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Exhibit 10.3

Execution Copy

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CONTRIBUTION AND CONVEYANCE AGREEMENT

AMONG

ANSCHUTZ RANCH EAST PIPELINE LLC

PPS HOLDING COMPANY

PACIFIC ENERGY GP, INC.

PACIFIC ENERGY PARTNERS, L.P.

PACIFIC ENERGY GROUP LLC

ROCKY MOUNTAIN PIPELINE SYSTEM LLC

PACIFIC PIPELINE SYSTEM LLC

AND

RANCH PIPELINE LLC

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CONTRIBUTION AND CONVEYANCE AGREEMENT

        This Contribution and Conveyance Agreement (this "Agreement") dated
July 22, 2002 and effective as of 12:01 a.m. Eastern Standard Time on July 26,
2002 (the "Effective Time"), is entered into by and among, ANSCHUTZ RANCH EAST
PIPELINE LLC, a Delaware limited liability company ("Ranch LLC"), PPS HOLDING
COMPANY, a Delaware corporation ("Holding"), PACIFIC ENERGY GP, INC., a Delaware
corporation ("GP Inc.") PACIFIC ENERGY PARTNERS, L.P., a Delaware limited
partnership (the "MLP"), PACIFIC ENERGY GROUP LLC, a Delaware limited liability
company ("PEG"), ROCKY MOUNTAIN PIPELINE SYSTEM LLC, a Delaware limited
liability company ("Rocky Mountain LLC"), PACIFIC PIPELINE SYSTEM LLC, a
Delaware limited liability company ("PPS"), and RANCH PIPELINE LLC, a Delaware
limited liability company ("Frontier LLC").

RECITALS:

        A.    The Anschutz Corporation, a Kansas corporation ("TAC") and GP Inc.
have formed the MLP pursuant to the Delaware Act (defined below) for the purpose
of, among other things, acquiring, owning and operating crude oil midstream
assets, as well as participating in any and all other lawful activities under
the Delaware Act.

        B.    In order to accomplish the objectives and purposes in the
preceding recital, the following actions have been taken prior to the date
hereof as reflected in the Contribution Agreement dated July 22, 2002:

        1.    Holding formed GP Inc., and contributed $1,000 to GP Inc. as a
capital contribution in exchange for 100% of the stock of GP Inc.

        2.    GP Inc. and TAC formed the MLP, and GP Inc. contributed $20 to the
MLP as a capital contribution in exchange for a 2% general partner interest in
the MLP and TAC contributed $980 to the MLP as a capital contribution in
exchange for a 98% limited partner interest in the MLP.

        3.    TAC caused Anschutz Ranch East Pipeline, Inc., a Utah corporation,
to convert into Ranch LLC.

        4.    TAC contributed and assigned its 100% membership interest in Ranch
LLC to Holding, and in turn, Holding contributed and assigned its 100%
membership interest in Ranch LLC to PEG.

        C.    Concurrently with the consummation of the transactions
contemplated hereby, each of the following matters shall occur:

        1.    Holding will contribute its 100% membership interest in PEG to
GP Inc.

        2.    GP Inc. will contribute its 100% membership interest in PEG to the
MLP in exchange for (a) a continuation of its 2% general partner interest in the
MLP, (b) the issuance of incentive distribution rights ("IDRs"), (c) 1,865,000
common units ("Common Units") representing a 8.7% interest in the MLP,
(d) 10,465,000 subordinated units ("Subordinated Units") representing a 49%
interest in the MLP and (e) the right to receive $104,178,000 of the proceeds
from the Term Loan.

        3.    The public, through the Underwriters, will contribute $167,700,000
to the MLP ($155,961,000, net of $11,739,000 in Underwriters' fees and
commissions) in exchange for 8,600,000 Common Units representing common limited
partner interests with a 40.3% interest in the MLP.

        4.    PEG will (a) borrow $138,000,000 of the Term Loan, (b) pay certain
fees and expenses relating to the Credit Facility, (c) assume $87,000,000 in
existing indebtedness owing by Rocky Mountain LLC, which will be refinanced and
made part of the Term Loan and (d) distribute $104,178,000 to the MLP.

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        5.    The MLP will (a) pay transaction expenses of $4,200,000 in
connection with the public offering of the Firm Units, (b) contribute
$151,761,000 to PEG as a capital contribution, (c) distribute $104,178,000 to
GP Inc. and (d) contribute $4,933,000 to Frontier LLC.

