Document:

EX-10.4

 Exhibit 10.4 

 
  
 OMNIBUS AGREEMENT 
 by and among 

PHILLIPS 66 COMPANY, 
 PHILLIPS 66 PIPELINE LLC, 
 PHILLIPS 66 PARTNERS LP, 

PHILLIPS 66 PARTNERS HOLDINGS, LLC, 
 PHILLIPS 66 CARRIER LLC 
 and 

PHILLIPS 66 PARTNERS GP LLC 
  

 

 Contents 

 

							
	 Article I. Defined Terms
	  	 	2	  
			
	 Section 1.01
	 	 Defined Terms
	  	 	2	  
	 Section 1.02
	 	 Other Defined Terms
	  	 	6	  
	 Section 1.03
	 	 Terms Generally
	  	 	6	  
		
	 Article II. Term
	  	 	7	  
			
	 Section 2.01
	 	 Term and Termination
	  	 	7	  
		
	 Article III. Indemnity
	  	 	7	  
			
	 Section 3.01
	 	 Environmental Indemnification
	  	 	7	  
	 Section 3.02
	 	 Right of Way and Real Property Indemnification
	  	 	9	  
	 Section 3.03
	 	 Additional Indemnification by Company and Pipeline
	  	 	9	  
	 Section 3.04
	 	 Additional Indemnification by the Partnership
	  	 	10	  
	 Section 3.05
	 	 Indemnification Procedures
	  	 	10	  
	 Section 3.06
	 	 No Cap on Indemnity Coverage
	  	 	11	  
		
	 Article IV. Services
	  	 	12	  
			
	 Section 4.01
	 	 Operational and Administrative Services
	  	 	12	  
	 Section 4.02
	 	 Reimbursable Costs
	  	 	14	  
		
	 Article V. Right of First Offer
	  	 	15	  
			
	 Section 5.01
	 	 Right of First Offer to Purchase Certain Assets
	  	 	15	  
	 Section 5.02
	 	 Procedures
	  	 	15	  
		
	 Article VI. License of Name and Mark
	  	 	17	  
			
	 Section 6.01
	 	 Grant of License
	  	 	17	  
	 Section 6.02
	 	 Ownership and Quality
	  	 	17	  
	 Section 6.03
	 	 Termination
	  	 	17	  
		
	 Article VII. Prefunded Projects
	  	 	17	  
			
	 Section 7.01
	 	 Prefunded Projects
	  	 	17	  
		
	 Article VIII. Notices
	  	 	18	  
			
	 Section 8.01
	 	 Notices
	  	 	18	  
	 Section 8.02
	 	 Effective upon Receipt
	  	 	18	  
		
	 Article IX. Applicable Law
	  	 	18	  
			
	 Section 9.01
	 	 Applicable Law
	  	 	18	  
		
	 Article X. Limitation of Liability
	  	 	18	  
			
	 Section 10.01
	 	 No Liability for Consequential Damages
	  	 	18	  
	 Section 10.02
	 	 Limitation of Liability
	  	 	18	  

  
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	 Article XI. Miscellaneous
	  	 	19	  
			
	 Section 11.01
	 	 Disputes between the Parties
	  	 	19	  
	 Section 11.02
	 	 Assignment
	  	 	19	  
	 Section 11.03
	 	 No Third-Party Rights
	  	 	19	  
	 Section 11.04
	 	 Compliance with Laws
	  	 	19	  
	 Section 11.05
	 	 Severability
	  	 	19	  
	 Section 11.06
	 	 Non-Waiver
	  	 	19	  
	 Section 11.07
	 	 Entire Agreement
	  	 	19	  
	 Section 11.08
	 	 Amendments
	  	 	20	  
	 Section 11.09
	 	 Survival
	  	 	20	  
	 Section 11.10
	 	 Counterparts; Multiple Originals
	  	 	20	  
	 Section 11.11
	 	 Exhibits and Schedules
	  	 	20	  
	 Section 11.12
	 	 Table of Contents; Headings; Subheadings
	  	 	20	  
	 Section 11.13
	 	 Construction
	  	 	20	  
	 Section 11.14
	 	 Business Practices
	  	 	20	  

  

			
	Schedule I	  	Environmental Matters
	Schedule II	  	Litigation
	Schedule III	  	Services
	Schedule IV	  	Prefunded Projects
		
	Exhibit A	  	Dispute Resolution Procedures

  
 ii 

 OMNIBUS AGREEMENT 

This OMNIBUS AGREEMENT (“Agreement”) is entered into as of the Effective Date by and among PHILLIPS 66
COMPANY, a Delaware corporation (“Company”), on behalf of itself and the other Phillips 66 Entities (as defined herein), PHIILLIPS 66 PIPELINE LLC, a Delaware limited liability company
(“Pipeline”), PHIILLIPS 66 PARTNERS LP, a Delaware limited partnership (the “Partnership”), PHILLIPS 66 PARTNERS HOLDINGS LLC, a Delaware limited liability company (“Holdings”),
PHILLIPS 66 CARRIER LLC, a Delaware limited liability company (“Carrier”), and PHILLIPS 66 PARTNERS GP LLC, a Delaware limited liability company (the “General Partner”). 

Recitals 

WHEREAS, The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in
Article III, with respect to certain indemnification obligations of the Parties to each other. 
 WHEREAS, the
Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article IV, with respect to the amount to be paid by the Partnership for the operational and administrative support services to be
performed by the General Partner and its Affiliates (as defined herein) for and on behalf of the Partnership Group (as defined herein). 
 WHEREAS, the Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article V, with respect to the Partnership Group’s right of
first offer with respect to the ROFO Assets (as defined herein). 
 WHEREAS, the Parties desire by their execution of
this Agreement to evidence their understanding, as more fully set forth in Article VI, with respect to the granting of a license to the Partnership Group and the General Partner to use Company’s name and trademark. 

WHEREAS, the Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in
Article VII, with respect to certain projects that will be undertaken by the Partnership Group after the Effective Date and the prepayment by Company of certain amounts relating to such projects. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound, the Parties agree as follows: 

  
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 ARTICLE I. DEFINED TERMS 
 Section 1.01 Defined Terms. The following definitions shall for all purposes apply to the capitalized terms used in this Agreement: 

 

	(a)	“Affiliate” has the meaning ascribed to that term in the Partnership Agreement. 

 

	(b)	“Agreement” means this Omnibus Agreement, together with all exhibits and schedules attached hereto, as the same may be amended, supplemented or
restated from time to time in accordance with the provisions hereof. 

  

	(c)	“Assets” means all gathering pipelines, transportation pipelines, storage tanks, trucks, truck racks, terminal facilities, offices and related
equipment, real estate and other assets, or portions thereof, conveyed, contributed or otherwise transferred or intended to be conveyed, contributed or otherwise transferred pursuant to the Contribution Agreement to any member of the Partnership
Group, or owned by, leased by or necessary for the operation of the business, properties or assets of any member of the Partnership Group, prior to or as of the Effective Date. 

 

	(d)	“Business Day” means any Day except for Saturday, Sunday or a legal holiday in Texas. 

 

	(e)	“Company” has the meaning ascribed to that term in the introductory paragraph. 

 

	(f)	“Contribution Agreement” means that certain Contribution, Conveyance and Assumption Agreement, dated as of the Effective Date, among Company,
the General Partner, the Partnership, Holdings, 66 Pipeline LLC, Phillips Texas Pipeline Company Ltd., Carrier and Phillips 66 Pipeline LLC, together with the additional conveyance documents and instruments contemplated or referenced thereunder, as
such may be amended, supplemented or restated from time to time. 

  

	(g)	“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities, by contract, or otherwise. 

  

	(h)	“Covered Environmental Losses” has the meaning ascribed to that term in Section 3.01(a). 

 

	(i)	“Covered Property Losses” has the meaning ascribed to that term in Section 3.02. 

 

	(j)	“Day” means the period of time commencing at 0000 hours on one calendar day and running until, but not including, 0000 hours on the next
calendar day, according to local time in Houston, Texas. 

  

	(k)	“Effective Date” means the date of the closing of the initial public offering of common units representing limited partner interests in the
Partnership. 

  
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	(l)	“Environmental Laws” means all federal, state, and local laws, statutes, rules, regulations, orders, judgments, ordinances, codes, injunctions,
decrees, Environmental Permits and other legally enforceable requirements and rules of common law now or hereafter in effect, relating to (a) pollution or protection of human health, natural resources, wildlife and the environment including,
without limitation, the federal Comprehensive Environmental Response, Compensation, and Liability Act, the Superfund Amendments Reauthorization Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Federal Water Pollution Control
Act, the Toxic Substances Control Act, the Oil Pollution Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act, and other environmental conservation and protection laws and the regulations promulgated pursuant thereto, and any
state or local counterparts, each as amended from time to time, and (b) the generation, manufacture, processing, distribution, use, treatment, storage, transport, or handling of any hazardous wastes. 

 

	(m)	“Environmental Permit” means any permit, approval, identification number, license, registration, certification, consent, exemption, variance or
other authorization required under or issued pursuant to any applicable Environmental Law, including applications for renewal of such permits in which the application allows for continued operation under the terms of an expired permit.

  

	(n)	“General Partner” has the meaning ascribed to that term in the introductory paragraph. 

 

	(o)	“Governmental Authority” means any government, any governmental administration, agency, instrumentality or other instrumentality or other
political subdivision thereof or any court, commission or other governmental authority of competent jurisdiction. 

  

	(p)	“Hazardous Substance” means (a) any substance, whether solid, liquid, gaseous, semi-solid or any combination thereof, that is designated,
defined or classified as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic or hazardous substance, or terms of similar meaning, or that is otherwise regulated under any Environmental Law, including, without
limitation, any hazardous substance as defined under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, and including friable asbestos and lead containing paints or coatings, radioactive materials, and
polychlorinated biphenyls, and (b) petroleum, oil, gasoline, natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel, and other refined petroleum hydrocarbons, solely to the extent regulated under applicable Environmental Laws.

  

	(q)	“Indemnified Party” means any applicable Partnership Group Member or any applicable Phillips 66 Entity, as the case may be, in its capacity as
the party entitled to indemnification in accordance with Article III. 

  
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	(r)	“Indemnifying Party” means either the Partnership or Company, as the case may be, in its capacity as the Party from which indemnification may be
sought in accordance with Article III. 

  

	(s)	“Law” means all constitutions, laws (including common law), treaties, statutes, orders, decrees, rules, injunctions, licenses, permits,
approvals, agreements, regulations, codes, ordinances issued by any Governmental Authority, including judicial or administrative orders, consents, decrees, and judgments, published directives, guidelines, governmental authorizations, requirements or
other governmental restrictions which have the force of law, and determinations by, or interpretations of any of the foregoing by any Governmental Authority having jurisdiction over the matter in question and binding on a given Person, whether in
effect as of the date hereof or thereafter and, in each case, as amended. 

  

	(t)	“License” has the meaning ascribed to that term in Section 6.01. 

 

	(u)	“Limited Partner” has the meaning ascribed to that term in the Partnership Agreement. 

 

	(v)	“Losses” means any losses, damages, liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses
(including, without limitation, court costs and reasonable attorney’s and expert’s fees) of any and every kind or character, known or unknown, fixed or contingent. 

 

	(w)	“Marks” has the meaning ascribed to that term in Section 6.01. 

 

	(x)	“Month” or “Monthly” means a calendar month commencing at 0000 hours on the first Day thereof and running until, but not
including, 0000 hours on the first Day of the following calendar month, according to local time in Houston, Texas. 

  

	(y)	“Name” has the meaning ascribed to that term in Section 6.01. 

 

	(z)	“Notice” means any notice, request, instruction, correspondence or other communication permitted or required to be given under this Agreement.

  

	(aa)	“Operational and Administrative Support Fee” has the meaning ascribed to that term in Section 4.01(a). 

 

	(bb)	“Operational Services Agreement” means that certain Operational Services Agreement, dated as of the Effective Date, among Carrier, Holdings and
Phillips 66 Pipeline LLC, as such may be amended, supplemented or restated from time to time. 

  

	(cc)	“Parties” means Company, Pipeline, the Partnership, Holdings, Carrier and the General Partner, collectively. 

 

	(dd)	“Partnership” has the meaning ascribed to that term in the introductory paragraph. 

  
 4 

	(ee)	“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of the Effective
Date, as such agreement is in effect on the Effective Date, to which reference is hereby made for all purposes of this Agreement. 

  

	(ff)	“Partnership Change of Control” means Company ceases to Control the general partner of the Partnership. 

 

	(gg)	“Partnership Group” means the Partnership and any of its Subsidiaries, treated as a single consolidated entity. 

 

	(hh)	“Partnership Group Member” means any member of the Partnership Group. 

 

	(ii)	“Partnership Interest” has the meaning ascribed to that term in the Partnership Agreement. 

 

	(jj)	“Party” means Company, Pipeline, the Partnership, Holdings, Carrier or the General Partner, individually. 

