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Sunoco Logistics Partners L.P. Acquires Texas Crude Oil Pipeline From Black Hills Energy, Inc.

Posted on: Monday, 9 January 2006, 18:00 CST

PHILADELPHIA, Jan. 9 /PRNewswire-FirstCall/ -- Sunoco Logistics Partners L.P. announced today that it has signed a definitive agreement to purchase a Texas crude oil pipeline system from affiliates of Black Hills Energy, Inc. The system consists of (a) the Millennium Pipeline, a 190-mile, 12-inch crude oil pipeline with 65 mbpd operating capacity, originating near the Partnership's Nederland Terminal, and terminating at Longview Texas; (b) the Kilgore Pipeline, a 200-mile, 10-inch crude oil pipeline with 35,000 barrel per day capacity line originating in Kilgore, Texas and terminating at refineries in the Houston, Texas region; (c) approximately 340 thousand shell barrels of active storage capacity at Kilgore, and Longview, Texas; (d) a lease acquisition marketing business; and (e) crude oil line fill and working inventory. Closing of the transaction is expected within the next 120 days, subject to certain closing conditions.

"One of our strategic investment platforms is the Texas crude oil pipeline and terminal market," said Deborah M. Fretz, President and Chief Executive Officer. "With our strong asset presence in the area represented by the Nederland, Texas terminal and related pipelines, this acquisition will provide even more flexibility for refiners to transport crude oil through our system. The acquired pipeline will provide connectivity to the Houston area as well as increased flexibility for crude oil supply to refiners in Texas and the mid- continent."

Sunoco Logistics Partners L.P. , headquartered in Philadelphia, is a master limited partnership formed to acquire, own and operate refined product and crude oil pipelines and terminal facilities, including those of Sunoco, Inc. The Eastern Pipeline System consists of approximately 1,900 miles of primarily refined product pipelines and interests in four refined products pipelines, consisting of a 9.4 percent interest in Explorer Pipeline Company, a 31.5 percent interest in Wolverine Pipe Line Company, a 12.3 percent interest in West Shore Pipe Line Company and a 14.0 percent interest in Yellowstone Pipe Line Company. The Terminal Facilities consist of 8.9 million barrels of refined product terminal capacity and 19.4 million barrels of crude oil terminal capacity (including 12.5 million barrels of capacity at the Texas Gulf Coast Nederland Terminal). The Western Pipeline System consists of approximately 2,670 miles of crude oil pipelines, located principally in Oklahoma and Texas, a 43.8 percent interest in the West Texas Gulf Pipe Line Company and a 37.0 percent undivided interest in the Mesa Pipe Line System. For additional information visit Sunoco Logistics' web site at http://www.sunocologistics.com/.

Note: Those statements made in this release that are not historical facts are forward-looking statements. Although Sunoco Logistics Partners L.P. (the "Partnership") believes that the assumptions underlying these statements are reasonable, investors are cautioned that such forward-looking statements are inherently uncertain and necessarily involve risks that may affect the Partnership's business prospects and performance causing actual results to differ from those discussed in the foregoing release. Such risks and uncertainties include, by way of example and not of limitation: whether or not the transactions described in the foregoing news release will be cash flow accretive; increased competition; changes in demand for crude oil and refined products that we store and distribute; changes in operating conditions and costs; changes in the level of environmental remediation spending; potential equipment malfunction; potential labor issues; the legislative or regulatory environment; plant construction/repair delays; nonperformance by major customers or suppliers; and political and economic conditions, including the impact of potential terrorist acts and international hostilities. These and other applicable risks and uncertainties have been described more fully in the Partnership's September 30, 2005 Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 3, 2005. The Partnership undertakes no obligation to update any forward-looking statements in this release, whether as a result of new information or future events.

Sunoco Logistics Partners L.P.

CONTACT: Jerry Davis (media), +1-215-977-6298, or Colin Oerton(investors), +1-866-248-4344, both of Sunoco Logistics Partners L.P.

Web site: http://www.sunocologistics.com/

Source: PRNewswire-FirstCall

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