Document:

EX-10.5

 Exhibit 10.5 

BERTH 121 
 OPERATING
AGREEMENT 
 This BERTH 121 OPERATING AGREEMENT (the “Agreement”) is dated as of December 6, 2013 (the
“Execution Date”), by and between Tesoro Logistics Operations LLC, a Delaware limited liability company (“Operator”), and Carson Cogeneration Company, a Delaware corporation (“Carson Cogen”). 

RECITALS 
 WHEREAS,
Carson Cogen and the City of Long Beach, California (the “City”), are parties to that certain Pier E Tanker Terminal Agreement, dated October 24, 1980 (as such lease may be amended, restated, modified, supplemented or
renewed from time to time, the “Berth 121 Port Lease”); 
 WHEREAS, Carson Cogen and Phillips 66 Company, a Delaware
corporation (“Phillips 66”), are parties to that certain Agreement, dated July 3, 1979, relating to the operation of marine vessel Berth 121 located at the Port of Long Beach (“Berth 121”) and Pipeline 95
(owned by Phillips 66) (as such agreement may be amended, restated modified or supplemented from time to time (the “Use Agreement”); 

WHEREAS, the leasehold interest under Berth 121 Port Lease is expected be to subleased (the “Sublease”) by Carson
Cogen to Operator, upon receipt of the City’s consent; 
 WHEREAS, the operation of Berth 121 by Operator, as sublessee under
the Sublease will require a Certificate of Financial Responsibility (“COFR”) issued by the California Department of Fish and Game (“CDFG”) in favor of Operator; 

WHEREAS, concurrently herewith, Operator and Carson Cogen, among other parties, have entered into that certain Long Beach Berth
Throughput Agreement (the “Throughput Agreement”); 
 WHEREAS, during the period commencing on the Execution Date
and continuing until the Termination Date, Carson Cogen desires to engage Operator to perform Carson Cogen’s obligations under the Berth 121 Port Lease and the Use Agreement. 

NOW, THEREFORE, in consideration of the covenants and obligations contained herein, the Parties hereto hereby agree as follows: 

SECTION 1 DEFINITIONS 
 Capitalized
terms used throughout this Agreement shall have the meanings set forth below, unless otherwise specifically defined herein. 

“Agreement” has the meaning set forth in the Preamble. 

“Applicable Law” means any applicable statute, law, regulation, ordinance, rule, determination, judgment, rule of law, order,
decree, permit, approval, concession, grant, franchise, license, requirement, or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued by any Governmental Authority having or
asserting jurisdiction over the matter or matters in question, whether now or hereafter in effect. 

 “Berth 121” has the meaning set forth in the Recitals. 

“Berth 121 Port Lease” has the meaning set forth in the Recitals. 

“Business Day” means a day, other than a Saturday or Sunday, on which banks in New York, New York are open for the general
transaction of business. 
 “Carson Assets Indemnity Agreement” means that certain Carson Assets Indemnity Agreement
entered into by the Parties, and other parties, concurrently herewith. 
 “Carson Cogen Group” means Carson Cogen, its
affiliates, and their respective officers, directors, employees, agents, successors, and assigns (excluding any member of the Operator Group). 

“Carson Cogen” has the meaning set forth in the Preamble. 

“CDFG” has the meaning set forth in the Recitals. 

“City” has the meaning set forth in the Recitals. 

“Claims” has the meaning set forth in Section 7(a). 

“COFR” has the meaning set forth in the Recitals. 

“Confidential Information” means all confidential, proprietary or non-public information of a Party, whether set forth in
writing, orally or in any other manner, including all non-public information and material of such Party (and of companies with which such Party has entered into confidentiality agreements) that another Party obtains knowledge of or access to,
including non-public information regarding products, processes, business strategies and plans, customer lists, research and development programs, computer programs, hardware configuration information, technical drawings, algorithms, know-how,
formulas, processes, ideas, inventions (whether patentable or not), trade secrets, schematics and other technical, business, marketing and product development plans, revenues, expenses, earnings projections, forecasts, strategies, and other
non-public business, technological, and financial information. 
 “Crude Oil” means crude petroleum, synthetic crude oil,
topped crude oil, condensate and all associated blends thereof. 
 “Execution Date” has the meaning set forth in the
Recitals. 
 “Governmental Authority” means any federal, state, local or foreign government or any provincial, departmental
or other political subdivision thereof, or any entity, body, port authority or other authority exercising executive, legislative, judicial, regulatory, administrative or other governmental functions or any court, department, commission, board,
bureau, agency, instrumentality or administrative body of any of the foregoing. 
 “Marine Vessel” means any ocean tanker,
ocean barge, river barge or other vessel. 
 “Month” means the period commencing on the Execution Date and ending on the
last day of that calendar month and each successive calendar month thereafter. 
 “Operator” has the meaning set forth in
the Preamble. 

 “Operator Group” means Operator, its parent company, Tesoro Logistics LP, a
Delaware limited partnership, its parent’s general partner Tesoro Logistics GP, LLC, a Delaware limited liability company, their subsidiaries and their respective officers, directors, members, managers, employees, agents, successors, and
assigns. 
 “Party” or “Parties” means that each of Operator and Carson Cogen is a “Party” and
collectively are the “Parties” to this Agreement. 
 “Person” means any individual, partnership, limited
partnership, joint venture, corporation, limited liability company, limited liability partnership, trust, unincorporated organization or Governmental Authority or any department or agency thereof. 

“Phillips 66” has the meaning set forth in the Recitals. 

“Pollution Event” has the meaning set forth in Section 7(c). 

“Product” or “Products” means Crude Oil and Refined Products. 

“Receiving Party Personnel” has the meaning set forth in Section 15(d). 

“Refined Products” means gasoline, gasoline blend component, diesel, distillate, distillate blend components, jet/aviation
fuel, fuel oil, cut back resid, cutter stock, gas oil and/or other commodity other than Crude Oil specified in this Agreement or otherwise mutually agreed upon by the Parties. 

“Regulatory Obligations” means standards, regulations, permits or conditions required by a Governmental Authority. 

“Sublease” has the meaning set forth in the Recitals. 

“Term” has the meaning set forth in Section 4. 

“Termination Date” has the meaning set forth in Section 3. 

“Throughput Agreement” has the meaning set forth in the Recitals. 

SECTION 2 GENERAL UNDERTAKINGS 

During the Term, Operator agrees to fully perform Carson Cogen’s obligations under the Berth 121 Port Lease and the Use Agreement. 