 

	(kk)	“Person” means, without limitation, an individual, corporation (including a non-profit corporation), general or limited partnership, limited
liability company, joint venture, estate, trust, association, organization, labor union, or other entity or Governmental Authority, and shall include any successor (by merger or otherwise) of such entity. 

 

	(ll)	“Phillips 66 Entities” means Company and any Person Controlled, directly or indirectly, by Company other than the General Partner or a member of
the Partnership Group; and “Phillips 66 Entity” means any of the Phillips 66 Entities. 

  

	(mm)	“Pipeline” has the meaning ascribed to that term in the introductory paragraph. 

 

	(nn)	“PPI-FG” has the meaning ascribed to that term in Section 4.01(b). 

 

	(oo)	“Prefunded Projects” has the meaning ascribed to that term in Section 7.01. 

 

	(pp)	“Proposed Transaction” has the meaning ascribed to that term in Section 5.02(a). 

 

	(qq)	“Prudent Industry Practice” means such practices, methods, acts, techniques, and standards as are in effect at the time in question that are
required by and in accordance with applicable Law and are consistent with the higher of (a) the standards generally followed by reputable owners and operators of crude oil and refined petroleum products pipelines and terminals in the United
States, including the inland marine terminal industry, and (b) the standards applied or followed by Company or its Affiliates as owners or operators of such assets, or by the Partnership Group or its Affiliates as owners or operators of such
assets. 

  
 5 

	(rr)	“Registration Statement” means the Registration Statement on Form S-1 filed by the Partnership with the United States Securities and Exchange
Commission (Registration No. 333-187582), as amended. 

  

	(ss)	“Retained Assets” means all gathering pipelines, transportation pipelines, storage tanks, trucks, truck racks, terminal facilities, offices and
related equipment, real estate and other related assets, or portions thereof, owned by any of the Phillips 66 Entities that were not directly or indirectly conveyed, contributed or otherwise transferred to the Partnership Group pursuant to the
Contribution Agreement or the other documents referred to in the Contribution Agreement. 

  

	(tt)	“ROFO Assets” means Pipeline’s limited liability company interest in each of (i) Phillips 66 Sand Hills LLC and (ii) Phillips 66
Southern Hills LLC. 

  

	(uu)	“ROFO Notice” has the meaning ascribed to that term in Section 5.02(a). 

 

	(vv)	“ROFO Period” has the meaning ascribed to that term in Section 5.01(a). 

 

	(ww)	“ROFO Response” has the meaning ascribed to that term in Section 5.02(a). 

 

	(xx)	“Taxes” means any income, sales, use, excise, transfer, and similar taxes, fees and charges (including ad valorem taxes), including any interest
or penalties attributable thereto, imposed by any Governmental Authority. 

  

	(yy)	“Tax Sharing Agreement” means that certain Tax Sharing Agreement, dated as of the Effective Date, between the Partnership and Phillips 66, a
Delaware corporation, as such may be amended, supplemented or restated from time to time. 

  

	(zz)	“Transfer” means to, directly or indirectly, sell, assign, lease, convey, transfer or otherwise dispose of, whether in one or a series of
transactions. 

  

	(aaa)	“Services” has the meaning ascribed to that term in Section 4.01(a). 

 

	(bbb)	“Subsidiary” has the meaning ascribed to that term in the Partnership Agreement. 

 

	(ccc)	“Voting Stock” means securities of any class of a Person entitling the holders thereof to vote on a regular basis in the election of members of
the board of directors or other governing body of such Person. 

 Section 1.02 Other Defined Terms. Other terms may be
defined elsewhere in this Agreement, and, unless otherwise indicated, shall have such meanings ascribed to such terms elsewhere in this Agreement. 
 Section 1.03 Terms Generally. The definitions in this Agreement shall apply equally to both singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. The word “include,” “includes” and “including” shall be deemed to be followed by the phrase 

  
 6 

 
“without limitation.” All references to Articles, Sections, Exhibits and schedules shall be deemed to be references to Articles and Sections of, and Exhibits and schedules to, this
Agreement unless the context requires otherwise. 
 ARTICLE II. TERM 

Section 2.01 Term and Termination. This Agreement shall commence on the Effective Date and shall continue in effect until terminated by a
written agreement executed by all of the Parties. At any time following the occurrence of a Partnership Change of Control, either Company or the Partnership may terminate this Agreement upon written Notice to the other and such termination shall be
effective at the later of such Partnership Change of Control and the date specified in such Notice; provided, however, that the Parties’ indemnification obligations under Article III shall, to the fullest extent permitted by law,
survive the termination of this Agreement in accordance with their respective terms. 
 ARTICLE III. INDEMNITY 

Section 3.01 Environmental Indemnification. 
  

	(a)	Subject to Section 3.01(b), Company and Pipeline shall indemnify, defend and hold harmless the Partnership Group from and against any Losses suffered or
incurred by the Partnership Group, directly or indirectly, or as a result of any claim by a third party, by reason of or arising out of the following (collectively, “Covered Environmental Losses”): 

 

	 	(i)	any violation or correction of a violation of Environmental Laws associated with or arising from the ownership or operation of the Assets; 

 

	 	(ii)	any event, condition or matter associated with or arising from the ownership or operation of the Assets (including, without limitation, the presence of Hazardous
Substances on, under, about or migrating to or from the Assets or the disposal or release of Hazardous Substances generated by operation of the Assets at non-Asset locations) that requires investigation, assessment, evaluation, monitoring,
containment, cleanup, repair, restoration, remediation, or other corrective action under Environmental Laws, including, without limitation, (A) the cost and expense of any such activity, (B) the cost or expense of the preparation and
implementation of any closure, remedial, corrective action, or other plans required or necessary under Environmental Laws, and (C) the cost and expense of any environmental or toxic tort pre-trial, trial or appellate legal or litigation support
work; 

  

	 	(iii)	any environmental event, condition or matter associated with or arising from the Retained Assets, whether occurring before or after the Effective Date.

  
 7 

	(b)	With respect to any discrete violation under Section 3.01(a)(i) or any discrete environmental event, condition or matter included under
Section 3.01(a)(ii), Company and Pipeline will be obligated to indemnify the Partnership Group only if and to the extent that such violation, event, condition or environmental matter: 

 

	 	(i)	occurred before the Effective Date under then-applicable Environmental Laws; and 

 

	 	(ii)	either (A) such violation, event, condition or environmental matter is set forth on Schedule I attached hereto or (B) Company is notified in writing of
such violation, event, condition or environmental matter prior to the fifth anniversary of the Effective Date. 

For the avoidance of doubt, nothing in this Section 3.01(b) shall apply to Company’s and Pipeline’s indemnification
obligations under Section 3.01(a)(iii). 
  

	(c)	The Partnership Group shall indemnify, defend and hold harmless each of the Phillips 66 Entities from and against any Losses suffered or incurred by the Phillips 66
Entities, directly or indirectly, or as a result of any claim by a third party, by reason of or arising out of: 

  

	 	(i)	any violation of Environmental Laws associated with or arising from the ownership or operation of the Assets; and 

 

	 	(ii)	any event, condition or matter associated with or arising from the ownership or operation of the Assets (including, without limitation, the presence of Hazardous
Substances on, under, about or migrating to or from the Assets or the disposal or release of Hazardous Substances generated by operation of the Assets at non-Asset locations) that requires investigation, assessment, evaluation, monitoring,
containment, cleanup, repair, restoration, remediation, or other corrective action under Environmental Laws, including, without limitation, (A) the cost and expense of any such activity, (B) the cost or expense of the preparation and
implementation of any closure, remedial, corrective action, or other plans required or necessary under Environmental Laws, and (C) the cost and expense of any environmental or toxic tort pre-trial, trial or appellate legal or litigation support
work; 

 and regardless of whether such violation under Section 3.01(c)(i) or such event, condition or
environmental matter included under Section 3.01(c)(ii) occurred before or after the Effective Date, in each case, to the extent that any of the foregoing do not constitute Covered Environmental Losses for which the Partnership Group is
entitled to indemnification from Company and Pipeline under this Article III. 

  
 8 

 Section 3.02 Right of Way and Real Property Indemnification. Company and Pipeline shall
indemnify, defend and hold harmless the Partnership Group from and against any Losses suffered or incurred by the Partnership Group by reason of arising out of the following (collectively, “Covered Property Losses”):

  

	(a)	the failure of the applicable Partnership Group Member to be the owner of such valid and indefeasible easement rights or fee ownership or leasehold interests in and to
the lands on which any crude oil or refined products pipeline or related pump station, storage tank, terminal or truck rack or any related facility or equipment conveyed or contributed to the applicable Partnership Group Member on the Effective Date
is located as of the Effective Date, and such failure renders the Partnership Group liable to a third party or unable to use or operate the Assets in substantially the same manner that the Assets were used and operated by the applicable Phillips 66
Entity immediately prior to the Effective Date as described in the Registration Statement; 

  

	(b)	the failure of the applicable Partnership Group Member to have the consents, licenses and permits necessary to allow any such pipeline referred to in clause (a) of
this Section 3.02 to cross the roads, waterways, railroads and other areas upon which any such pipeline is located as of the Effective Date, and such failure renders the Partnership Group liable to a third party or unable to use or
operate the Assets in substantially the same manner that the Assets were used and operated by the applicable Phillips 66 Entity immediately prior to the Effective Date as described in the Registration Statement; and 

 

	(c)	the cost of curing any condition set forth in clause (a) or (b) of this Section 3.02 that does not allow any Asset to be operated in
accordance with Prudent Industry Practice; 

 in each case to the extent that Company is notified in writing of any of the
foregoing prior to the fifth anniversary of the Effective Date. 
 Section 3.03 Additional Indemnification by Company and Pipeline.
In addition to and not in limitation of the indemnification provided under Section 3.01(a) and Section 3.02, Company and Pipeline shall indemnify, defend, and hold harmless the Partnership Group from and against any Losses
suffered or incurred by the Partnership Group by reason of or arising out of any of the following: 
  

	(a)	(i) the consummation of the transactions contemplated by the Contribution Agreement or (ii) events and conditions associated with the ownership or operation of the
Assets and occurring before the Effective Date (other than Covered Environmental Losses, which are provided for under Section 3.01, Covered Property Losses, which are provided for under Section 3.02, and current liabilities
incurred in the ordinary course of business that have been accrued but not paid prior to the Effective Date), to the extent that Company is notified in writing of any such Loss prior to the fifth anniversary of the Effective Date;

  

	(b)	any litigation matters attributable to the ownership or operation of the Assets prior to the Effective Date, including any currently pending legal actions against any
of the Phillips 66 Entities set forth on Schedule II attached hereto (“Covered Litigation Matters”); 

  
 9 

	(c)	events and conditions associated with the Retained Assets and whether occurring before or after the Effective Date; 

 

	(d)	all federal, state and local Tax liabilities attributable to the ownership or operation of the Assets prior to the Effective Date, including under Treasury Regulation
Section 1.1502-6 (or any similar provision of state or local law), and any such Tax liabilities of any of the Phillips 66 Entities that may result from the consummation of the formation transactions for the Partnership Group and the General
Partner occurring on or prior to the Effective Date or from the consummation of the transactions contemplated by the Contribution Agreement (other than real property taxes that have been accrued but not paid prior to the Effective Date); and

  

	(e)	the failure of any Partnership Group Member to have on the Effective Date any consent, license, permit or approval necessary to allow such Partnership Group Member to
own or operate the Assets in substantially the same manner described in the Registration Statement. 

 Section 3.04
Additional Indemnification by the Partnership. In addition to and not in limitation of the indemnification provided under Section 3.01(c) or the Partnership Agreement, the Partnership Group shall indemnify, defend, and hold
harmless Pipeline and the Phillips 66 Entities from and against any Losses suffered or incurred by Pipeline or the Phillips 66 Entities, or any of them, by reason of or arising out of events and conditions associated with the ownership or operation
of the Assets and occurring after the Effective Date (other than Covered Environmental Losses which are provided for under Section 3.01), unless such indemnification would not be permitted under the Partnership Agreement by reason of one
of the provisos contained in Section 7.7(a) of the Partnership Agreement. 
 Section 3.05 Indemnification Procedures.

  

	(a)	The Indemnified Party agrees that within a reasonable period of time after it becomes aware of facts giving rise to a claim for indemnification under this Article
III, it will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim. 

  

	(b)	The Indemnifying Party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Indemnified
Party that are covered by the indemnification under this Article, including, without limitation, the selection of counsel, determination of whether to appeal any decision of any court and the settling of any such claim or any matter or any issues
relating thereto, provided that no such settlement shall be entered into without the consent of the Indemnified Party unless it includes a full and unconditional release of the Indemnified Party from such claim; provided, however, that no
such settlement containing any form of injunctive or similar relief shall be entered into without the prior written consent of the Indemnified Party, which consent shall not be unreasonably delayed or withheld. 

