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Koch Pipeline and Arrowhead Pipeline Add to South Texas Crude Oil Capacity

Koch Pipeline and Arrowhead Pipeline Add to South Texas Crude Oil Capacity

September 28, 2010

Koch Pipeline Company, L.P. and Arrowhead Pipeline, L.P. will move more Eagle Ford
crude via the Arrowhead pipeline to Corpus Christi following a recent agreement and joint tariff.

“This agreement with Arrowhead is one of several projects to expand the joint capabilities of our pipelines in
South Texas,” said Kim Penner, president of Koch Pipeline. “The Arrowhead lines primarily serve the western
Eagle Ford production area of Frio, LaSalle, McMullen and Live Oak counties. The initial expansion phase is
currently underway and will add capacity throughout 2011 of more than 50,000 barrels of crude and condensate
per day.”

“This is the first in a series of expansions. Together we offer a solution to transport current production and the
future growth in the Eagle Ford,” said Steve Jacobs, president of Arrowhead Pipeline and Harvest Pipeline
Company. “The ability to help producers get their oil to market is critical.”

“Expansion will include extending our mainline to producers, additional pump stations, truck unloading
facilities and crude storage,” Jacobs said. “Ultimately we will install new mainlines to transport the increased

“We believe Corpus Christi is the most cost-effective market to clear Eagle Ford crude and condensate
production,” Penner said. “Arrowhead and Koch Pipeline continue to develop options for adding even more
capacity to accommodate growing domestic production.

“We are also in the process of building a new line to expand delivery capability to Flint Hills Resources’
Ingleside waterborne terminal and actively reviewing a new build extension into Karnes County,” Penner said.
The northern leg of the Arrowhead system runs through the Eagle Ford trend from Maverick County to San
Patricio County. Arrowhead owns an extensive system of oil and gas gathering and mainline systems across
South Texas and Louisiana. Harvest Pipeline Company is the operator of the Arrowhead systems.

Koch Pipeline is the largest pipeline transporter of South Texas crude and operates about 540 miles of active
crude oil transportation lines in Texas. The company has relationships with other crude distribution systems that
further its ability to provide services in this growing production area.

Koch Pipeline Company, L.P. has earned numerous local, state and national level safety awards. Koch Pipeline operates about 4,000 miles of pipelines that transport crude oil, refined products, natural gas liquids and chemicals. Koch Pipeline Company, L.P. is an indirect, wholly owned subsidiary of Koch Industries, Inc. Learn more at