        6.    PEG will use $151,761,000 received from the proceeds of the public
offering and $24,639,000 received from the Term Loan to purchase from Citibank a
note made by PPS in favor of Citibank in the amount of $176,400,000.

        7.    Frontier LLC will retire its debt in the amount of $4,933,000.

        8.    Holding will, at or prior to the consummation of the acquisition
by Pacific Terminals LLC ("Terminals") of the EPTC assets (the "EPTC
Acquisition") pursuant to that certain Asset Sale Agreement dated as of
February 1, 2002 (the "Asset Sale Agreement") between Southern California Edison
Company and Holding (which Asset Sale Agreement was subsequently assigned by
Holding to Terminals), cause Terminals to be contributed to the MLP and the MLP
will cause Terminals to be contributed to PEG, in each case subject to the
receipt of any governmental consents required for such contributions and, if the
EPTC Acquisition has not been consummated at the time of such contributions,
subject to the availability of financing satisfactory to Holding and the MLP for
the consummation of the EPTC Acquisition (it being understood and agreed that
the reimbursement by the MLP to Holding or TAC of any expenses incurred by
Holding or TAC in connection with the negotiation, execution, delivery of, or
performance under, the Asset Sale Agreement or the consummation of the
transactions contemplated thereby shall be permitted pursuant to Section 7.6(c)
of the First Amended and Restated Agreement of Limited Partnership of the MLP
(the "Partnership Agreement"), as may be amended or supplemented). Holding
agrees to cause Terminals not to dispose of the Asset Sale Agreement.

        9.    If the Underwriters exercise the Option, in full or in part, the
net proceeds of that exercise shall be used to redeem a number of Common Units
owned by GP Inc. equal to the number of Common Units sold pursuant to the
exercise of the Option, in reimbursement of certain capital expenditures.

ARTICLE I
DEFINITIONS

        Section 1.1    Terms.    The following defined terms shall have the
meanings given below:

        "Common Units" has the meaning as set forth in the Underwriting
Agreement.

        "Credit Facility" has the meaning as set forth in the Underwriting
Agreement.

        "Delaware Act" means the Delaware Revised Uniform Limited Partnership
Act.

        "Firm Units" has the meaning as set forth in the Underwriting Agreement.

        "IDRs" has the same meaning as "Incentive Distribution Rights" as
defined in the Partnership Agreement.

        "Laws" means any and all laws, statutes, ordinances, rules or
regulations promulgated by a governmental authority, orders of a governmental
authority, judicial decisions, decisions of arbitrators or determinations of any
governmental authority or court.

        "Option" means the Underwriters' over allotment option to purchase up to
1,290,000 Common Units.

        "Subordinated Units" has the meaning as set forth in the Partnership
Agreement.

        "Term Loan" has the meaning as set forth in the Underwriting Agreement.

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        "Underwriters" means Salomon Smith Barney Inc., Deutsche Bank
Securities Inc., Lehman Brothers Inc., UBS Warburg LLC, A.G. Edwards &
Sons, Inc., Raymond James & Associates, Inc., and RBC Dain Rauscher Inc.

ARTICLE II
CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

        Section 2.1    Contribution of PEG Interests by Holding to
GP Inc.    Holding hereby grants, contributes, bargains, sells, conveys,
assigns, transfers, sets over and delivers to GP Inc., its successors and
assigns, for its and their own use forever, all right, title and interest of
Holding in and to PEG as a capital contribution.

        Section 2.2    Contribution of PEG Interests by GP Inc. to the
MLP.    GP Inc. hereby grants, contributes, bargains, sells, conveys, assigns,
transfers, sets over and delivers to the MLP, its successors and assigns, for
its and their own use forever, all right, title and interest of GP Inc. in and
to PEG in exchange for (a) a continuation of its 2% general partner interest in
the MLP, (b) the issuance of the IDRs, (c) 1,865,000 Common Units representing a
8.7% interest in the MLP, (d) 10,465,000 Sub Units representing a 49% interest
in the MLP and (e) the right to receive $104,178,000 of the proceeds from the
Term Loan.

        Section 2.3    Public Cash Contribution.    The parties to this
Agreement acknowledge a cash contribution by the public through the Underwriters
of $167,700,000 to the MLP in exchange for 8,600,000 Common Units representing a
40.3% interest in the MLP.

