that is consistent with the historical dealings between the Parties and their Affiliates, as such dealings may change from time to time.

2.10    Taxes.  HFRM will pay all taxes, import duties, license fees and other charges by any Governmental Authority levied on or with respect to the Products handled by HFRM for transportation, storage and/or loading by HEP Operating.  Should either Party be required to pay or collect any taxes, duties, charges and or assessments pursuant to any Applicable Law or authority now in effect or hereafter to become effective which are payable by the any other Party pursuant to this Section 2.10 the proper Party shall promptly reimburse the other Party therefor.

2.11    Timing of Payments.  HFRM will make payments to HEP Operating by electronic payment with immediately available funds on a monthly basis during the Applicable Term with respect to services rendered or reimbursable costs or expenses incurred by HEP Operating under this Agreement in the prior month.  Payments not received by HEP Operating on or prior to the tenth day following the invoice date will accrue interest at the Prime Rate from the applicable payment date until paid.  

2.12    Increases in Tariff Rates.  If new Applicable Laws are enacted that require HEP Operating to make capital expenditures with respect to the Applicable Assets, HEP Operating may amend the Applicable Tariffs in the manner set forth in Exhibit F, in order to recover HEP Operating’s cost of complying with such new Applicable Laws (as determined in good faith and including a reasonable return).  HFRM and HEP Operating shall use their reasonable commercial efforts to comply with such new Applicable Laws, and shall negotiate in good faith to mitigate the impact of such new Applicable Laws and to determine the amount of the new Applicable Tariff rates.  If HFRM and HEP Operating are unable to agree on the amount of the new Applicable Tariff rates that HEP Operating will charge, such Applicable Tariff rates will be resolved in the manner provided for in the Omnibus Agreement.  Any other applicable exhibit to this Agreement will be updated, amended or revised, as applicable, in accordance with this Agreement to reflect any changes in Applicable Tariff rates established in accordance with this Section 2.12.

2.13    Removal of Tank from Service    .  The Parties agree that if a tank included in the Applicable Assets is removed from service, then HEP Operating will not be required to utilize, operate or maintain such tank or provide the services required under this Agreement with respect to such tank (and there will be no 

 [Page 8 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

adjustment to the applicable Minimum Revenue Commitment).  The Parties acknowledge that provisions relating to the inspection, repair and maintenance of tanks included in the Applicable Assets are set forth in the Master Lease and Access Agreement, and such provisions are in addition to, and not in substitution of, the terms set forth in this Section 2.13.

2.14    No Guaranteed Minimum.  Notwithstanding anything to the contrary set forth in this Agreement, there is no requirement that HFRM deliver any minimum quantity of Product for transport, storage, handling or loading on, over or in the Applicable Assets, it being understood that HFRM’s obligation for failing to ship, store or load sufficient quantities of Product to satisfy the Minimum Revenue Commitment is to make Deficiency Payments as provided in Article 10.

ARTICLE 3
AGREEMENT TO REMAIN SHIPPER

With respect to any Product that is transported, stored or loaded in connection with any of the Applicable Assets by HFRM, HFRM agrees that it will continue acting in the capacity of the shipper of any such Product for its own account at all times that such Product is being transported, stored, handled or loaded in the Applicable Assets.

ARTICLE 4
NOTIFICATION OF REFINERY SHUT-DOWN OR RECONFIGURATION

If a Refinery shuts down or the Refinery owner reconfigures the Refinery or any portion of the Refinery (excluding planned maintenance turnarounds) and HFRM reasonably believes in good faith that such shut down or reconfiguration will jeopardize its ability to satisfy its applicable Minimum Revenue Commitments under this Agreement, then within 90 days of the delivery of the written notice of the planned shut down or reconfiguration, HFRM shall (A) propose a new Minimum Revenue Commitment under this Agreement, as applicable, such that the ratio of the new applicable Minimum Revenue Commitment under this Agreement over the anticipated production level following the shut down or reconfiguration will be approximately equal to the ratio of the original applicable Minimum Revenue Commitment under this Agreement over the original production level and (B) propose the date on which the new Minimum Revenue Commitment under this Agreement shall take effect.  Unless objected to by HEP Operating within 60 days of receipt by HEP Operating of such proposal, such new Minimum Revenue Commitment under this Agreement shall become effective as of the date proposed by HFRM.  To the extent that HEP Operating does not agree with HFRM’s proposal, any changes in HFRM’s obligations under this Agreement, or the date on which such changes will take effect, will be determined pursuant to the dispute resolution provisions of the Omnibus Agreement.  Any applicable exhibit to this Agreement will be updated, amended or revised, as applicable, in accordance with this Agreement to reflect any change in the applicable Minimum Revenue Commitment under this Agreement agreed to in accordance with this Section 4.1.

ARTICLE 5
FORCE MAJEURE

The rights and obligations of the Parties upon the occurrence of an event of Force Majeure will be determined in the manner set forth in the Omnibus Agreement; provided that (a) any suspension of the obligations of the Parties under this Agreement as a result of an event of Force Majeure shall extend the Applicable Term (to the extent so affected) for a period equivalent to the duration of the inability set forth in the Force Majeure Notice, (b) HFRM will be required to pay any amounts accrued and due under this Agreement at the time of the Force Majeure event, and (c) if a Force Majeure event prevents either Party 

 [Page 9 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

from performing substantially all of their respective obligations under this Agreement relating to a group of Applicable Assets for a period of more than one (1) year, this Agreement may be terminated as to such Applicable Assets (but not as to unaffected Applicable Assets) by either Party providing written notice thereof to the other Party.  

ARTICLE 6
AGREEMENT NOT TO CHALLENGE PIPELINE TARIFFS

HFRM agrees to any tariff rate changes for Pipelines in accordance with this Agreement.  HFRM agrees (a) not to challenge, nor to cause their Affiliates to challenge, nor to encourage or recommend to any other Person that it challenge, or voluntarily assist in any way any other Person in challenging, in any forum, tariffs (including joint tariffs) of HEP Operating (or its Affiliates) that HEP Operating (or its Affiliate) has filed or may file containing rates, rules or regulations that are in effect at any time during the Applicable Term and regulate the transportation of the Products on any Pipelines, and (b) not to protest or file a complaint, nor cause their Affiliates to protest or file a complaint, nor encourage or recommend to any other Person that it protest or file a complaint, or voluntarily assist in any way any other Person in protesting or filing a complaint, with respect to regulatory filings that HEP Operating or its Affiliate has made or may make at any time during the Applicable Term to change tariffs (including joint tariffs) for transportation of Products on any Pipelines, in each case so long as such tariffs, regulatory filings or rates changed do not conflict with the terms of this Agreement.  

ARTICLE 7
EFFECTIVENESS AND APPLICABLE TERM

This Agreement shall be effective as to each group of Applicable Assets as of the date and time set forth on Exhibit C and shall terminate with respect to each group of Applicable Assets as of the date and time set forth on Exhibit C, unless extended by written mutual agreement of the Parties or as set forth in Article 8 (each, the “Applicable Term”).  The Party desiring to extend this Agreement with respect to any group of Applicable Assets pursuant to this Article 7 shall provide prior written notice to the other Party of its desire to so extend this Agreement; such written notice shall be provided not more than twenty-four (24) months and not less than the later of twelve (12) months prior to the date of termination of the Applicable Term or ten (10) days after receipt of a written request from the other Party (which request may be delivered no earlier than twelve (12) months prior to the date of termination of the Applicable Term) to provide any such notice or lose such right.

ARTICLE 8
RIGHT TO ENTER INTO A NEW AGREEMENT

8.1.    Negotiation Pursuant to Written Notice.  In the event that HFRM provides prior written notice to HEP Operating of the desire of HFRM to extend this Agreement for a specific group of Applicable Assets by written mutual agreement of the Parties pursuant to Article 7, the Parties shall negotiate in good faith to extend this Agreement by written mutual agreement with respect to such specific group of Applicable Assets, but, if such negotiations fail to produce a written mutual agreement for extension by a date six months prior to the termination date for such group of Applicable Assets, then HEP Operating shall have the right to negotiate to enter into one or more throughput, tankage or transportation services agreements for HFRM’s Minimum Capacity Commitment for such Applicable Assets with one or more third parties to begin after the date of termination, provided, however, that until the end of one year following termination without renewal of this Agreement for such group of Applicable Assets, HFRM will have the right to enter into a new throughput, tankage or transportation services or transportation services agreement with HEP Operating 

 [Page 10 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

with respect to its Minimum Capacity Commitment on the date of termination on commercial terms that substantially match the terms upon which HEP Operating proposes to enter into an agreement with a third party for similar services with respect to all or a material portion of such capacity of such group of Applicable Assets.  In such circumstances, HEP Operating shall give HFRM at least forty-five (45) days prior written notice of any proposed new throughput agreement with a third party, and such notice shall inform HFRM of the fee schedules, tariffs, duration and any other material terms of the proposed third party agreement.  HFRM shall have forty-five (45) days following receipt of such notice to agree to the terms specified in the notice or HFRM shall lose the rights specified by this Section 8.1 with respect to the capacity that is the subject of such notice.

8.2.    Negotiation in the Absence of Written Notice.  In the event that HFRM fails to provide prior written notice to HEP Operating of the desire of HFRM to extend this Agreement for a specific group of Applicable Assets by written mutual agreement of the Parties pursuant to Article 7, HEP Operating shall have the right, during the period from the date of HFRM’s failure to provide written notice pursuant to Article 7 to the date of termination of this Agreement, to negotiate to enter into one or more throughput, tankage or transportation services agreements for HFRM’s Minimum Capacity Commitment for the such group of Applicable Assets with one or more third parties to begin after the date of termination; provided, however, that at any time during the twelve (12) months prior to the expiration of the Applicable Term, HFRM will have the right to enter into a new throughput, tankage agreement with HEP Operating with respect to its existing Minimum Capacity Commitment at such time on commercial terms that substantially match the terms upon which HEP Operating proposes to enter into an agreement with a third party for similar services with respect to all or a material portion of such capacity on such group of Applicable Assets.  In such circumstances, HEP Operating shall give HFRM forty-five (45) days prior written notice of any proposed new agreement with a third party, and such notice shall inform HFRM of the fee schedules, tariffs, duration and any other material terms of the proposed third party agreement and HFRM shall have forty-five (45) days following receipt of such notice to agree to the terms specified in the notice or HFRM shall lose the rights specified by this Section 8.2 with respect to the capacity that is the subject of such notice.

ARTICLE 9
NOTICES
Any notice or other communication given under this Agreement shall be in writing and shall be provided in the manner set forth in the Omnibus Agreement. 

ARTICLE 10
DEFICIENCY PAYMENTS

10.1    Deficiency Notice; Deficiency Payments.  As soon as practicable following the end of each Contract Quarter under this Agreement, HEP Operating shall deliver to HFRM a written notice (the “Deficiency Notice”) detailing any failure of HFRM to meet any of the Minimum Revenue Commitments set forth on Exhibit C; provided, however, that HFRM’s obligations pursuant to the Minimum Revenue Commitment shall be assessed on a quarterly basis for the purposes of this Article 10.  Notwithstanding the previous sentence, any deficiency owed by HFRM due to its failure to satisfy any Minimum Revenue Commitment, if any, set forth on Exhibit C, as to any Applicable Asset for a Contract Quarter shall be offset by any revenue owed to HEP Operating in excess of any Minimum Revenue Commitment for such Contract Quarter set forth on Exhibit C from any other Applicable Asset at the same location.  The Deficiency Notice shall (i) specify in reasonable detail the nature of any deficiency and (ii) specify the approximate dollar amount that HEP Operating believes would have been paid by HFRM to HEP Operating if HFRM had complied with its Minimum Revenue Commitment obligations pursuant to this Agreement (the “Deficiency Payment”).  HFRM shall pay the Deficiency Payment to HEP Operating upon the later of: (A) ten (10) days 

 [Page 11 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

after their receipt of the Deficiency Notice and (B) thirty (30) days following the end of the related Contract Quarter.

10.2    Disputed Deficiency Notices.  If HFRM disagrees with the Deficiency Notice, then, following the payment of the undisputed portion of the Deficiency Payment to HEP Operating, if any, HFRM shall send written notice thereof regarding the disputed portion of the Deficiency Payment to HEP Operating.  Thereafter, a senior officer of HollyFrontier (on behalf of HFRM) and a senior officer of the Partnership (on behalf of HEP Operating) shall meet or communicate by telephone at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary and shall negotiate in good faith to attempt to resolve any differences that they may have with respect to matters specified in the Deficiency Notice.  During the 30-day period following the payment of the Deficiency Payment, HFRM shall have access to the working papers of HEP Operating relating to the Deficiency Notice.  If such differences are not resolved within thirty (30) days following HFRM’s receipt of the Deficiency Notice, HFRM and HEP Operating shall, within forty-five (45) days following HFRM’s receipt of the Deficiency Notice, submit any and all matters which remain in dispute and which were properly included in the Deficiency Notice to dispute resolution in accordance with the Omnibus Agreement.

10.3    Payment of Amounts No Longer Disputed.  If it is finally determined pursuant to this Article 10 that HFRM is required to pay any or all of the disputed portion of the Deficiency Payment, HFRM shall promptly pay such amount to HEP Operating, together with interest thereon at the Prime Rate, in immediately available funds.

10.4    Contract Quarters Independent.  The fact that HFRM has exceeded or fallen short of the Minimum Revenue Commitment with respect to any Contract Quarter shall not be considered in determining whether HFRM meets, exceeds or falls short of the Minimum Revenue Commitment with respect to any other Contract Quarter, and the amount of any such excess or shortfall shall not be counted towards or against the Minimum Revenue Commitment with respect to any other Contract Quarter.

 [Page 12 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

ARTICLE 11
RIGHT OF FIRST REFUSAL

The Parties acknowledge the right of first refusal of HollyFrontier with respect to the Applicable Assets other than the Tulsa Assets as provided in the Omnibus Agreement, and the right of first refusal of HollyFrontier with respect to the Tulsa Assets as provided in the Tulsa Purchase Agreements. 

    
ARTICLE 12
INDEMNITY; LIMITATION OF DAMAGES

12.1    Indemnity; Limitation of Liability    .  The Parties acknowledge and agree that the provisions relating to indemnity and limitation of liability are set forth in the Omnibus Agreement.  Notwithstanding anything in this Agreement or the Omnibus Agreement to the contrary and solely for the purpose of determining which of HFRM or HEP Operating shall be liable in a particular circumstance, neither HFRM or HEP Operating shall be liable to the other Party for any loss, damage, injury, judgment, claim, cost, expense or other liability suffered or incurred (collectively, “Damages”) by such Party except to the extent set forth in the Omnibus Agreement and to the extent that HFRM or HEP Operating causes such Damages or owns or operates the assets or other property in question responsible for causing such Damages.  
12.2    Survival.  The provisions of this Article 12 shall survive the termination of this Agreement.
ARTICLE 13
MISCELLANEOUS

13.1    Amendments and Waivers.  No amendment or modification of this Agreement shall be valid unless it is in writing and signed by the Parties.  No waiver of any provision of this Agreement shall be valid unless it is in writing and signed by the Party against whom the waiver is sought to be enforced.  Any of the exhibits to this Agreement may be amended, modified, revised or updated by the Parties if each of the Parties executes an amended, modified, revised or updated exhibit, and attaches it to this Agreement.  Such amended, modified, revised or updated exhibits shall be sequentially numbered (e.g. Exhibit A-1, Exhibit A-2, etc.), dated and appended as an additional exhibit to this Agreement and shall replace the prior exhibit, in its entirety, after its date of effectiveness, except as specified therein.  No failure or delay in exercising any right hereunder, and no course of conduct, shall operate as a waiver of any provision of this Agreement.  No single or partial exercise of a right hereunder shall preclude further or complete exercise of that right or any other right hereunder.

