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SANTA FE PACIFIC PARTNERS ANNOUNCES RESULTS

 SANTA FE PACIFIC PARTNERS ANNOUNCES RESULTS
 LOS ANGELES, Jan. 15 /PRNewswire/ -- Santa Fe Pacific Pipeline


Partners L.P. (NYSE: SFL) announced fourth quarter 1991 net income of $15.1 million, or $0.77 per unit, 4 percent below net income of $15.7 million, or $0.81 per unit, for the same period last year.
 For the year ended Dec. 31, 1991, net income of $60.6 million, or $3.10 per unit, was 5 percent below net income of $63.6 million, or $3.28 per unit, for 1990. Net income for the year included $1.1 million awarded to the partnership in July as a result of binding arbitration regarding prior year rental fees.
 Irvin Toole Jr., chairman, president and chief executive officer of the general partner, stated that increased volumes and revenue compared to the prior year quarter were encouraging, but this improvement was offset by increased operating expenses and reduced interest income.
 Commercial volumes, which accounted for over 94 percent of total volumes, were 1 percent higher when compared to the prior year quarter. For the year, commercial deliveries were 1 percent lower than 1990.
 Military volumes were 1 percent higher compared to the prior year quarter, when the military deployment to the Persian Gulf negatively impacted military fuel requirements at bases served by the partnership. For the year, military volumes were 8 percent lower as a result of the military deployment as well as downsizing at several bases.
 Fourth quarter revenues of $49.3 million were 6 percent higher than the prior year quarter, due to the 1 percent increase in total volumes and terminal and pipeline rate increases implemented earlier in the year. For the year, revenues of $193.4 million were slightly higher than 1990 revenues of $192.9 million, reflecting the rate increases noted above.
 Operating expense of $25.0 million increased 12 percent over the prior year quarter, as a result of higher property taxes, depreciation expense, and major maintenance costs, including a $0.4 million charge related to the Sparks, Nev., remediation project. For the year, operating expenses were $97.6 million, a 4 percent increase over 1990.
 The $0.4 million charge at Sparks reflects the partnership's share of costs expected to be incurred for the site investigation and development of a remediation plan which will be completed and submitted to the Environmental Protection Agency (EPA) in March 1992. The costs of remediation will also be shared by the partnership and other responsible parties operating near the remediation site. At this time, the extent of the partnership's potential liability under the EPA cleanup order cannot be reasonably estimated and, accordingly, no provision for future remediation costs has been recorded. However, based on the information currently available, the partnership does not anticipate that the costs of complying with this order will have a material adverse effect on the partnership's financial condition.
 The partnership currently anticipates that during 1992, sufficient information will be available to reasonably estimate the costs of complying with the EPA order. At such time the partnership expects to record a provision which will represent the then best estimate of the partnership's potential liability under the EPA order.
 Capital expenditures for the quarter were $12.0 million, an increase of $0.6 million compared to the same period last year. For the full year, capital expenditures totaled $27.7 million vs. $29.2 million in 1990.
 Santa Fe Pacific Pipeline Partners, L.P., is the largest independent refined petroleum products pipeline in the United States in terms of revenue generated. The partnership serves six Western states with approximately 3,300 miles of common carrier pipeline and 14 truck loading terminals.
 SANTA FE PACIFIC PIPELINE PARTNERS L.P.
 Condensed Statement of Income
 (Unaudited)
 (Dollars in millions, except per unit amounts)
 Three months ended Year ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Operating
 revenues $49.3 $46.6 $193.4 $192.9
 Operating expenses
 (excluding depreciation
 & amortization) 20.7 18.3 80.8 78.1
 Depreciation and
 amortization 4.3 4.1 16.8 15.9
 Total operating expenses 25.0 22.4 97.6 94.0
 Operating income 24.3 24.2 95.8 98.9
 Interest and debt expense 9.3 9.3 36.9 37.3
 Other income, net 0.4 1.0 2.9 2.8
 Minority interest (0.3) (0.2) (1.2) (0.8)
 Net income $15.1 $15.7 $60.6 $63.6
 Net income per unit (a) $0.77 $0.81 $3.10 $3.28
 (a) Based on 19,148,148 preference and common units outstanding during all periods presented.
 -0- 1/15/92
 /CONTACT: Thomas L. Lambert of Santa Fe Pacific Pipeline Partners L.P., 213-486-7766/
 (SFL) CO: Santa Fe Pacific Pipeline Partners L.P. ST: California IN: OIL SU: ERN


EH-CH -- LA023 -- 0221 01/15/92 17:02 EST
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Date:Jan 15, 1992
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