  
 10 

	(c)	The Indemnified Party agrees to cooperate in good faith and in a commercially reasonable manner with the Indemnifying Party with respect to all aspects of the defense
of, and the pursuit of any counterclaims with respect to, any claims covered by the indemnification under this Article III for which a request for indemnification is made, including, without limitation, the prompt furnishing to the
Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense or counterclaims, the making available to
the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party considers relevant to such defense or counterclaims, the making available to the Indemnifying Party of any employees of the
Indemnified Party and the granting to the Indemnifying Party of reasonable access rights to the properties and facilities of the Indemnified Party, provided that in connection therewith the Indemnifying Party agrees to use reasonable efforts to
minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records, and other information furnished by the Indemnified Party pursuant to this Section 3.05(c).
In no event shall the obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in
connection with the defense of, or the pursuit of any counterclaims with respect to, any claims covered by the indemnification set forth in this Article III; provided, however, that the Indemnified Party may, at its own option,
cost and expense, engage and pay for counsel in connection with any such defense and counterclaims. The Indemnifying Party agrees to keep any such counsel engaged by the Indemnified Party informed as to the status of any such defense, but the
Indemnifying Party shall have the right to retain sole control over such defense and counterclaims. 

  

	(d)	In determining the amount of any loss, cost, damage or expense for which the Indemnified Party is entitled to indemnification under this Agreement, the gross amount of
the indemnification will be reduced by (i) any insurance proceeds realized by the Indemnified Party, and such correlative insurance benefit shall be net of any incremental insurance premium that becomes due and payable by the Indemnified Party
as a result of such claim and (ii) all amounts recovered by the Indemnified Party under contractual indemnities from third Persons. 

  

	(e)	With respect to Covered Environmental Losses, Company shall have the sole right and authority to manage any remediation required by Law, and, upon reasonable request
from Company, the Partnership will, and will cause each Partnership Group Member to, cooperate with Company and its contractors or subcontractors to facilitate such remediation. 

 Section 3.06 Limitations on Indemnity Coverage. 
  

	(a)	 With respect to Covered Environmental Losses under Sections 3.01(a)(i) or 3.01(a)(ii), neither Company nor Pipeline shall be obligated to
indemnify, defend 

  
 11 

	 	
and hold harmless any Partnership Group Member until such time as the total aggregate amount of such Covered Environmental Losses exceeds $100,000 (the “Environmental
Deductible”), at which time Company and Pipeline shall be obligated to indemnify the Partnership Group for the excess of such Covered Environmental Losses over the Environmental Deductible; provided, however, that to the extent
any cure or remediation of any environmental matter is required under Sections 3.01(a)(i) or 3.01(a)(ii), Company and Pipeline will be obligated to indemnify the Partnership Group only to the extent of any cure or remediation that is
required by Law (after giving effect to the Environmental Deductible). For the avoidance of doubt, it is agreed that the Environmental Deductible shall not apply to any Covered Environmental Losses incurred by any Partnership Group Member related to
the matters set forth on Schedule I attached hereto. 

  

	(b)	With respect to Covered Property Losses under Section 3.02 and Covered Litigation Matters under Section 3.03(b), neither Company nor Pipeline shall be
obligated to indemnify, defend and hold harmless any Partnership Group Member until such time as the total aggregate amount of (i) such Covered Property Losses exceeds $200,000 (the “Property Deductible”) and
(ii) Losses incurred by the Partnership Group for such Covered Litigation Matters exceeds $200,000 (the “Litigation Deductible”), at which time Company and Pipeline shall be obligated to indemnify the Partnership Group
for the excess of (x) such Covered Property Losses over the Property Deductible or (y) such Losses incurred by the Partnership Group for such Covered Litigation Matters exceeds the Litigation Deductible; provided, however, that to
the extent the Partnership Group attempts to cure any any matter for which it is entitled to indemnification under Section 3.02, Company and Pipeline will be obligated to indemnify the Partnership Group only to the extent of any
reasonably required cure (after giving effect to the Property Deductible). For the avoidance of doubt, it is agreed that the Litigation Deductible shall not apply to any Losses incurred by any Partnership Group Member related to the matters set
forth on Schedule II attached hereto. 

  

	(c)	For the avoidance of doubt, there is no deductible with respect to the indemnification owed by any Indemnifying Party under any portion of this Article III
other than as described in this Section 3.06, and there is no monetary cap on the amount of indemnity coverage provided by any Indemnifying Party under this Article III other than as described in this Section 3.06.

 ARTICLE IV. SERVICES 
 Section 4.01 Operational and Administrative Services. 
  

	(a)	 Company agrees to provide, and agrees to cause its Affiliates to provide, on behalf of the General Partner and for the Partnership Group’s
benefit, certain operational and administrative support services that Company and its Affiliates have traditionally provided in connection with the Assets, including the services listed on Schedule III to this Agreement
(“Services”). As consideration for such Services, the Partnership will pay Company an operational and administrative 

  
 12 

	 	
support fee (the “Operational and Administrative Support Fee”) of $1,144,000 per Month, payable without discount no later than the 21st Day of the Month in which Services
are rendered, provided that if such Day is not a Business Day, then Partnership shall pay such amount without interest on the next Business Day. If the Effective Date is any day other than the first day of a Month, or if this Agreement is terminated
on any day other than the last day of a Month, then the Operational and Administrative Support Fee for the revelant Month shall be prorated based on the ratio of the number of days in the relevant partial Month to the number of days in the relevant
full Month. 

  

	(b)	Company may increase the Operational and Administrative Support Fee on each anniversary of the Effective Date (or, if the Effective Date is any day other than the first
day of a Month, on the first day of the Month following each anniversary of the Effective Date) by a percentage equal to the greater of zero and the positive change in the Producer Price Index for Finished Goods (“PPI-FG”),
provided that if, with respect to any annual period or periods, the PPI-FG has decreased, Company may increase the Operational and Administrative Support Fee only to the extent that the percentage increase in the PPI-FG since the most recent
previous increase in the Operational and Administrative Support Fee exceeds the cumulative decreases in the PPI-FG during the intervening periods. 

  

	(c)	From time to time, but not more frequently than once during any calendar year: 

 

	 	(i)	the Partnership will have the right to submit to Company a proposal to reduce the amount of the Operational and Administrative Support Fee if the Partnership believes,
in good faith, that the prospective value of the Services to be performed by Company and its Affiliates for the benefit of the Partnership Group will be less than the Operational and Administrative Support Fee in effect at such time; and

  

	 	(ii)	Company may propose to increase the Operational and Administrative Support Fee if Company believes, in good faith, that the prospective cost of the Services to be
performed by Company and its Affiliates for the benefit of the Partnership Group (including costs incurred by reason of the Partnership’s acquisition or development of assets or changes in the complexity of the Partnership’s operations)
will exceed the Operational and Administrative Support Fee in effect at such time. 

 If either Party submits such
a proposal to the other Party, both Parties will negotiate in good faith to determine if the Operational and Administrative Support Fee should be changed and, if so, the amount of such change. If the Parties agree that the Operational and
Administrative Support Fee should be changed, then the Operational and Administrative Support Fee shall be changed as of the first day of the Month following such agreement. 

  
 13 

 Section 4.02 Reimbursable Costs. 

 

	(a)	The Partnership Group shall reimburse Company for all other direct or allocated costs and expenses incurred by Company and its Affiliates on behalf of the Partnership
Group including, but not limited to: 

  

	 	(i)	salaries and related costs (including employment taxes) of employees of Company or its Affiliates (other than executive officers of the General Partner who devote less
than a majority of their working time to the Partnership Group), and the cost of individual contractors to the extent, but only to the extent, such employees or contractors perform services for the Partnership Group that are directly related to the
Services; 

  

	 	(ii)	the cost (including employment taxes and similar expenses) of employee benefits relating to employees of Company or its Affiliates, including, but not limited to,
401(k), pension, bonuses and health insurance benefits, to the extent, but only to the extent, such employees perform services for the Partnership Group that are directly related to the Services; 

 

	 	(iii)	any expenses incurred or payments made by Company or its Affiliates for insurance coverage with respect to the assets or the business of the Partnership Group;

  

	 	(iv)	all expenses and expenditures incurred by Company or its Affiliates as a result of the Partnership becoming and continuing as a publicly traded entity, including, but
not limited to, costs associated with annual and quarterly reports, independent director and auditor fees, Partnership governance and compliance, registrar and transfer agent fees, tax return and Schedule K-1 preparation and distribution, legal fees
and independent director compensation; and 

  

	 	(v)	all sales, use, excise, value-added or similar taxes, if any, that may be applicable from time to time with respect to the Services. 

 

	(b)	As long as the General Partner is an Affiliate of Company, the Partnership and Company may settle the Partnership Group’s financial obligations to Company through
Company’s normal interaffiliate settlement processes. Except as provided in the immediately preceding sentence, the amount of any reimbursements due to Company under this Section 4.02 shall be paid by the Partnership Group no later
than the 22nd Day of the Month following the Month in which the applicable reimbursable costs or expenses are incurred, provided that if such Day is not a Business Day, then the Partnership Group shall pay such amount without interest on the next
Business Day. 

  

	(c)	For the avoidance of doubt, the costs and expenses set forth in Section 4.02(a) shall be paid by the Partnership Group in addition to, and not as a part of
or included in, the Operational and Administrative Support Fee. 

  
 14 

 ARTICLE V. RIGHT OF FIRST OFFER 

Section 5.01 Right of First Offer to Purchase Certain Assets. 

 

	(a)	Pipeline hereby grants to the Partnership Group a right of first offer for a period (the “ROFO Period”) beginning at the Effective Date and
ending at the earlier of (i) five years from the Effective Date and (ii) upon the occurrence of a Partnership Change of Control on all or any part of the ROFO Assets to the extent that Pipeline proposes to Transfer all or any part of
either ROFO Asset; provided, however, that Pipeline may Transfer all or any part of either ROFO Asset to an Affiliate of Pipeline that agrees in writing that such ROFO Asset remains subject to the provisions of this Article V and such
Affiliate assumes the obligations of Pipeline under this Article V with respect to such ROFO Asset, and such Transfer shall not be subject to the Partnership Group’s right of first offer. 

 

	(b)	The Parties acknowledge that any Transfer of all or any part of any ROFO Asset pursuant to the Partnership Group’s right of first offer is subject to the terms of
all existing agreements with respect to the ROFO Assets and shall be subject to and conditioned on the obtaining of any and all necessary consents of securityholders, Governmental Authorities, lenders or other third parties; provided,
however, that Company and Pipeline hereby represent and warrant that, to their knowledge after reasonable investigation, there are no terms in such agreements that would materially impair the rights granted to the Partnership Group pursuant to
this Article V with respect to any ROFO Asset. 

 Section 5.02 Procedures. 

 

	(a)	In the event Pipeline proposes to Transfer all or any part of any applicable ROFO Asset (other than to an Affiliate in accordance with Section 5.01(a))
during the ROFO Period (a “Proposed Transaction”), Pipeline shall, prior to entering into any such Proposed Transaction, first give notice in writing to the Partnership Group (the “ROFO Notice”) of its
intention to enter into such Proposed Transaction. The ROFO Notice shall include any material terms, conditions and details as would be necessary for a Partnership Group Member to make a responsive offer to enter into the Proposed Transaction with
Pipeline, which terms, conditions and details shall at a minimum include any terms, condition or details that Pipeline would propose to provide to non-Affiliates in connection with the Proposed Transaction. If the Partnership Group determines to
purchase the ROFO Assets, the Partnership Group shall have 60 days following receipt of the ROFO Notice to propose an offer to enter into the Proposed Transaction with Pipeline (the “ROFO Response”). The ROFO Response shall
set forth the terms and conditions (including, without limitation, the purchase price the applicable Partnership Group Member proposes to pay for the ROFO Asset and the other terms of the purchase) pursuant to which the Partnership Group would be
willing to enter into a binding agreement for the Proposed Transaction. If no ROFO Response is delivered by the Partnership Group within such 60-day period, then the Partnership Group shall be deemed to have waived its right of first offer with
respect to such ROFO Asset, subject to Section 5.02(c). 

