agreements with hfc and alon we serve hfc 's refineries under long-term pipeline and terminal , tankage and throughput agreements expiring from 2019 to 2026. under these agreements , hfc agreed to transport , store and throughput volumes of refined product and crude oil on our pipelines and terminal , tankage and loading rack facilities that result in minimum annual payments to us . these minimum annual payments or revenues are subject to annual tariff rate adjustments on july 1 , based on the ppi or ferc index . as of december 31 , 2012 , these agreements with hfc will result in minimum annualized payments to us of $ 217.2 million . if hfc fails to meet its minimum volume commitments under the agreements in any quarter , it will be required to pay us in cash the amount of any shortfall by the last day of the month following the end of the quarter . under certain of the agreements , a shortfall payment may be applied as a credit in the following four quarters after minimum obligations are met . we also have a pipelines and terminals agreement with alon expiring in 2020 under which alon has agreed to transport on our pipelines and throughput through our terminals volumes of refined products that result in a minimum level of annual revenue that also is subject to annual tariff rate adjustments . the terms under this agreement expire beginning in 2018 through 2022. we also - 38 - ril 19 , have a capacity lease agreement under which we lease alon space on our orla to el paso pipeline for the shipment of refined product . as of december 31 , 2012 , these agreements with alon will result in minimum annualized payments to us of $ 31.4 million . a significant reduction in revenues under these agreements could have a material adverse effect on our results of operations . under certain provisions of the omnibus agreement that we have with hfc , we pay hfc an annual administrative fee , currently $ 2.3 million , for the provision by hfc or its affiliates of various general and administrative services to us . this fee does not include the salaries of personnel employed by hls who perform services for us or the cost of their employee benefits , which are separately charged to us by hfc . we also reimburse hfc and its affiliates for direct expenses they incur on our behalf . - 39 - ril 19 , results of operations income , distributable cash flow and volumes the following tables present income , distributable cash flow and volume information for the years ended december 31 , 2012 , 2011 and 2010 . replace_table_token_11_th - 40 - ril 19 , replace_table_token_12_th ( 1 ) the amounts presented above have been restated from those we previously reported for the respective periods . see note 2 in notes to consolidated financial statements included in item 8 for a discussion of these revisions . - 41 - ril 19 , ( 2 ) net income is allocated between limited partners and the general partner interest in accordance with the provisions of the partnership agreement . net income allocated to the general partner includes incentive distributions declared subsequent to quarter end . net income attributable to the limited partners is divided by the weighted average limited partner units outstanding in computing the limited partners ' per unit interest in net income . ( 3 ) ebitda is calculated as net income plus ( i ) interest expense , net of interest income , ( ii ) state income tax and ( iii ) depreciation and amortization . ebitda is not a calculation based upon gaap . however , the amounts included in the ebitda calculation are derived from amounts included in our consolidated financial statements , with the exception of ebitda from discontinued operations . ebitda should not be considered as an alternative to net income or operating income , as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity . ebitda is not necessarily comparable to similarly titled measures of other companies . ebitda is presented here because it is a widely used financial indicator used by investors and analysts to measure performance . ebitda is also used by our management for internal analysis and as a basis for compliance with financial covenants . see our calculation of ebitda under item 6 , “ selected financial data . ” ( 4 ) distributable cash flow is not a calculation based upon gaap . however , the amounts included in the calculation are derived from amounts presented in our consolidated financial statements , with the general exceptions of maintenance capital expenditures and distributable cash flow from discontinued operations . distributable cash flow should not be considered in isolation or as an alternative to net income or operating income as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity . distributable cash flow is not necessarily comparable to similarly titled measures of other companies . distributable cash flow is presented here because it is a widely accepted financial indicator used by investors to compare partnership performance . it is also used by management for internal analysis and for our performance units . we believe that this measure provides investors an enhanced perspective of the operating performance of our assets and the cash our business is generating . see