13.2    Successors and Assigns.  This Agreement shall inure to the benefit of, and shall be binding upon, the Parties and their respective successors and permitted assigns.  Neither this Agreement nor any of the rights or obligations hereunder shall be assigned without the prior written consent of HFRM (in the case of any assignment by HEP Operating) or HEP Operating (in the case of any assignment by HFRM), in each case, such consent is not to be unreasonably withheld or delayed; provided, however, that (i) HEP Operating may make such an assignment (including a partial pro rata assignment) to an Affiliate of HEP Operating without HFRM’s consent, (ii) HFRM may make such an assignment (including a pro rata partial assignment) to an Affiliate of HFRM without HEP Operating’s consent, (iii) HFRM may make a collateral assignment of its rights and obligations hereunder and/or grant a security interest in its rights and obligations hereunder, and HEP Operating shall execute an acknowledgement of such collateral assignment in such form as may 

 [Page 13 to the Third Amended and Restated Master Throughput Agreement]

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from time-to-time be reasonably requested, and (iv) HEP Operating may make a collateral assignment of its rights hereunder and/or grant a security interest in its rights and obligations hereunder to a bona fide third party lender or debt holder, or trustee or representative for any of them, without HFRM’s consent, if such third party lender, debt holder or trustee shall have executed and delivered to HFRM a non-disturbance agreement in such form as is reasonably satisfactory to HFRM and such third party lender, debt holder or trustee, and HFRM executes an acknowledgement of such collateral assignment in such form as may from time to time be reasonably requested.  Any attempt to make an assignment otherwise than as permitted by the foregoing shall be null and void.  The Parties agree to require their respective successors, if any, to expressly assume, in a form of agreement reasonably acceptable to the other Parties, their obligations under this Agreement.

13.3    Severability.  If any provision of this Agreement shall be held invalid or unenforceable by a court or regulatory body of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect.

13.4    Choice of Law.  This Agreement shall be subject to and governed by the laws of the State of Delaware, excluding any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another state.

13.5    Rights of Limited Partners.  The provisions of this Agreement are enforceable solely by the Parties, and no limited partner of the Partnership shall have the right, separate and apart from the Partnership, to enforce any provision of this Agreement or to compel any Party to comply with the terms of this Agreement.  

13.6    Further Assurances.  In connection with this Agreement and all transactions contemplated by this Agreement, each signatory Party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions.

13.7    Headings.  Headings of the Sections of this Agreement are for convenience of the Parties only and shall be given no substantive or interpretative effect whatsoever.  All references in this Agreement to Sections are to Sections of this Agreement unless otherwise stated.

ARTICLE 14
GUARANTEE BY HOLLYFRONTIER

14.1    Payment Guaranty.  HollyFrontier unconditionally, absolutely, continually and irrevocably guarantees, as principal and not as surety, to HEP Operating the punctual and complete payment in full when due of all amounts due from HFRM under this Agreement (collectively, the “HFRM Payment Obligations”).  HollyFrontier agrees that HEP Operating shall be entitled to enforce directly against HollyFrontier any of the HFRM Payment Obligations.

14.2    Guaranty Absolute.  HollyFrontier hereby guarantees that the HFRM Payment Obligations will be paid strictly in accordance with the terms of the Agreement.  The obligations of HollyFrontier under this Agreement constitute a present and continuing guaranty of payment, and not of collection or collectability.  The liability of HollyFrontier under this Agreement shall be absolute, unconditional, present, continuing and irrevocable irrespective of:

(a)    any assignment or other transfer of this Agreement or any of the rights thereunder of HEP Operating;

 [Page 14 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

(b)    any amendment, waiver, renewal, extension or release of or any consent to or departure from or other action or inaction related to this Agreement;

(c)    any acceptance by HEP Operating of partial payment or performance from HFRM;

(d)    any bankruptcy, insolvency, reorganization, arrangement, composition, adjustment, dissolution, liquidation or other like proceeding relating to HFRM or any action taken with respect to this Agreement by any trustee or receiver, or by any court, in any such proceeding;

(e)    any absence of any notice to, or knowledge of, HollyFrontier, of the existence or occurrence of any of the matters or events set forth in the foregoing subsections (i) through (iv); or

(f)    any other circumstance which might otherwise constitute a defense available to, or a discharge of, a guarantor.

The obligations of HollyFrontier hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the HFRM Payment Obligations or otherwise.

14.3    Waiver.  HollyFrontier hereby waives promptness, diligence, all setoffs, presentments, protests and notice of acceptance and any other notice relating to any of the HFRM Payment Obligations and any requirement for HEP Operating to protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaust any right or take any action against HFRM, any other entity or any collateral.

14.4    Subrogation Waiver.  HollyFrontier agrees that for so long as there is a current or ongoing default or breach of this Agreement by HFRM, HollyFrontier shall not have any rights (direct or indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment or recovery from HFRM for any payments made by HollyFrontier under this Article 14, and HollyFrontier hereby irrevocably waives and releases, absolutely and unconditionally, any such rights of subrogation, contribution, reimbursement, indemnification and other rights of payment or recovery it may now have or hereafter acquire against HFRM during any period of default or breach of this Agreement by HFRM until such time as there is no current or ongoing default or breach of this Agreement by HFRM. 

14.5    Reinstatement.  The obligations of HollyFrontier under this Article 14 shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment of any of the HFRM Payment Obligations is rescinded or must otherwise be returned to HFRM or any other entity, upon the insolvency, bankruptcy, arrangement, adjustment, composition, liquidation or reorganization of HFRM or such other entity, or for any other reason, all as though such payment had not been made.

14.6    Continuing Guaranty.  This Article 14 is a continuing guaranty and shall (i) remain in full force and effect until the first to occur of the indefeasible payment in full of all of the HFRM Payment Obligations, (ii) be binding upon HollyFrontier, its successors and assigns and (iii) inure to the benefit of and be enforceable by HEP Operating and its respective successors, transferees and assigns.

 [Page 15 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

14.7    No Duty to Pursue Others.  It shall not be necessary for HEP Operating (and HollyFrontier hereby waives any rights which HollyFrontier may have to require HEP Operating), in order to enforce such payment by HollyFrontier, first to (i) institute suit or exhaust its remedies against HFRM or others liable on the HFRM Payment Obligations or any other person, (ii) enforce HEP Operating’s rights against any other guarantors of the HFRM Payment Obligations, (iii) join HFRM or any others liable on the HFRM Payment Obligations in any action seeking to enforce this Article 14, (iv) exhaust any remedies available to HEP Operating against any security which shall ever have been given to secure the HFRM Payment Obligations, or (v) resort to any other means of obtaining payment of the HFRM Payment Obligations.

ARTICLE 15
GUARANTEE BY THE PARTNERSHIP

15.1    Payment and Performance Guaranty.  The Partnership unconditionally, absolutely, continually and irrevocably guarantees, as principal and not as surety, to HFRM the punctual and complete payment in full when due of all amounts due from HEP Operating under this Agreement (collectively, the “HEP Operating Payment Obligations”) and the punctual and complete performance of all other obligations of HEP Operating under this Agreement (collectively, the “HEP Operating Performance Obligations”, together with the HEP Operating Payment Obligations, the “HEP Operating Obligations”).  The Partnership agrees that HFRM shall be entitled to enforce directly against the Partnership any of the HEP Operating Obligations.

15.2    Guaranty Absolute.  The Partnership hereby guarantees that the HEP Operating Payment Obligations will be paid, and the HEP Performance Obligations will be performed, strictly in accordance with the terms of this Agreement.  The obligations of the Partnership under this Agreement constitute a present and continuing guaranty of payment and performance, and not of collection or collectability.  The liability of the Partnership under this Agreement shall be absolute, unconditional, present, continuing and irrevocable irrespective of:

(a)    any assignment or other transfer of this Agreement or any of the rights thereunder of HFRM;

(b)    any amendment, waiver, renewal, extension or release of or any consent to or departure from or other action or inaction related to this Agreement;

(c)    any acceptance by HFRM of partial payment or performance from HEP Operating;

(d)    any bankruptcy, insolvency, reorganization, arrangement, composition, adjustment, dissolution, liquidation or other like proceeding relating to HEP Operating or any action taken with respect to this Agreement by any trustee or receiver, or by any court, in any such proceeding;

(e)    any absence of any notice to, or knowledge of, the Partnership, of the existence or occurrence of any of the matters or events set forth in the foregoing subsections (i) through (iv); or

(f)    any other circumstance which might otherwise constitute a defense available to, or a discharge of, a guarantor.

The obligations of the Partnership hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination 

 [Page 16 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

whatsoever by reason of the invalidity, illegality or unenforceability of the HEP Operating Obligations or otherwise.

15.3    Waiver.  The Partnership hereby waives promptness, diligence, all setoffs, presentments, protests and notice of acceptance and any other notice relating to any of the HEP Operating Payment Obligations and any requirement for HFRM to protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaust any right or take any action against HEP Operating, any other entity or any collateral.

15.4    Subrogation Waiver.  The Partnership agrees that for so long as there is a current or ongoing default or breach of this Agreement by HEP Operating, the Partnership shall not have any rights (direct or indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment or recovery from HEP Operating for any payments made by the Partnership under this Article 15, and each of the Partnership hereby irrevocably waives and releases, absolutely and unconditionally, any such rights of subrogation, contribution, reimbursement, indemnification and other rights of payment or recovery it may now have or hereafter acquire against HEP Operating during any period of default or breach of this Agreement by HEP Operating until such time as there is no current or ongoing default or breach of this Agreement by HEP Operating. 

15.5    Reinstatement.  The obligations of the Partnership under this Article 15 shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment of any of the HEP Operating Payment Obligations is rescinded or must otherwise be returned to HEP Operating or any other entity, upon the insolvency, bankruptcy, arrangement, adjustment, composition, liquidation or reorganization of HEP Operating or such other entity, or for any other reason, all as though such payment had not been made.

15.6    Continuing Guaranty.  This Article 15 is a continuing guaranty and shall (i) remain in full force and effect until the first to occur of the indefeasible payment and/or performance in full of all of the HEP Operating Payment Obligations, (ii) be binding upon the Partnership and each of its respective successors and assigns and (iii) inure to the benefit of and be enforceable by HFRM and their respective successors, transferees and assigns.

15.7    No Duty to Pursue Others.  It shall not be necessary for HFRM (and the Partnership hereby waives any rights which the Partnership may have to require HFRM), in order to enforce such payment by the Partnership, first to (i) institute suit or exhaust its remedies against HEP Operating or others liable on the HEP Operating Obligations or any other person, (ii) enforce HFRM’s rights against any other guarantors of the HEP Operating Obligations, (iii) join HEP Operating or any others liable on the HEP Operating Obligations in any action seeking to enforce this Article 15, (iv) exhaust any remedies available to HFRM against any security which shall ever have been given to secure the HEP Operating Obligations, or (v) resort to any other means of obtaining payment of the HEP Operating Obligations.

[Remainder of page intentionally left blank.  Signature pages follow.]

 [Page 17 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement as of the date first written above to be effective as of the Effective Time. 

HEP OPERATING:

Holly Energy Partners-Operating, L.P.

By:      /s/ Mark A. Plake    
Mark A. Plake
President

HFRM:

HollyFrontier Refining & Marketing LLC

By:      /s/ George J. Damiris    
George J. Damiris
Chief Executive Officer and President

 [Page 18 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

ACKNOWLEDGED AND AGREED 
FOR PURPOSES OF Section 10.2 
AND Article 14:

HOLLYFRONTIER CORPORATION

By: /s/ George J. Damiris    
George J. Damiris
Chief Executive Officer and President

ACKNOWLEDGED AND AGREED 
FOR PURPOSES OF Section 10.2
AND Article 15:

HOLLY ENERGY PARTNERS, L.P.

By:    HEP Logistics Holdings, L.P.,
its General Partner

By:    Holly Logistic Services, L.L.C.,
its General Partner

By: /s/ Mark A. Plake    
Mark A. Plake
President

 [Page 19 to the Third Amended and Restated Master Throughput Agreement]

Exhibit 10.27

Exhibit A
to
Third Amended and Restated
Master Throughput Agreement

Definitions

“Actual Construction Costs” has the meaning set forth in Exhibit C.
“Affiliate” means, with to respect to a specified person, any other person controlling, controlled by or under common control with that first person.  As used in this definition, the term “control” includes (i) with respect to any person having voting securities or the equivalent and elected directors, managers or persons performing similar functions, the ownership of or power to vote, directly or indirectly, voting securities or the equivalent representing 50% or more of the power to vote in the election of directors, managers or persons performing similar functions, (ii) ownership of 50% or more of the equity or equivalent interest in any person and (iii) the ability to direct the business and affairs of any person by acting as a general partner, manager or otherwise.  Notwithstanding the foregoing, for purposes of this Agreement, HFRM, on the one hand, and HEP Operating, on the other hand, shall not be considered affiliates of each other.
“Agreement” has the meaning set forth in the preamble to this Agreement.
 “API” means the American Petroleum Institute.
“API 653” means the Above Ground Storage Tank Inspector Program issued by the API as API Standard 653, as amended and supplemented from time to time.
“API Gravity” means the API index of specific gravity of a liquid petroleum expressed as degrees, as such index would be calculated on the date hereof.
“Applicable Asset” means each of the Cheyenne Assets, El Dorado Assets, Lovington Loading Rack, Malaga Pipeline System, Roadrunner Pipeline, Tulsa Assets, El Dorado Crude Tank Farm Assets and the Tulsa West Tankage, individually; and “Applicable Assets” means all of the foregoing assets, collectively.
“Applicable Law” means any applicable statute, law, regulation, ordinance, rule, judgment, rule of law, order, decree, permit, approval, concession, grant, franchise, license, agreement, requirement, or other governmental restriction or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued under any of the foregoing by, or any determination of, any Governmental Authority having or asserting jurisdiction over the matter or matters in question, whether now or hereafter in effect and in each case as amended (including, without limitation, all of the terms and provisions of the common law of such Governmental Authority), as interpreted and enforced at the time in question.
“Applicable Tariff” means the Base Tariff and, to the extent applicable, the Incentive Tariff.
“Applicable Term” has the meaning set forth in Article 7.
“ASTM” means ASTM International.