SECTION 3 TERMINATION DATE 
 The
“Termination Date” will be the date the Sublease is effective. 
 SECTION 4 TERM 

The term of this Agreement shall be for the period commencing on the Execution Date and continuing until the Termination Date (the
“Term”). 

 Notwithstanding the foregoing, and in addition to terms and conditions contained in
Section 8, this Agreement shall terminate if any of the following events occur: 
 (a) the termination, cancellation or expiration of
the Berth 121 Port Lease for any reason during the Term, whereupon this Agreement shall terminate immediately upon such event; or 
 (b) in
the event of a rescission with respect to Berth 121 pursuant to the Contribution, Conveyance and Assumption Agreement dated November 18, 2013, by and among Tesoro Corporation, Carson Cogen, Tesoro Refining & Marketing Company LLC,
Tesoro Logistics GP, LLC, Tesoro Logistics LP and Tesoro Logistics Operations LLC. 
 SECTION 5 OPERATION OF THE BERTH 121 ASSETS DURING TERM

 (a) Operator shall be compensated for its services hereunder pursuant to the Throughput Agreement, as follows: (i) Operator shall
receive from Carson Cogen the throughput fees applicable to Berth 121 set forth in Section 4 of the Throughput Agreement and (ii) Operator shall receive from Carson Cogen the specified cost reimbursements with regard to Berth 121 set forth
in Section 5 of the Throughput Agreement. 
 (b) Operator shall pay to Carson Cogen any amounts payable by Carson Cogen to the City
under the Berth 121 Port Lease and any amounts payable to any other party by Carson Cogen in connection with the operation of Berth 121. 

(c) Operator shall account for all of its costs in connection with the services provided hereunder in accordance with the “Accounting
Procedures” set forth in Exhibit 7 to the Use Agreement. Carson Cogen and Operator shall jointly work with Phillips 66 to produce the annual budget required by the Use Agreement. Any new capital expenditures required under the Berth 121 Port
Lease or the Use Agreement will remain the responsibility of Carson Cogen and Phillips 66. Carson Cogen shall pay to Phillips 66 any amounts due from Carson Cogen to Phillips 66 under the Use Agreement. Carson Cogen will pay to Operator any amounts
paid by Phillips 66 to Carson Cogen under the Use Agreement. 
 (d) Carson Cogen reserves the right to amend the Berth 121 Port Lease and/or
the Use Agreement at any time during the Term. If any such amendment increases Operator’s costs to perform its obligations hereunder, Carson Cogen shall promptly reimburse Operator for such increased costs, unless Operator would already be
compensated for such increased costs under the Throughput Agreement. 
 (e) If during the Term of this Agreement Operator’s costs to
perform its duties hereunder are increased by reason of any change in Regulatory Obligations, Carson Cogen shall promptly reimburse Operator for such increased costs, unless Operator would already be compensated for such increased costs under the
Throughput Agreement. 
 SECTION 6 LIMITATION ON LIABILITY 

IN NO EVENT SHALL A PARTY BE LIABLE TO THE OTHER PARTY FOR ANY LOST PROFITS OR INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE
DAMAGES, NO MATTER HOW CHARACTERIZED, RELATING TO THIS AGREEMENT AND ARISING FROM ANY CAUSE WHATSOEVER, EXCEPT WITH RESPECT TO INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES ACTUALLY AWARDED TO A THIRD PARTY OR ASSESSED BY A
GOVERNMENTAL AUTHORITY AND FOR WHICH A PARTY IS PROPERLY ENTITLED TO INDEMNIFICATION FROM THE OTHER PARTY PURSUANT TO THE EXPRESS PROVISIONS OF THIS AGREEMENT. 

 SECTION 7 INDEMNIFICATION 

(a) Duty to Indemnify Carson Cogen Group. Except as expressly provided otherwise in this Agreement, Operator SHALL RELEASE, DEFEND,
INDEMNIFY, AND HOLD HARMLESS the Carson Cogen Group from and against all claims, suits, causes of action, demands, losses, liabilities, damages, costs, expenses, fees (including, but not limited to, reasonable attorney’s fees), and court costs
(collectively “Claims”), inclusive of Claims made by third parties, arising from or relating to any injury to or death of persons and/or damage, loss, or injury to any property (excluding Product) TO THE EXTENT OF THE PERCENTAGE OR
PROPORTION OF DETERMINED FAULT ARISING FROM THE BREACH, DEFAULT, STRICT LIABILITY, OR THE NEGLIGENT ACTS, ERRORS, OR OMISSIONS OF OPERATOR OR ANY MEMBER OF THE OPERATOR GROUP WHILE PERFORMING OR RELATING TO ITS OR THEIR OBLIGATIONS UNDER THIS
AGREEMENT. 
 (b) Duty to Indemnify Operator Group. Except as expressly provided otherwise in this Agreement, CARSON COGEN SHALL
RELEASE, DEFEND, INDEMNIFY, AND HOLD HARMLESS the Operator Group from and against all Claims, inclusive of Claims made by third parties, arising from or relating to any injury to or death of persons and/or damage, loss, or injury to any property
(excluding Product) TO THE EXTENT OF THE PERCENTAGE OR PROPORTION OF DETERMINED FAULT ARISING FROM THE BREACH, DEFAULT, STRICT LIABILITY, OR THE NEGLIGENT ACTS, ERRORS, OR OMISSIONS OF CARSON COGEN OR ANY MEMBER OF CARSON COGEN GROUP WHILE USING
BERTH 121 AND/OR TO THE EXTENT OF THE PERCENTAGE OR PROPORTION OF DETERMINED FAULT ARISING FROM THE BREACH, DEFAULT, STRICT LIABILITY, OR THE NEGLIGENT ACTS, ERRORS, OR OMISSIONS OF CARSON COGEN OR ANY MEMBER OF THE CARSON COGEN GROUP WHILE
PERFORMING OR RELATING TO CARSON COGEN’S OBLIGATIONS UNDER THIS AGREEMENT. 
 (c) Duty to Indemnify for Pollution Events.
Notwithstanding anything to the contrary in this Agreement, in the event of any escape, release, discharge, threat of discharge, or disposal of any pollutants or hazardous materials from any member of Carson Cogen Group’s vehicles, Marine
Vessels or equipment or otherwise caused by any member of the Carson Cogen Group while in, on, or adjacent to Berth 121 (each such event a “Pollution Event”), Operator shall have the right to commence emergency response and
containment or clean-up activities, as deemed appropriate or necessary by Operator or required by any Governmental Authority, and shall notify Carson Cogen, as soon as reasonably possible, of such activities. CARSON COGEN SHALL ASSUME ALL
RESPONSIBILITY FOR, AND SHALL RELEASE, DEFEND, INDEMNIFY, AND HOLD HARMLESS THE OPERATOR GROUP FROM AND AGAINST, ANY AND ALL CLAIMS ARISING FROM OR RELATING TO A POLLUTION EVENT EXCEPT TO THE EXTENT OF THE PERCENTAGE OR PROPORTION OF DETERMINED
FAULT THAT CARSON COGEN SHALL SHOW ANY SUCH POLLUTION EVENT IS CAUSED BY THE NEGLIGENCE OF OPERATOR OR ANY MEMBER OF THE OPERATOR GROUP. 