  
 15 

	(b)	Unless the ROFO Response is rejected pursuant to written notice delivered by Pipeline to the applicable Partnership Group Member within 60 days of the delivery to
Pipeline of the ROFO Response, such ROFO Response shall be deemed to have been accepted by Pipeline, and Pipeline shall enter into an agreement with the applicable Partnership Group Member providing for the consummation of the Proposed Transaction
upon the terms set forth in the ROFO Response. Unless otherwise agreed between Pipeline and the applicable Partnership Group Member, the terms of the purchase and sale agreement will include the following: 

 

	 	(i)	the Partnership Group Member will deliver the agreed purchase price (in cash, Partnership Securities, an interest-bearing promissory note, or any combination thereof);

  

	 	(ii)	Pipeline will represent that it has title to the applicable ROFO Asset that is sufficient to own and operate the applicable ROFO Asset in accordance with its intended
and historical use, subject to all recorded matters and all physical conditions in existence on the closing date for the purchase of the applicable ROFO Asset, plus any other such matters as the applicable Partnership Group Member may approve;

  

	 	(iii)	the closing date for the purchase of the ROFO Asset shall occur no later than 180 days following receipt by Pipeline of the ROFO Response pursuant to
Section 5.02(a); 

  

	 	(iv)	each of Pipeline and Partnership Group Member shall use commercially reasonable efforts to do or cause to be done all things that may be reasonably necessary or
advisable to effectuate the consummation of any transactions contemplated by this Section 5.02(b), including causing its respective Affiliates to execute, deliver and perform all documents, notices, amendments, certificates, instruments
and consents required in connection therewith; and 

  

	 	(v)	neither Pipeline nor the applicable Partnership Group Member shall have any obligation to sell or buy the applicable ROFO Asset if any consent referred to in
Section 5.01(b) has not been obtained. 

  

	(c)	 If the Partnership Group has not timely delivered a ROFO Response as specified above with respect to a Proposed Transaction that is subject to a ROFO
Notice, Pipeline shall be free to enter into a Proposed Transaction with any third party on terms and conditions no more favorable to such third party than those set forth in the ROFO Notice. If Pipeline rejects a ROFO Response with respect to any
Proposed Transaction, Pipeline shall be free to enter into a Proposed Transaction with any third party (i) on terms and conditions (excluding those relating to price) 

  
 16 

	 	
that are not more favorable in the aggregate to such third party than those proposed in respect of the Partnership Group in the ROFO Response and (ii) at a price equal to no less than 100%
of the price offered by the applicable Partnership Group Member in the ROFO Response to Pipeline. 

 ARTICLE VI.
LICENSE OF NAME AND MARK 
 Section 6.01 Grant of License. Upon the terms and conditions set forth in this Article, Company
hereby grants and conveys to each of the entities currently or hereafter comprising a part of the Partnership Group a nontransferable, nonexclusive, royalty-free right and license (“License”) to use the name “Phillips
66” (the “Name”) and any other trademarks owned by Company which contain the Name, the Name together with the distinctive shield graphic, the shield graphic alone, or the name “Phillips 66 Partners” together
with the partial outline shield graphic (collectively, the “Marks”). 
 Section 6.02 Ownership and Quality.
The Partnership agrees that ownership of the Name and the Marks and the goodwill relating thereto shall remain vested in Company both during the term of this License and thereafter, and the Partnership further agrees, and agrees to cause the other
members of the Partnership Group, never to challenge, contest or question the validity of Company’s ownership of the Name and Marks or any registration thereto by Company. In connection with the use of the Name and the Mark, the Partnership and
any other member of the Partnership Group shall not in any manner represent that they have any ownership in the Name and the Marks or registration thereof except as set forth herein, and the Partnership, on behalf of itself and the other members of
the Partnership Group, acknowledge that the use of the Name and the Marks shall not create any right, title or interest in or to the Name and the Mark, and all use of the Name and the Marks by the Partnership or any other member of the Partnership
Group, shall inure to the benefit of Company. The Partnership agrees, and agrees to cause the other members of the Partnership Group, to use the Name and Marks in accordance with such quality standards established by Company and communicated to the
Partnership from time to time, it being understood that the products and services offered by the members of the Partnership Group immediately before the Effective Date are of a quality that is acceptable to Company and justifies the License.

 Section 6.03 Termination. The License shall terminate upon any termination of this Agreement. 

ARTICLE VII. PREFUNDED PROJECTS 
 Section 7.01 Prefunded Projects. Prior to the Effective Date, Company has contributed $[3.0] million to Holdings, and Holdings has contributed $[0.3] million to Carrier, in each case as
prepayment for the completion of the projects set forth on Schedule IV (the “Prefunded Projects”). Holdings and Carrier hereby agree, in consideration of such contributions, that Holdings and Carrier will use
their respective commercially reasonable efforts to complete, or cause the completion, of each Prefunded Project in accordance with such specifications and on or before such dates as shall be reasonably agreed by the Parties following the Effective
Date. The Parties acknowledge and agree 

  
 17 

 
that Holdings or Carrier, as applicable, will bear any costs and expenses associated with the completion of the Prefunded Projects in excess of the amounts contributed to them prior to the
Effective Date. 
 ARTICLE VIII. NOTICES 
 Section 8.01 Notices. Unless otherwise specifically provided in this Agreement, all Notices between the Parties given under or in relation to this Agreement shall be made in writing and shall
be deemed to have been properly given if: (i) personally delivered (with written confirmation of receipt); or (ii) delivered by a recognized overnight delivery service (delivery fees prepaid), in either case to the appropriate address set
forth below: 
  

			
	If to any Partnership Group Member:	 	If to Company or Pipeline:
		
	Phillips 66 Partners GP LLC	 	Phillips 66 Company
	3010 Briarpark Dr.	 	3010 Briarpark Dr.
	Houston, TX 77042	 	Houston, TX 77042
	Attn: President	 	Attn: General Counsel

 A Party may change its address for Notice upon Notice to each other Party in accordance with this
Section 8.01. 
 Section 8.02 Effective upon Receipt. Any Notice given in the manner set forth in Section 8.01
shall be effective upon actual receipt if received during normal business hours, or at the beginning of the recipient’s next Business Day if not received during normal business hours. 

ARTICLE IX. APPLICABLE LAW 
 Section 9.01 Applicable Law. Regardless of the place of contracting, place(s) of performance or otherwise, this Agreement and all amendments, modifications, alterations or supplements hereto,
shall be governed and interpreted in accordance with the laws of the State of Texas without regard to the principles of conflicts of law or any other principle that might apply the law of another jurisdiction. 

ARTICLE X. LIMITATION OF LIABILITY 
 Section 10.01 No Liability for Consequential Damages. Except as provided in Article III, in no event shall a Party be liable to another Party for, and no arbitral panel is
authorized to award, any punitive, special, indirect or consequential damages of any kind or character resulting from or arising out of this Agreement, including, without limitation, loss of profits or business interruptions, however they may be
caused. 
 Section 10.02 Limitation of Liability. Except as provided in Article III, each Party shall be discharged from any
and all liability with respect to Losses arising out of this Agreement unless suit or action is commenced within two years after the cause of action arises. 

  
 18 

 ARTICLE XI. MISCELLANEOUS 
 Section 11.01 Disputes between the Parties. Any dispute between or among the Parties in connection with this Agreement shall be resolved by arbitration in accordance with the procedures set
forth in Exhibit A; provided, however, that a Party may seek a restraining order, temporary injunction, or other provisional relief in any court with jurisdiction over the subject matter of the dispute and sitting in Houston, Texas, if
such Party in its sole judgment believes that such action is necessary to avoid irreparable injury or to preserve the status quo ante. 

Section 11.02 Assignment. No Party may assign its rights or delegate its duties under this Agreement without prior written consent of each
other Party; provided, however, that Company may delegate any of its duties and obligations hereunder to any Phillips 66 Entity. 

Section 11.03 No Third-Party Rights. Except as expressly provided in this Agreement, nothing in this Agreement is intended to confer any
rights, benefits or obligations to any Person other than the Parties and their respective successors and assigns. No Limited Partner shall have any right, separate and apart from the Partnership, to enforce any provision of this Agreement or to
compel any Party to comply with the terms of this Agreement. 
 Section 11.04 Compliance with Laws. Each Party shall at all times
comply with all Laws as are applicable to its performance of this Agreement. 
 Section 11.05 Severability. If any provision of this
Agreement or the application thereof shall be found by any arbitral panel or court of competent jurisdiction to be invalid, illegal or unenforceable to any extent and for any reason, this Agreement shall be adjusted rather than voided, if possible,
in order to achieve the intent of the Parties. In any event, the remainder of this Agreement and the application of such remainder shall not be affected thereby and shall be enforced to the greatest extent permitted by Law. 

Section 11.06 Non-Waiver. The failure of any Party to enforce any provision, condition, covenant or requirement of this Agreement at any time
shall not be construed to be a waiver of such provision, condition, covenant or requirement unless the other Parties are so notified by such Party in writing. Any waiver by a Party of a default by any other Party in the performance of any provision,
condition, covenant or requirement contained in this Agreement shall not be deemed to be a waiver of such provision, condition, covenant or requirement, nor shall any such waiver in any manner release such other Party from the performance of any
other provision, condition, covenant or requirement. 
 Section 11.07 Entire Agreement. This Agreement, together with all exhibits
and schedules attached hereto, the Tax Sharing Agreement (with respect to tax matters) and the Operational Services Agreement (with respect to employee reimbursement matters), constitute the entire agreement among the Parties relating to the subject
matter hereof and supersede all prior and contemporaneous agreements, understandings, negotiations and 

  
 19 

 
discussions, whether oral or written, between the Parties relating to the subject matter hereof, and there are no warranties, representations or other agreements between the Parties in connection
with the subject matter hereof except as specifically set forth in, or contemplated by, this Agreement, the Tax Sharing Agreement (with respect to tax matters) and the Operational Services Agreement (with respect to employee reimbursement matters).

 Section 11.08 Amendments. This Agreement shall not be modified or amended, in whole or in part, except by a written amendment
signed by all of the Parties. 
 Section 11.09 Survival. Any indemnification granted hereunder by a Party to any other Party shall
survive the termination of this Agreement in accordance with the terms of the indemnification. 
 Section 11.10 Counterparts; Multiple
Originals. This Agreement may be executed in any number of counterparts, all of which together shall constitute one agreement binding each of the Parties. Each of the Parties may sign any number of copies of this Agreement. Each signed copy
shall be deemed to be an original, and all of them together shall represent one and the same agreement. 
 Section 11.11 Exhibits and
Schedules. The exhibits and schedules attached to this Agreement are incorporated into and constitute part of this Agreement. If there is any conflict between this Agreement and any exhibit or schedule, the provisions of the exhibit or schedule
shall control. 
 Section 11.12 Table of Contents; Headings; Subheadings. The table of contents and the headings and subheadings of
this Agreement have been inserted only for convenience to facilitate reference and are not intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision hereof. 

Section 11.13 Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any
of the provisions of this Agreement. 
 Section 11.14 Business Practices. Company shall use its best efforts to make certain that
all billings, reports, and financial settlements rendered to or made with the Partnership Group pursuant to this Agreement, or any revision of or amendments to this Agreement, will properly reflect the facts about all activities and transactions
handled by authority of this Agreement and that the information shown on such billings, reports and settlement documents may be relied upon by the Partnership Group as being complete and accurate in any further recording and reporting made by the
Partnership Group for whatever purposes. Company shall notify the Partnership if Company discovers any errors in such billings, reports, or settlement documents. 
 [Signature page follows.] 

  
 20 

 IN WITNESS WHEREOF, Company, the Partnership and the General Partner have signed this Agreement as of the
Effective Date. 
  

									
	PHILLIPS 66 COMPANY	 		 	PHILLIPS 66 PARTNERS HOLDINGS LLC
					
	By:	 	  
	 		 	By:	 	  

	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	
			
	PHILLIPS 66 PIPELINE LLC	 		 	PHILLIPS 66 CARRIER LLC
					
	By:	 	  
	 		 	By:	 	  

	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	
			
	PHILLIPS 66 PARTNERS LP	 		 	PHILLIPS 66 PARTNERS GP LLC
					
	By:	 	Phillips 66 Partners GP, LLC, its general partner	 		 	 By:

Name:
 Title:
	 	  

	  
 By:
	 	  
  
	 		 	 	
	Name:	 		 		 	 	
	Title:	 		 		 		 	

 [Signature page to Omnibus Agreement] 

 Exhibit A 
 Arbitration Procedure 
 A Party may initiate dispute resolution procedures by
sending a Notice to each other Party specifically stating the complaining Party’s Claim and by initiating binding arbitration in accordance with the Center for Public Resources Rules for Non-Administered Arbitration of Business Disputes, by
three arbitrators who shall be neutral, independent, and generally knowledgeable about the type of transaction which gave rise to the dispute. The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. §§ 1-16,
provided that the arbitrators shall include in their report/award a list of findings, with supporting evidentiary references, upon which they have relied in making their decision. Judgment upon the award rendered by the
arbitrators may be entered by any court having jurisdiction thereof. The place of arbitration shall be Houston, Texas. 
 Notwithstanding
anything herein and regardless of any procedures or rules of the Center for Public Resources, it is expressly agreed that the following shall apply and control over any other provision in this Agreement: 

 

	(a)	All offers, conduct, views, opinions and statements made in the course of negotiation or mediation by any of the Parties, their employees, agents, experts, attorneys
and representatives, and by any mediator, are confidential, made for compromise and settlement, protected from disclosure under Federal and State Rules of Evidence and Procedure, and inadmissible and not discoverable for any purpose, including
impeachment, in litigation or legal proceedings between the Parties, and shall not be disclosed to any Person who is not an agent, employee, expert or representative of the Parties, provided that evidence otherwise discoverable or admissible
is not excluded from discovery or admission as a result of presentation or use in mediation. 