Exhibit A-1

Exhibit 10.27

“Assumed OPEX” means, with respect to any Applicable Asset, the amount set forth on Exhibit C with respect to such Applicable Asset.
“Barrel” means 42 Gallons.
“Base Tariff” means the Base Tariff applicable to the quantity of Product transported, stored or loaded in connection with an Applicable Asset as set forth on Exhibit C, as such Base Tariff may be adjusted pursuant to the terms of this Agreement.
“bpd” means Barrels per day.
“Business Day” means any day other than Saturday, Sunday or other day upon which commercial banks in Dallas, Texas are authorized by law to close.
 “Centurion Pipeline” means that certain 10” pipeline system operated by Centurion Pipeline L.P. and originating from Centurion’s Artesia Station located within Township 18S and Range 27E, approximately 1 mile south of HEP Operating’s Abo Station.
“Cheyenne Assets” means the Cheyenne Receiving Assets, Cheyenne Loading Rack and the Cheyenne Tankage.
“Cheyenne Loading Rack” means the refined products truck loading rack and the two (2) propane loading spots located at the Cheyenne Refinery and more specifically described in Exhibit I-1.
 “Cheyenne Receiving Assets” means the pipelines set forth on Exhibit I-2.
“Cheyenne Refinery” means the refinery owned by HollyFrontier Cheyenne Refining LLC and located in Cheyenne, Wyoming.
“Cheyenne RCRA Order” means the administrative order set forth in Exhibit I.
“Cheyenne Tankage” means the tanks set forth on Exhibit I-3.
“Claim” means any existing or threatened future claim, demand, suit, action, investigation, proceeding, governmental action or cause of action of any kind or character (in each case, whether civil, criminal, investigative or administrative), known or unknown, under any theory, including those based on theories of contract, tort, statutory liability, strict liability, employer liability, premises liability, products liability, breach of warranty or malpractice.
“Closing Date” has the meaning for each Applicable Asset set forth in the Omnibus Agreement. 
“Construction Projects” has the meaning set forth in Article 2.
“Contract Quarter” means a three-month period that commences on January 1, April 1, July 1 or October 1 and ends on March 31, June 30, September 30, or December 31, respectively. 
“Control” (including with correlative meaning, the term “controlled by”) means, as used with respect to any Person, the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

Exhibit A-2

Exhibit 10.27

“Crude Agreement” means the Third Amended and Restated Crude Pipelines and Tankage Agreement, dated as of March 12, 2015, by and among HFRM, HEP Operating and certain other Affiliates of HFRM and HEP Operating.
“Crude Oil” means the direct liquid product of oil wells, oil processing plants, the indirect liquid petroleum products of oil or gas wells, oil sands or a mixture of such products, but does not include natural gas liquids, Refined Products, naphtha, gas oil, LEF (lube extraction feedstocks) or any other refined products.
“Deficiency Notice” has the meaning set forth in Section 10.1.
“Deficiency Payment” has the meaning set forth in Section 10.1.
“Devon” means Devon Energy Production Company, L.P., and its Affiliates.
“Devon Lease Connections” has the meaning set forth in Exhibit G-3.
“DRA” has the meaning set forth in Section 2.6.
“Effective Time” means 12:01 a.m., Dallas, Texas time, on January 1, 2017.
“El Dorado Assets” means the El Dorado Loading Rack and the El Dorado Tankage.
“El Dorado Crude Tank Farm Assets” means the El Dorado Delivery Lines and the El Dorado Crude Tankage.
“El Dorado Crude Tank Farm Consideration Period” has the meaning set forth in Exhibit K.
“El Dorado Crude Tank Farm Quality Specifications” has the meaning set forth in Exhibit K.
“El Dorado Crude Tankage” means the tankage identified on Exhibit K-1.
“El Dorado Delivery Lines” has the meaning set forth in Exhibit K.
“El Dorado Loading Rack” means the Refined Products truck loading rack and the propane loading rack located at the El Dorado Refinery and more specifically described on Exhibit H-1.
“El Dorado Minimum Working Capacity” has the meaning set forth in Exhibit K.
“El Dorado Quality Specifications” means those specifications set forth in Exhibit K-2.
“El Dorado Refinery” means the refinery owned by HollyFrontier El Dorado Refining LLC and located in El Dorado, Kansas.
“El Dorado Tankage” means the tanks set forth on Exhibit H-2.
 “El Dorado Terminal” means the tank farm owned by HEP Operating and located in El Dorado, Kansas.
“Environmental Law” has the meaning set forth in the Omnibus Agreement.
“Excess Tariff Threshold” has the meaning set forth in Exhibit C.

Exhibit A-3

Exhibit 10.27

“Exercise Notice” has the meaning set forth in Exhibit F.
“FERC Oil Pipeline Index” has the meaning set forth in Section 3(a)(iii)(B).
“Final Construction Cost” means the final aggregate construction cost of a New Tank, as contemplated by Exhibit H, Exhibit I and Exhibit J.
“Force Majeure” has the meaning set forth in the Omnibus Agreement.
“Force Majeure Notice” has the meaning set forth in the Omnibus Agreement.
“Gallon” means a United States gallon of two hundred thirty-one (231) cubic inches of liquid at sixty degrees (60°) Fahrenheit, and at the equivalent vapor pressure of the liquid.
“Governmental Authority” means any federal, state, local or foreign government or any provincial, departmental or other political subdivision thereof, or any entity, body or authority exercising executive, legislative, judicial, regulatory, administrative or other governmental functions or any court, department, commission, board, bureau, agency, instrumentality or administrative body of any of the foregoing.
“Heavy Products” means fuel oil, asphalt, coker feed, vacuum tower bottoms, atmospheric tower bottoms, pitch or roofing flux.
“HEP Operating” has the meaning set forth in the Preamble.
“HEP Operating Payment Obligations” has the meaning set forth in Section 15.1.
“HFRM” has the meaning set forth in the Preamble.
“HFRM Payment Obligations” has the meaning set forth in Section 14.1.
“High-API Surcharge” has the meaning set forth in Section 2.4.
“HollyFrontier” means HollyFrontier Corporation, a Delaware corporation.
“HollyFrontier Navajo” means HollyFrontier Navajo Refining LLC.
“HollyFrontier Tulsa” means HollyFrontier Tulsa Refining LLC.
“Incentive Tariff” means the Incentive Tariff applicable to the quantity of Product transported, stored or loaded in connection with an Applicable Asset as set forth on Exhibit C, as such Incentive Tariff may be adjusted pursuant to the terms of this Agreement.
“Initial OPEX” has the meaning set forth in Exhibit L-2.
 “Intermediate Products” means non-finished intermediate products, including high sulfur diesel fuel for DHT feed, jet fuel, naphtha for reformer feed, gas oil or LEF for FCC feed, reformate, light straight run, hydrogen, fuel gas and sour fuel gas.
“Jayhawk” means Jayhawk Pipeline, L.L.C. (or its successors to the Jayhawk Tankage).

Exhibit A-4

Exhibit 10.27

“Jayhawk Lease” means the lease between HEP-Operating and Jayhawk for the Jayhawk Tankage in existence as of the commencement of the Applicable Term.
“Jayhawk Tankage” means the tankage identified in Exhibit K-1.
“Lovington Loading Rack” means that certain asphalt loading rack located at the Navajo Refinery.
“LPG Products” means propane, refinery grade propylene, normal butane and isobutane.
“Malaga Capacity Estimate” has the meaning set forth in Exhibit G.
“Malaga Commencement Date” means the date on which, in the reasonable opinion of HEP Operating, the Malaga Pipeline System is available for service and operating as expected in delivering Crude Oil, which date has been specified in written notice from HEP Operating to HFRM at least 60 days prior to the Malaga Commencement Date; provided, however, that if the Malaga Pipeline System is, in the discretion of HEP Operating, substantially complete, then the parties may agree in writing to a commencement date prior to the Malaga Pipeline System being fully completed.
“Malaga Construction Projects” has the meaning set forth in Exhibit G.
“Malaga Exercise Notice” has the meaning set forth in Exhibit G.
“Malaga Initial Period” means the period beginning on the Malaga Commencement Date through and including final day of the 20th full Contract Quarter following the Malaga Commencement Date.
“Malaga Pipeline System” means the pipeline systems (a) extending from the (i) Whites City Road Station to the HEP Operating Artesia Station, from (ii) Devon Parkway field to the Millman Station and the HEP Operating Artesia Station, (iii) HEP Operating Artesia Station to the Beeson Station, (iv) the Beeson Station to the Anderson Ranch Pipeline, (v) Devon Hackberry field to the Beeson Station, and (v) Beeson Station to the Plains Pipeline, including in each case all related lease connection pipelines, storage facilities, crude oil gathering tanks, and truck off-loading facilities, as depicted on Exhibit G-1 (Map of Pipeline System and Pipeline System Capacity by Segment), and (b) with the volume capacities as set forth on Exhibit G-1, described on Exhibit G-2 (Construction Projects) and described on Exhibit G-3 (Devon Lease Connections).
“Master Lease and Access Agreement” means that certain Master Lease and Access Agreement dated as of the date hereof among certain of the Affiliates of HEP Operating and the owners of the Refineries.
“Minimum Capacity Commitment” has the meaning set forth in Section 2.2(a).
“Minimum Revenue Commitment” has the meaning set forth in Section 2.2(a).
“Minimum Throughput Commitment” means the quantity of Product to be transported, stored or loaded in connection with an Applicable Asset, as set forth on Exhibit C, as such amount may be adjusted pursuant to the terms of this Agreement.
“MSCFD” means thousands of cubic feet per day.
“MVP Pipeline” has the meaning set forth in Exhibit K.

Exhibit A-5

Exhibit 10.27

“Navajo Refinery” means the refinery owned by HollyFrontier Navajo and located in Lovington, New Mexico.
“New Tank” means the new petroleum products storage tankage to be added to the Applicable Assets as identified on Exhibits H and J.
 “New Tank Commencement Date” means, with respect to each New Tank, the first day of the calendar month after the date on which, in the reasonable opinion of HEP Operating, such New Tank is mechanically complete, available for service and operating as expected in storing the Product for which such New Tank was designed, which date has been specified in written notice from HEP Operating to HFRM at least 30 days prior to such date.
“Omnibus Agreement” means the Seventeenth Amended and Restated Omnibus Agreement, dated as of the date hereof.
“OPEX Reimbursement Amount” has the meaning set forth in Exhibit L-2.
“Original Master Throughput Agreement” has the meaning set forth in the Recitals.
“Osage Pipeline” has the meaning set forth in Exhibit K.
“Parties” has the meaning set forth in the Preamble.
“Partnership” means Holly Energy Partners, L.P., a Delaware limited partnership.
“Party” has the meaning set forth in the Preamble.
“Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.
“Pipelines” means the Malaga Pipeline System, Roadrunner Pipeline, the Tulsa Pipelines, the Tulsa Interconnecting Pipelines, and the El Dorado Delivery Lines, and any other pipeline included in the Applicable Assets.
“Plains Pipeline” means that certain 16” diameter pipeline operated by Plains All American Pipeline, L. P. and located in Lea County, New Mexico and which crosses the HEP Anderson Ranch gathering system in Township 18 South, Range 32 East.
“Previous Amended and Restated Master Throughput Agreement” has the meaning set forth in the Recitals.
“Prime Rate” means the prime rate per annum announced by Union Bank, N.A., or if Union Bank, N.A. no longer announces a prime rate for any reason, the prime rate per annum announced by the largest U.S. bank measured by deposits from time to time as its base rate on corporate loans, automatically fluctuating upward or downward with each announcement of such prime rate.
“Prior Agreements” means those agreements set forth in Recitals A through F.  For the avoidance of doubt, “Prior Agreements” do not include the following agreements (as amended, modified or supplemented and in effect from time to time):  (a) Amended and Restated Intermediate Pipelines Agreement 

Exhibit A-6

Exhibit 10.27

dated June 1, 2009, (b) Tulsa Equipment and Throughput Agreement     dated August 1, 2009, (c) Amended and Restated Refined Product Pipelines and Terminals Agreement     effective February 1, 2009, (d) Second Amended and Restated Throughput Agreement     effective June 1, 2013, (e) Third Amended and Restated Crude Pipelines and Tankage Agreement dated March 12, 2015, and (f) Unloading and Blending Services Agreement (Artesia) dated March 12, 2015.
“Products” has the meaning set forth in Exhibit C.
“Qualified Third-Party Throughput” has the meaning set forth in Exhibit C.
“Red Rock Pipeline” has the meaning set forth in Exhibit K.
“Refined Products” means gasoline, kerosene, ethanol and diesel fuel.
“Refineries” means the Navajo Refinery; the El Dorado Refinery; the Cheyenne Refinery; the Tulsa East Refinery and the Tulsa West Refinery.
 “Roadrunner Pipeline” means that certain 16” crude oil pipeline extending approximately 65 miles from the Slaughter station to Lovington, New Mexico.
“Subsequent Year” has the meaning set forth in Exhibit G.
“Subsidiary” means with respect to any Person (the “Owner”), any corporation or other Person of which securities or other interests having the power to elect a majority of that corporation’s or other Person’s board of directors or similar governing body, or otherwise having the power to direct the business and policies of that corporation or other Person (other than securities or other interest having such power only upon the happening of a contingency that has not occurred), are held by the Owner or one or more of its Subsidiaries.
“Surcharge Tariff” has the meaning set forth in Exhibit C.
“SUS” means Saybolt Universal Seconds as specified by ASTM Standard D2161-10, as amended, supplemented or replaced from time to time.
 “Tulsa Assets” means the Tulsa Group 1 Tankage, Tulsa Group 1 Loading Rack, Tulsa Group 1 Pipeline, Tulsa Group 2 Tankage, Tulsa Group 2 Loading Rack and the Tulsa Interconnecting Pipelines.
“Tulsa East Refinery” means the refinery owned by HollyFrontier Tulsa and located at 905 West 25th Street, Tulsa, Oklahoma 74107.
“Tulsa Group 1 Purchase Agreement” means that certain Asset Sale and Purchase Agreement dated as of October 1, 2009 by and among HollyFrontier Tulsa, HEP Tulsa LLC and Holly Energy Storage – Tulsa.
“Tulsa Group 1 Loading Rack” means the gas oil, asphalt and propane truck loading racks located at the Tulsa West Refinery and more specifically described in Exhibit J-1 attached hereto.
 “Tulsa Group 1 Tankage” means the tankage identified in Exhibit J-3 attached hereto.
 “Tulsa Group 2 Purchase Agreement” means that certain LLC Interest Purchase Agreement dated as of March 31, 2010 by and between HEP Tulsa LLC, Lea Refining Company, and HollyFrontier Tulsa.

