8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 9, 2007

HOLLY CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation)	001-03876 (Commission File Number)	75-1056913 (I.R.S. Employer Identification Number)
100 Crescent Court, Suite 1600 Dallas, Texas (Address of principal executive offices)		75201-6915 (Zip code)

Registrant’s telephone number, including area code: (214) 871-3555

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure.

     On July 9, 2007, Holly Corporation (“the Company”) and Holly Energy Partners, L.P. issued a joint press release announcing the Company has entered into a Memorandum of Understanding with Sinclair Transportation Company (“Sinclair”) to jointly build with Sinclair a new refined products pipeline that will run from Salt Lake City, Utah to Las Vegas, Nevada, together with terminal facilities in the Cedar City, Utah area and North Las Vegas. A copy of the joint press release is attached hereto as Exhibit 99.1 and incorporated herein in its entirety.

     In accordance with General Instruction B.2. of Form 8-K, the information furnished in this report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (“Exchange Act”), or otherwise subject to the liabilities of that section, unless the Company specifically incorporates it by reference in a document filed under the Exchange Act or the Securities Act of 1933. By filing this report on Form 8-K and furnishing this information, the Company makes no admission as to the materiality of any information in this report, including Exhibit 99.1, or that any such information includes material investor information that is not otherwise publicly available.

     The information contained in this report on Form 8-K, including the information contained in Exhibit 99.1, is intended to be considered in the context of the Company’s Securities and Exchange Commission (“SEC”) filings and other public announcements that the Company may make, by press release or otherwise from time to time. The Company disclaims any current intention to revise or update the information contained in this report, including the information contained in Exhibit 99.1, although the Company may do so from time to time as its management believes is warranted. Any such updating may be made through the furnishing or filing of other reports or documents with the SEC, through press releases or through other public disclosure.

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Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

99.1 — Joint Press Release of the Company and Holly Energy Partners, L.P. issued July 9, 2007 announcing Memorandum of Understanding with Sinclair to jointly build a refined products pipeline from Salt Lake City to Las Vegas. *

* Furnished herewith.

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SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HOLLY CORPORATION
By:	/s/ Stephen J. McDonnell
	Stephen J. McDonnell
	Vice President and Chief Financial Officer

Date: July 9, 2007

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EXHIBIT INDEX

Exhibit
Number		Exhibit Title
99.1	—	Joint Press Release of the Company and Holly Energy Partners, L.P. issued July 9, 2007 announcing Memorandum of Understanding with Sinclair to jointly build a refined products pipeline from Salt Lake City to Las Vegas. *

* Furnished herewith.

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EX-99.1

Exhibit 99.1

Holly Corporation and Holly Energy Partners Announce Salt Lake City to Las Vegas Refined Products Pipeline Project

DALLAS, TX, July 9, 2007—Holly Corporation (NYSE:HOC) and Holly Energy Partners (NYSE:HEP) announced today that Holly has entered into a Memorandum of Understanding with Sinclair Transportation Company (“Sinclair”) to jointly build with Sinclair a new refined products pipeline that will run from Salt Lake City, Utah to Las Vegas, Nevada, together with terminal facilities in the Cedar City, Utah area and North Las Vegas (the “UNEV Pipeline”). HEP, a publicly traded petroleum logistics limited partnership, in which Holly owns a 45 percent interest and is the general partner, is expected to be the operator and to have an option to purchase Holly’s interest in the project, effective for a 180-day period commencing when the UNEV Pipeline becomes operational, at a purchase price equal to Holly’s share of actual costs, plus interest at 7% per annum.

The Memorandum of Understanding contemplates that, subject to the execution of definitive agreements, Holly will own a 75% interest and Sinclair will own a 25% interest in the project.

The estimated total cost of the pipeline and two terminals is $300 million, with an expected completion date at the end of 2008. Permit work on the project commenced in June 2006, and it is anticipated that all required permits for the construction of the UNEV Pipeline will be received by April 2008. Orders for pipe and terminal tankage have been placed and construction bid packages for the project are expected to be delivered to contractors in August 2007. The pipeline system will be a twelve-inch line with an initial capacity of 62,000 barrels per day expandable to 120,000 barrels per day.

The UNEV Pipeline will be a common carrier system that will offer refiners in the Salt Lake City area, as well as shippers into Salt Lake City on the Pioneer Pipeline, the ability to transport refined products to Las Vegas, Nevada and the fast growing areas of Southwest Utah.

“This project is a win-win situation for the communities of Salt Lake City, Las Vegas, and Southern Utah as well as Rocky Mountain refiners,” said Matthew P. Clifton, Chairman and CEO of Holly. “Salt Lake City, Las Vegas and several of the cities in Southern Utah are among the fastest growing communities in the United States with increasing energy demands. Las Vegas for the first time will have a diversified source of refined petroleum products to meet its growing demand, rather than depending solely on refined products from Southern California. Salt Lake City and Rocky Mountain refiners, which have become more and more cost efficient due to their proximity to competitively priced Canadian and Black Wax crude oils, will now have an opportunity to expand their facilities to meet growing demand in Las Vegas and Southern Utah while more cost effectively addressing rising seasonal peak demand requirements for refined products in the Salt Lake City area.”

“Holly, Sinclair and Holly Energy will work together on the project, drawing upon HEP’s expertise in the construction and operation of logistical assets. Giving HEP an option to purchase Holly’s share of the UNEV Pipeline after it becomes operational would allow Holly to preserve a core business growth opportunity for HEP without HEP financial commitments in connection with the UNEV Pipeline during the construction phase of the project.”

About Holly Corporation:

Holly Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel and jet fuel. Holly operates through its subsidiaries a 83,000 barrels per day (“bpd”) refinery located in Artesia, New Mexico and a 26,000 bpd refinery in Woods Cross, Utah. Holly also owns a 45% interest (including the general partner interest) in Holly Energy Partners, L.P.

About Holly Energy Partners:

Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides petroleum product transportation and terminal services to the petroleum industry, including Holly Corporation, which owns a 45% interest in the Partnership. The Partnership owns and operates product pipelines and terminals primarily in Texas, New Mexico, Oklahoma, Arizona, Washington, Idaho and Utah. In addition, the Partnership owns a 70% interest in Rio Grande Pipeline Company, a transporter of LPGs from West Texas to Northern Mexico.

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements in this press release relating to matters that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. These statements are based on our beliefs and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties, including those contained in our filings made from time to time with the Securities and Exchange Commission. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that our expectations will prove correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in these statements. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

FOR FURTHER INFORMATION, Contact:
Stephen J. McDonnell, Vice President and Chief Financial Officer,
Holly Corporation / Holly Energy Partners
214-871-3555

M. Neale Hickerson, Vice President—Investor Relations,
Holly Corporation / Holly Energy Partners
214-871-3555