  

	(b)	Except to the extent that the Parties may agree upon selection of one or more arbitrators, the Center for Public Resources shall select arbitrators from a panel
reviewed by the Parties. The Parties shall be entitled to exercise peremptory strikes against one-third of the panel and may challenge other candidates for lack of neutrality or lack of qualifications. Challenges shall be resolved in accordance with
Center for Public Resource rules. 

  

	(c)	The Parties shall have at least 20 Days following the close of hearing within which to submit a brief (not to exceed 18 pages in length) and ten Days from date of
receipt of the opponent’s brief within which to respond thereto. 

  

	(d)	The Parties expressly agree that the arbitrators shall not award punitive damages, consequential damages, or attorneys’ fees (except attorneys’ fees
specifically authorized by the Agreement). 

  
 Exhibit A/Page
1 

	(e)	The fees and expenses of any mediator or arbitrator shall be shared equally by the Parties. 

 

	(f)	The Parties may, by written agreement (signed by both Parties), alter any time deadline or location(s) for meetings. 

Time is of the essence for purposes of the provisions of this exhibit. 

  
 Exhibit A/Page
2 

 Schedule I 
 Environmental Matters 
  

			
	ISSUE	  	SUMMARY
	 IEPA E-2003-00026
 INCIDENT
#20021565
 WOOD RIVER PRODUCTS TERMINAL GASOLINE RELEASE
	  	The site was entered into the Illinois Site Remediation Program in early 2003. After a 60 gallon gasoline release in October 2002, subsurface investigation uncovered evidence of
prior releases of other products in the manifold area on the NW corner of the Terminal property. In 2012, a detailed LNAPL mobility assessment was conducted which demonstrates stable, not practicably recoverable, and relatively immobile material.
Currently the remedial plan and spend forecast is being re-evaluated considering this information. The plan will include long-term monitoring.
		
	 IEPA E-2002-00081
 INCIDENT
#20011073
 WOOD RIVER PRODUCTS TERMINAL TRANSMIX RELEASE
	  	After a 140 bbl overfill of Transmix (gasoline/diesel) in June 2001, excavation identified additional historical subsurface impacts. Subsurface investigation was performed,
expanded, and the release was enrolled in the Illinois Site Remediation Program. Additional assessment requested by IEPA will be performed in 2103 and a remedial plan will be developed based on results.

 Schedule II 
 Pending Litigation 
  

							
	 Name
	  	 Subject Area
	  	 Issues
	  	 Location

	Petrocom Energy Group LLC v COP Pipe Line	  	Property Damage	  	Product discoloration	  	Pasadena
Terminal
				
	Brown, Harold L v Eastman Chemical	  	Toxic Tort \ Asbestos	  	“Asbestos Exposure- Mesothelioma.”	  	Pasadena
(non-
specific)
				
	Guidry, Steven v Inland-Gulf Towing	  	Personal Injury \ Maritime	  	Alleged Personal injury while boarding barge	  	Pecan
Grove
Terminal
				
	Cordova, Noel J v Dealers Electrical Supply Co	  	Personal Injury \ Premises	  	Personal Injury Claim	  	Pasadena
Terminal
				
	Bass, Kenneth v Air Liquid America	  	Toxic Tort \ Asbestos	  	Asbestos Exposure; Asbestos; Premises; Asbestosis	  	Pasadena
(non-
specific)

 Schedule III 
 Services 
  

	(a)	Executive services 

  

	(b)	Financial and administrative services (including treasury and accounting) 

  

	(c)	Information technology 

  

	(d)	Legal services 

  

	(e)	Corporate health, safety and environmental services 

  

	(f)	Facility services 

  

	(g)	Human resources services 

  

	(h)	Procurement services 

  

	(i)	Corporate engineering services (such as asset integrity and regulatory services, but not including engineering services directly related to Partnership Group assets)

  

	(j)	Logistical services, including Bartlesville control center 

  

	(k)	Asset oversight (such as operational management and supervision, but not including operational services directly related to Partnership Group assets)

  

	(l)	Business development services 

  

	(m)	Investor relations 

  

	(n)	Tax matters 

  

	(o)	Public company reporting matters 

 Schedule IV 
 Prefunded Projects 
 Debottlenecking project at Clifton Ridge terminal, including the
installation of a custody transfer meter, prover and sampler at the Pecan Grove barge dock. 
 Repair and maintenance of Tank 27 at Clifton
Ridge terminal. 
 Complete connection to Shell Houston-Houma Pipeline at Clifton Ridge terminal. 

Repair of mooring dolphin at Hartford barge dock.EX-10.5

 Exhibit 10.5 

 
  
 TRANSPORTATION SERVICES AGREEMENT 
 by and between 

PHILLIPS 66 CARRIER LLC 
 and 
 PHILLIPS 66 COMPANY 

for 

the Clifton Ridge Pipeline System 
  

 

 TABLE OF CONTENTS 

 

							
	 Article I.
	  	Defined Terms	  	 	1	  
			
	 Section 1.01
	  	Defined Terms	  	 	1	  
	 Section 1.02
	  	Other Defined Terms	  	 	5	  
	 Section 1.03
	  	Terms Generally	  	 	5	  
			
	 Article II.
	  	Term and Termination	  	 	5	  
			
	 Section 2.01
	  	Term	  	 	5	  
	 Section 2.02
	  	Termination Following a Force Majeure Event	  	 	5	  
	 Section 2.03
	  	Special Termination by Company	  	 	5	  
			
	 Article III.
	  	Minimum Commitments	  	 	5	  
			
	 Section 3.01
	  	Minimum Quarterly Transportation Commitment	  	 	5	  
	 Section 3.02
	  	Loss of Available Capacity	  	 	6	  
	 Section 3.03
	  	Partial Period Proration	  	 	6	  
	 Section 3.04
	  	Special Reduction of Minimum Quarterly Transportation Commitment	  	 	7	  
			
	 Article IV.
	  	Tariffs	  	 	7	  
			
	 Section 4.01
	  	Tariff	  	 	7	  
	 Section 4.02
	  	Adjustment	  	 	8	  
	 Section 4.03
	  	No Challenge of Rates	  	 	8	  
	 Section 4.04
	  	Recovery of Certain Costs	  	 	8	  
			
	 Article V.
	  	 Scheduling
	  	 	8	  
			
	 Section 5.01
	  	Scheduling	  	 	8	  
			
	 Article VI.
	  	 Quality
	  	 	9	  
			
	 Section 6.01
	  	Quality	  	 	9	  
			
	 Article VII.
	  	 Monthly Statement; Payment; Liens
	  	 	9	  
			
	 Section 7.01
	  	Monthly Statement	  	 	9	  
	 Section 7.02
	  	Payment	  	 	9	  
	 Section 7.03
	  	Liens	  	 	10	  
			
	 Article VIII.
	  	 Title; Custody
	  	 	10	  
			
	 Section 8.01
	  	Title	  	 	10	  
	 Section 8.02
	  	Custody	  	 	10	  
			
	 Article IX.
	  	 Volume Determinations
	  	 	11	  
			
	 Section 9.01
	  	Volume Determinations	  	 	11	  
	 Section 9.02
	  	Company’s Right to Witness	  	 	11	  
			
	 Article X.
	  	 Insurance
	  	 	11	  
			
	 Section 10.01
	  	Insurance	  	 	11	  
			
	 Article XI.
	  	Taxes	  	 	11	  

  
 i 

							
	 Section 11.01
	  	Taxes	  	 	11	  
			
	 Article XII.
	  	Health, Safety and Environment	  	 	12	  
			
	 Section 12.01
	  	Spills; Environmental Pollution	  	 	12	  
			
	 Article XIII.
	  	Force Majeure	  	 	12	  
			
	 Section 13.01
	  	Suspension during Force Majeure Events	  	 	12	  
	 Section 13.02
	  	Obligation to Remedy Force Majeure Events	  	 	13	  
	 Section 13.03
	  	Strikes and Lockouts	  	 	13	  
	 Section 13.04
	  	Action in Emergencies	  	 	13	  
			
	 Article XIV.
	  	Notices	  	 	13	  
			
	 Section 14.01
	  	Notices	  	 	13	  
	 Section 14.02
	  	Effective upon Receipt	  	 	13	  
			
	 Article XV.
	  	Applicable Law	  	 	14	  
			
	 Section 15.01
	  	Applicable Law	  	 	14	  
			
	 Article XVI.
	  	Limitation of Liability	  	 	14	  
			
	 Section 16.01
	  	No Liability for Consequential Damages	  	 	14	  
	 Section 16.02
	  	Limitation of Liability	  	 	14	  
			
	 Article XVII.
	  	Default	  	 	14	  
			
	 Section 17.01
	  	Default	  	 	14	  
	 Section 17.02
	  	Non-Exclusive Remedies	  	 	15	  
	 Section 17.03
	  	Right to Terminate	  	 	15	  
			
	 Article XVIII.
	  	Miscellaneous	  	 	15	  
			
	 Section 18.01
	  	Disputes between the Parties	  	 	15	  
	 Section 18.02
	  	Assignment	  	 	15	  
	 Section 18.03
	  	Partnership Change in Control	  	 	16	  
	 Section 18.04
	  	No Third-Party Rights	  	 	16	  
	 Section 18.05
	  	Compliance with Laws	  	 	16	  
	 Section 18.06
	  	Severability	  	 	16	  
	 Section 18.07
	  	Non-Waiver	  	 	16	  
	 Section 18.08
	  	Entire Agreement	  	 	16	  
	 Section 18.09
	  	Amendments	  	 	17	  
	 Section 18.10
	  	Survival	  	 	17	  
	 Section 18.11
	  	Counterparts; Multiple Originals	  	 	17	  
	 Section 18.12
	  	Exhibits	  	 	17	  
	 Section 18.13
	  	Table of Contents; Headings; Subheadings	  	 	17	  
	 Section 18.14
	  	Construction	  	 	17	  
	 Section 18.15
	  	Business Practices	  	 	17	  
	 Section 18.16
	  	Effect of Company Restructuring	  	 	18	  
	 Section 18.17
	  	Effect of Discontinuation of Publication	  	 	18	  

 Exhibit A – Dispute Resolution Procedures 

  
 ii 

 TRANSPORTATION SERVICES AGREEMENT 

This transportation services agreement is made and entered into as of the Effective Date by and between PHILLIPS 66 CARRIER LLC, a
Delaware limited liability company (“Carrier”), and PHILLIPS 66 COMPANY, a Delaware corporation (“Company”). 
 Recitals 
 WHEREAS, Company owns a petroleum refinery at 2200 Old
Spanish Trail, Westlake, Louisiana 70669 (the “Lake Charles Refinery”); 
 WHEREAS,
Carrier’s affiliate, Phillips 66 Partners Holdings LLC, owns Crude Oil terminal facilities located at 2115 Davison Rd., Sulphur, LA 70665 (the “Clifton Ridge Terminal”) and at 1695 Pak Tank Rd., Sulphur, LA
70665 (the “Pecan Grove Terminal,” and together with the Clifton Ridge Terminal, the “Terminals”); 
 WHEREAS, Carrier owns a Crude Oil pipeline system (the “Pipeline”) comprising three segments: (a) from Shell Pipeline Inc., Calcasieu Parish, Louisiana, to the Clifton
Ridge Terminal (the “Shell Segment”); (b) from the Pecan Grove Terminal to the Clifton Ridge Terminal (the “Pecan Grove Segment”); and (c) from the Clifton Ridge Terminal to the Lake Charles
Refinery (the “Lake Charles Segment”); and 
 WHEREAS, Company intends to deliver Crude Oil to
Origin Points (as defined below) on the Pipeline for transportation under a Carrier Tariff (as defined below), and Carrier desires to provide such transportation for Company, all upon the terms and conditions set forth in this Agreement. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending
to be legally bound, Carrier and Company agree as follows: 
 Article I. Defined Terms 

Section 1.01 Defined Terms. 
 The
following definitions shall for all purposes apply to the capitalized terms used in this Agreement: 
  

	(a)	“Agreement” means this Transportation Services Agreement, together with all exhibits attached hereto, as the same may be extended, supplemented or restated
from time to time in accordance with the provisions hereof. 

  

	(b)	“Barrel” means 42 Gallons. 

  

	(c)	“Business Day” means any Day except for Saturday, Sunday or an official holiday in the State of Texas. 

  
 1 

	(d)	“Calendar Quarter” means a period of three consecutive Months beginning on the first Day of each of January, April, July and October.

  

	(e)	“Carrier” has the meaning set forth in the introductory paragraph. 

