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Domestic Petroleum Refining in a Red Tape World

David L. Lamp

Executive Vice President & Chief Operating Officer HollyFrontier

Chairman American Fuel & Petrochemical Manufacturers

Hydrocarbon Supply Chains

2

Crude Oil Wells

Crude Gathering System Crude Trucks Crude Oil Terminal Nat Gas Well

Refineries

Gasolin

e

Jet F

uel

Die

sel

Football Helmet Gas & Diesel Stations

Airport

Tanker Trucks

Clean Product Pipeline

Consumers

Refinery Product Rack

NGL Separation

Petrochemicals

Consumers

Ethylene Cash Cost Comparison 2012

3

(35% of Globe)

$0

$200

$400

$600

$800

$1000

$1200

MDE Canada -------- Ethane ---------

U.S. U.S. Naphtha

MDE LPG

MDE Naphtha

Europe Asia LPG

NEA SEA Naphtha

U.S. Dollars Per Metric Ton Price

Ethanol RINs Prices

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1/4/2010 1/4/2011 1/4/2012 1/4/2013

Do

llar

per

RIN

2010 RIN

2011 RIN

2012 RIN

2013 RIN

4

Source: OPIS Biofuels Update Through 9/26/2013

Regulating Air Quality

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Regulating Air Quality

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Economy Wide Emissions have Decreased Dramatically, Despite Increased Economic Activity

Conflicts

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• Tier 3 vs GHGs

• Ozone NAAQS vs GHG Emissions

• RFS vs CAFE

• RFS vs GHG Emissions