Exhibit A-7

Exhibit 10.27

“Tulsa Group 2 Tankage” means the tankage identified in Exhibit J-5.
“Tulsa Group 2 Loading Rack” means the rail loading rack located at the Tulsa West Refinery and more specifically described in Exhibit J-4.
“Tulsa Interconnecting Pipelines” means the following pipelines between the Tulsa East Refinery and the Tulsa West Refinery: 1) the 12 inch raw gas oil/diesel line (the “Distillate Interconnecting Pipeline”), 2) the 12 inch naphtha/gasoline component line (the “Gasoline Interconnecting Pipeline”), 3) the 12 inch refinery fuel gas line (the “Refinery Fuel Gas Interconnecting Pipeline”), 4) the 8 inch hydrogen line (the “Hydrogen Interconnecting Pipeline”), and 5) the 10 inch refinery sour fuel gas line (the “Refinery Sour Fuel Gas Interconnecting Pipeline”) including delivery facilities from the Tulsa West Refinery and receipt facilities at the Tulsa East Refinery for the Distillate and Gasoline Interconnecting Pipelines, but not for the Refinery Fuel Gas, Hydrogen, and Refinery Sour Fuel Gas Interconnecting Pipelines.
“Tulsa Group 1 Pipeline” means those two (2) product delivery lines extending from the Group 1 Tankage to interconnection points with the Magellan pipeline as more specifically described in Exhibit J-2 attached hereto.
“Tulsa Purchase Agreements” means the Tulsa Group 1 Purchase Agreement and the Tulsa Group 2 Purchase Agreement.
“Tulsa West Refinery” means the refinery owned by HollyFrontier Tulsa located at 1700 S. Union, Tulsa, Oklahoma.
“Tulsa West Tankage” means the tankage identified in Exhibit L-1.
“Working Capacity” has the meaning set forth in Exhibit K.

Exhibit A-8

Exhibit 10.27

Exhibit B
to
Third Amended and Restated
Master Throughput Agreement

Interpretation

As used in this Agreement, unless a clear contrary intention appears:

(a)    any reference to the singular includes the plural and vice versa, any reference to natural persons includes legal persons and vice versa, and any reference to a gender includes the other gender;
(b)    the words “hereof”, “herein”, and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; 
(c)    any reference to Articles, Sections and Exhibits are, unless otherwise stated, references to Articles, Sections and Exhibits of or to this Agreement and references in any Section or definition to any clause means such clause of such Section or definition.  The headings in this Agreement have been inserted for convenience only and shall not be taken into account in its interpretation; 
(d)    reference to any agreement (including this Agreement), document or instrument means such agreement, document, or instrument as amended, modified or supplemented and in effect from time to time in accordance with the terms thereof and, if applicable, the terms of this Agreement; 
(e)    the Exhibits hereto form an integral part of this Agreement and are equally binding therewith.  Any reference to “this Agreement” shall include such Exhibits; 
(f)    references to a Person shall include any permitted assignee or successor to such Party in accordance with this Agreement and reference to a Person in a particular capacity excludes such Person in any other capacity;
(g)    if any period is referred to in this Agreement by way of reference to a number of days, the days shall be calculated exclusively of the first and inclusively of the last day unless the last day falls on a day that is not a Business Day in which case the last day shall be the next succeeding Business Day; 
(h)    the use of “or” is not intended to be exclusive unless explicitly indicated otherwise; 
(i)    references to “$” or to “dollars” shall mean the lawful currency of the United States of America;  and
(j)    the words “includes,” “including,” or any derivation thereof shall mean “including without limitation” or “including, but not limited to.”

Exhibit B-1

Exhibit 10.27

Exhibit C
to
Third Amended and Restated
Master Throughput Agreement

 Applicable Assets, Product, Minimum Capacity Commitment, Tariffs, Tariff Adjustments and Applicable Terms* 

	
														
	Applicable Assets
	Type of Applicable Asset
	

Product
	Minimum Capacity Commitment (aggregate capacity unless otherwise noted)
	Minimum Throughput Commitment
(in the aggregate, on average, for each Contract Quarter)
	Base Tariff
(applicable to all movements below the Incentive Tariff Threshold)
	Incentive Tariff Threshold (in the aggregate, on average, for each Contract Quarter)
	Incentive Tariff
(applicable to all movements at or above the Incentive Tariff Threshold)
	Excess Tariff (applicable to all movements above the Excess Tariff Thresholds set forth below, if any)
	Tariff Adjustment
	Tariff Adjustment Minimum/Cap
	Tariff Adjustment Commencement Date
	Assumed OPEX
	Applicable Term 
(all times are Dallas, TX time)

	Malaga Pipeline System
	Pipelines
	Crude Oil
	40,000 bpd
	40,000 bpd2
	 $0.5334/bbl

	40,000 bpd2
	$0.3137/bbl
	—
	FERC Adjustment
	—
	July 1, 2015
	—
	12:01 a.m. on June 1, 2013 to Sept. 1, 2024 (the “Malaga Commencement Date”)

	El Dorado Assets
	Pipelines
	Refined Products

LPG Products,

Intermediate Products

Heavy Products
	120,000 bpd of aggregate delivery capacity from the Tankage
	120,000 bpd of Intermediate and Refined Product
	$0.1625/bbl
	125,000 bpd of Intermediate and Refined Product
	$0.01/bbl
	—
	PPI Adjustment

	3% in any calendar year (applicable to each individual tariff)
	July 1, 2012
	—
	12:01 a.m. on Nov. 1, 2011 to 12:01 a.m. on Oct. 31, 2026;  provided that with respect to the New Tank at the El Dorado Refinery, the Applicable Term shall be from 12:01 a.m. on the New Tank Commencement Date for such New Tank to the date occurring fifteen (15) years thereafter.

	Tankage
	 
	140,000 bpd of aggregate capacity in the Tankage

	140,000 bpd of Products
	$0.4784 /bbl,
	154,000 bpd of Products
	$0.2167/bbl
	—
	 

	Loading Rack
	 
	20,000 bpd
	20,000 bpd
	$0.2708/bbl
	—
	—
	—
	 

Exhibit C-8

Exhibit 10.27

	
														
	Applicable Assets
	Type of Applicable Asset
	

Product
	Minimum Capacity Commitment (aggregate capacity unless otherwise noted)
	Minimum Throughput Commitment
(in the aggregate, on average, for each Contract Quarter)
	Base Tariff
(applicable to all movements below the Incentive Tariff Threshold)
	Incentive Tariff Threshold (in the aggregate, on average, for each Contract Quarter)
	Incentive Tariff
(applicable to all movements at or above the Incentive Tariff Threshold)
	Excess Tariff (applicable to all movements above the Excess Tariff Thresholds set forth below, if any)
	Tariff Adjustment
	Tariff Adjustment Minimum/Cap
	Tariff Adjustment Commencement Date
	Assumed OPEX
	Applicable Term 
(all times are Dallas, TX time)

	Cheyenne Assets
	Cheyenne Receiving Assets
	Crude Oil
	41,000 bpd
	46,000 bpd
	$0.3251/bbl
	50,600 bpd
	$0.1517/bbl
	—
	PPI Adjustment

	3% in any calendar year (applicable to each individual tariff)4
	July 1, 2012
	—
	12:01 a.m. on Nov. 1, 2011 to 12:01 a.m. on Oct. 31, 2026; provided that with respect to (a) Cheyenne New Tank No. 117, the Applicable Term shall be from 12:01 a.m. on December 4, 2014 to 12:01 a.m. on December 4, 2029, and (b) any New Tanks at the Cheyenne Refinery, the Applicable Term is 12:01 a.m. on the New Tank Commencement Date for each such New Tank to the date occurring fifteen (15) years thereafter.

	Cheyenne Tankage

	 
	46,000 bpd
	41,000 bpd
	$0.4673/bbl3,
	45,100 bpd
	$0.2167/bbl
	—
	 

	Cheyenne Loading Rack
	 
	 
	41,000 bpd
	$0.2708/bbl
	None
	—
	—
	 

Exhibit C-8

Exhibit 10.27

	
														
	Applicable Assets
	Type of Applicable Asset
	

Product
	Minimum Capacity Commitment (aggregate capacity unless otherwise noted)
	Minimum Throughput Commitment
(in the aggregate, on average, for each Contract Quarter)
	Base Tariff
(applicable to all movements below the Incentive Tariff Threshold)
	Incentive Tariff Threshold (in the aggregate, on average, for each Contract Quarter)
	Incentive Tariff
(applicable to all movements at or above the Incentive Tariff Threshold)
	Excess Tariff (applicable to all movements above the Excess Tariff Thresholds set forth below, if any)
	Tariff Adjustment
	Tariff Adjustment Minimum/Cap
	Tariff Adjustment Commencement Date
	Assumed OPEX
	Applicable Term 
(all times are Dallas, TX time)

	Tulsa East Assets
	Tulsa Pipelines
	Refined Products
	60,000 bpd
	60,000 bpd
	$0.1116/bbl
	 
	—
	—
	PPI Adjustment

	3% in any calendar year (applicable to each individual tariff)
	July 1, 2011
	—
	11:59 p.m. on Mar. 31, 2010 to 12:01 a.m. on Dec. 1, 2024

	Tulsa Group 1
Tankage
	Various
	1,362,550 bbls
	80,000 bpd
	$0.3960/bbl
	Each throughput barrel over the Minimum Throughput Commitment but less than or equal to the Excess Tariff Threshold
	$0.1116/bbl
	$0.2455/bbl (over 120,000 bpd of Refined Products, in the aggregate on average for each Contract Quarter)
	 

	Tulsa Group 1
Loading Rack
	Various
	26,000 bpd
	26,000 bpd
	$0.3348/bbl
	—
	—
	—
	 

	Tulsa Group 2
Tankage
	Various
	2,122,644 bbl
	90,000 bpd
	$0.4605/bbl
	Each throughput barrel over the Minimum Throughput Commitment but less than or equal to the Excess Tariff Threshold
	$0.1116/bbl
	$0.2455/bbl (over 120,000 bpd of Refined Products, in the aggregate on average for each Contract Quarter)
	 

	Tulsa Group 2
Loading Rack
	 
	1,800 bpd
	1,800 bpd
	$0.3906/bbl
	—
	—
	—
	 

Exhibit C-8

Exhibit 10.27

	
														
	Applicable Assets
	Type of Applicable Asset
	

Product
	Minimum Capacity Commitment (aggregate capacity unless otherwise noted)
	Minimum Throughput Commitment
(in the aggregate, on average, for each Contract Quarter)
	Base Tariff
(applicable to all movements below the Incentive Tariff Threshold)
	Incentive Tariff Threshold (in the aggregate, on average, for each Contract Quarter)
	Incentive Tariff
(applicable to all movements at or above the Incentive Tariff Threshold)
	Excess Tariff (applicable to all movements above the Excess Tariff Thresholds set forth below, if any)
	Tariff Adjustment
	Tariff Adjustment Minimum/Cap
	Tariff Adjustment Commencement Date
	Assumed OPEX
	Applicable Term 
(all times are Dallas, TX time)

	Tulsa Interconnect-ing Pipelines
	 
	Distillate Interconnect-ing Pipeline – 45,000 bpd (maximum)
	45,000 bpd
	$0.2267/bbl (to 45,000 bpd in the aggregate, on average for each Contract Quarter)
	Over 45,000 bpd and less than or equal to 65,000 bpd
	$0.0758/bbl
	$0.0541/bbl (over 65,000 bpd of Refined Products, in the aggregate on average for each Contract Quarter)
	 

	 
	Gasoline Interconnect-ing Pipeline – 45,000 bpd (maximum)
	45,000 bpd of Intermediate Products shipped between the Tulsa East Refinery and the Tulsa West Refinery via the Interconnecting Pipelines (excluding the Distillate Interconnecting Pipeline and the Tulsa Pipelines

	 

	 
	Hydrogen Interconnect-ing Pipeline –10,000 MSCFD of
hydrogen  (maximum)
	64,000 MSCFD
	$0.0693/ 
MSCF/day
	—
	—
	—
	 

	 
	Refinery Fuel Gas 
Interconnect-ing Pipeline – 32,000 MSCFD of refinery fuel gas (maximum)
	 

	 
	Refinery Sour Fuel Gas Interconnecting Pipeline – 22,000 MSCFD of refinery sour fuel gas (maximum)
	 

Exhibit C-8

Exhibit 10.27

	
														
	Applicable Assets
	Type of Applicable Asset
	

Product
	Minimum Capacity Commitment (aggregate capacity unless otherwise noted)
	Minimum Throughput Commitment
(in the aggregate, on average, for each Contract Quarter)
	Base Tariff
(applicable to all movements below the Incentive Tariff Threshold)
	Incentive Tariff Threshold (in the aggregate, on average, for each Contract Quarter)
	Incentive Tariff
(applicable to all movements at or above the Incentive Tariff Threshold)
	Excess Tariff (applicable to all movements above the Excess Tariff Thresholds set forth below, if any)
	Tariff Adjustment
	Tariff Adjustment Minimum/Cap
	Tariff Adjustment Commencement Date
	Assumed OPEX
	Applicable Term 
(all times are Dallas, TX time)

	Lovington Assets
	Lovington Loading Rack
	Asphalt and any other petroleum or petroleum based or derived products
	4,000 bpd
	4,000 bpd
	$0.3906/bbl
	 
	—
	—
	PPI Adjustment4
	3% in any calendar year
	July 1, 2011
	—
	11:59 p.m. on Mar. 31, 2010 to 12:01 a.m. on Mar. 31, 2025

	Roadrunner Assets
	Pipelines
	Crude Oil
	40,000 bpd
	40,000 bpd
	$0.7174/bbl

	Each throughput barrel over the Minimum Throughput Commitment
	$0.3757/bbl
	—
	PPI Adjustment
	3% plus 1⁄2 of the PPI increase in excess of 3% for such calendar year.
	July 1, 2011
	—
	12:01 a.m. on Dec. 1, 2009 to 12:01 a.m. on Dec. 1, 2024

	El Dorado Crude Tankage
	Tankage
	Crude Oil; Intermediate Products
	140,000 bpd
	140,000 bpd
	$0.0919/bbl
	Each throughput barrel over the Minimum Throughput Commitment
	$0.0101/bbl
	—
	PPI Adjustment
	Subject to 1% minimum / 3% cap
	July 1, 2016
	—
	12:01 a.m. on March 6, 2015 to 12:01 a.m. on March 6, 2025

	Tulsa West Tankage

	Tankage
	Crude/Lef
	396,000 bpd
	80,000 bpd
	$0.218/bbl
	—
	—
	—
	PPI Adjustment
	Subject to 1% minimum / 3% cap9
	July 1, 2017
	$649,896
	12:01 a.m. on March 31, 2016 to 12:01 a.m. on March 31, 2026

* Tariffs listed on this Exhibit are effective as of July 1, 2016, other than the Base Tariff with respect to the El Dorado Assets - Tankage, which is effective as of January 1, 2017.

1. As may be adjusted pursuant to Exhibit G.

2 During the first five years of the Applicable Term, following the Malaga Commencement Date, HFRM shall pay HEP Operating an extra surcharge per barrel (the “Surcharge Tariff”).  The Surcharge Tariff for each Contract Quarter is equal to:

Actual Construction Costs - $38,500,000
Minimum Pipeline Throughput x 365 x 5

Exhibit C-8

Exhibit 10.27

where “Actual Construction Costs” means the actual, reasonable and necessary costs, or as otherwise approved in writing by HFRM, incurred by HEP Operating to construct the Malaga Construction Projects and the Devon Lease Connections; provided, however, that the numerator of the formula for calculating the Surcharge Tariff (Actual Construction Costs - $38,500,000) shall not exceed $13,500,000 such that the maximum value for such numerator shall be $13,500,000.  At the end of each Contract Quarter during the first five years of the Applicable Term, following the Malaga Commencement Date, HFRM shall pay HEP Operating an amount for each Contract Quarter determined by multiplying the Minimum Throughput Commitment for the Malaga Pipeline System for such Contract Quarter, by the Surcharge Tariff.  The Surcharge Tariff is in addition to the Applicable Tariff to be paid by HFRM.

