Transportation Agreements

12 Months Ended

Dec. 31, 2011

Finite-Lived Intangible Assets [Abstract]

Transportation Agreements

Transportation Agreements

Our transportation agreements represent a portion of the total purchase price of certain assets acquired from Alon in 2005 and from HFC in 2008 (at which time we were not a consolidated variable interest entity of HFC) that are based on the respective agreement’s expected future earnings contribution. The Alon agreement is being amortized over 30 years ending 2035 (the initial 15-year term of the agreement plus an expected 15-year extension period) and the HFC agreement is being amortized over 15 years ending 2023 (the term of the HFC agreement).

The carrying amounts are as follows:

	December 31,
	2011		2010
	(In thousands)
Alon transportation agreement	$	59,933	$	59,933
HFC transportation agreement	74,231		74,231
	134,164		134,164
Less accumulated amortization	32,621		25,675
	$	101,543	$	108,489

Amortization expense was $6.9 million, $6.9 million and $7 million for the years ended December 31, 2011, 2010 and 2009, respectively.

We have additional transportation agreements with HFC that relate to assets contributed to us or acquired from HFC consisting of pipeline, terminal and tankage assets. These transactions occurred while we were a consolidated variable interest entity of HFC; therefore, our basis in these agreements does not reflect a step-up in basis to fair value.