        Section 2.4    Borrowing, Debt Placement and Distribution by PEG.    PEG
hereby agrees to (a) borrow $138,000,000 of the Term Loan, (b) pay certain fees
and expenses relating to the Credit Facility, (c) assume $87,000,000 in existing
indebtedness owing by Rocky Mountain LLC, which will be refinanced and made part
of the Term Loan and (d) distribute $104,178,000 to the MLP.

        Section 2.5    Payment of Transaction Expenses by the MLP.    The MLP
hereby agrees to pay transaction expenses of $4,200,000 in connection with the
public offering of the Firm Units.

        Section 2.6    Contribution of Cash by the MLP to PEG.    The MLP hereby
contributes $151,761,000 to PEG as a capital contribution.

        Section 2.7    Contribution to GP Inc by the MLP.    The MLP hereby
distributes $104,178,000 to GP Inc.

        Section 2.8    Contribution to Frontier LLC by the MLP.    The MLP
hereby contributes to Frontier LLC $4,933,000.

        Section 2.9    Purchase of Debt of PPS by PEG.    PEG hereby agrees to
use $151,761,000 received from the proceeds of the offering and $24,639,000
received from the Term Loan to purchase from Citibank a note made by PPS in
favor of Citibank in the amount of $176,400,000.

        Section 2.10    Retirement of Debt by Frontier LLC.    Frontier LLC
hereby retires its debt in the amount of $4,933,000.

        Section 2.11    Contribution of Terminals by Holding and MLP to
PEG.    Holding hereby agrees that at or prior to the consummation of the
acquisition by Terminals of the EPTC Acquisition pursuant to the Asset Sale
Agreement between Southern California Edison Company and Holding (which Asset
Sale Agreement was subsequently assigned by Holding to Terminals), it will cause
Terminals to be contributed to the MLP and the MLP will cause Terminals to be
contributed to PEG, in each case subject to the receipt of any governmental
consents required for such contributions and, if the EPTC Acquisition has not
been consummated at the time of such contributions, subject to the availability
of financing satisfactory to Holding and the MLP for the consummation of the
EPTC Acquisition (it being

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understood and agreed that the reimbursement by the MLP to Holding or TAC of any
expenses incurred by Holding or TAC in connection with the negotiation,
execution, delivery of, or performance under, the Asset Sale Agreement or the
consummation of the transactions contemplated thereby shall be permitted
pursuant to Section 7.6(c) of the Partnership Agreement, as may be amended or
supplemented). Holding hereby agrees to cause Terminals not to dispose of the
Asset Sale Agreement.

ARTICLE III
ADDITIONAL TRANSACTIONS

        Section 3.1    Purchase of Additional Common Units.    If the
Underwriters exercise the Option, in full or in part, the net proceeds of that
exercise shall be used to redeem a number of Common Units owned by GP Inc. equal
to the number of Common Units sold pursuant to the exercise of the Option, in
reimbursement of certain capital expenditures.

ARTICLE IV
FURTHER ASSURANCES

        Section 4.1    Further Assurances.    From time to time after the
Effective Time, and without any further consideration the parties hereto shall
execute, acknowledge and deliver all such additional instruments, notices and
other documents and will do all such other acts and things, all in accordance
with applicable law, as may be necessary or appropriate to more fully and
effectively carry out the purposes and intent of this Agreement.

ARTICLE V
EFFECTIVE TIME

        Notwithstanding anything contained in this Agreement to the contrary,
none of the provisions of Article II or Article III of this Agreement shall be
operative or have any effect until the Effective Time at which time all the
provisions of Article II and Article III of this Agreement shall be effective
and operative as of the Effective Time, without further action by any party
hereto.

ARTICLE VI
MISCELLANEOUS

        Section 6.1    Headings; References; Interpretation.    All article and
section headings in this Agreement are for convenience only and shall not be
deemed to control or affect the meaning or construction of any of the provisions
hereof. The words "hereof," "herein" and "hereunder" and words of similar
import, when used in this Agreement, shall refer to this Agreement as a whole,
and not to any particular provision of this Agreement. All references herein to
articles and sections shall, unless the context requires a different
construction, be deemed to be references to the articles and sections of this
Agreement, respectively. All personal pronouns used in this Agreement, whether
used in the masculine, feminine or neuter gender, shall include all other
genders, and the singular shall include the plural and vice versa.

        Section 6.2    Successors and Assigns.    The Agreement shall be binding
upon and inure to the benefit of the parties signatory hereto and their
respective successors and assigns.

