FOR MORE INFORMATION:
Lucy Norton, Managing Director, 515-225-9242
Monte Shaw, Executive Director, 515-225-9242

FOR IMMEDIATE RELEASE

JOHNSTON, Iowa - Jun 30, 2006 - Magellan Midstream Partners, L.P., Iowa’s largest petroleum pipeline and terminal company, recently announced its plans to add biodiesel storage and blending capabilities to its Mason City petroleum terminal. This will be the first Iowa terminal capable of blending biodiesel and comes on the heels of Magellan’s successful addition of biodiesel to its Minnesota and North Dakota terminals.

The project is estimated to cost approximately $1 million dollars and would be operational by the 4th quarter of 2006 or early 2007. Magellan will add heated biodiesel storage and equipment to blend biodiesel from 2 to 20 percent at the “rack” – where the diesel fuel is loaded into tanker trucks.

“This is a huge step forward for biodiesel in Iowa,” noted Monte Shaw, IRFA’s Executive Director. “Getting your product inside the terminal gate is the ‘Holy Grail’ for alternative fuels. This makes biodiesel access much easier for any retailer served by the Mason City terminal. Magellan has been a leader in installing biodiesel blending equipment at their petroleum distribution terminals in Minnesota and North Dakota. We welcome that experience to Iowa and hope this is only the first of their terminals for biodiesel.”

“This investment in our Mason City terminal expands our capabilities to offer the renewable fuels our customers desire by employing a state-of-the-art ratio blending system. Our Mason City system is designed to produce quality biodiesel blends in both warm and cold conditions,” noted Bruce Heine, Magellan’s Director of Government Affairs.

In addition to Mason City, Magellan Midstream Partners, L.P. has Iowa terminals in Des Moines, Dubuque, Fort Dodge, Iowa City, Milford, Sioux City, and Waterloo.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s liquid renewable fuels industry. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.