(d) Failure to Maintain Required Coverages. In the event that (i) Operator does not maintain the insurance coverages required by
Section 11 of this Agreement or (ii) Operator fails to include Carson Cogen as an additional insured on all policies of insurance required by Section 11 of this Agreement, then Operator shall hold harmless and indemnify Carson Cogen
against all Claims that otherwise would have been insured. 
 (e) Written Claim. Neither Party shall be obligated to indemnify the
other Party or be liable to the other Party unless a written claim for indemnity is delivered to the other Party within ninety (90) days after the date that a Claim is reported or discovered, whichever is earlier. 

 (f) No Limitation. Except as expressly provided otherwise in this Agreement, the scope of
these indemnity provisions may not be altered, restricted, limited, or changed by any other provision of this Agreement. The indemnity obligations of the Parties as set out in this Section 7 are independent of any insurance requirements as set
out in Section 11, and such indemnity obligations shall not be lessened or extinguished by reason of a Party’s failure to obtain the required insurance coverages or by any defenses asserted by a Party’s insurers. 

(g) Mutual and Express Acknowledgement. THE INDEMNIFICATION PROVISIONS PROVIDED FOR IN THIS AGREEMENT HAVE BEEN EXPRESSLY NEGOTIATED IN
EVERY DETAIL, ARE INTENDED TO BE GIVEN FULL AND LITERAL EFFECT, AND SHALL BE APPLICABLE WHETHER OR NOT THE LIABILITIES, OBLIGATIONS, CLAIMS, JUDGMENTS, LOSSES, COSTS, EXPENSES OR DAMAGES IN QUESTION ARISE OR AROSE SOLELY OR IN PART FROM THE GROSS,
ACTIVE, PASSIVE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, OR OTHER FAULT OF ANY INDEMNIFIED PARTY. EACH PARTY ACKNOWLEDGES THAT THIS STATEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND CONSTITUTES CONSPICUOUS NOTICE. NOTICE IN THIS CONSPICUOUS
NOTICE IS NOT INTENDED TO PROVIDE OR ALTER THE RIGHTS AND OBLIGATIONS OF THE PARTIES, ALL OF WHICH ARE SPECIFIED ELSEWHERE IN THIS AGREEMENT. 

(h) Survival. These indemnity obligations shall survive the termination of this Agreement until all applicable statutes of limitation
have run regarding any Claims that could be made with respect to the activities contemplated by this Agreement. 
 (i) Third Party
Indemnification. If any Party has the rights to indemnification from a third party, the indemnifying party under this Agreement shall have the right of subrogation with respect to any amounts received from such third-party indemnification claim.

 (j) Carson Assets Indemnity Agreement. In the event of any conflict between the provisions of this Agreement and the provisions of
the Carson Assets Indemnity Agreement, the provisions of the Carson Assets Indemnity Agreement shall prevail. 
 SECTION 8 DEFAULT 

(a) Default. A Party shall be in default under this Agreement if: 

(i) the Party breaches any provision of this Agreement, which breach has a material adverse effect on the other Party, and such
breach is not cured within fifteen (15) Business Days after notice thereof (which notice shall describe such breach in reasonable detail) is received by such Party (unless such failure is not commercially reasonably capable of being cured in
such fifteen (15) Business Day period in which case such Party shall have commenced remedial action to cure such breach and shall continue to diligently and timely pursue the completion of such remedial action after such notice); or 

(ii) the Party (A) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding
or cause of action under any bankruptcy, insolvency, reorganization or similar Applicable Law, or has any such petition filed or commenced against it, (B) makes an assignment or any general arrangement for the benefit of creditors,
(C) otherwise becomes bankrupt or insolvent (however evidenced) or (D) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets.

 (b) If either of the Parties is in default as described above, then (i) if Carson Cogen is
in default, Operator may or (ii) if Operator is in default, Carson Cogen may: (A) terminate this Agreement upon notice to the defaulting Party; (B) withhold any payments due to the defaulting Party under this Agreement; and/or
(C) pursue any other remedy at law or in equity. 
 (c) Obligation to Cure Breach. If a Party breaches any provision of this
Agreement, which breach does not have a material adverse effect on the other Party, the breaching Party shall still have the obligation to cure such breach. 

SECTION 9 RESERVED 
 SECTION 10 ASSIGNMENT

 As of the Execution Date, TRMC shall assign all of its rights and obligations hereunder to the General Partner, the General Partner
shall assign all of its rights and obligations hereunder to the Partnership. The Partnership shall assign its rights and obligations hereunder to Operator. Upon such assignment to Operator, Operator shall have all of the respective rights and
obligations set forth herein 
 Operator shall not assign its rights or obligations under this Agreement without Carson Cogen’s prior
written consent. 
 SECTION 11 INSURANCE 

(a) Insurance Required by Operator. Operator shall obtain at its sole cost and expense and shall carry and maintain in full force and
effect all insurance coverages required by the Berth 121 Port Lease and the Use Agreement. 
 (b) Certificates of Insurance;
Endorsements. Operator shall cause Carson Cogen to be named as an additional insured on all policies of insurance secured by Operator in accordance with this Agreement. Operator shall furnish Carson Cogen with certificates of insurance
evidencing this coverage. All policies shall be endorsed to provide that no material change or cancellation of the coverage shall occur until Carson Cogen has received thirty (30) days written notice. Operator hereby waives, and shall cause its
insurers to also waive any right of subrogation that they may have against Carson Cogen or the Carson Cogen Group. All insurance coverage required hereunder shall be primary to, and not in excess of or contributory with, any insurance that may be
maintained by Operator. 
 SECTION 12 GOVERNMENT REGULATIONS 

(a) Compliance with Applicable Law. Each Party shall be responsible for compliance with all Applicable Law associated with such
Party’s respective performance hereunder and the operation of such Party’s facilities. In the event any action or obligation imposed upon a Party under this Agreement shall at any time be in conflict with any requirement of Applicable Law,
then this Agreement shall immediately be modified to conform the action or obligation so adversely affected to the requirements of the Applicable Law, and all other provisions of this Agreement shall remain effective. 