 

	(f)	“Carrier Affiliated Parties” means Carrier, Phillips 66 Partners LP and their respective contractors and the directors, officers, employees and agents of each
of them. 

  

	(g)	“Carrier Tariff” means Carrier’s Louisiana Public Service Commission Tariff No. [    ] or Carrier’s FERC Tariff No.
[    ], as applicable, and any supplements thereto or reissues thereof. 

  

	(h)	“Claims” means any and all judgments, claims, causes of action, demands, lawsuits, suits, proceedings, governmental investigations or audits, losses,
assessments, fines, penalties, administrative orders, obligations, costs, expenses, liabilities and damages, including interest, penalties, reasonable attorneys’ fees, disbursements and costs of investigations, deficiencies, levies, duties and
imposts. 

  

	(i)	“Clifton Ridge Terminal” has the meaning set forth in the Recitals. 

 

	(j)	“Company” has the meaning set forth in the introductory paragraph. 

 

	(k)	“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract, or otherwise. 

  

	(l)	“Crude Oil” means any grade or grades of crude petroleum or condensate that is the direct liquid product of oil or gas wells. 

 

	(m)	“Day” means the period of time commencing at 0400 hours on one calendar day and running until, but not including, 0400 hours on the next calendar day,
according to local time in Houston, Texas. 

  

	(n)	“Effective Date” means the date of the closing of the initial public offering of common units representing limited partner interests of Phillips 66 Partners
LP. 

  

	(o)	“FERC” means the United States Federal Energy Regulatory Commission. 

 

	(p)	“Force Majeure” means: (i) acts of God, fires, floods or storms; (ii) compliance with orders of courts or Governmental Authorities;
(iii) explosions, wars, terrorist acts or riots; (iv) inability to obtain or unavoidable delays in obtaining material or equipment; (v) accidental disruption of service; (vi) events or circumstances similar to the foregoing
(including inability to obtain or unavoidable delays in obtaining material or equipment and disruption of service provided by third parties) that prevent a Party’s ability to perform its obligations under this 

  
 2 

	 	
Agreement, to the extent that such events or circumstances are beyond the Party’s reasonable control and could not have been prevented by the Party’s due diligence; (vii) strikes,
lockouts or other industrial disturbances; and (viii) breakdown of refinery facilities, machinery, storage tanks or pipelines irrespective of the cause thereof. 

 

	(q)	“Gallon” means a United States gallon of two hundred thirty-one cubic inches of liquid at 60o Fahrenheit, and at the equivalent vapor pressure of the
liquid. 

  

	(r)	“Governmental Authority” means any government, any governmental administration, agency, instrumentality or other instrumentality or other political
subdivision thereof or any court, commission or other governmental authority of competent jurisdiction. 

  

	(s)	“Initial Term” has the meaning set forth in Section 2.01. 

  

	(t)	“Lake Charles Refinery” has the meaning set forth in the Recitals. 

 

	(u)	“Lake Charles Segment” has the meaning set forth in the Recitals. 

 

	(v)	“Law” means all constitutions, laws (including common law), treaties, statutes, orders, decrees, rules, injunctions, licenses, permits, approvals, agreements,
regulations, codes, ordinances issued by any Governmental Authority, including judicial or administrative orders, consents, decrees, and judgments, published directives, guidelines, governmental authorizations, requirements or other governmental
restrictions which have the force of law, and determinations by, or interpretations of any of the foregoing by any Governmental Authority having jurisdiction over the matter in question and binding on a given Person, whether in effect as of the date
hereof or thereafter and, in each case, as amended. 

  

	(w)	“Loss Allowance Fee” has the meaning set forth in Section 4.01(a). 

 

	(x)	“Minimum Quarterly Transportation Commitment” has the meaning set forth in Section 3.01(a). 

 

	(y)	“Month” or “Monthly” means a calendar month commencing at 0400 hours on the first Day thereof and running until, but not including, 0400 hours on
the first Day of the following calendar month, according to local time in Houston, Texas. 

  

	(z)	“Non-Conforming Crude Oil” means any Crude Oil that fails to meet specifications established by Carrier for pipeline transportation of that Crude Oil (or in
the absence of Carrier specifications, specifications established by Phillips 66 Pipeline LLC for such Crude Oil). 

  

	(aa)	“Normal Business Hours” means the period of time commencing at 0800 hours on one Day and running until 1700 hours on the same Day, according to local time in
Houston, Texas. 

  
 3 

	(bb)	“Notice” means any notice, request, instruction, correspondence or other communication permitted or required to be given under this Agreement.

  

	(cc)	“Origin Point” means each of the pipeline connection points located at Shell Pipeline Inc., Calcasieu Parish, Louisiana (for the Shell Segment), Pecan
Junction, Calcasieu Parish, Louisiana (for the Pecan Grove Segment), Clifton Ridge, Calcasieu Parish, Louisiana (for the Lake Charles Segment), or such other point(s) as Carrier may establish where Crude Oil may be accepted for shipment on the
Pipeline. 

  

	(dd)	“Parties” means Carrier and Company, collectively. 

  

	(ee)	“Partnership Change in Control” means Phillips 66 ceases to Control the general partner of Phillips 66 Partners LP. 

 

	(ff)	“Party” means Carrier or Company, individually. 

  

	(gg)	“Pecan Grove Segment” has the meaning set forth in the Recitals. 

 

	(hh)	“Pecan Grove Terminal” has the meaning set forth in the Recitals. 

 

	(ii)	“Person” means, without limitation, an individual, corporation (including a non-profit corporation), general or limited partnership, limited liability
company, joint venture, estate, trust, association, organization, labor union, or other entity or Governmental Authority, and shall include any successor (by merger or otherwise) of such entity. 

 

	(jj)	“Pipeline” has the meaning set forth in the Recitals. 

  

	(kk)	“Platts Oilgram” means the publication of that name published by a unit of The McGraw-Hill Companies Inc. 

 

	(ll)	“Quarterly Deficiency Payment” has the meaning set forth in Section 3.01(b) 

 

	(mm)	“Renewal Term” has the meaning set forth in Section 2.01. 

  

	(nn)	“Shell Segment” has the meaning set forth in the Recitals. 

  

	(oo)	“Tariff Rate” means the rate applicable from time to time to the shipment of Crude Oil through the Pipeline under the terms of the Carrier Tariff, which shall
be the rate in effect at the Effective Date, adjusted from time to time as provided in Section 4.02. 

  

	(pp)	“Taxes” means any income, sales, use, excise, transfer, and similar taxes, fees and charges (including ad valorem taxes), including any interest or penalties
attributable thereto, imposed by any Governmental Authority. 

  

	(qq)	“Term” has the meaning set forth in Section 2.01. 

  

	(rr)	“Terminals” has the meaning set forth in the Recitals. 

  
 4 

 Section 1.02 Other Defined Terms. 
 Other terms may be defined elsewhere in this Agreement, and, unless otherwise indicated, shall have such meanings throughout this Agreement. 
 Section 1.03 Terms Generally. 
 The definitions in this Agreement shall apply equally
to both singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The word “include,” “includes” and “including”
shall be deemed to be followed by the phrase “without limitation.” All references to Articles, Sections and Exhibits shall be deemed to be references to Articles and Sections of, and Exhibits to, this Agreement unless the context requires
otherwise. 
 Article II. Term and Termination 
 Section 2.01 Term. 
 This Agreement shall have a primary term commencing on the
Effective Date and ending June 30, 2023 (the “Initial Term”), and may be renewed by Company, at Company’s sole option, for up to two successive renewal terms, each with a duration of five years (each, a
“Renewal Term”), upon at least 180 Days’ written Notice from Company to Carrier prior to the end of the Initial Term or any Renewal Term. The Initial Term and Renewal Terms, if any, shall be referred to in this Agreement
as the “Term.” 
 Section 2.02 Termination Following a Force Majeure Event. 

If a Force Majeure event prevents Carrier or Company from performing its respective obligations under this Agreement for a period of more than 12
consecutive Months, this Agreement may be terminated by either Party at any time after the expiration of such 12-Month period upon at least 30 Days’ Notice to the other Party. 
 Section 2.03 Special Termination by Company. 
 If Company determines to completely
suspend refinery operations at the Lake Charles Refinery for a period of at least 12 consecutive Months, then after Company has made a public announcement of such suspension, Company may provide written Notice to Carrier of its intent to terminate
this Agreement and this Agreement will terminate 12 Months following the date such Notice is received by Carrier. In the event Company publicly announces, prior to the expiration of such 12-Month period, its intent to resume operations at the Lake
Charles Refinery, then such Notice shall be deemed revoked and this Agreement shall continue in full force and effect as if such Notice had never been delivered. 
 Article III. Minimum Commitments 
 Section 3.01 Minimum Quarterly Transportation
Commitment. 
  

	(a)	During each Calendar Quarter, Company shall tender at the Origin Point at the Clifton Ridge Terminal an average of 190,000 Barrels per Day of Crude Oil for
transportation to the Lake Charles Refinery, in approximately ratable quantities (such average, the “Minimum Quarterly Transportation Commitment”) at the Tariff Rate in effect at the time of the tender.

  
 5 

	(b)	If Company fails to meet its Minimum Quarterly Transportation Commitment during any Calendar Quarter, then Company will pay Carrier a deficiency payment (a
“Quarterly Deficiency Payment”) equal to: 

  

	 	(i)	the volume of the deficiency multiplied by the Tariff Rate in effect for the relevant Calendar Quarter, plus 

 

	 	(ii)	0.1% of the volume of the deficiency multiplied by the average midpoint of the prices published by Platts Oilgram for Louisiana light sweet Crude Oil on each
publication Day during that Calendar Quarter. 

  

	(c)	The dollar amount of any Quarterly Deficiency Payment paid by Company may be applied as a credit against any amounts incurred by Company and owed to Carrier with
respect to volumes of Crude Oil tendered at the Origin Point at the Clifton Ridge Terminal for transportation to the Lake Charles Refinery in excess of Company’s Minimum Quarterly Transportation Commitment (or, if this Agreement expires or is
terminated, to volumes that would have been in excess of Company’s Minimum Quarterly Transportation Commitment if this Agreement were still in effect) during any of the succeeding four Calendar Quarters, after which time any unused credits will
expire. This Section 3.01(c) shall survive the expiration or termination of this Agreement. 

  

	(d)	Carrier shall provide transportation services in addition to Company’s Minimum Quarterly Transportation Commitment on an “as available” basis at the
Tariff Rate in effect at the time of the tender. 

 Section 3.02 Loss of Available Capacity. 

If, for any reason (other than outages caused by Carrier’s planned maintenance), the average daily capacity of the Pipeline during a given Calendar
Quarter is less than the Company’s Minimum Quarterly Transportation Commitment for such Calendar Quarter, or if the capacity of the Pipeline is required to be allocated among shippers with the result that the average daily capacity of the
Pipeline available to Company during a given Calendar Quarter is less than the Company’s Minimum Quarterly Transportation Commitment for such Calendar Quarter, then Company’s Minimum Quarterly Transportation Commitment for the applicable
Calendar Quarter shall be reduced to equal the average daily capacity available to Company during such Calendar Quarter. 
 Section 3.03
Partial Period Proration. 
  

	(a)	If the Effective Date is any Day other than the first Day of a Calendar Quarter, or if this Agreement is terminated on any Day other than the last Day of a Calendar
Quarter, then any calculation determined with respect to a Calendar Quarter will be prorated by a fraction, the numerator of which is the number of Days in that part of the Calendar Quarter beginning on the Effective Date or ending on the date of
such termination, as the case may be, and the denominator of which is the number of Days in the Calendar Quarter. 

  
 6 

	(b)	If the Effective Date is any Day other than the first Day of a Month, or if this Agreement is terminated on any Day other than the last Day of a Month, then any
quantity based on a Monthly determination will be prorated by a fraction, the numerator of which is the number of Days in that part of the Month beginning on the Effective Date or ending on the date of such termination, as the case may be, and the
denominator of which is the number of Days in the Month. 

 Section 3.04 Special Reduction of Minimum Quarterly
Transportation Commitment. 
 If Carrier’s use of all or part of the Pipeline for transportation of Crude Oil shall be restrained,
enjoined, restricted or terminated by (a) any Governmental Authority, (b) right of eminent domain or (c) the owner of leased land, Carrier, upon being notified of such restraint, enjoinder, restriction or termination, shall notify
Company and the Minimum Quarterly Transportation Commitment shall be reduced to the extent that Carrier’s use of the part of the Pipeline is so restrained, enjoined, restricted or terminated. 