our calculation of distributable cash flow under item 6 , “ selected financial data . ” results of operations — year ended december 31 , 2012 compared with year ended december 31 , 2011 summary net income attributable to hep for the year ended december 31 , 2012 was $ 94.2 million , a $ 14.4 million increase compared to the year ended december 31 , 2011 . story_separator_special_tag “ maintenance capital expenditures ” represent capital expenditures to replace partially or fully depreciated assets to maintain the operating capacity of existing assets . maintenance capital expenditures include expenditures required to maintain equipment reliability , tankage and pipeline integrity , safety and to address environmental regulations . “ expansion capital expenditures ” represent capital expenditures to expand the operating capacity of existing or new assets , whether through construction or acquisition . expansion capital expenditures include expenditures to acquire assets , to grow our business and to expand existing facilities , such as projects that increase throughput capacity on our pipelines and in our terminals . repair and maintenance expenses associated with existing assets that are minor in nature and do not extend the useful life of existing assets are charged to operating expenses as incurred . each year the hls board of directors approves our annual capital budget , which specifies capital projects that our management is authorized to undertake . additionally , at times when conditions warrant or as new opportunities arise , additional projects may be approved . the funds allocated for a particular capital project may be expended over a period in excess of a year , depending on the time required to complete the project . therefore , our planned capital expenditures for a given year consist of expenditures approved for capital projects included in the current year 's capital budget as well as , in certain cases , expenditures approved for capital projects in capital budgets for prior years . the 2013 regular capital budget is comprised of $ 10.1 million for maintenance capital expenditures and $ 2.0 million for expansion capital expenditures exclusive of the projects discussed below . in addition to our capital budget , we may spend funds periodically to do capital upgrades of our assets where a customer reimburses us for such costs . these reimbursements would be required under contractual agreements and would generally benefit the customer over the remaining life of such agreements . we recently have made certain modifications to our crude oil gathering and trunk line system that effectively have increased our ability to gather and transport an additional 10,000 barrels per day ( “ bpd ” ) of delaware basin crude oil in response to increased drilling activity in southeast new mexico . we have a second project recently approved which consists of the reactivation and conversion to crude oil service of a 70-mile , 8-inch petroleum products pipeline owned by us . this project also includes the expansion and extension of several of our crude gathering systems and crude mainline pipes . once in service , this system will be capable of transporting crude oil from southeast new mexico to third-party common carrier pipelines in west texas for further transport to major crude oil markets . this project is estimated to cost approximately $ 38.5 million and could be fully operational in late 2013. we also are performing preliminary engineering , routing and cost estimates for two proposed new pipelines . the first proposed pipeline would be a new intrastate crude oil pipeline between cushing , oklahoma and hfc 's tulsa , oklahoma refinery . the 50-mile line would provide safe and reliable transport of cushing sourced domestic and canadian crude oil to hfc 's 125,000 bpd tulsa facility . the pipeline would allow for a significant portion of crude oil transported to be heavy canadian and sour crude oil . crude oil processed at hfc 's tulsa facility currently is transported on pipelines owned by sunoco logistics and magellan pipeline company . the second proposed pipeline would be a new 100-mile interstate petroleum products pipeline between hfc 's cheyenne , wyoming refinery and denver , colorado . the 52,000 bpd refinery , with its ability to process up to 35,000 bpd of heavy canadian crude and its close proximity to growing domestic crude production , is a significant supplier of petroleum products to the denver market . the project also will evaluate the construction of a new petroleum products terminal in north denver or , alternatively , the routing of the new pipeline to existing third-party product terminals in the denver area . this infrastructure addition would ensure safe and reliable transport of petroleum products from hfc 's location-advantaged refinery to its largest market . petroleum products produced at hfc 's cheyenne , wyoming refinery are currently transported to denver on the rocky mountain pipeline 's products line owned by plains all-american . we anticipate that we will be in a position to decide whether to proceed with these projects in the second quarter of 2013 when preliminary engineering and detailed project cost estimates