(b) Material Change in Applicable Law. If during the Term, any new Applicable Law becomes effective or any existing Applicable Law or
its interpretation is materially changed, which change is not addressed by another provision of this Agreement and which has a material adverse economic impact upon a Party, either Party, acting in good faith, shall have the option to request
renegotiation of the relevant provisions of this Agreement with respect to future performance. The Parties shall then meet to negotiate in good faith amendments to this Agreement that will conform to the new Applicable Law while preserving the
Parties’ economic, operational, commercial and competitive arrangements in accordance with the understandings set forth herein. 

 SECTION 13 NOTICE 

All notices, requests, demands, and other communications hereunder will be in writing and will be deemed to have been duly given: (a) if
by transmission by hand delivery, when delivered; (b) if mailed via the official governmental mail system, five (5) Business Days after mailing, provided said notice is sent first class, postage pre-paid, via certified or registered mail,
with a return receipt requested; (c) if mailed by an internationally recognized overnight express mail service such as Federal Express, UPS, or DHL Worldwide, one (1) Business Day after deposit therewith prepaid; or (d) if by e-mail,
one Business Day after delivery with receipt confirmed. All notices will be addressed to the Parties at the respective addresses as follows: 

If to Carson Cogen, to: 
 Carson
Cogen Company 
 19100 Ridgewood Parkway 

San Antonio, Texas 78259 
 For
legal notices: 
 Attention: Charles A. Cavallo III, Managing Attorney – Commercial 

phone: (210) 626-4045 

email: Charles.A.Cavallo@tsocorp.com 

For all other notices and communications: 

Attention: Dennis C. Bak 
 phone:
310-847-3846 
 email: Dennis.C.Bak@tsocorp.com 

If to Operator, to: 
 Tesoro
Logistics Operations LLC 
 19100 Ridgewood Parkway 

San Antonio, Texas 78259 
 For
legal notices: 
 Attention: Charles S. Parrish, General Counsel 

phone: (210) 626-4280 

email: Charles.S.Parrish@tsocorp.com 

For all other notices and communications: 

Attention: Rick D. Weyen, Vice President, Logistics 

phone: (210) 626-4379 

email: Rick.D.Weyen@tsocorp.com 
 or to such
other address or to such other Person as either Party will have last designated by notice to the other Party. 

 SECTION 14 REPORTS AND AUDIT 

Each Party and its duly authorized agents and/or representatives shall have reasonable access to the accounting records and other documents
maintained by the other Party which relate to this Agreement, and shall have the right to audit such records at any reasonable time or times during the Term and for a period of up to three years after termination of this Agreement. Claims as to
shortage in quantity or defects in quality shall be made by written notice within ninety (90) days after the delivery in question or shall be deemed to have been waived. 

SECTION 15 CONFIDENTIAL INFORMATION 

(a) Confidential Information and Exceptions Thereto. Each Party shall use reasonable efforts to retain the other Parties’
Confidential Information in confidence and not disclose the same to any third party nor use the same, except as authorized by the disclosing Party in writing or as expressly permitted in this Section 15. Each Party further agrees to take the
same care with the other Party’s Confidential Information as it does with its own, but in no event less than a reasonable degree of care. Excepted from these obligations of confidence and non-use is that information which: 

(i) is available, or becomes available, to the general public without fault of the receiving Party; 

(ii) was in the possession of the receiving Party on a non-confidential basis prior to receipt of the same from the disclosing
Party (it being understood, for the avoidance of doubt, that this exception shall not apply to information of Operator that was in the possession of Carson Cogen or any of its affiliates as a result of their ownership or operation of Berth 121 prior
to the Execution Date); 
 (iii) is obtained by the receiving Party without an obligation of confidence from a third party
who is rightfully in possession of such information and, to the receiving Party’s knowledge, is under no obligation of confidentiality to the disclosing Party; or 

(iv) is independently developed by the receiving Party without reference to or use of the disclosing Party’s Confidential
Information. 
 For the purpose of this Section 15, a specific item of Confidential Information shall not be deemed to be within the foregoing
exceptions merely because it is embraced by, or underlies, more general information in the public domain or in the possession of the receiving Party. 

(b) Required Disclosure. Notwithstanding Section 15(a) above, if the receiving Party becomes legally compelled to disclose the
Confidential Information by a court, Governmental Authority or Applicable Law, or is required to disclose by the listing standards of any applicable securities exchange, any of the disclosing Party’s Confidential Information, the receiving
Party shall promptly advise the disclosing Party of such requirement to disclose Confidential Information as soon as the receiving Party becomes aware that such a requirement to disclose might become effective, in order that, where possible, the
disclosing Party may seek a protective order or such other remedy as the disclosing Party may consider appropriate in the circumstances. The receiving Party shall disclose only that portion of the disclosing Party’s Confidential Information
that it is required to disclose and shall cooperate with the disclosing Party in allowing the disclosing Party to obtain such protective order or other relief. 

 (c) Return of Confidential Information. Upon written request by the disclosing Party, all
of the disclosing Party’s Confidential Information in whatever form shall be returned to the disclosing Party upon termination of this Agreement or destroyed with destruction certified by the receiving Party, without the receiving Party
retaining copies thereof except that one copy of all such Confidential Information may be retained by a Party’s legal department solely to the extent that such Party is required to keep a copy of such Confidential Information pursuant to
Applicable Law, and the receiving Party shall be entitled to retain any Confidential Information in the electronic form or stored on automatic computer back-up archiving systems during the period such backup or archived materials are retained under
such Party’s customary procedures and policies; provided, however, that any Confidential Information retained by the receiving Party shall be maintained subject to confidentiality pursuant to the terms of this Section 15, and such archived
or back-up Confidential Information shall not be accessed except as required by Applicable Law. 
 (d) Receiving Party Personnel. The
receiving Party will limit access to the Confidential Information of the disclosing Party to those of its employees, attorneys and contractors that have a need to know such information in order for the receiving Party to exercise or perform its
rights and obligations under this Agreement (the “Receiving Party Personnel”). The Receiving Party Personnel who have access to any Confidential Information of the disclosing Party will be made aware of the confidentiality provision
of this Agreement, and will be required to abide by the terms thereof. Any third party contractors that are given access to Confidential Information of a disclosing Party pursuant to the terms hereof shall be required to sign a written agreement
pursuant to which such Receiving Party Personnel agree to be bound by the provisions of this Agreement, which written agreement will expressly state that it is enforceable against such Receiving Party Personnel by the disclosing Party. 