 3From and after the New Tank Commencement Date established pursuant to Exhibit H, if any, the Tankage Base Tariff shall be increased by an amount per barrel equal to: 

Final Construction Cost        
0.9 x 8.1928 x Minimum Tankage Throughput x 365

For example, if the Final Construction Costs = $1,500,000, the per barrel increase in the Tankage Base Tariff would be calculated as follows:
$1,500,000/(0.9 x 8.1928 x 140,000 x 365) = $0.0040.  

4 Reflects reduction in throughput fee effective January 1, 2015 as a result of the secondment arrangement at the El Dorado refinery.  Also reflects reduction in throughput fee effective January 1, 2017 as a result of the sale of tanks 243 and 244 from El Dorado Logistics LLC to HollyFrontier El Dorado Refining LLC.
5 Reflects reduction in throughput fee effective January 1, 2015 as a result of the secondment arrangement at the Cheyenne refinery.
 6The Minimum Interconnecting Pipeline Revenue Commitment shall be an amount of revenue to HEP Operating for each Contract Quarter determined by adding: 1) the Minimum Interconnecting Pipeline Liquid Throughput multiplied by the Interconnecting Pipeline Liquid Tariff, and 2) the Minimum Interconnecting Pipeline Gas Throughput multiplied by the Interconnecting Pipeline Gas Tariff.
 7In the event that any third party transports Crude Oil on the Roadrunner Pipeline for ultimate delivery to HollyFrontier or any of its Subsidiaries and such third party pays throughput fees equal to or greater than the then-current base tariff for each such barrel of Crude Oil transported on the Roadrunner Pipeline for ultimate delivery to HollyFrontier or any of its Subsidiaries (“Qualified Third-Party Throughput”), then revenues paid to HEP Operating by such third party for such Qualified Third-Party Throughput shall be credited towards the Minimum Revenue Commitment hereunder for the Roadrunner Pipeline.
 8If the average throughput for any Contract Quarter (including Qualified Third-Party Throughput) exceeds the Minimum Pipeline Throughput attributable to such Contract Quarter, then for each throughput barrel in excess of the Minimum Pipeline Throughput, HFRM shall pay HEP Operating throughput fees in the amount of the Pipeline Incentive Tariff.
 9For the avoidance of doubt, if the change in PPI in any year is less than one percent (1%) it will be rounded up to one percent (1%) and if the change in PPI in any year is greater than three percent (3%) it will be rounded down to three percent (3%).

Applicable Tariff Adjustments
FERC Adjustment:
Each Applicable Tariff shall be adjusted on July 1 of each index year during the Applicable Term by an amount equal to the percentage change, if any, between the two (2) immediately preceding index years, in the Federal Energy Regulation Commission Oil Pipeline Index (the “FERC Oil Pipeline Index”); provided, however, that if the percentage change, if any, between the two (2) immediately preceding index years in the FERC Oil Pipeline Index is negative, then there will be no change to the Applicable Tariffs. 
PPI Adjustment:
Each Applicable Tariff shall be adjusted on July 1 of each calendar year by an amount equal to the upper change in the annual change rounded to four decimal places of the Producers Price Index-Commodities-Finished Goods, (PPI), 

Exhibit C-8

Exhibit 10.27

et al. (“PPI”), produced by the U.S. Department of Labor, Bureaus of Labor Statistics.  The series ID is WPUFD49207 as of June 1, 2016 – located at http://www.bls.gov/data/.  The change factor shall be calculated as follows: annual PPI index (most current year) less annual PPI index (most current year minus 1) divided by annual PPI index (most current year minus 1).  An example for year 2014 change is: [PPI (2013) – PPI (2012)] / PPI (2012) or (197.3 – 193.3) / 193.3 or .021 or 2.1%.  If the PPI index change is negative in a given year then there will be no change in the tariff unless the tariff is subject to a minimum increase as defined elsewhere in Exhibit C.  
Index no longer Published
If the either index is no longer published, the Parties shall negotiate in good faith to agree on a new index (as applicable) that gives comparable protection against inflation or deflation, and the same method of adjustment for increases or decreases in the new index shall be used to calculate increases or decreases in the tariffs.  If the Parties are unable to agree, a new index will be determined in accordance with the dispute resolution provisions set forth in the Omnibus Agreement, and the same method of adjustment for increases or decreases in the new index shall be used to calculate increases or decreases in the tariffs.

Exhibit C-8

Exhibit 10.27

Exhibit D
to
Third Amended and Restated
Master Throughput Agreement

Measurement of Shipped Volumes

	
			
	Applicable Asset
	Type of Applicable Asset
	Measurement of Volumes

	Malaga Pipeline System
	Pipelines
	Quantities shipped on the Malaga Pipeline System shall be determined by measuring unique barrels of Crude Oil (either by counting barrels or calculating barrels based on available meter data) shipped on the following origin and destination pairings:
Whites City Road Station to HEP Artesia Station 
Whites City Road Station to Beeson Station
Whites City Road Station to Plains Pipeline Bisti Connection
HEP Artesia Station to Beeson Station   
HEP Artesia Station to Plains Pipeline Bisti Connection
Beeson Station to Plains Pipeline Bisti Connection

The origin and destination pairings listed above utilize the following segments of the Pipeline System:
Whites City Road Station to HEP Artesia Station (8-inch)
HEP Artesia Station to Beeson Station (8-inch)
Beeson Station to Plains Pipeline Bisti Connection (12-inch)

Shipments on any other segments of the Malaga Pipeline System will be charged the then-current tariff and fees under the Crude Agreement.

For the avoidance of doubt, a barrel shipped on multiple segments of the Malaga Pipeline System shall only be counted as one barrel in satisfaction of the Minimum Throughput Commitment and shall not count as a separate barrel on each such segment.  For example, a barrel shipped from Whites City Road Station to the Plains Pipeline Bisti Connection shall count as one barrel in satisfaction of the Minimum Throughput Commitment, and not as three barrels since it flows on three segments of the Malaga Pipeline System.

	El Dorado
Assets
	Pipelines
	Pipeline delivery throughput shall be determined by the shipments of Products by pipeline (and not over the Loading Racks) from the El Dorado Refinery.

	Tankage
	Tankage throughput shall be determined by the sum of Products shipped from the El Dorado Refinery but not including shipments of coke and sulfur.  For the avoidance of doubt, no Tankage throughput fees shall be paid for movements of Products within the El Dorado Refinery.

	Loading Rack
	The Loading Rack Tariff will be paid for all quantities of Products or other materials loaded at the Loading Racks or the asphalt loading rack and any Products or other materials shipped using the weight scales.

	Cheyenne Assets
	Cheyenne Receiving Assets
	Crude Oil throughput shall be determined by the total shipments of Crude Oil by pipeline, truck and rail received at the Cheyenne Refinery.

	Cheyenne Tankage
	Tankage throughput shall be determined by the sum of Products shipped by the Refinery but not including shipments of coke and sulfur.  For the avoidance of doubt, no Tankage throughput fees shall be paid for movements of Products within the Cheyenne Refinery.

	Cheyenne Loading Rack
	The Applicable Tariff for the Loading Rack will be paid for (A) all quantities of Products shipped out of the Cheyenne Refinery by pipeline or asphalt loading racks, and (B) all quantities of Products, Crude Oil and any other materials (such as coke and sulfur) loaded at the Loading Racks or the weight scales.

	Tulsa East Assets
	Pipelines
	Pipeline throughput will be determined by the quantities of Refined Product shipped on the Tulsa Pipelines.

Exhibit D-1

Exhibit 10.27

	
			
	 
	Group 1 Tankage
	Group 1 Tankage throughput shall be determined by the sum of Refined Products shipped on the Pipelines and loaded at the Group 1 Loading Rack.  Any streams moved internally within the Tulsa East Refinery will not be included in determining the volumes for any Minimum Revenue Commitment for the Group 1 Tankage.

	Group 1 Loading Rack
	The Group 1 Loading Rack Tariff will be paid for all quantities of Products loaded at the Group 1 Loading Rack.

	Group 2 Tankage
	Group 2 Tankage throughput shall be determined by the sum of pipeline quantities of Crude Oil and Intermediate Products received at the Tulsa East Refinery, including Crude Oil and Intermediate Products received at the Tulsa East Refinery from the Tulsa West Refinery.  Any streams moved internally within the Tulsa East Refinery will not be included in determining the volumes for any Minimum Revenue Commitment for the Group 2 Tankage.  Any Refined Products received from the Tulsa West Refinery or moved out of the Tulsa East Refinery will not be included in determining the volumes for the Minimum Revenue Commitment for the Group 2 Tankage.1

	Group 2 Loading Rack
	The Group 2 Loading Rack Tariff will be paid for all quantities of Products loaded at the Group 2 Loading Rack.

	Interconnecting Pipelines
	The Interconnecting Pipeline Gas Throughput shall be determined by the sum of pipeline quantities of Intermediate Products shipped between the Tulsa East Refinery and the Tulsa West Refinery via the Hydrogen Interconnecting Pipeline, Refinery Fuel Gas Interconnecting Pipeline, and Refinery Sour Fuel Gas Interconnecting Pipeline.  

The Interconnecting Pipeline Liquid Throughput shall be determined by the sum of pipeline quantities of Intermediate Products shipped between the Tulsa East Refinery and the Tulsa West Refinery via the Gasoline Interconnecting Pipeline and Distillate Interconnecting Pipeline.

	Lovington Assets
	Loading Rack
	The Loading Rack Tariff will be paid for all quantities of Products loaded at the Lovington Loading Rack.

	Roadrunner Assets
	N/A
	N/A

	El Dorado Crude Tank Farm Assets
	El Dorado Crude Tankage
	El Dorado Tankage throughput shall be determined by the sum of the pipeline quantities of Product received at the El Dorado Crude Tankage, based on custody transfer meters.  For avoidance of doubt, no throughput fees shall be paid for movements of Products among the El Dorado Crude Tankage.

	Tulsa West Tankage
	Tankage
	Tulsa West Tankage throughput shall be determined by barrels of crude/lef deliveries at the following meters at the Tulsa West Refinery:   #1387, #175, #176, #177, #178, #179, #180, #334, #1373 and #809.

1 For the avoidance of doubt, any high sulfur diesel fuel that HFRM may transport from the Tulsa West Refinery through the Group 1 Tankage or Group 2 Tankage for processing in the Tulsa East Refinery’s distillate hydrotreater shall be subject to the Group 2 Tankage Applicable Tariffs, and the resulting ultra low sulfur diesel fuel produced from the high sulfur diesel fuel and then shipped from the Tulsa East Refinery via either the Tulsa Pipelines or the loading rack located at the Tulsa East Refinery shall be subject to the applicable Group 1 Tankage Applicable Tariffs.

Exhibit D-2

Exhibit 10.27

Exhibit E
to
Third Amended and Restated
Master Throughput Agreement

Volumetric Gains; Losses; Line Fill; High-API Oil Surcharge

Exhibit E-1

Exhibit 10.27

	
				
	Applicable Assets
	Volumetric Gains and Losses
	Line Fill
	High-API Oil Surcharge

	Malaga Pipeline System
	HFRM shall, during the Applicable Term, (i) absorb all volumetric gains in the Malaga Pipeline System, and (ii) be responsible for all volumetric losses in the Malaga Pipeline System up to a maximum of 0.5%.  HEP Operating shall be responsible for all volumetric losses in excess of 0.5% in the Malaga Pipeline System during the Applicable Term.  Volumetric gains and losses shall be calculated and measured in a manner consistent with how and when gains and losses are calculated in the Crude Agreement.
	HFRM shall be responsible for line fill by pipeline segment in accordance with HEP Operating’s policies for each segment as published on the Partnership’s website from time to time.
	In the event HFRM desires to ship Crude Oil on the Malaga Pipeline System with an API Gravity in excess of 50 degrees, HEP Operating may, in its sole discretion, (i) refuse to ship such Crude Oil, or (ii) ship such Crude Oil and charge HFRM a surcharge (the “High-API Surcharge”) equal to the increased expenses (or lower revenues) or capital costs, as a direct result thereof, as agreed upon by the Parties. If the Parties are unable to agree upon the High-API Surcharge, the High-API Surcharge will be determined pursuant to the dispute resolution provisions of the Omnibus Agreement. Any amounts paid by HFRM as a High-API Surcharge shall not count toward satisfaction of any Minimum Revenue Commitment.

	El Dorado Assets
	—
	—
	—

	Cheyenne Assets
	HFRM shall, during the Applicable Term, (i) absorb all volumetric gains in the Cheyenne Receiving Assets, and (ii) be responsible for all volumetric losses in the Cheyenne Receiving Assets up to a maximum of 0.5%.  HEP Operating shall, during the Applicable Term, be responsible for all volumetric losses in excess of 0.5% in the Cheyenne Receiving Assets.  Gains and losses will be calculated for each Contract Quarter and offset against each other.
	—
	—

	Tulsa East Assets
	HFRM shall, during the Applicable Term, (i) absorb all volumetric gains in the Tulsa Pipelines, and (ii) be responsible for all volumetric losses in the Tulsa Pipelines up to a maximum of 0.5%.  HEP Tulsa shall, during the Applicable Term, be responsible for all volumetric losses in excess of 0.5% in the Tulsa Pipelines.  Gains and losses will be calculated for each Contract Quarter and offset against each other.
	—
	—

	Lovington Assets
	—
	—
	—

	Roadrunner Assets
	HFRM shall, during the Applicable Term, (i) absorb all volumetric gains in the Roadrunner Pipeline, and (ii) be responsible for all volumetric losses in the Roadrunner Pipeline up to a maximum of 0.5%.  HEP Operating shall, during the Applicable Term, be responsible for all volumetric losses in excess of 0.5% in the Roadrunner Pipeline.  Gains and losses will be calculated for each Contract Quarter and offset against each other.
	—
	—

	El Dorado Crude Tank Farm Assets
	—
	—
	—

	Tulsa West Tankage
	—
	—
	—

Exhibit E-2

Exhibit 10.27

Exhibit F
to
Third Amended and Restated
Master Throughput Agreement

Increases in Tariff Rates as a Result of Changes in Applicable Law

	
			
	Applicable Assets
	 

	 
	Types of Tariffs that may be increased (as applicable)
	Threshold

	Malaga Pipeline System
	Pipeline Base Tariff
Pipeline Incentive Tariff
	None

	El Dorado Assets
	Pipeline Base Tariff
Tankage Base Tariff
Loading Rack Base Tariff
	No Base Tariff may be amended until HEP Operating has made capital expenditures of $1,000,000 in the aggregate with respect to the El Dorado Assets in order to comply with new Applicable Laws.

