THE WALL STREET JOURNAL: Flying J Closes Deal To Purchase Shell Calif Refinery: “Flying J Inc., completed its purchase of the Bakersfield, Calif., refinery from Shell Oil Corp. on Wednesday, according to a Shell spokesman (ShellNews.net) Posted 17 March 05

DOW JONES NEWSWIRES

HOUSTON -- Flying J Inc., (FCP.XX) completed its purchase of the Bakersfield, Calif., refinery from Shell Oil Corp. (RD, SC) on Wednesday, according to a Shell spokesman.

The refinery was initially slated for closure in October 2004, but Shell kept it running under pressure from state politicians, who were concerned with possible price fall-out from closing the plant. The refinery produces 2% of the state's gasoline, and 6% of its diesel fuel.

Bids were entertained throughout the fall, and Flying J's intention to purchase the refinery was announced on Jan. 10.

The refinery sold for $130 million, according to a source familiar with the transaction.

A Flying J subsidiary, Big West Oil Co., will operate the 66,000-barrel-a-day refinery. Big West currently runs Flying J's only other refinery, a 24,000-barrel-a day plant in North Salt Lake, Utah.

"As part of the agreement, Flying J will lease and operate the Shell-owned products terminal adjacent to the refinery and Shell has an agreement to receive a certain amount of refined products from Flying J at the terminal," Shell said in a release issued Wednesday morning.

-By Jessica Resnick-Ault, Dow Jones Newswires; 713-547-9208; jessica.resnick-ault@dowjones.com

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