(e) Survival. The obligation of confidentiality under this Section 15 shall survive the termination of this Agreement for a period
of two (2) years. 
 SECTION 16 MISCELLANEOUS 

(a) Amendment or Modification. This Agreement may be amended or modified only by a written instrument executed by the Parties. Any of
the terms and conditions of this Agreement may be waived in writing at any time by the Party entitled to the benefits thereof. No waiver of any of the terms and conditions of this Agreement, or any breach thereof, will be effective unless in writing
signed by a duly authorized individual on behalf of the Party against which the waiver is sought to be enforced. No waiver of any term or condition or of any breach of this Agreement will be deemed or will constitute a waiver of any other term or
condition or of any later breach (whether or not similar), nor will such waiver constitute a continuing waiver unless otherwise expressly provided. 

(b) Integration. This Agreement, together with the other agreements referred to herein, constitutes the entire agreement among the
Parties pertaining to the subject matter hereof and supersedes all prior agreements and understandings of the Parties in connection therewith. 

(c) Construction and Interpretation. In interpreting this Agreement, unless the context expressly requires otherwise, all of the
following apply to the interpretation of this Agreement: 
 (i) Preparation of this Agreement has been a joint effort of the
Parties and the resulting Agreement against one of the Parties as the drafting Party; 
 (ii) Plural and singular words each
include the other. 
 (iii) Masculine, feminine and neutral genders each include the others. 

(iv) The word “or” is not exclusive and includes “and/or”. 

 (v) The words “includes” and “including” are not limiting.

 (vi) References to the Parties include their respective successors and permitted assignees. 

(vii) The headings in this Agreement are included for convenience and do not affect the construction or interpretation of any
provision of, or the rights or obligations of a Party under, this Agreement. 
 (d) Applicable Law; Forum, Venue and Jurisdiction.
This Agreement shall be governed by the laws of the State of Texas without giving effect to its conflict of laws principles; provided that any issues or claims arising out of the terms and conditions of the Berth 121 Port Lease, or rules and
regulations of the POLB and the City will be governed by the laws of the State of California. Each Party hereby irrevocably submits to the exclusive jurisdiction of any federal court of competent jurisdiction situated in the United States District
Court for the Western District of Texas, San Antonio Division, or if such federal court declines to exercise or does not have jurisdiction, in the district court of Bexar County, Texas; provided that this limitation shall not prevent a party
from joining the other party in an action in another forum involving the POLB and/or the City. The Parties expressly and irrevocably submit to the jurisdiction of said court and irrevocably waive any objection which they may now or hereafter have to
the laying of venue of any action, suit or proceeding arising out of or relating to this Agreement brought in such court, irrevocably waive any claim that any such action, suit or proceeding brought in any such court has been brought in an
inconvenient forum and further irrevocably waive the right to object, with respect to such claim, action, suit or proceeding brought in any such court, that such court does not have jurisdiction over such Party. The Parties hereby irrevocably
consent to the service of process by registered mail, postage prepaid, or by personal service within or without the State of Texas. Nothing contained herein shall affect the right to serve process in any manner permitted by law. 

(e) Counterparts. This Agreement may be executed in one or more counterparts (including by facsimile or portable document format (pdf))
for the convenience of the Parties hereto, each of which counterparts will be deemed an original, but all of which counterparts together will constitute one and the same agreement. 

(f) Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be valid and effective
under Applicable Law, but if any provision of this Agreement or the application of any such provision to any Person or circumstance will be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision hereof, and the Parties will negotiate in good faith with a view to substitute for such provision a suitable and equitable solution in order to carry out, so far as may be valid and
enforceable, the intent and purpose of such invalid, illegal or unenforceable provision. 
 (g) No Third Party Rights. Except as
expressly provided herein, it is expressly understood that the provisions of this Agreement do not impart enforceable rights in anyone who is not a Party or successor or permitted assignee of a Party. 

(h) Jury Waiver. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY PROCEEDINGS RELATING TO THIS AGREEMENT OR ANY PERFORMANCE OR FAILURE TO PERFORM OF ANY OBLIGATION HEREUNDER. 

 (i) Independent Contractor. Operator’s relationship to Carson Cogen hereunder shall
be that of an independent contractor. Nothing in this Agreement shall be construed to make Operator or any of its employees, an agent, associate, joint venture or partner of Carson Cogen. 

[Signature Page Follows] 

 IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the
Execution Date. 
  

					
	TESORO LOGISTICS OPERATIONS LLC
		
	 By:
	 	/s/ Phillip M. Anderson
		 	 Phillip M. Anderson

President

	
	CARSON COGENERATION COMPANY
		
	 By:
	 	/s/ Gregory J. Goff
		 	Gregory J. Goff
		 	Chairman of the Board of Directors and President
	
	 Solely for the purposes of Section 10:

TESORO REFINING & MARKETING COMPANY LLC

		
	 By:
	 	/s/ Gregory J. Goff
		 	Gregory J. Goff
		 	Chairman of the Board of Managers and President
	
	 Solely for the purposes of Section 10:

TESORO LOGISTICS GP, LLC

		
	 By:
	 	/s/ Phillip M. Anderson
		 	Phillip M. Anderson
		 	President
	
	 Solely for the purposes of Section 10:

TESORO LOGISTICS LP

			
		 	 By:
	 	Tesoro Logistics GP, LLC, its general partner
			
		 	 By:
	 	/s/ Phillip M. Anderson
		 		 	 Phillip M. Anderson
 President

 Signature Page to Berth 121 Operating AgreementEX-10.6

 Exhibit 10.6 

TERMINAL 2 SUBLEASE RIGHTS AGREEMENT 

This Terminal 2 Sublease Rights Agreement (this “Agreement”), dated as of December 6, 2013 (the “Effective
Date”), is by and between Tesoro Logistics Operations LLC, a Delaware limited liability company (the “Operating Company”), and for purposes of Section 3.1 only, Tesoro Logistics GP, LLC, a Delaware limited
liability company (the “General Partner”), and Tesoro Logistics LP, a Delaware limited partnership (the “Partnership”), on the one hand and Tesoro Refining & Marketing Company LLC, a Delaware limited
liability company (“TRMC”), on the other hand. The above-named entities are sometimes referred to in this Agreement individually as a “Party” and collectively as the “Parties.” 