Thereafter, HEP Operating may amend the applicable Base Tariff to recover its full cost of complying with the new Applicable Laws and such recovery shall not be limited to amounts in excess of $1,000,000.

	Cheyenne Assets
	Cheyenne Receiving Assets Base Tariff
Cheyenne Tankage Base Tariff
Cheyenne Loading Rack Base Tariff
	No Base Tariff may be amended until HEP Operating has made capital expenditures of $1,000,000 in the aggregate with respect to the Cheyenne Assets in order to comply with new Applicable Laws.

Thereafter, HEP Operating may amend the applicable Base Tariff to recover its full cost of complying with such new Applicable Laws and such recovery shall not be limited to amounts in excess of $1,000,000.

	Tulsa East Assets
	Tulsa Pipelines Base Tariff
Tulsa Group 1 Tankage Base Tariff
Tulsa Group 1 Loading Rack Tariff
Tulsa Group 2 Tankage Base Tariff
Tulsa Group 2 Loading Rack Tariff

	Base Tariff may not be amended until HEP Operating has made capital expenditures of $2,000,000 in the aggregate with respect to the Applicable Assets (excluding the Interconnecting Pipelines) in order to comply with new Applicable Laws.

	Tulsa Interconnecting Pipeline Base Tariff

	Base Tariff may not be amended until HEP Operating has made capital expenditures of $1,000,000 in the aggregate with respect to the Interconnecting Pipelines in order to comply with new Applicable Laws.

	Lovington Assets
	Base Tariff
	Base Tariff may not be amended until HEP Operating has made capital expenditures of $500,000 in the aggregate with respect to the Lovington Loading Rack in order to comply with new Applicable Laws.

Exhibit F-1

Exhibit 10.27

	
			
	Applicable Assets
	 

	Roadrunner Assets
	Pipeline Base Tariff
	Base Tariff may not be amended until HEP Operating has made capital expenditures of $1,000,000 in the aggregate with respect to the Roadrunner Pipeline in order to comply with new Applicable Laws. 

	El Dorado Crude Tank Farm Assets
	Base Tariff

	No Base Tariff may be amended until HEP Operating has made capital expenditures of $1,000,000 in the aggregate with respect to the El Dorado Crude Tank Farm Assets in order to comply with new Applicable Laws.

Thereafter, HEP Operating may amend the applicable Base Tariff to recover its full cost of complying with the new Applicable Laws and such recovery shall not be limited to amounts in excess of $1,000,000.

	Tulsa West Tankage
	Base Tariff
	No Base Tariff may be amended until HEP Operating has made capital expenditures of $2,000,000 in the aggregate with respect to the Tulsa West Tankage in order to comply with new Applicable Laws.

Thereafter, HEP Operating may amend the Base Tariff to recover its full cost of complying with the new Applicable Laws and such recovery shall not be limited to amounts in excess of $2,000,000.

Exhibit F-2

Exhibit 10.27

Exhibit G
to
Third Amended and Restated
Master Throughput Agreement

Special Provisions:  Malaga Pipeline System
1.    Construction Projects.  HEP Operating agrees to use commercially reasonable efforts to (i) complete the construction projects set forth on Exhibit G-2 and (ii) build the 25 lease connections listed on Exhibit G-3 (the “Devon Lease Connections” and, together with the construction projects set forth on Exhibit G-2, the “Malaga Construction Projects”). With respect to Item 4 listed on Exhibit G-2, HFRM shall reimburse HEP Operating 100% of the actual costs and expenses of those Malaga Construction Projects.  HEP Operating shall bear the costs of constructing all of the other Malaga Construction Projects listed on Exhibit G-2 and Exhibit G-3, other than Item 4 on Exhibit G-3.
2.    Option to Increase Minimum Capacity Commitment Following the Malaga Initial Period.  At the end of the Malaga Initial Period and once-a-year thereafter during the Applicable Term, HFRM shall have the option to increase (but not decrease) the Minimum Capacity Commitment for the Malaga Pipeline System applicable to the remainder of the Applicable Term, which option may be exercised as follows:
2.1    Malaga Capacity Estimate.  HFRM may initiate the process by which it will exercise its option by delivering to HEP Operating a written request for a statement of HEP Operating’s good faith estimate of the total uncommitted pipeline capacity for the Malaga Pipeline System that will be available for the remaining Applicable Term (a “Malaga Capacity Estimate”), which request must be made, (i) in the case of the election available at the end of the Malaga Initial Applicable Period, no later than the one hundred twentieth (120th) day before the end of the Malaga Initial Period, and (ii) in the case of the election available at the end of each twelve (12) month period following the end of the Malaga Initial Period (each a “Subsequent Year”), the one-hundred twentieth (120) day before the end of such Subsequent Year.
2.2    Response to Request for Malaga Capacity Estimate.  HEP Operating must respond to each request with a written Malaga Capacity Estimate within ten (10) days of HEP Operating’s receipt of such request.  
2.3    Malaga Exercise Notice.  To exercise its option, HFRM must provide HEP Operating a written notice of exercise (an “Malaga Exercise Notice”) no later than ninety (90) days prior to the end of the Malaga Initial Period or Subsequent Year (as applicable), which Malaga Exercise Notice must contain the amount (stated in bpd) by which HFRM desires to increase the Minimum Capacity Commitment for the Malaga Pipeline System for the next occurring Subsequent Year and the remainder of the Applicable Term.  The amount of increase for which HFRM may exercise this option may not exceed the available uncommitted pipeline capacity for the Malaga Pipeline System as stated in the Malaga Capacity Estimate.  If no written Malaga Exercise Notice is received by such ninetieth (90th) day, then HFRM will be deemed to have waived its option, though such waiver shall not preclude HFRM from exercising its option in Subsequent Years according the process set forth in this Section 2.
2.4    Increase in Minimum Capacity Commitment and Minimum Throughput Commitment.  If HFRM timely exercises its option at the end of the Malaga Initial Period or a 

Exhibit G-3

Exhibit 10.27

Subsequent Year in accordance with this Section 2, then, with respect to the next Subsequent Year and the remainder of the Applicable Term thereafter:
(a)    the Minimum Capacity Commitment for the Malaga Pipeline System shall be increased by the amount specified in the Malaga Exercise Notice; and
(b)    the Minimum Throughput Commitment shall be increased by an amount equal to the increase in the Minimum Capacity Commitment for the Malaga Pipeline System.
For example, if HFRM exercises its option at the end of the Malaga Initial Period to increase the Minimum Capacity Commitment for the Malaga Pipeline System from 40,000 bpd to 50,000 bpd (a 25% increase), then the Minimum Throughput Commitment shall be increased to equal 50,000 bpd (a 25% increase).  This will have the effect of increasing the Minimum Pipeline Revenue Commitment by the operation of Section 2.2(a) of the Agreement.
3.    Third Party Shipping.  During the Malaga Initial Period, HFRM shall have the exclusive right to utilize the entire capacity of the Malaga Pipeline System. After the end of the Malaga Initial Period, if HEP Operating contracts with third parties to ship Crude Oil on the Malaga Pipeline System thereafter during the Applicable Term, subject to the terms of this Agreement, then HEP Operating may not charge any such third party transportation services fees, throughput fees, or other fees that are equal to or less on a per barrel basis (taking into account all applicable incentive tariffs and surcharges) than those charged to HFRM under this Agreement unless such third party agrees to minimum volume and revenue commitments equal to or in excess of those to which HFRM is subject hereunder.  In the event that a third party with whom HEP has contracted agrees to minimum volume and revenue commitments that are equal to those to which HFRM is subject hereunder, and the transportation services fees, throughput fees, or other fees are less on a per barrel basis (taking into account all applicable incentive tariffs and surcharges) than those charged to HFRM under this Agreement, then the tariff rates charged to HFRM under this Agreement shall be automatically reduced to be equal to such third party tariff rates.
4.    Storage.  In addition, following the Malaga Commencement Date, HEP Operating agrees, for no additional fees, to provide storage services of up to 70,000 barrels with regard to Crude Oil shipped using the Malaga Pipeline System (30,000 barrels at the Whites City Road Station and 40,000 barrels at the Beeson Station) and provide limited in-tank Crude Oil blending services when operationally feasible at the HEP Operating Artesia Station to the specifications of HFRM, as such specifications may be adjusted from time to time.
5.    Additional Applicable Tariff.  The Parties hereby acknowledge that the Applicable Tariffs are in addition to tariffs applicable to volumes shipped on the Devon Lease Connections pursuant to the Crude Agreement.

Exhibit G-3

Exhibit 10.27

Exhibit G-1
to
Third Amended and Restated
Master Throughput Agreement

Map of Pipeline System and Pipeline System Capacity by Segment

See attached

Exhibit G-3

Exhibit 10.27

    

Exhibit G-3

Exhibit 10.27

Exhibit G-2
to
Third Amended and Restated
Master Throughput Agreement

Construction Projects
1.    Whites City Road Station
		
	a.
	Build station at the intersection of the idle 8” pipe and Whites City County Road (coordinates _32.064421 Lat _104.135759_ Long).  This station should include 30,000 barrels of tankage for crude to be injected into the 8” headed north.  The amount of property to be leased or purchased will be sufficient to install up to 5 crude truck off-loading LACTS and their associated tanks.

2.    HEP Artesia Station
		
	a.
	Reactivate 8” Malaga Pipeline from the Whites City Road Station to the existing 30,000 barrel tank at HEP Artesia Station.

		
	b.
	Build connecting 8” line between the reactivated 8” Malaga Pipeline and HEP Artesia Station for receipts of sweet crude originating from the Whites City Road Station.

		
	c.
	Tie-in Millman Station and Devon Parkway sweet crude deliveries into the HEP Artesia Station 30,000 barrel tank, i.e., Devon Parkway barrels will be connected into and delivered to the Artesia Station tank.

		
	d.
	Sweet crude oil deliveries out of HEP Artesia Station tank will be connected for delivery to Abo station.

		
	e.
	Build 6” connecting pipeline approximately 6 miles to receive sweet barrels from the Devon Parkway into existing Millman System.

		
	f.
	Build additional truck off loading facility at HEP Artesia Station.

		
	g.
	Build 8” 11-mile pipeline from HEP Artesia Station to Beeson Station.

3.    HEP Beeson Station and Bisti Delivery
		
	a.
	Build approximately 40,000 barrels of tankage at Beeson Station to receive sweet crude.

		
	b.
	Build 6” pipeline (approximately 12 miles) to receive sweet barrels from the Devon Hackberry field.

		
	c.
	Build connection from Anderson Ranch gathering system to the Devon Hackberry to Beeson Station connecting pipeline.  This connection will be made to deliver sweet barrels through the Anderson Ranch pipe and deliver into the tank at the Beeson Station.  

Exhibit G-3

Exhibit 10.27

		
	d.
	Install pumping capacity necessary for delivery into Plains Pipeline at Bisti (to deliver at a rate of up to 80,000 bpd).

		
	e.
	Build 12” 12-mile pipeline from Beeson Station to Plains Pipeline System connection at Bisti.

4.    Build NM sweet truck off-loading station at Whites City Road Station.*
* HEP Operating will manage and construct (4) above and be reimbursed by HFRM for the costs of managing and constructing (4).  HEP Operating will at all times be the owner of (4), including during the period of construction.

Exhibit G-3

Exhibit 10.27

Exhibit G-3
to
Third Amended and Restated
Master Throughput Agreement

Devon Lease Connections

	
				
	Battery Name
	Field Name
	Location
	Status

	Diamond
	Parkway
	32.6519528 N 104.0701295 W
	Producing

	Emerald
	Parkway
	32.6525348 N 104.1045269 W
	Producing

	Beryl
	Parkway
	32.6109502 N 104.0829194 W
	Producing

	Onyx
	Parkway
	32.638176 N 104.093915 W
	Producing

	Coral
	Parkway
	32.6253952 N 104.0745216 W
	Producing

	Turquoise
	Parkway
	32.6365513 N 104.0701851 W
	Producing

	Agate
	Parkway
	32.6520074 N 104.0873003 W
	Producing

	Jasper
	Parkway
	32.623619 N 104.090791 W
	Producing

	Beetle Juice 19 Fed #1H
	Hackberry
	32° 39' 7.41" N 103° 54' 4.05" W
	Producing

	Beetle Juice 19 Fed #3H
	Hackberry
	32° 39' 9.054" N 103° 54' 43.471" W
	Producing

	Capella 14 Fed #1H
	Hackberry
	32° 40' 0.638" N 103° 50' 4.152" W
	Producing

	Strawberry 7 Fed #2
	Hackberry
	32° 40' 43" N 103° 54' 20.8" W
	Producing

	Strawberry 7 Fed #4
	Hackberry
	32° 40' 6.93" N 103° 54' 4.28" W
	Producing

	Sirius 17 Fed #1H
	Hackberry
	32° 39' 59.165" N 103° 54' 2.605" W
	Producing

	Sirius 17 Fed #2H
	Hackberry
	32° 39' 47.98" N 103° 53' 2.44" W
	Producing

	Sirius 17 Fed #3H
	Hackberry
	32° 39' 30.98" N 103° 53' 56.18" W
	Producing

	Arcturus 18 Fed #1H
	Hackberry
	32° 39' 59.66"N 103° 54' 2.607" W
	Producing

	Arcturus 18 Fed #3H
	Hackberry
	32° 39' 23.058" 103° 54' 57.028" W
	Producing

	Rigel 20 Fed Com #1H
	Hackberry
	32° 39' 7.185" N 103° 53' 56.214" W
	Producing

	Rigel 20 Fed Com #3H
	Hackberry
	32° 38' 36.881" N 103° 53' 56.099" W
	Producing

	Regulus 26 Fed #1
	Hackberry
	32° 63' 76.832" N 103° 83' 24.245" W
	Producing

	Spica 25 Fed #1
	Hackberry
	32° 63' 76.834" N 103° 83' 22.620" W
	Producing

	Vega 29 Fed Com #1
	Hackberry
	32° 63' 77.726" N 103° 88' 57.377" W
	Producing

	Serene Sisters 25 Fed #1H
	Hackberry
	32° 43' 31.099" N 103° 49' 3.506" W
	Producing

	Serene Sisters 25 Fed #3H
	Hackberry
	32° 42' 42.721" N 103° 49' 32.488" W
	Producing

Exhibit G-3

Exhibit 10.27

Exhibit H
to
Third Amended and Restated
Master Throughput Agreement

Special Provisions:  El Dorado Assets
1.    Change of Service.  Subject to (i) any Applicable Law and (ii) technical specifications of the El Dorado Tankage, HFRM may request that HEP Operating change the service of any of the El Dorado Tankage from storage of one Product to storage of a different Product.  If HEP Operating agrees to such request, HFRM shall indemnify and hold HEP Operating harmless from and against all costs and expenses associated with any such changing of service including  costs of complying with any Applicable Law affecting such change of service. 
2.    Construction of New Tank.  HEP Operating shall, or shall cause its Affiliate to, use its commercially reasonable efforts to construct a New Tank at the El Dorado Refinery in accordance with the specifications set forth on Exhibit H-3.  If HEP Operating or its Affiliate should fail to complete the New Tank or if the New Tank Commencement Date does not occur for the New Tank for a reason related to the fault of HEP Operating or its Affiliate or a matter that is within or under the control of HEP Operating or its Affiliate, HEP Operating shall bear all costs, liabilities and expenses with respect to such incomplete New Tank, and if HEP Operating or its Affiliate should fail to complete the New Tank or if the New Tank Commencement Date does not occur for the New Tank for any other reason, HFRM shall reimburse HEP Operating or its Affiliate for all costs, liabilities and expenses incurred by HEP Operating or its Affiliate with respect to such incomplete New Tank.  Promptly following the New Tank Commencement Date, HEP Operating will deliver a written certification to HFRM certifying the Final Construction Cost for the New Tank.  Additionally, promptly following the New Tank Commencement Date, the Parties shall execute an amended Exhibit H-2 reflecting the addition of the New Tank and attach it to this Agreement.  Such amended Exhibit H-2 shall be numbered Exhibit H-2.1, dated and appended as an additional schedule to this Agreement and shall replace the prior version of Exhibit H-2 in its entirety after its date of effectiveness. 