are completed and if necessary shipper commitments can be secured . we expect that our currently planned sustaining and maintenance capital expenditures , as well as expenditures for acquisitions and capital development projects will be funded with existing cash generated by operations , the sale of additional limited partner common units , the issuance of debt securities and advances under our credit agreement , or a combination thereof . with volatility and uncertainty at times in the credit and equity markets , there may be limits on our ability to issue new debt or equity financing . additionally , due to pricing movements in the debt and equity markets , we may not be able to issue new debt and equity securities at acceptable pricing . without additional capital beyond amounts available under the credit agreement , our ability to obtain funds for some of these capital projects may be limited . on july 12 , 2012 , we acquired hfc 's 75 % interest in unev . we paid consideration consisting of $ 260.0 million in cash and 2,059,800 of our common units ( adjusted to reflect the unit split ) . we paid an additional $ 0.9 million to hfc for a post-closing working capital adjustment as provided for by the acquisition agreement . as a result

cash and cash equivalents decreased by $ 1.1 million during the year ended december 31 , 2012 . the cash flows provided by operating activities of $ 161.4 million were less than the cash flows used for financing and investing activities of $ 119.7 million and $ 42.9 million , respectively . working capital increased by $ 5.2 million to $ 11.8 million at december 31 , 2012 from $ 6.6 million at december 31 , 2011 . cash flows—operating activities year ended december 31 , 2012 compared with year ended december 31 , 2011 cash flows from operating activities increased by $ 62.4 million from $ 99.0 million for the year ended december 31 , 2011 to $ 161.4 million for the year ended december 31 , 2012 . this increase is due principally to $ 63.0 million in additional cash collections from our customers , partially offset by payments attributable to increased operating expenses . our major shippers are obligated to make deficiency payments to us if they do not meet their minimum volume shipping obligations . under certain agreements with these shippers , they have the right to recapture these amounts if future volumes exceed minimum levels . we billed $ 4.6 million during the year ended december 31 , 2011 related to shortfalls that subsequently expired without recapture and were recognized as revenue during the year ended december 31 , 2012 . another $ 7.8 million is included in our accounts receivable at december 31 , 2012 related to shortfalls that occurred during the year ended december 31 , 2012 . - 45 - ril 19 , year ended december 31 , 2011 compared with year ended december 31 , 2010 cash flows from operating activities decreased by $ 5.7 million from $ 104.7 million for the year ended december 31 , 2010 to $ 99.0 million for the year ended december 31 , 2011. this decrease is due principally to payments attributable to increased interest and operating expenses , net of $ 11.1 million in additional cash collections from our customers .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash and cash equivalents decreased by $ 1.1 million during the year ended december 31 , 2012 . the cash flows provided by operating activities of $ 161.4 million were less than the cash flows used for financing and investing activities of $ 119.7 million and $ 42.9 million , respectively . working capital increased by $ 5.2 million to $ 11.8 million at december 31 , 2012 from $ 6.6 million at december 31 , 2011 . cash flows—operating activities year ended december 31 , 2012 compared with year ended december 31 , 2011 cash flows from operating activities increased by $ 62.4 million from $ 99.0 million for the year ended december 31 , 2011 to $ 161.4 million for the year ended december 31 , 2012 . this increase is due principally to $ 63.0 million in additional cash collections from our customers , partially offset by payments attributable to increased operating expenses . our major shippers are obligated to make deficiency payments to us if they do not meet their minimum volume shipping obligations . under certain agreements with these shippers , they have the right to recapture these amounts if future volumes exceed minimum levels . we billed $ 4.6 million during the year ended december 31 , 2011 related to shortfalls that subsequently expired without recapture and were recognized as revenue during the year ended december 31 , 2012 . another $ 7.8 million is included in our accounts receivable at december 31 , 2012 related to shortfalls that occurred during the year ended december 31 , 2012 . - 45 - ril 19 , year ended december 31 , 2011 compared with year ended december 31 , 2010 cash flows from operating activities decreased by $ 5.7 million from $ 104.7 million for the year ended december 31 , 2010 to $ 99.0 million for the year ended december 31 , 2011. this decrease is due principally to payments attributable to increased interest and operating expenses , net of $ 11.1 million in additional cash collections from our customers .