RECITALS 

WHEREAS, TRMC is a party to that certain Lease dated February 17, 1995, with the City of Long Beach, a municipal corporation,
acting by and through its Board of Harbor Commissioners (as such agreement may be amended, supplemented, restated or renewed from time to time, the “Terminal 2 Port Lease”); 

WHEREAS, the Parties, Tesoro Corporation, a Delaware corporation and Carson Cogeneration Company, a Delaware corporation
(“Carson Cogen”), entered into the certain Contribution, Conveyance and Assumption Agreement dated November 18, 2013, pursuant to which Carson Cogen and TRMC agreed to contribute certain assets to the Operating Company (the
“Contribution Agreement”); 
 WHEREAS, in connection with the transactions contemplated by the Contribution
Agreement, TRMC desires to sublease its interest in the Terminal 2 Port Lease to the Operating Company upon the receipt of certain required consents and approvals; and 

WHEREAS, the execution of this Agreement is a condition precedent to the Parties’ obligations to consummate the transactions
contemplated by the Contribution Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants, representations,
warranties and agreements contained herein and in the Contribution Agreement, the Parties hereto agree as follows: 
 ARTICLE I

 DEFINITIONS 

Section 1.1 Capitalized terms used herein have the respective meanings ascribed to such terms below: 

“Agreement” has the meaning set forth in the introduction to this Agreement. 

“BP Closing Date” means June 1, 2013. 

“Carson Cogen” has the meaning set forth in the Recitals. 

 “CDFG” means the California Department of Fish and Game. 

“CDFG Approval” means the approval of the CDFG to the issuance of a COFR to the Operating Company. 

“COFR” means the Certificate of Financial Responsibility filed with the CDFG with respect to oil spill contingency planning
and financial responsibility for Terminal 2. 
 “Contribution Agreement” has the meaning set forth in the Recitals. 

“Effective Date” has the meaning set forth in the introduction to this Agreement. 

“General Partner” has the meaning set forth in the introduction to this Agreement. 

“Long Beach Approval” means the approval of the City of Long Beach of the ability of TRMC to sublease the Terminal 2 Port
Lease to the Operating Company. 
 “Operating Company” has the meaning set forth in the introduction to this Agreement.

 “Other Approvals” means any other consents or approvals required to sublease the Terminal 2 Port Lease to the Operating
Company. 
 “Partnership” has the meaning set forth in the introduction to this Agreement. 

“Party” or “Parties” have the meanings given to those terms in the introduction to this Agreement. 

“Terminal 2” has the meaning given to such term in the Contribution Agreement. 

“Terminal 2 Port Lease” has the meaning set forth in the Recitals. 

“Tesoro” has the meaning set forth in the introduction to this Agreement. 

“TRMC” has the meaning set forth in the introduction to this Agreement. 

ARTICLE II 

SUBLEASE 
 Upon receiving
the Long Beach Approval, the CDFG Approval and the Other Approvals, TRMC and the Operating Company shall enter into a sublease with respect to the Terminal 2 Port Lease, substantially in the form attached hereto as Exhibit A. 

ARTICLE III 

MISCELLANEOUS 

Section 3.1 Assignment. As of the Effective Date, the General Partner shall immediately assign all of its rights and
obligations hereunder to the Partnership. The Partnership shall immediately assign all of its rights and obligations hereunder to Operating Company. Upon such assignment to the Operating Company, the Operating Company shall have all of the
respective rights and obligations set forth herein. 

 Section 3.2 Costs. Each Party shall pay its own costs and expenses with
respect to the transactions contemplated by this Agreement. 
 Section 3.3 Headings; References; Interpretation.
All Article and Section headings in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any of the provisions hereof. The words “hereof,” “herein” and
“hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, including, without limitation, all Schedules and Exhibits attached hereto, and not to any particular provision of this
Agreement. All references herein to Articles, Sections, Schedules and Exhibits shall, unless the context requires a different construction, be deemed to be references to the Articles and Sections of this Agreement and the Schedules and Exhibits
attached hereto, and all such Schedules and Exhibits attached hereto are hereby incorporated herein and made a part hereof for all purposes. All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender,
shall include all other genders, and the singular shall include the plural and vice versa. The use herein of the word “including” following any general statement, term or matter shall not be construed to limit such statement, term or
matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without limitation,” “but not limited to” or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. 

Section 3.4 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors and assigns. 
 Section 3.5 No Third Party Rights. The provisions of this Agreement are
intended to bind the Parties as to each other and are not intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies, and no person is or is intended to be a third party beneficiary of
any of the provisions of this Agreement. 
 Section 3.6 Counterparts. This Agreement may be executed in any number
of counterparts (including facsimile or .pdf copies) with the same effect as if all Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument. 

 Section 3.7 Applicable Law; Forum, Venue and Jurisdiction. This Agreement
shall be construed in accordance with and governed by the laws of the State of Texas, without regard to the principles of conflicts of law. Each of the Parties (a) irrevocably agrees that any claims, suits, actions or proceedings arising out of
or relating in any way to this Agreement shall be exclusively brought in any federal court of competent jurisdiction situated in the United States District Court for the Western District of Texas, San Antonio Division, or if such federal court
declines to exercise or does not have jurisdiction, in the district court of Bexar County, Texas, in each case regardless of whether such claims, suits, actions or proceedings sound in contract, tort, fraud or otherwise, are based on common law,
statutory, equitable, legal or other grounds, or are derivative or direct claims, (b) irrevocably submits to the exclusive jurisdiction of the United States District Court for the Western District of Texas, San Antonio Division, or if such
federal court declines to exercise or does not have jurisdiction, of the district court of Bexar County, Texas in connection with any such claim, suit, action or proceeding, (c) agrees not to, and waives any right to, assert in any such claim,
suit, action or proceeding that (i) it is not personally subject to the jurisdiction of the United States District Court for the Western District of Texas, San Antonio Division, or the district court of Bexar County, Texas, or of any other
court to which proceedings in such courts may be appealed, (ii) such claim, suit, action or proceeding is brought in an inconvenient forum, or (iii) the venue of such claim, suit, action or proceeding is improper, (d) expressly waives
any requirement for the posting of a bond by a party bringing such claim, suit, action or proceeding and (e) consents to process being served in any such claim, suit, action or proceeding by mailing, certified mail, return receipt requested, a
copy thereof to such party at the address in effect for notices hereunder or by personal service within or without the State of Texas, and agrees that service in such forms shall constitute good and sufficient service of process and notice thereof;
provided, however, that nothing in clause (e) hereof shall affect or limit any right to serve process in any other manner permitted by law. 