Exhibit H-2

Exhibit 10.27

Exhibit H-1
to
Third Amended and Restated
Master Throughput Agreement

El Dorado Loading Rack
The Refined Products Truck Loading Rack and the Propane Truck Loading Rack transferred to El Dorado Logistics pursuant to that certain Conveyance, Assignment and Bill of Sale (El Dorado), dated effective as of October 25, 2011, by and between Frontier El Dorado and El Dorado Logistics.

        Exhibit H-2
to
Third Amended and Restated
Master Throughput Agreement

El Dorado Tankage

	
			
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS

	1
	Naptha
	2,885

	2
	Naptha
	2,885

	3
	ULSD
	40,425

	15
	ULSD
	12,422

	16
	Light Slop
	28,880

	17
	Gasoline
	92,740

	18
	Gasoline
	88,600

	19
	Gasoline
	90,733

	20
	Finish Gasoline
	17,961

	21
	ULSD
	120,639

	23
	ULSD
	113,182

	24
	ULSD
	119,269

	25
	Av Jet
	65,117

	29
	CRU1 Feed
	33,723

	30
	CRU2 Feed
	39,417

	31
	ULSD
	23,792

	32
	Finish Gasoline
	74,847

	64
	Gasoline
	17,961

	65
	Gasoline
	17,941

	66
	Naptha
	22,582

	75
	ULS k
	24,938

Exhibit H-2

Exhibit 10.27

	
			
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS

	78
	ULS k
	9,226

	127
	Heavy Slop
	20,504

	652
	Sour Distilate
	90,000

	642
	HTU2 Chg.
	78,511

	134
	HTU2 Chg.
	76,492

	649
	HTU4 CHg.
	100,000

	137
	Gas Oil/Sour diesel
	191,899

	138
	Gas Oil
	194,091

	139
	Gas Oil
	74,792

	142
	Gas Oil
	191,563

	143
	Gas Oil
	191,570

	159
	Slurry
	9,778

	167
	Slurry
	8,908

	650
	ULSD Dock
	36,000

	178
	Coke Charge/Swing Tank
	80,000

	192
	Idled
	8,908

	212
	Coker Chg.
	76,524

	213
	Asphalt
	77,675

	215
	AV Jet
	67,529

	216
	Alkylate
	72,618

	218
	Gas Oil
	77,675

	219
	Reformate
	71,466

	220
	Swing Tank
	71,495

	221
	Gasoline Swing
	71,508

	222
	Gasoline Swing
	71,509

	223
	Reformate
	72,893

	224
	Jet Fuel
	71,534

	225
	HTU1 Chg, kerosene
	28,882

	226
	Finish Gasoline
	27,679

	227
	Natural Gasoline
	27,701

	230
	Diesel (RAM)
	4,780

	231
	Light Cycle (RAM)
	1,923

	250
	FCCU Gasoline
	75,354

	251
	FCCU Gasoline
	75,968

	252
	FCCU Gasoline
	75,968

	253
	Natural Gasoline
	74,653

	254
	Isomerate
	19,318

	255
	Isomerate
	19,318

	256
	TEL Wash
	950

	447
	Finish Gasoline
	17,730

	448
	Gasoline
	16,109

	453
	Ethanol
	5,121

Exhibit H-2

Exhibit 10.27

	
			
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS

	457
	HTU3 Chg, LSR
	32,690

	458
	Isomerate
	32,690

	490
	ULSD
	116,094

	600
	Propane
	625

	601
	Propane
	625

	602
	Propane
	625

	603
	Propane
	625

	604
	Propane
	625

	605
	Propane
	625

	606
	Propane
	625

	607
	Propane
	625

	608
	Propane
	625

	609
	Propane
	625

	610
	Propane
	625

	611
	Propane
	625

	612
	Propane
	625

	613
	Propane
	625

	614
	Propane
	625

	615
	Propane
	625

	616
	Propane
	625

	617
	Propane
	625

	618
	Propane
	625

	619
	Propane
	625

	620
	Propane
	575

	621
	Propane
	100

	640
	Asphalt
	66,859

	641
	Biodiesel
	6,813

	647
	Asphalt
	76,600

	651
	Heavy Atmospheric Gas Oil (GASO)
	32,000

Exhibit H-2

Exhibit 10.27

Exhibit H-3
to
Third Amended and Restated
Master Throughput Agreement

Specifications for New Tank

	
			
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS

Exhibit I
to
Third Amended and Restated
Master Throughput Agreement

Special Provisions:  Cheyenne Assets
1.    Change of Service.  Subject to (i) any Applicable Law and (ii) technical specifications of the Cheyenne Tankage, HFRM may request that HEP Operating change the service of any of the Cheyenne Tankage from storage of one Product to storage of a different Product.  If HEP Operating agrees to such request, HFRM shall indemnify and hold HEP Operating harmless from and against all costs and expenses associated with any such changing of service including  costs of complying with any Applicable Law affecting such change of service.
Exhibit I-1
to
Third Amended and Restated
Master Throughput Agreement

Cheyenne Loading Rack
The Refined Products Truck Loading Rack, including the Vapor Recovery Unit and the two (2) Propane Loading Spots transferred to Cheyenne Logistics pursuant to that certain Conveyance, Assignment and Bill of Sale (Cheyenne), dated effective as of October 25, 2011, by and between Frontier Cheyenne and Cheyenne Logistics.

Exhibit I-3

Exhibit 10.27

Exhibit I-2
to
Third Amended and Restated
Master Throughput Agreement

Cheyenne Receiving Assets
The four (4) Crude Oil LACTS Units, the Crude Oil Receiving Pipeline, and the petroleum storage tanks listed below under “Petroleum Storage Tanks” transferred to Cheyenne Logistics pursuant to that certain Conveyance, Assignment and Bill of Sale (Cheyenne), dated effective as of October 25, 2011, by and between Frontier Cheyenne and Cheyenne Logistics.
Petroleum Storage Tanks:
	
			
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS

	2-036
	Recovered Oil / Crude slop
	5,056

	2-063
	Crude HSR
	10,096

	2-067
	Crude LSR
	10,093

	2-072
	Crude
	80,581

	2-073
	Crude
	80,551

	2-074
	Crude
	79,766

Exhibit I-3

Exhibit 10.27

Exhibit I-3
to
Third Amended and Restated
Master Throughput Agreement

Cheyenne Tankage

	
			
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS

	1-107
	Intermediate Distillate
	69,942

	1-013
	Coker Distillate
	1,914

	1-014
	Low Sul. Diesel
	24,677

	1-015
	No Lead Gas
	24,677

	1-016
	Ethanol
	2,564

	1-017
	Prem. No Lead Gas
	5,034

	1-020
	FCC Slurry Oil
	5,018

	1-021
	Sweet Naphtha / VRU
	9,867

	1-027
	Slop Oil
	4,000

	1-028
	BioDiesel
	5,179

	1-029
	Coker Gas Oil
	10,709

	1-032
	Diesel
	10,124

	1-033
	Coker Distillate
	10,342

	1-040
	FCC Slurry Oil
	10,121

	1-048
	Coker Distillate
	1,341

	1-049
	Coker Distillate
	1,341

	1-050
	Vacuum Bottoms
	67,428

	1-051
	Slurry
	24,938

	1-052
	PG 58-28 (Asphalt)
	72,017

	1-053
	FCCU Slurry
	13,506

	1-054
	FCCU Slurry
	24,938

	1-055
	PG 58-28 (Asphalt)
	54,499

	1-056
	Coker feed tank
	61,709

	1-058
	Coker Gas Oil
	10,493

	1-090
	PG 64-22 (Asphalt)
	55,954

	1-091
	PG 58-28 (Asphalt)
	55,954

	1-093
	PG 64-22 (Asphalt)
	2,602

	1-094
	PG 64-22 (Asphalt)
	2,602

	1-095
	PG 64-22 (Asphalt)
	2,602

	1-106
	Naptha
	120,000

Exhibit I-3

Exhibit 10.27

	
			
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS

	1-108
	Distillate
	107,000

	1-117
	Vacuum Bottoms
	69,942

	2-015
	Diesel
	28,870

	2-016
	Diesel
	28,046

	2-017
	UC Crack (LCO / Coker Distillate)
	28,562

	2-020
	Gas Oil
	10,746

	2-021
	Gas Oil
	10,746

	2-022
	UC Crack (LCO / Coker Distillate)
	9,731

	2-023
	Coker Gas Oil
	10,583

	2-028
	Cat Gas Oil
	80,153

	2-034
	Reformate
	23,234

	2-035
	Alkylate
	24,190

	2-060
	Burner/Distillate
	9,846

	2-061
	Sweet Naphtha
	10,096

	2-062
	Naptha
	9,970

	2-070
	Sub Grade No Lead Gas
	32,608

	2-071
	Premium No Lead Gas
	32,612

	2-075
	Finished NL gasoline
	80,278

	2-100
	LSR/LSG
	41,978

	2-101
	Diesel
	42,051

	2-102
	No Lead Gas
	80,278

	2-104
	Reformate
	54,749

	2-105
	Cat Gas Oil
	54,954

	2-118
	Light Straight Run
	40,609

	2-119
	FCCU Cat Gas
	40,609

	2-161
	Finished Diesel
	40,485

Exhibit I-3

Exhibit 10.27

Exhibit J
to
Third Amended and Restated
Master Throughput Agreement

Special Provisions:  Tulsa East Assets
1.    Change of Tankage Service.  Subject to (i) any Applicable Law and (ii) technical specifications of the Tulsa Group 1 Tankage or the Tulsa Group 2 Tankage, HFRM may request that HEP Operating change the service of any of the Tulsa Group 1 Tankage or the Tulsa Group 2 Tankage from storage of one Product to storage of a different Product; provided, however, that HFRM shall indemnify and hold HEP Operating harmless from and against all costs and expenses associated with any such changing of service including  costs of complying with any Applicable Law affecting such change of service. 
2.    Change of Interconnecting Pipeline Service.  Subject to (i) any Applicable Law, (ii) technical specifications of the Tulsa Interconnecting Pipelines, and (iii) right-of-way and license agreements, HFRM may request that HEP Operating change the service of any of the Interconnecting Pipelines; provided, however, that HFRM shall indemnify and hold HEP Operating harmless from and against all costs and expenses associated with any such changing of service including costs of complying with any Applicable Law affecting such change of service. 
3.    Construction of New Tank.  HEP Operating shall, or shall cause its Affiliate to, use its commercially reasonable efforts to construct a New Tank at the Tulsa Refinery in accordance with the specifications set forth on Exhibit J-6.  If HEP Operating or its Affiliate should fail to complete the New Tank or if the New Tank Commencement Date does not occur for the New Tank for a reason related to the fault of HEP Operating or its Affiliate or a matter that is within or under the control of HEP Operating or its Affiliate, HEP Operating shall bear all costs, liabilities and expenses with respect to such incomplete New Tank, and if HEP Operating or its Affiliate should fail to complete the New Tank or if the New Tank Commencement Date does not occur for the New Tank for any other reason, HFRM shall reimburse HEP Operating or its Affiliate for all costs, liabilities and expenses incurred by HEP Operating or its Affiliate with respect to such incomplete New Tank.  Promptly following the New Tank Commencement Date, HEP Operating will deliver a written certification to HFRM certifying the Final Construction Cost for the New Tank.  Additionally, promptly following the New Tank Commencement Date, the Parties shall execute an amended Exhibit J-3 reflecting the addition of the New Tank and attach it to this Agreement.  Such amended Exhibit J-3 shall be numbered Exhibit J-3.1, dated and appended as an additional schedule to this Agreement and shall replace the prior version of Exhibit J-3 in its entirety after its date of effectiveness.

Exhibit J-1
to
Third Amended and Restated
Master Throughput Agreement

Tulsa Group 1 Loading Rack

Exhibit J-6

Exhibit 10.27

The Propane Truck Loading Rack, Asphalt Truck Loading Rack and Gas Oil Truck Loading Rack transferred to HEP Tulsa LLC pursuant to that certain Bill of Sale, Assignment and Assumption Agreement, dated December 1, 2009, by and between Sinclair Tulsa Refining Company and HEP Tulsa LLC.
Exhibit J-2
to
Third Amended and Restated
Master Throughput Agreement

Tulsa Group 1 Pipeline
The two Product Delivery Pipelines transferred to HEP Tulsa LLC pursuant to that certain Bill of Sale, Assignment and Assumption Agreement, dated December 1, 2009, by and between Sinclair Tulsa Refining Company and HEP Tulsa LLC.

Exhibit J-3
to
Third Amended and Restated
Master Throughput Agreement

Tulsa Group 1 Tankage

Exhibit J-6

Exhibit 10.27

	
			
	TANK ID
	REFINED PRODUCT
	CAPACITY (BBLS)

	 
	 
	 

	10
	ULSD #2 (XT)
	37,500

	11
	ULSD #2 (XT)
	37,500

	45
	Decant
	5,700

	102
	Kerosene
	37,500

	103
	Kerosene
	37,500

	104A
	ULSD #2 (XT)
	37,500

	110
	ULSD #1
	37,500

	111
	Kerosene
	37,500

	115
	ULSD #2 (XT)
	150,421

	215
	ULSD #2 (XT)
	150,421

	116
	Kerosene
	37,500

	117
	ULSD #2 (XT)
	63,300

	444A
	Naptha
	32,000

	450A
	Premium Unleaded
	12,574

	451
	USLD #2 (XT)
	11,700

	452A
	USLD #2 (XT)
	12,000

	464A
	Unleaded Regular
	73,000

	465
	Unleaded Regular
	79,320

	466
	Unleaded Regular
	79,320

	467A
	Unleaded Regular
	73,000

	470A
	Unleaded Regular
	151,020

	472
	Unleaded Regular
	151,000

	473A
	Premium Unleaded (ST)
	151,020

	601
	Unleaded Regular
	18,634

	602
	Premium Unleaded (ST)
	10,743

	603
	USLD #2 (XT)
	2,000

	605
	Ethanol
	3,528

	606
	Empty
	500

Exhibit J-4
to
Third Amended and Restated
Master Throughput Agreement

Tulsa Group 2 Loading Rack

The Rail Loading Rack transferred to HEP Tulsa LLC pursuant to that certain Conveyance, Assignment and Bill of Sale, dated March 31, 2010, by and between Holly Refining & Marketing – Tulsa LLC and HEP Tulsa LLC.

