RESOLVED: Shareholders of HollyFrontier Corporation (the “Company”) urge the board of
directors to prepare a report to shareholders by the 2021 annual meeting, at reasonable cost and
excluding confidential information, on Tier 1 Process Safety Events as reported to American
Petroleum Institute Recommended Practice 754 and environmental violations as defined by the
Environmental Protection Agency.

Supporting Statement: In recent years accidents at U.S. refineries have resulted in worker fatalities and billions of dollars in losses. The 2005 BP Texas City Refinery accident killed 15 workers and injured 180
and the 2012 Chevron Richmond Refinery explosion resulted in 15,000 people seeking medical
attention. A 2017 Chemical Safety and Hazard Investigation Board report stated these incidents cost approximately $1.95 billion.(1)

A Journal of Environmental Economics and Management study analyzed 64 explosions in plants and refineries between 1990 and 2005 and found that on average the market value of each company dropped by 1.3% in the two days after the accidents. They determined that each casualty corresponds to a $164 million loss and each toxic release cost $1 billion in value.(2) 

In the past five years, HollyFrontier has suffered costly outages and been fined over $2.5 million by the Environmental Protection Agency and Occupational Safety and Health Administration. 

On March 6, 2019, a propane line exploded at HollyFrontier El Dorado Refinery shutting down the facility for weeks. At the same refinery on September 4, 2017 an explosion in the Pug Unit resulted in the fatality of operator Tim Underwood, extensive damage, and costly liabilities.(4)

On March 13, 2018, a fire erupted at HollyFrontier Woods Cross Refinery, causing extensive damage to the Crude Unit and reducing operations.(3)

The threat of health, safety or environmental incidents presents a significant and material risk for shareholders and therefore requires a higher level of transparency.

We believe shareholders should be provided with a detailed report on the Company’s safety and environmental record for the previous year at each annual meeting to make informed investment
decisions and help the company better mitigate future incidents. 

For these reasons, we urge shareholders to vote FOR this resolution.

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(1) U.S. Chemical Safety and Hazard Investigation Board. (2017). Safety Business Case: Safety
Is Good Business And Good Public Policy.
https://www.csb.gov/assets/1/6/csb_business_case_for_safety.pdf
(2) Marie-Aude Laguna, Gunther Capelle-Blancard. How Does the Stock Market Respond to
Chemical Disasters? Journal of Environmental Economics and Management, Elsevier, 2010, 59
(2), pp.192-205.
(3) Oil & Gas Journal, Fire results in reduced rates at HollyFrontier’s Wood Cross refinery,
03/26/2018, https://www.ogj.com/articles/2018/03/fire-results-in-reduced-rates-at-hollyfrontiers-
wood-cross-refinery.html
(4) The Wichita Eagle, Man burned in explosion at El Dorado refinery dies, 09/05/2017,
https://www.kansas.com/news/local/article171297377.html

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