Section 3.8 Severability. If any of the provisions of this Agreement are held by any court of competent jurisdiction to
contravene, or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Agreement. Instead, this Agreement shall be construed as if it
did not contain the particular provision or provisions held to be invalid and an equitable adjustment shall be made and necessary provision added so as to give effect to the intention of the Parties as expressed in this Agreement at the time of
execution of this Agreement. 
 Section 3.9 Amendment or Modification. This Agreement may be amended or modified
from time to time only by the written agreement of all the Parties. Each such instrument shall be reduced to writing and shall be designated on its face as an amendment to this Agreement. Notwithstanding anything in the foregoing to the contrary,
any amendment executed by the Partnership or any of its subsidiaries shall not be effective unless and until the execution of such amendment has been approved by the conflicts committee of the General Partner’s board of directors. 

Section 3.10 Integration. This Agreement, together with the Schedules and Exhibits referenced herein, constitutes the
entire agreement among the Parties pertaining to the subject matter hereof and supersedes all prior agreements and understandings of the Parties in connection therewith. The Parties acknowledge that they have executed other agreements as of the BP
Closing Date and the date hereof. In the event of conflict with regard to the subject matter hereof between such agreements and this Agreement (together with the Schedules and Exhibits hereto), this Agreement (together with the Schedules and
Exhibits hereto) shall control. 
 Section 3.11 Specific Performance. The Parties agree that money damages may not
be a sufficient remedy for any breach of this Agreement and that in addition to any other remedy available at law or equity, the Parties shall be entitled to seek specific performance and injunctive or other equitable relief as a remedy for any
Party’s breach of this Agreement. The Parties agree that no bond shall be required for any injunctive relief in connection with a breach of this Agreement. 

 Section 3.12 Notice. All notices or requests or consents provided for by, or
permitted to be given pursuant to, this Agreement must be in writing and must be given by depositing same in the United States mail, addressed to the Person to be notified, postpaid, and registered or certified with return receipt requested or by
delivering such notice in person or by facsimile to such Party. Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by facsimile shall be effective upon actual receipt if received during the
recipient’s normal business hours or at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours. All notices to be sent to a Party pursuant to this Agreement shall
be sent to or made at the address set forth below or at such other address as such Party may stipulate to the other Parties in the manner provided in this Section 3.12.  

If to Tesoro or TRMC: 
 Tesoro
Corporation 
 19100 Ridgewood Parkway 

San Antonio, Texas 78259-1828 

Attn: Charles A. Cavallo III 

Facsimile: (210) 745-4494 

If to the General Partner, the Partnership or the Operating Company: 

Tesoro Logistics LP 
 c/o Tesoro
Logistics GP, LLC, its General Partner 
 19100 Ridgewood Parkway 

San Antonio, Texas 78259-1828 

Attn: Barron W. Dowling 

Facsimile: (210) 745-4494 

[Signature Page Follows] 

 IN WITNESS WHEREOF, the Parties to this Agreement have caused it to be duly executed as of the
Effective Date. 
  

									
	 With respect to Section 3.1 only:

TESORO LOGISTICS GP, LLC
	 		 	 With respect to Section 3.1 only:

TESORO LOGISTICS LP

					
	By:	 	/s/ Phillip M. Anderson	 		 	By:	  	Tesoro Logistics GP, LLC,
		 	Phillip M. Anderson	 		 		  	its general partner
		 	President	 		 		  	
		 		 		 	By:	  	/s/ Phillip M. Anderson
		 		 		 		  	Phillip M. Anderson
		 		 		 		  	President
			
	 TESORO REFINING & MARKETING

COMPANY LLC
	 		 	TESORO LOGISTICS OPERATIONS LLC
					
	By:	 	/s/ Gregory J. Goff	 		 	By:	  	/s/ Phillip M. Anderson
		 	Gregory J. Goff	 		 		  	Phillip M. Anderson
		 	 Chairman of the Board of Managers
 and
President
	 		 		  	President

 Signature Page to 

Terminal 2 Sublease Rights Agreement 

 EXHIBIT A 

Terminal 2 Sublease 

[See Attached] 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 SUBLEASE AGREEMENT 

BETWEEN 
 TESORO
REFINING & MARKETING COMPANY LLC 
 AS SUBLESSOR 

AND 
 TESORO LOGISTICS
OPERATIONS LLC 
 AS SUBLESSEE 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 SUBLEASE 

This Sublease (“Sublease”), dated as of the          day of
                , 201    , is made by and between Tesoro Refining & Marketing Company LLC, a Delaware limited liability company
(“Sublessor”), and Tesoro Logistics Operations LLC, a Delaware limited liability company (“Sublessee”) with reference to the following: 

A. Sublessor is the current tenant under that certain Lease dated February 17, 1995 (the “Master Lease”), between
Sublessor, as successor-in-interest to ARCO Terminal Services Corporation, and the City of Long Beach, a municipal corporation, acting by and through its Board of Harbor Commissioners (“Master Landlord”). The Master Lease governs
Sublessor’s non-owned portions of the marine terminal and related berths (“Terminal 2”) consisting of portions of Terminal 2, Berth 78, Tank Farms 2 and 3 and that portion of Berth 77 that is fifty percent (50%) owned by
Master Landlord on Parcel IV of Assessor’s Parcel Numbers 7436-008-001 and 7436-009-900 in Los Angeles, County, California, as shown on the drawing attached as Exhibit A to the Master Lease (collectively, the “Premises”). 

B. Sublessor is a party to certain contracts related to the operation of the Premises identified on Exhibit A attached hereto (the
“Contracts”). 
 C. Sublessor is the owner of certain leasehold improvements located on the Premises and used in connection
with the operation of the Premises, including, without limitation, the items identified on Exhibit B attached hereto (the “Leasehold Improvements”). 