```    
 Suspicious Activity Report : agreements with hfc and alon we serve hfc 's refineries under long-term pipeline and terminal , tankage and throughput agreements expiring from 2019 to 2026. under these agreements , hfc agreed to transport , store and throughput volumes of refined product and crude oil on our pipelines and terminal , tankage and loading rack facilities that result in minimum annual payments to us . these minimum annual payments or revenues are subject to annual tariff rate adjustments on july 1 , based on the ppi or ferc index . as of december 31 , 2012 , these agreements with hfc will result in minimum annualized payments to us of $ 217.2 million . if hfc fails to meet its minimum volume commitments under the agreements in any quarter , it will be required to pay us in cash the amount of any shortfall by the last day of the month following the end of the quarter . under certain of the agreements , a shortfall payment may be applied as a credit in the following four quarters after minimum obligations are met . we also have a pipelines and terminals agreement with alon expiring in 2020 under which alon has agreed to transport on our pipelines and throughput through our terminals volumes of refined products that result in a minimum level of annual revenue that also is subject to annual tariff rate adjustments . the terms under this agreement expire beginning in 2018 through 2022. we also - 38 - ril 19 , have a capacity lease agreement under which we lease alon space on our orla to el paso pipeline for the shipment of refined product . as of december 31 , 2012 , these agreements with alon will result in minimum annualized payments to us of $ 31.4 million . a significant reduction in revenues under these agreements could have a material adverse effect on our results of operations . under certain provisions of the omnibus agreement that we have with hfc , we pay hfc an annual administrative fee , currently $ 2.3 million , for the provision by hfc or its affiliates of various general and administrative services to us . this fee does not include the salaries of personnel employed by hls who perform services for us or the cost of their employee benefits , which are separately charged to us by hfc . we also reimburse hfc and its affiliates for direct expenses they incur on our behalf . - 39 - ril 19 , results of operations income , distributable cash flow and volumes the following tables present income , distributable cash flow and volume information for the years ended december 31 , 2012 , 2011 and 2010 . replace_table_token_11_th - 40 - ril 19 , replace_table_token_12_th ( 1 ) the amounts presented above have been restated from those we previously reported for the respective periods . see note 2 in notes to consolidated financial statements included in item 8 for a discussion of these revisions . - 41 - ril 19 , ( 2 ) net income is allocated between limited partners and the general partner interest in accordance with the provisions of the partnership agreement . net income allocated to the general partner includes incentive distributions declared subsequent to quarter end . net income attributable to the limited partners is divided by the weighted average limited partner units outstanding in computing the limited partners ' per unit interest in net income . ( 3 ) ebitda is calculated as net income plus ( i ) interest expense , net of interest income , ( ii ) state income tax and ( iii ) depreciation and amortization . ebitda is not a calculation based upon gaap . however , the amounts included in the ebitda calculation are derived from amounts included in our consolidated financial statements , with the exception of ebitda from discontinued operations . ebitda should not be considered as an alternative to net income or operating income , as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity . ebitda is not necessarily comparable to similarly titled measures of other companies . ebitda is presented here because it is a widely used financial indicator used by investors and analysts to measure performance . ebitda is also used by our management for internal analysis and as a basis for compliance with financial covenants . see our calculation of ebitda under item 6 , “ selected financial data . ” ( 4 ) distributable cash flow is not a calculation based upon gaap . however , the amounts included in the calculation are derived from amounts presented in our consolidated financial statements , with the general exceptions of maintenance capital expenditures and distributable cash flow from discontinued operations . distributable cash flow should not be considered in isolation or as an alternative to net income or operating income as an indication of our operating performance or as an alternative to operating cash flow as a measure of liquidity . distributable cash flow is not necessarily comparable to similarly titled measures of other companies . distributable cash flow is presented here because it is a widely accepted financial indicator used by investors to compare partnership performance . it is also used by management for internal analysis and for our performance units . we believe that this measure provides investors an enhanced perspective of the operating performance of our assets and the cash our business is generating . see our calculation of distributable cash flow under item 6 , “ selected financial data . ” results of operations — year ended december 31 , 2012 compared with year ended december 31 , 2011 summary net income attributable to hep for the year ended december 31 , 2012 was $ 94.2 million , a $ 14.4 million increase compared to the year ended december 31 , 2011 . story_separator_special_tag “ maintenance capital expenditures ” represent capital expenditures to replace partially or fully depreciated assets to maintain the operating capacity of existing assets . maintenance capital