Article IV. Tariffs 

Section 4.01 Tariff. 
 Shipments on
each of the Shell Segment, the Pecan Grove Segment and the Lake Charles Segment shall be subject to, and the Parties shall be required to comply with, the provisions of the applicable Carrier Tariff. For so long as this Agreement is in effect, the
Carrier Tariff shall include a provision substantially the same as the following: 
  

	(a)	Company shall pay to Carrier a Monthly fee (the “Loss Allowance Fee”) equal to 0.1% of an amount equal to the total number of Barrels of Crude
Oil injected into the Pipeline at an Origin Point during the relevant Month multiplied by the average midpoint of the prices published by Platts Oilgram for Louisiana light sweet Crude Oil on each publication Day during that Month; and

  

	(b)	Carrier shall be entitled to the value of volume gained in transit and shall be responsible for the value of any volume lost in transit. Company shall pay Carrier the
value of any volume gained, and Carrier shall pay Company the value of any volume lost, with the value of Crude Oil gained or lost being equal to the average midpoint of the prices published by Platts Oilgram for Louisiana light sweet Crude Oil on
each publication Day during that Month. 

 For clarity, the Loss Allowance Fee described in Section 4.01(a) and the
entitlement and obligation described in Section 4.01(b) relate only to losses or gains of a type normally incurred in connection with the transportation of Crude Oil and are exceptions to and not modifications of the general provisions of
Section 16.02. 

  
 7 

 Section 4.02 Adjustment. 
 Carrier may file with FERC (or the Louisiana Public Utilities Commission, as the case may be) to adjust Tariff Rates annually beginning July 1, 2013, at a rate equal to the percentage change in the
inflationary index promulgated by FERC, in accordance with FERC’s indexing methodology. If FERC terminates its indexing methodology and does not adopt a new methodology, the parties will negotiate in good faith any adjustments to existing
Tariff Rates. 
 Section 4.03 No Challenge of Rates. 
 Each of Company and Carrier agrees not to commence or support any tariff filing, application, protest, complaint, petition, motion, or other proceeding before FERC or the Louisiana Public Service
Commission for the purpose of requesting that FERC or the Louisiana Public Service Commission accept or set Tariff Rates applicable to the Pipeline which are inconsistent with this Agreement; provided, however, that Company reserves its rights under
FERC regulations to challenge any proposed changes in the Tariff Rate (a) to the extent that such changes are inconsistent with the indexing method provided in 18 C.F.R. §342.3, or (b) through other rate changing methodologies under
18 C.F.R. §342.4. 
 Section 4.04 Recovery of Certain Costs. 

 

	(a)	If Carrier agrees to make any expenditures at Company’s request, Company will reimburse Carrier for such expenditures or, at Carrier’s option and if the
Parties agree, Carrier may amend the Carrier Tariff in order to increase the Tariff Rate so that Carrier may recover the amounts paid for such expenditures over time. 

 

	(b)	If new Laws require Carrier to make substantial and unanticipated expenditures in connection with the services Carrier provides to Company under this Agreement, Company
will reimburse Carrier for Company’s proportionate share of the costs of complying with such Laws, or at Carrier’s option and if the Parties agree, Carrier may amend the Carrier Tariff in order to increase the Tariff Rate so that Carrier
may recover such costs over time. 

 Article V. Scheduling 

Section 5.01 Scheduling. 
 For each
Origin Point, Company shall provide Carrier with a written schedule by the tenth Day of the Month preceding the Month during which injections into the Pipeline are to be made, advising Carrier of the volumes and types of Crude Oil to be tendered for
transportation, and estimated date(s) of such tenders. Carrier will review and confirm its ability to receive according to the schedule by the 20th Day of such preceding Month. 

  
 8 

 Article VI. Quality 
 Section 6.01 Quality. 
  

	(a)	Company agrees not to deliver or cause to be delivered into the Pipeline any Non-Conforming Crude Oil. 

 

	(b)	Company shall be liable for all reasonable costs and losses in curing, removing, or recovering any Non-Conforming Crude Oil except to the extent that such
non-conformity is due to the negligence or willful misconduct of Carrier. After such consultation with Company as may be practical under the circumstances but otherwise at Carrier’s sole discretion, Carrier may attempt to blend the
Non-Conforming Crude Oil, remove and dispose of the Non-Conforming Crude Oil, or, if necessary, recover any Non-Conforming Crude Oil from field locations and, except to the extent that such non-conformity is due to the negligence or willful
misconduct of Carrier, Company shall reimburse Carrier for all reasonable costs associated therewith. Except to the extent that a non-conformity is due to the negligence or willful misconduct of Carrier, if Company’s Non-Conforming Crude Oil
causes any contamination, dilution or other damages to Crude Oil of other customers of Carrier, Company agrees to indemnify, defend and hold the Carrier Affiliated Parties harmless from and against any Claims incurred by, or charged against any of
the Carrier Affiliated Parties, as a result of such event and shall be responsible for all costs and liabilities associated with or incurred as a result of such event. 

Article VII. Monthly Statement; Payment; Liens 
 Section 7.01 Monthly Statement. 
  

	(a)	Promptly after the end of each Month, Carrier shall provide Company with a statement for such Month, showing: (i) the volume of Crude Oil injected into a Pipeline
at an Origin Point under each applicable Carrier Tariff, (ii) the Loss Allowance Fee due Carrier, and (iii) the tariff due to Carrier (after application of any credit to which Company may be entitled pursuant to Section 3.01(c) and
settlement of any obligations under Section 4.01(b)). If requested by Company, Carrier shall provide Company with copies of individual meter tickets for such Month, if available. 

 

	(b)	The Monthly statement for the last Month in each Calendar Quarter shall include any Quarterly Deficiency Payment that may be due and payable by the Company pursuant to
Section 3.01(b). 

 Section 7.02 Payment. 

 

	(a)	 Payment of the amount(s) identified on each Monthly statement shall be due, without discount, on the later of (i) two Business Days after such
Monthly Statement is received, and (ii) the 22nd Day
of the Month in which such Monthly statement is received, provided that if such Day is not a Business Day, then such payment shall be due, without interest, on the next Business Day. Payments not paid by the due date shall bear interest at the rate
of the lesser of 1.5% per Month and the maximum rate allowed by Law for each Month or portion of a Month thereafter during which such amount remains unpaid. 

  
 9 

	(b)	All payments shall be made to Carrier by automated clearing house to an account specified by Carrier from time to time, provided that as long as Carrier is an affiliate
of Company, Carrier and Company may settle Company’s financial obligations to Carrier through Company’s normal interaffiliate settlement processes. Any bank charges incurred by Company in remitting funds by automated clearing house shall
be for Company’s account. Acceptance by Carrier of any payment from Company for any charge or service after termination or expiration of this Agreement shall not be deemed a renewal of this Agreement or a waiver by Carrier of any default by
Company hereunder. 

  

	(c)	If Company reasonably disputes any Monthly statement, in whole or in part, Company shall promptly notify Carrier in writing of the dispute and shall pay the undisputed
portion according to the terms of this Section 7.02, and shall promptly seek to resolve the dispute including, if necessary, by arbitration as provided in Section 18.01. An arbitral panel may award reasonable interest on any unpaid amount
determined to have been due to Carrier but withheld in good faith. 

 Section 7.03 Liens. 

Company hereby grants to Carrier an irrevocable (a) lien on all of Company’s Crude Oil in transit and (b) power of attorney to dispose of
such Crude Oil at fair market value to the extent of all amounts owed to Carrier by Company hereunder. 
 Article VIII. Title;
Custody 
 Section 8.01 Title. 
 Company shall retain title to all of Company’s Crude Oil in transit on the Pipeline at all times. This provision does not preclude Company from any intraline transfer of title to a third party; in
the event of such a transfer, such third party, and not Carrier, shall have title to the affected Crude Oil according to the terms of the relevant agreement between Company and such third party. 

Section 8.02 Custody. 
 Carrier
shall be deemed to have custody of Crude Oil injected into the Pipeline from the time such Crude Oil passes through the flange connection between the relevant Origin Point and the Pipeline until it is delivered to Company or, at the direction of
Company, to a third party through the flange connection (a) between the Pipeline and the Lake Charles Refinery, (b) between the Pipeline and a receiving third party pipeline, or (c) between the Pipeline and the Clifton Ridge Terminal,
as the case may be. 

  
 10 

 Article IX. Volume Determinations 

Section 9.01 Volume Determinations. 
  

	(a)	All measurements, volume corrections and calibrations will be made in accordance with the most recent edition of the American Petroleum Institute’s Manual of
Petroleum Measurement Standards. 

  

	(b)	All volume determinations shall be adjusted to a temperature of 60° Fahrenheit and a pressure of one standard atmosphere (14.7 PSIA) per the most recent edition of
the American Petroleum Institute’s Manual of Petroleum Measurement Standards, Chapter 11 (Table 6A). 

  

	(c)	All Crude Oil received from or delivered to pipeline at the Terminals will be determined by calibrated custody transfer grade meters or by tank measurements (static
tank). 

 Section 9.02 Company’s Right to Witness. 
 A Company representative may witness the testing, calibration of equipment, meter reading, gauging and sampling of Crude Oil at the Terminals, at Company’s expense. In the absence of a Company
representative, Carrier’s measurements shall be deemed to be accurate. 
 Article X. Insurance 

Section 10.01 Insurance. 
 Insurance
for Company’s Crude Oil, if any, that may be desired by Company, shall be carried by Company at Company’s expense. Should Company elect to carry commodity insurance, then each policy of insurance shall be endorsed to provide a waiver of
subrogation rights in favor of the Carrier Affiliated Parties. Carrier shall not be liable to Company for commodity losses or shortages for which Company is compensated by its insurer. 

Article XI. Taxes 

Section 11.01 Taxes. 
 Company shall
be responsible for and shall pay all sales Taxes and similar Taxes on goods and services provided hereunder and any other Taxes now or hereafter imposed by any Governmental Authority in respect of or measured by Crude Oil handled or stored hereunder
or the manufacture, storage, delivery, receipt, exchange or inspection thereof, and Company agrees to promptly reimburse Carrier for any such Taxes Carrier is legally required to pay, upon receipt of invoice therefor. Each Party is responsible for
all Taxes in respect of its own real and personal property. 

  
 11 

 Article XII. Health, Safety and Environment 

Section 12.01 Spills; Environmental Pollution. 
  

	(a)	In the event of a Crude Oil spill or other environmentally polluting discharge caused by Carrier’s operation of the Pipeline, any clean-up resulting from any such
spill or discharge and any liability resulting from such spill or discharge shall be the responsibility of Carrier, except to the extent such spill or discharge is caused by Company.  

 

	(b)	In the event and to the extent of a Crude Oil spill or other environmentally polluting discharge caused by Company or in connection with the operation of Company’s
or a third party’s pipeline, barge, tank truck or transport trailer receiving Crude Oil on Company’s behalf, at its request or for its benefit, Carrier is authorized to commence containment or clean-up operations as deemed appropriate or
necessary by Carrier or as required by any Governmental Authority, and Carrier shall notify Company of such operations as soon as practicable. All liability and reasonable costs of containment or clean-up shall be borne by Company except that, in
the event a spill or discharge is caused by the joint negligence of both Carrier and Company or a third party’s pipeline, barge, tank truck or transport trailer receiving Crude Oil on Company’s behalf, at its request or for its benefit,
liability and costs of containment or clean-up shall be borne jointly by Carrier and Company in proportion to each Party’s respective negligence. 

  

	(c)	For purposes of this Section 12.01, the negligence of a third party pipeline, barge, tank truck or transport trailer receiving Crude Oil on Company’s behalf,
at its request or for its benefit shall be attributed to Company. 

  

	(d)	The Parties shall cooperate for the purpose of obtaining reimbursement if a third party is legally responsible for costs or expenses initially borne by Carrier or
Company. 

 Article XIII. Force Majeure 
 Section 13.01 Suspension during Force Majeure Events. 
 As soon as possible upon the
occurrence of a Force Majeure, a Party affected by a Force Majeure event shall provide the other Party with written notice of the occurrence of such Force Majeure. Each Party’s obligations (other than an obligation to pay any amounts due to the
other Party) shall be temporarily suspended during the occurrence of, and for the entire duration of, a Force Majeure event to the extent that such an event prevents Carrier from performing its obligations under this Agreement. Each Party’s
obligations (other than an obligation to pay any amounts due to the other Party) shall be temporarily suspended beginning 20 Days after the commencement of, and for the entire remaining duration of, a Force Majeure event to the extent that such
event prevents Company from performing its obligations under this Agreement. At the conclusion of the Force Majeure event, the Minimum Quarterly Transportation Commitment with respect to each Calendar Quarter in which the Force Majeure event
remained in effect shall be ratably reduced to reflect such suspension. 

  
 12 

 Section 13.02 Obligation to Remedy Force Majeure Events. 

A Party affected by a Force Majeure event shall take commercially reasonable steps to remedy such situation so that it may resume the full performance of
its obligations under this Agreement within a reasonable period of time. 
 Section 13.03 Strikes and Lockouts. 