        Section 6.3    No Third Party Rights.    The provisions of this
Agreement are intended to bind the parties signatory hereto as to each other and
are not intended to and do not create rights in any other person or confer upon
any other person any benefits, rights or remedies and no person is or is
intended to be a third party beneficiary of any of the provisions of this
Agreement.

        Section 6.4    Counterparts.    This Agreement may be executed in any
number of counterparts, all of which together shall constitute one agreement
binding on the parties hereto.

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        Section 6.5    Governing Law.    This Agreement shall be governed by,
and construed in accordance with, the laws of the State of Delaware applicable
to contracts made and to be performed wholly within such state without giving
effect to conflict of law principles thereof, except to the extent that it is
mandatory that the law of some other jurisdiction shall apply.

        Section 6.6    Severability.    If any of the provisions of this
Agreement are held by any court of competent jurisdiction to contravene, or to
be invalid under, the laws of any political body having jurisdiction over the
subject matter hereof, such contravention or invalidity shall not invalidate the
entire Agreement. Instead, this Agreement shall be construed as if it did not
contain the particular provision or provisions held to be invalid, and an
equitable adjustment shall be made and necessary provision added so as to give
effect to the intention of the parties as expressed in this Agreement at the
time of execution of this Agreement.

        Section 6.7    Amendment or Modification.    This Agreement may be
amended or modified from time to time only by the written agreement of all the
parties hereto.

        Section 6.8    Integration.    This Agreement supersedes all previous
understandings or agreements between the parties, whether oral or written, with
respect to its subject matter. This document is an integrated agreement which
contains the entire understanding of the parties. No understanding,
representation, promise or agreement, whether oral or written, is intended to be
or shall be included in or form part of this Agreement unless it is contained in
a written amendment hereto executed by the parties hereto after the date of this
Agreement.

        Section 6.9    Waiver of Bulk Sales Laws.    Each of the parties hereto
hereby waives compliance with any applicable bulk sales law or any similar law
in any applicable jurisdiction in respect of the transactions contemplated by
this Agreement.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

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        IN WITNESS WHEREOF, this Agreement has been duly executed by the parties
hereto as of the date first written above.

    PPS HOLDING COMPANY
 
 
By:
 
/s/  DOUGLAS L. POLSON      

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        Douglas L. Polson
President
 
 
PACIFIC ENERGY GP, INC.
 
 
By:
 
/s/  IRVIN TOOLE, JR.      

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        Irvin Toole, Jr.
President and Chief Executive Officer
 
 
PACIFIC ENERGY PARTNERS, L.P.
 
 
By:
 
PACIFIC ENERGY GP, INC.,
its General Partner
 
 
 
 
By:
/s/  IRVIN TOOLE, JR.      

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          Irvin Toole, Jr.
President and Chief Executive Officer
 
 
PACIFIC ENERGY GROUP LLC
 
 
By:
 
PPS HOLDING COMPANY,
its sole member
 
 
 
 
By:
/s/  DOUGLAS L. POLSON      

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          Douglas L. Polson
President

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ANSCHUTZ RANCH EAST PIPELINE LLC,
 
 
ROCKY MOUNTAIN PIPELINE SYSTEM LLC,
 
 
PACIFIC PIPELINE SYSTEM LLC, and
 
 
RANCH PIPELINE LLC
 
 
By:
 
PACIFIC ENERGY GROUP LLC,
its sole member
 
 
 
 
By:
PPS HOLDING COMPANY,
its sole member
 
 
 
 
By:
/s/  DOUGLAS L. POLSON      

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          Douglas L. Polson
President

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QuickLinks

Exhibit 10.3

Execution Copy

CONTRIBUTION AND CONVEYANCE AGREEMENT AMONG ANSCHUTZ RANCH EAST PIPELINE LLC PPS
HOLDING COMPANY PACIFIC ENERGY GP, INC. PACIFIC ENERGY PARTNERS, L.P. PACIFIC
ENERGY GROUP LLC ROCKY MOUNTAIN PIPELINE SYSTEM LLC PACIFIC PIPELINE SYSTEM LLC
AND RANCH PIPELINE LLC
CONTRIBUTION AND CONVEYANCE AGREEMENT
RECITALS
ARTICLE I DEFINITIONS
ARTICLE II CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS
ARTICLE III ADDITIONAL TRANSACTIONS
ARTICLE IV FURTHER ASSURANCES
ARTICLE V EFFECTIVE TIME
ARTICLE VI MISCELLANEOUS