expenditures include expenditures required to maintain equipment reliability , tankage and pipeline integrity , safety and to address environmental regulations . “ expansion capital expenditures ” represent capital expenditures to expand the operating capacity of existing or new assets , whether through construction or acquisition . expansion capital expenditures include expenditures to acquire assets , to grow our business and to expand existing facilities , such as projects that increase throughput capacity on our pipelines and in our terminals . repair and maintenance expenses associated with existing assets that are minor in nature and do not extend the useful life of existing assets are charged to operating expenses as incurred . each year the hls board of directors approves our annual capital budget , which specifies capital projects that our management is authorized to undertake . additionally , at times when conditions warrant or as new opportunities arise , additional projects may be approved . the funds allocated for a particular capital project may be expended over a period in excess of a year , depending on the time required to complete the project . therefore , our planned capital expenditures for a given year consist of expenditures approved for capital projects included in the current year 's capital budget as well as , in certain cases , expenditures approved for capital projects in capital budgets for prior years . the 2013 regular capital budget is comprised of $ 10.1 million for maintenance capital expenditures and $ 2.0 million for expansion capital expenditures exclusive of the projects discussed below . in addition to our capital budget , we may spend funds periodically to do capital upgrades of our assets where a customer reimburses us for such costs . these reimbursements would be required under contractual agreements and would generally benefit the customer over the remaining life of such agreements . we recently have made certain modifications to our crude oil gathering and trunk line system that effectively have increased our ability to gather and transport an additional 10,000 barrels per day ( “ bpd ” ) of delaware basin crude oil in response to increased drilling activity in southeast new mexico . we have a second project recently approved which consists of the reactivation and conversion to crude oil service of a 70-mile , 8-inch petroleum products pipeline owned by us . this project also includes the expansion and extension of several of our crude gathering systems and crude mainline pipes . once in service , this system will be capable of transporting crude oil from southeast new mexico to third-party common carrier pipelines in west texas for further transport to major crude oil markets . this project is estimated to cost approximately $ 38.5 million and could be fully operational in late 2013. we also are performing preliminary engineering , routing and cost estimates for two proposed new pipelines . the first proposed pipeline would be a new intrastate crude oil pipeline between cushing , oklahoma and hfc 's tulsa , oklahoma refinery . the 50-mile line would provide safe and reliable transport of cushing sourced domestic and canadian crude oil to hfc 's 125,000 bpd tulsa facility . the pipeline would allow for a significant portion of crude oil transported to be heavy canadian and sour crude oil . crude oil processed at hfc 's tulsa facility currently is transported on pipelines owned by sunoco logistics and magellan pipeline company . the second proposed pipeline would be a new 100-mile interstate petroleum products pipeline between hfc 's cheyenne , wyoming refinery and denver , colorado . the 52,000 bpd refinery , with its ability to process up to 35,000 bpd of heavy canadian crude and its close proximity to growing domestic crude production , is a significant supplier of petroleum products to the denver market . the project also will evaluate the construction of a new petroleum products terminal in north denver or , alternatively , the routing of the new pipeline to existing third-party product terminals in the denver area . this infrastructure addition would ensure safe and reliable transport of petroleum products from hfc 's location-advantaged refinery to its largest market . petroleum products produced at hfc 's cheyenne , wyoming refinery are currently transported to denver on the rocky mountain pipeline 's products line owned by plains all-american . we anticipate that we will be in a position to decide whether to proceed with these projects in the second quarter of 2013 when preliminary engineering and detailed project cost estimates are completed and if necessary shipper commitments can be secured . we expect that our currently planned sustaining and maintenance capital expenditures , as well as expenditures for acquisitions and capital development projects will be funded with existing cash generated by operations , the sale of additional limited partner common units , the issuance of debt securities and advances under our credit agreement , or a combination thereof . with volatility and uncertainty at times in the credit and equity markets , there may be limits on our ability to issue new debt or equity financing . additionally , due to pricing movements in the debt and equity markets , we may not be able to issue new debt and equity securities at acceptable pricing . without additional capital beyond amounts available under the credit agreement , our ability to obtain funds for some of these capital projects may be limited . on july 12 , 2012 , we acquired hfc 's 75 % interest in unev . we paid consideration consisting of $ 260.0 million in cash and 2,059,800 of our common units ( adjusted to reflect the unit split ) . we paid an additional $ 0.9 million to hfc for a post-closing working capital adjustment as provided for by the acquisition agreement . as a result