The settlement of strikes, lockouts and other labor disturbances shall be entirely within the discretion of the affected Party and the requirement to
remedy a Force Majeure event within a reasonable period of time shall not require the settlement of strikes or lockouts by acceding to the demands of an opposing Person when such course is inadvisable in the discretion of the Party having the
difficulty. 
 Section 13.04 Action in Emergencies. 
 Carrier may temporarily suspend performance of the services to prevent injuries to persons, damage to property or harm to the environment. 

Article XIV. Notices 

Section 14.01 Notices. 
 Unless
otherwise specifically provided in this Agreement, all Notices between the Parties given under or in relation to this Agreement shall be made in writing and shall be deemed to have been properly given if: (i) personally delivered (with written
confirmation of receipt); or (ii) delivered by a recognized overnight delivery service (delivery fees prepaid), in either case to the appropriate address set forth below: 

 

			
	If to Carrier:	  	If to Company:
		
	Phillips 66 Carrier LLC	  	Phillips 66 Company
	c/o Phillips 66 Pipeline LLC	  	3010 Briarpark Dr.
	3010 Briarpark Dr.	  	Houston, TX 77042
	Houston, TX 77042	  	Attn: General Counsel
	Attn: President	  	

 Either Party may change its address for Notice upon Notice to the other in accordance with this Section 14.01.

 Section 14.02 Effective upon Receipt. 
 Any Notice given in the manner set forth in Section 14.01 shall be effective upon actual receipt if received during Normal Business Hours, or at the beginning of the recipient’s next Business
Day if not received during Normal Business Hours. 

  
 13 

 Article XV. Applicable Law 
 Section 15.01 Applicable Law. 
 Regardless of the place of contracting, place(s) of
performance or otherwise, this Agreement and all amendments, modifications, alterations or supplements to it, shall be governed and interpreted in accordance with the laws of the state of Texas without regard to the principles of conflicts of law or
any other principle that might apply the law of another jurisdiction. 
 Article XVI. Limitation of Liability 

Section 16.01 No Liability for Consequential Damages. 
 In no event shall either Party be liable to the other Party for, and no arbitral panel is authorized to award, any punitive, special, indirect or consequential damages of any kind or character resulting
from or arising out of this Agreement, including, without limitation, loss of profits or business interruptions, however they may be caused. 

Section 16.02 Limitation of Liability. 
 Notwithstanding anything to the contrary in this Agreement, Carrier shall in no event be liable for loss of, or damage to, any of Company’s Crude Oil except to the extent caused by Carrier’s
negligence, or the negligence of Carrier’s employees, agents, contractors or subcontractors, in the safekeeping and handling of Company’s Crude Oil. In no event shall Carrier be liable for more than the replacement of lost or damaged Crude
Oil or, at its option, payment of the replacement cost of any lost or damaged Crude Oil. Each Party shall be discharged from any and all liability with respect to services performed and any loss or damage Claims arising out of this Agreement unless
suit or action is commenced within two years after the applicable cause of action arises. 
 Article XVII. Default

 Section 17.01 Default. 
 Should either Party default in the prompt performance and observance of any of the terms and conditions of this Agreement, and should such default continue for 30 Days or more after Notice thereof by the
non-defaulting Party to the defaulting Party, or should either Party become insolvent, commence a case for liquidation or reorganization under the United States Bankruptcy Code (or become the involuntary subject of a case for liquidation or
reorganization under the United States Bankruptcy Code, if such case is not dismissed within 30 Days), be placed in the hands of a state or federal receiver or make an assignment for the benefit of its creditors, then the other Party shall have the
right, at its option, to terminate this Agreement immediately upon Notice to the other Party. 

  
 14 

 Section 17.02 Non-Exclusive Remedies. 
 Except as otherwise provided, the remedies of Carrier and Company provided in this Agreement shall not be exclusive, but shall be cumulative and shall be in addition to all other remedies in favor of
Carrier or Company, at Law or equity. 
 Section 17.03 Right to Terminate. 
 In the event of a default by Company, the amounts theretofore accrued shall, at the option of Carrier, become immediately due and payable and Carrier shall also have the right, at its option, to terminate
this Agreement. In the event of a default by Carrier, Company shall also have the right, at its option, to terminate this Agreement, provided Company has paid Carrier for the amounts that have accrued to the date of such termination. 

Article XVIII. Miscellaneous 
 Section 18.01 Disputes between the Parties. 
 Any dispute between the Parties in
connection with this Agreement shall be resolved by arbitration in accordance with the procedures set forth in Exhibit A; provided, however, that either Party may seek a restraining order, temporary injunction, or other provisional relief in
any court with jurisdiction over the subject matter of the dispute and sitting in Houston, Texas, if such Party in its sole judgment believes that such action is necessary to avoid irreparable injury or to preserve the status quo ante.

 Section 18.02 Assignment. 
  

	(a)	Neither Party may assign its rights under this Agreement without prior written consent of the other Party except: 

 

	 	(i)	if Company transfers the Lake Charles Refinery, Company may assign this Agreement to the transferee of the Lake Charles Refinery subject to the provisions of
Section 18.02(b); and 

  

	 	(ii)	Carrier may make collateral assignments of this Agreement to secure working capital financing; 

provided, however, that in no event shall Company be required to consent to Carrier’s assignment of this Agreement to any
Person that is engaged in the business of refining and marketing petroleum products (or that directly or indirectly Controls or is Controlled by a Person that is engaged in the business of refining and marketing petroleum products) in the states of
Louisiana or Texas. 
  

	(b)	Upon an assignment of this Agreement by either Party, the assigned rights and obligations shall be novated into a new agreement with the assignee, and such assignee
shall be responsible for the performance of the assigned obligations unless the non-assigning Party has reasonably determined that the assignee is not financially or operationally capable of performing such assigned obligations, in which case the
assignor shall remain responsible for the performance of such assigned obligations. 

  
 15 

 Section 18.03 Partnership Change in Control. 

Company’s obligations hereunder shall not terminate in connection with a Partnership Change in Control. Carrier shall provide Company with Notice of
any Partnership Change in Control at least 60 Days prior to the effective date thereof. 
 Section 18.04 No Third-Party Rights.

 Except as expressly provided, nothing in this Agreement is intended to confer any rights, benefits or obligations to any Person other than the
Parties and their respective successors and assigns. 
 Section 18.05 Compliance with Laws. 

Each Party shall at all times comply with all Laws as are applicable to its performance of this Agreement. 

Section 18.06 Severability. 
 If any
provision of this Agreement or the application thereof shall be found by any arbitral panel or court of competent jurisdiction to be invalid, illegal or unenforceable to any extent and for any reason, it shall be adjusted rather than voided, if
possible, in order to achieve the intent of the Parties. In any event, the remainder of this Agreement and the application of such remainder shall not be affected thereby and shall be enforced to the greatest extent permitted by Law. 

Section 18.07 Non-Waiver. 
 The
failure of any Party to enforce any provision, condition, covenant or requirement of this Agreement at any time shall not be construed to be a waiver of such provision, condition, covenant or requirement unless the other Parties are so notified by
such Party in writing. Any waiver by a Party of a default by any other Party in the performance of any provision, condition, covenant or requirement contained in this Agreement shall not be deemed to be a waiver of such provision, condition,
covenant or requirement, nor shall any such waiver in any manner release such other Party from the performance of any other provision, condition, covenant or requirement. 
 Section 18.08 Entire Agreement. 
 This Agreement, together with all exhibits attached
hereto, constitutes the entire Agreement between the Parties relating to its subject matter and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, between the Parties relating
to the subject matter hereof, and there are no warranties, representations or other agreements between the Parties in connection with the subject matter hereof except as specifically set forth in, or contemplated by, this Agreement. 

  
 16 

 Section 18.09 Amendments. 
 This Agreement shall not be modified or amended, in whole or in part, except by a written amendment signed by both Parties. 
 Section 18.10 Survival. 
 Any indemnification granted hereunder by one Party to the
other Party shall survive the expiration or termination of all or any part of this Agreement. 
 Section 18.11 Counterparts; Multiple
Originals. 
 This Agreement may be executed in any number of counterparts, all of which together shall constitute one agreement binding on
each of the Parties. Each of the Parties may sign any number of copies of this Agreement. Each signed copy shall be deemed to be an original, but all of them together shall represent one and the same agreement. 

Section 18.12 Exhibits. 
 The
exhibits identified in this Agreement are incorporated in this Agreement and constitute a part of this Agreement. If there is any conflict between this Agreement and any exhibit, the provisions of the exhibit shall control. 

Section 18.13 Table of Contents; Headings; Subheadings. 
 The table of contents and the headings and subheadings of this Agreement have been inserted only for convenience to facilitate reference and are not intended to describe, interpret, define or limit the
scope, extent or intent of this Agreement or any provision hereof. 
 Section 18.14 Construction. 

The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring either Party by virtue of the authorship of any of the provisions of this Agreement. 

Section 18.15 Business Practices. 

Carrier shall use its best efforts to make certain that all billings, reports, and financial settlements rendered to or made with Company pursuant to this
Agreement, or any revision of or amendments to this Agreement, will properly reflect the facts about all activities and transactions handled by authority of this Agreement and that the information shown on such billings, reports and settlement
documents may be relied upon by Company as being complete and accurate in any further recording and reporting made by Company for whatever purposes. Carrier shall notify Company if Carrier discovers any errors in such billings, reports, or
settlement documents. 

  
 17 

 Section 18.16 Effect of Company Restructuring. 

If Company decides to restructure its supply, refining or sales operations at the Lake Charles Refinery in such a way as could reasonably be expected to
materially and adversely affect the economics of Company’s performance of its obligations under this Agreement, then the Parties will negotiate in good faith a reduction in Company’s Minimum Quarterly Transportation Commitment or an
exchange of the Pipeline for other assets not so affected. 
 Section 18.17 Effect of Discontinuation of Publication. 

If Platts Oilgram discontinues publication of prices for Louisiana Light Sweet Crude Oil or ceases to provide the information to be obtained therefrom
pursuant to this Agreement, the Parties shall negotiate in good faith to agree upon a replacement publication or pricing mechanism. 
 [Signature page follows.] 

  
 18 

 IN WITNESS WHEREOF, Carrier and Company have signed this Agreement as of the Effective Date.

  

									
	PHILLIPS 66 CARRIER LLC	 		 	PHILLIPS 66 COMPANY
					
	By:	 	 	 		 	By:	 	 
					
	Name:	 	 	 		 	Name:	 	 
					
	Title:	 	 	 		 	Title:	 	 

 Signature Page to Transportation Services Agreement (Clifton Ridge) 

 Exhibit A 
 Arbitration Procedure 
 Either Party may initiate dispute resolution procedures by sending
a Notice to the other Party specifically stating the complaining Party’s Claim and by initiating binding arbitration in accordance with the Center for Public Resources Rules for Non-Administered Arbitration of Business Disputes, by three
arbitrators who shall be neutral, independent, and generally knowledgeable about the type of transaction which gave rise to the dispute. The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. §§ 1-16, provided
that the arbitrators shall include in their report/award a list of findings, with supporting evidentiary references, upon which they have relied in making their decision. Judgment upon the award rendered by the arbitrators may be entered by any
court having jurisdiction thereof. The place of arbitration shall be Houston, Texas. 
 Notwithstanding anything herein and regardless of any
procedures or rules of the Center for Public Resources, it is expressly agreed that the following shall apply and control over any other provision in this Agreement: 
  

	(a)	All offers, conduct, views, opinions and statements made in the course of negotiation or mediation by any of the Parties, their employees, agents, experts, attorneys
and representatives, and by any mediator, are confidential, made for compromise and settlement, protected from disclosure under Federal and State Rules of Evidence and Procedure, and inadmissible and not discoverable for any purpose, including
impeachment, in litigation or legal proceedings between the Parties, and shall not be disclosed to any Person who is not an agent, employee, expert or representative of the Parties, provided that evidence otherwise discoverable or admissible
is not excluded from discovery or admission as a result of presentation or use in mediation. 

  

	(b)	Except to the extent that the Parties may agree upon selection of one or more arbitrators, the Center for Public Resources shall select arbitrators from a panel
reviewed by the Parties. The Parties shall be entitled to exercise peremptory strikes against one-third of the panel and may challenge other candidates for lack of neutrality or lack of qualifications. Challenges shall be resolved in accordance with
Center for Public Resource rules. 

  

	(c)	The Parties shall have at least 20 Days following the close of hearing within which to submit a brief (not to exceed 18 pages in length) and ten Days from date of
receipt of the opponent’s brief within which to respond thereto. 

  

	(d)	The Parties expressly agree that the arbitrators shall not award punitive damages, consequential damages, or attorneys’ fees (except attorneys’ fees
specifically authorized by the Agreement). 

  
 Exhibit A/Page
1 

	(e)	The fees and expenses of any mediator or arbitrator shall be shared equally by the Parties. 

 

	(f)	The Parties may, by written agreement (signed by both Parties), alter any time deadline or location(s) for meetings. 

Time is of the essence for purposes of the provisions of this Exhibit. 

  
 Exhibit A/Page
2

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