Exhibit J-6

Exhibit 10.27

        Exhibit J-5
to
Third Amended and Restated
Master Throughput Agreement

Tulsa Group 2 Tankage

	
			
	TANK ID
	CURRENT SERVICE
	CAPACITY (BBLS)

	 
	 
	 

	1
	Crude
	130,450

	2
	Crude
	130,000

	3
	Crude
	116,579

	8
	Crude
	130,233

	123
	CSO
	37,500

	471
	Unleaded Gasoline
	71,371

	107A
	Flux/Asphalt
	55,954

	108A
	Flux/Asphalt
	37,500

	109
	Flux/Asphalt
	37,500

	125
	Flux/Asphalt
	37,500

	131
	Flux/Asphalt
	37,500

	442
	Gasoline blendstock
	11,700

	445A
	Gasoline blendstock
	32,787

	446
	Gasoline blendstock
	11,700

	460
	LSR
	80,000

	461A
	LSR
	80,000

	17
	FCCU LCO
	37,500

	114
	Raw Diesel
	131,000

	9
	Raw gas oil
	150,260

	15
	Raw gas oil
	130,000

	16
	Raw gas oil-Sour
	151,078

	6A
	Raw naphtha
	69,082

	4
	Scanfiner feed
	120,566

	40
	Raw gas oil
	5,734

	41
	CSO
	4,032

	34
	Truck loading-64/22 asphalt
	11,798

	36A
	Truck loading-58/28 asphalt
	11,500

	124A
	Flux/Asphalt
	37,500

	18A
	Slop
	37,500

	31
	Slop
	15,000

	7A
	Naptha
	69,082

	14
	Naptha
	55,000

Exhibit J-6

Exhibit 10.27

Exhibit J-6
to
Third Amended and Restated
Master Throughput Agreement

Specifications for New Tank

	
			
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS

	12
	Naphtha
	32,000

    

Exhibit J-6

Exhibit 10.27

Exhibit K
to
Third Amended and Restated
Master Throughput Agreement

Special Provisions:  El Dorado Crude Tank Farm Assets

		
	1.
	El Dorado Terminal Operation.  HEP Operating will use commercially reasonable efforts to maintain the El Dorado Terminal’s current connections to the pipelines owned and operated by (a) Osage Pipe Line Company, LLC (the “Osage Pipeline”), (b) Rose Rock Midstream, L.P. (the “Rose Rock Pipeline”), and (c) MV Purchasing, LLC (the “MVP Pipeline”), but shall not be required to expend additional monies in connection therewith unless agreed separately in writing with HFRM.  HFRM may request HEP Operating to connect the El Dorado Crude Tankage to new pipelines, whether owned by third parties or by HFRM, subject to HEP Operating’s approval of such connections and the engineering standards related to such; HEP Operating will not unreasonably withhold such approval.  If HEP Operating approves any new connection requested by HFRM, HFRM will reimburse HEP Operating the actual expenses incurred by HEP Operating that are associated with such connection, plus an administrative charge of fifteen percent (15%).  In addition, the Minimum Throughput Commitment will be increased to account for any additional expense HEP Operating bears in connection with ongoing operating expenses associated with such requested pipeline connection.  Any HEP Operating expenditures requested by HFRM beyond pipeline connections will be negotiated separately.

		
	2.
	Tank Use.  HEP Operating shall make available to HFRM on an exclusive basis the shell capacity, minimum and maximum capacities, and working capacity for the El Dorado Crude Tankage.  HEP Operating will make at least two (2) of such tanks available for blending services at all times during the Applicable Term.  HEP Operating and HFRM will work together to assign minimum and maximum capacities of each tank within sixty (60) days following the commencement of the Applicable Term.  These minimum and maximum capacities will be set to allow the most working capacity available to HFRM within reasonable industry practices.  The minimum and maximum capacity for each tank will be used to determine the working capacity of each tank (calculated by subtracting the minimum capacity from the maximum capacity for each Tank) (the “Working Capacity”).  Once the Working Capacity is agreed upon, HEP may assign, in its sole discretion, new maximum and minimum capacities to each tank if required to allow for safe operation.  If HEP determines it is necessary to reduce the aggregate Working Capacity to less than 650,000 Barrels (as such volume may be adjusted pursuant to Section 4 of this Exhibit K (the “El Dorado Minimum Working Capacity”), the Minimum Throughput Commitment will be reduced proportionately.  HFRM may deliver or have delivered Product into the El Dorado Crude Tankage from the El Dorado Refinery, the Osage Pipeline, the Rose Rock Pipeline or the MVP Pipeline.  HFRM agrees not to deliver to the Terminal any Products which fail to meet the El Dorado Quality Specifications, or which would in any way be injurious to the El Dorado Crude Tankage, or that may not lawfully be handled in the Tankage.  HFRM shall be responsible for and pay for all damages resulting from handling of any Products by HFRM, its designee, or its consignee; provided, however, so long as the Products meet the El Dorado Quality Specifications, HFRM shall not be responsible for damages arising from the negligence or willful misconduct of HEP, its agents, employees or contractors or from ordinary wear and tear.

Exhibit L-2

Exhibit 10.27

		
	3.
	Terminal Maintenance, Changes, or Installations.  HEP Operating shall make the El Dorado Crude Tankage available for HFRM’s exclusive use except for times at which a tank must be taken out of service for routine maintenance, in which event HEP Operating will use commercially reasonable efforts to minimize the duration of the outage.  HEP Operating may take more than one tank out of service due to unplanned maintenance, environmental, or operational occurrences and may schedule more than one tank out of service if the duration is minimal (i.e. less than 1 week for seal inspection or mixer repair on top of an API 653 of another tank), but HEP Operating will not schedule more than one tank out of service for extended overlapping periods (e.g., two API 653s at the same time overlapping 1+ weeks).  HEP Operating will provide HFRM written notice at least forty-five (45) days prior to any scheduled maintenance, changes or installations affecting the El Dorado Crude Tankage.  In the event HEP Operating cannot provide any or all of the services during any maintenance, changes or installations within the El Dorado Terminal, or if such maintenance, changes or installations causes HEP Operating to take any tank out of service and HEP Operating does not provide a substitute tank in the place of such tank, the Minimum Throughput Commitment shall be reduced by the Working Capacity of such out-of-service tank for the duration of such outage.  

		
	4.
	Right of First Refusal.  HEP Operating may not lease or pledge or commit to provide any storage services with respect to the El Dorado Crude Tankage or the Jayhawk Tankage (after the expiration of the Jayhawk Lease) at the El Dorado Terminal to a third party unless HEP Operating first offers to HFRM the exclusive right to use the Working Capacity of such tanks on substantially the same terms as HEP Operating has previously negotiated with a third party in arms-length negotiations.  HFRM will have thirty (30) days (the “El Dorado Crude Tank Farm Consideration Period”) to consider the option to utilize such Working Capacity and to provide notice to HEP Operating of its election to accept or decline such Working Capacity.  If HFRM has not notified HEP Operating within 30 days, then HEP Operating may proceed to enter into an agreement with the third party for such Working Capacity; provided, however, that if HEP Operating does not enter into an agreement with the third party within sixty (60) days following HFRM’s notice to decline or the expiration of the El Dorado Crude Tank Farm Consideration Period, then HFRM’s rights under this Section 4 will apply to any subsequent bona fide third party offer to HEP Operating regarding such Working Capacity.

		
	5.
	Jayhawk Tankage.  In the event that the Jayhawk Lease expires or is otherwise terminated or cancelled for any reason and the Jayhawk Tankage are not leased within a reasonable time (not to exceed sixty 60) days) to a third party as contemplated by Section 4 of this Exhibit K, HEP Operating agrees to make the Working Capacity of the Jayhawk Tankage available for HFRM’s exclusive use, and HFRM agrees to increase the Minimum Throughput Commitment by an amount equal to (a) the monthly storage fee that Jayhawk paid to HEP Operating during the last 12 months of the Jayhawk Lease, divided by the Working Capacity of the Jayhawk Tankage, and the El Dorado Minimum Working Capacity shall be increased by an amount equal to two-thirds (2/3) of the Working Capacity of such Jayhawk Tankage.  HFRM’s use of the Jayhawk Tankage will be added to this Agreement as an amendment with all terms and conditions being consistent with this Agreement, and thereafter the term “El Dorado Crude Tankage” as used herein shall include the Jayhawk Tankage.

 
		
	6.
	Right to Refuse.  HEP Operating reserves the right to refuse receipt of any Product into the El Dorado Terminal, alternatively route such Product to another location, or take other appropriate action in regards to such Product if Product does not meet the El Dorado Quality Specifications.  HFRM, if requested in writing, will provide HEP Operating with notice setting forth the quantity, quality, and specifications of Product to be delivered a minimum of four (4) hours prior to any delivery to the El Dorado Terminal.  Any reasonable costs incurred by HEP Operating in connection 

Exhibit L-3

Exhibit 10.27

with addressing or handling HFRM’s Product that does not meet the El Dorado Quality Specifications shall be borne by HFRM.

		
	7.
	Terminal Damage or Destruction.  If any part of the El Dorado Terminal or the El Dorado Crude Tankage are damaged or destroyed by fire or other casualty, HEP Operating shall have the discretion to reduce receipts into and deliveries out of the El Dorado Terminal and to allocate any remaining El Dorado Terminal capacity and throughput fairly and reasonably among various customers utilizing terminalling services at the El Dorado Terminal.  HEP Operating may, but shall not be obligated to, repair or replace such damaged or destroyed terminal facilities or Tanks.

		
	8.
	Delivery Lines.  The El Dorado Crude Tankage is connected to the El Dorado Refinery by two 16” delivery lines, together with associated piping necessary for Product movements into and out of the El Dorado Crude Tankage (the “El Dorado Delivery Lines”).  HEP Operating will operate the El Dorado Delivery Lines for HFRM’s exclusive use.  HEP Operating will operate one of the 16” El Dorado Delivery Lines for Product movements from the El Dorado Crude Tankage to the El Dorado Refinery with a capacity to deliver (a) 130,000 bpd based on a maximum viscosity of 350 SUS at 60 degrees Fahrenheit when operating only one El Dorado Delivery Line, and (b) 165,000 bpd based on a maximum viscosity of 350 SUS at 60 degrees Fahrenheit when operating both El Dorado Delivery Lines.  HEP Operating will operate the other 16” El Dorado Delivery Line for bidirectional use.  HEP Operating will maintain the El Dorado Delivery Lines to gravity feed Product to the El Dorado Refinery or, upon request of HFRM, to pump Product to the El Dorado Refinery at a pressure of at least 25 psig (when operating one El Dorado Delivery Line) and 50 psig (when operating both El Dorado Delivery Lines), as measured at the El Dorado Refinery receipt point.  HEP Operating will maintain at least two (2) full-sized pumps for this service and will operate the pumps at HFRM’s request. 

		
	9.
	Products Testing.  At HFRM’s request and upon HEP Operating’s approval, such approval not to be unreasonably withheld, delayed or conditioned, HEP Operating shall provide sampling and testing services for HFRM’s Products at the El Dorado Terminal.  All fees for Product testing shall be billed to HFRM at HEP Operating’s actual cost.

Exhibit K-1
to
Third Amended and Restated
Master Throughput Agreement

El Dorado Crude Tankage and Jayhawk Tankage

1.    El Dorado Crude Tankage:

Exhibit L-4

Exhibit 10.27

	
			
	Tank ID Number
	Current Service/Product
	Nominal Capacity, BBLs

	4150
	Crude
	80,000

	4153
	Crude
	80,000

	4154
	Crude
	80,000

	4155
	Crude
	125,000

	4156
	Crude
	125,000

	4157
	Crude
	125,000

	4158
	Crude
	125,000

	4159
	Crude
	125,000

	4160
	Crude
	125,000

2.    Jayhawk Tankage: 

	
			
	Tank ID Number
	Current Service/Product
	Nominal Capacity, BBLs

	4151
	Crude
	80,000

	4152
	Crude
	80,000

Exhibit K-2
to
Third Amended and Restated
Master Throughput Agreement

El Dorado Terminal Quality Specifications

Petroleum liquid that has a true vapor pressure equal to or greater than 1.5 psia but not greater than 11.1 psia.

Exhibit L-1
to
Third Amended and Restated
Master Throughput Agreement

Tulsa West Tankage

Exhibit L-5

Exhibit 10.27

	
			
	TANK ID NUMBER
	CURRENT SERVICE/PRODUCT
	NOMINAL CAPACITY, BBLS

	13
	Crude/Lef
	55,000

	186
	Crude/Lef
	55,000

	187
	Crude/Lef
	55,000

	188
	Crude/Lef
	55,000

	244
	Crude/Lef
	55,000

	874
	Crude/Lef
	121,000

Exhibit L-2
to
Third Amended and Restated
Master Throughput Agreement

Special Provisions:
Tulsa West Tankage

1.    Operating Expense Adjustment.  At the end of the first four (4) Contract Quarters during the Applicable Term, HEP Operating shall calculate the aggregate operating expenses incurred in the operation of the Tulsa West Tankage (but such calculation shall not include extraordinary and non-recurring items of expense that are not reasonably expected to recur in future periods during the Applicable Term) (“Initial OPEX”).  In the event that the Initial OPEX exceeds the Assumed OPEX for the Tulsa West Tankage set forth on Exhibit C, (A) HFRM shall, within ten (10) days of receiving an invoice from HEP Operating, reimburse HEP Operating an amount equal to (i) the Initial OPEX minus (ii) the Assumed OPEX (the “OPEX Reimbursement Amount”), and (B) from and after the first four (4) Contract Quarters during the Applicable Term, HEP Operating shall, increase the Base Tariff for the Tulsa West Tankage by the amount necessary to allow HEP Operating to recover the OPEX Reimbursement Amount during each subsequent four (4) Contract Quarter period for the remainder of the Applicable Term, and the Parties shall execute an amended, modified, revised or updated Exhibit C reflecting such aggregate OPEX as the new Assumed OPEX for the Tulsa West Tankage.  In the event that the Initial OPEX is less than the Assumed OPEX for the Tulsa West Tankage, HEP Operating shall decrease the Base Tariff for the Tulsa West Tankage by the amount necessary to account for the difference between the Assumed OPEX for the Tulsa West Tankage and the Initial OPEX for each subsequent four (4) Contract Quarter Period for the remainder of the Applicable Term, and the Parties shall execute an amended, modified, revised or updated Exhibit C reflecting the Initial OPEX as the new Assumed OPEX for the Tulsa West Tankage.

2.    Tank Inspections.  Except with respect to Tanks 186 and 187, HFRM will reimburse HEP Operating for the cost of performing the first API 653 inspection on each of the tanks included in the Tulsa West Tankage and any repairs or tests or consequential remediation that may be required to be made to such assets as a result of any discovery made during such inspection. 

Exhibit L-6

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