D. Sublessee desires to sublease the Premises from Sublessor, and Sublessor desires to sublease the Premises to Sublessee on the terms set
forth in this Sublease. 
 E. Concurrently herewith, Sublessor and Sublessee have entered into a Lease Agreement for the fee owned portion of
Terminal 2 and Terminal 3 (the “Terminal 2 & 3 Lease). 
 NOW, THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which the parties acknowledge, Sublessor and Sublessee agree as follows: 
 1. Sublease of Premises. Sublessor
hereby subleases the Premises to Sublessee, and Sublessee hereby subleases the Premises from Sublessor. 
 2. Term. The term of this
Sublease (the “Term”) shall commence on the date Master Landlord grants consent to this Sublease (“Commencement Date”) and shall expire concurrently with the expiration of the Master Lease. As of the date of this
Sublease and until the Commencement Date, Sublessee will operate the Premises pursuant to an operating agreement entered into by and between Sublessor and Sublessee. If Master Landlord requires material modifications to the terms of this Sublease as
a condition of granting consent to the Sublease, either Sublessor or Sublessee shall have the right to refuse such modifications prior to Master Landlord granting such consent and the Sublease will not commence. 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 3. Incorporation of Terms of Master Lease. Sublessee hereby acknowledges that it has read
and is familiar with the provisions of the Master Lease and agrees that this Sublease is and shall remain in all respects subordinate to and subject to the Master Lease and any amendments, modifications or supplements to the Master Lease hereafter
made. The terms, provisions, covenants, stipulations, conditions, rights, obligations, remedies and agreements contained in the Master Lease are incorporated herein by reference and are made a part hereof, and shall, as between Sublessor and
Sublessee (as if Sublessor were the lessor under the Master Lease and Sublessee were the lessee under the Master Lease) constitute the terms of this Sublease. Sublessee hereby agrees to perform and comply with, for the benefit of Sublessor and
Master Landlord, the obligations of the lessee under the Master Lease with respect to the Premises during the Term of this Sublease. Without limiting the foregoing: 

(a) Sublessee shall make payment of all rent due under the Master Lease as and when required to be paid pursuant to the Master Lease. Such
payment shall be made by Sublessee directly to Master Landlord, with concurrent notice thereof to Sublessor. 
 (b) Sublessee shall be
responsible for paying required costs of maintenance and improvements as required under the Master Lease. 
 (c) Sublessee shall be
responsible for maintaining all of the insurance required of the tenant under the Master Lease, endorsed to name Master Landlord and Sublessor as additional insureds, and all insurance required by the Contracts, endorsed to name Sublessor as an
additional insured. In addition, Sublessee shall obtain and keep in force a policy of excess liability coverage with a liability limit of $500,000,000, including coverage for pollution events, and all such insurance shall be endorsed to name
Sublessor as an additional insured. Up to $100,000,000 of such insurance shall also be endorsed to name Master Landlord as an additional insured. 

(d) Sublessee will operate the Premises in accordance with all legal and regulatory requirements. 

(e) Sublessee shall be responsible for preparing and delivering to Master Landlord the financial statements required pursuant to
Section 21 of the Master Lease. 
 (f) Sublessee shall be responsible for complying with the obligations of the tenant under the Master
Lease with respect to hazardous materials. 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 4. Contracts. 

(a) Concurrently with the execution of this Sublease, Sublessor and Sublessee shall execute an Assignment and Assumption of Contracts in the
form attached hereto as Exhibit C (the “Assignment of Contracts”). Such Assignment of Contracts shall be effective only upon the Commencement Date of this Sublease, and, if this Sublease does not commence, shall be void ab
initio and of no effect. During the term of the Sublease, so long as Sublessee is not in default hereunder, Sublessee shall have the right to enter into additional contracts relating to the Premises, provided that the same shall not obligate
Sublessor and shall not bind Sublessor following termination of the Sublease unless Sublessor elects in its sole and absolute discretion to take an assignment of the same. In the latter event, Sublessee shall, upon termination of the Sublease,
assign such contracts to Sublessor pursuant to an assignment in form and substance consistent with the Assignment of Contracts. In addition, the Contracts assigned to Sublessee by Sublessor pursuant to the Assignment of Contracts shall revert back
to Sublessor or its successor upon termination of this Sublease or any succeeding or replacement sublease. 
 (b) Any capital expenditure
required by the Master Lease of the Contracts shall be made by Sublessee. 
 (c) In the event of any default by Sublessee under the
Contracts, Sublessor (in addition to any other remedies it may have) may cure such default and Sublessee shall promptly reimburse Sublessor for all of Sublessor’s costs in effecting such cure. 

5. Leasehold Improvements. Subject to the terms of Section 8 below, effective upon the Commencement Date, Sublessor shall convey to
Sublessee ownership of all Leasehold Improvements located on the Premises and owned by Sublessor. Such conveyance shall be “as is” without representations or warranties of any kind whatsoever, express, implied or statutory. Concurrently
with the execution of this Sublease, Sublessor shall execute a bill of sale in the form attached hereto as Exhibit D (the “Bill of Sale”). Such Bill of Sale shall be deemed delivered by Sublessor to Sublessee only upon the
commencement of this Sublease, and, if this Sublease does not commence, shall be void ab initio and of no effect. In the event of a termination of this Sublease (a) by reason of a default on the part of Sublessee; or (b) due to the
expiration of the Master Lease, the foregoing Leasehold Improvements, together with any other improvements made subsequently, shall automatically become the property of Sublessor. In the event of an early termination of this Sublease not due to the
expiration of the Master Lease and not due to the fault of Sublessor or Sublessee, all such Leasehold Improvements shall be conveyed by Sublessee to Sublessor and Sublessor shall pay to Sublessee the fair market value of the Leasehold Improvements
valued as of the date of termination and with fair market value calculated as provided below. If the termination of the Sublease is by reason of Sublessor’s default or as a result of Sublessor’s election to terminate in accordance with the
provisions of Section 10, below, in which case, in addition to any other obligations of Sublessor to Sublessee, all such Leasehold Improvements shall be conveyed by Sublessee to Sublessor and Sublessor shall pay to Sublessee the fair market
value of the Leasehold Improvements valued as of the date of termination and with fair market value calculated as provided below. In order to effect such conveyance (or, at Sublessor’s option in the event of a termination for Sublessee’s
default, to confirm the ownership of such improvements), Sublessee shall take such actions and execute such documents as Sublessor may reasonably require, including, without limitation, execution of a bill of sale for such improvements. If Sublessee
fails or refuses to execute such documents or take such actions, Sublessee hereby appoints Sublessor as its attorney-in-fact with authority to execute such documents and take such actions, which appointment is coupled with an interest and is
irrevocable. 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 (a) Default: “Default” under this Sublease shall occur if either party shall
fail to perform any of its material obligations hereunder (except when such failure shall be excused under other provisions hereof). Upon such default, the non-defaulting party shall have the option to terminate this Sublease as follows:
(i) the non-defaulting party shall give written notice to the defaulting party stating specifically the default or breach relied upon by the non-defaulting party as justifying termination hereof. If said default or breach is not remedied within
thirty (30) days after receipt of notice, if therein remediable, or if the defaulting party fails to commence promptly and attempt diligently to remedy the same where said default or breach is not remediable within thirty (30) days after
receipt of said written notice, the non-defaulting party shall have the right to terminate this Sublease. If within such thirty (30) day period the defaulting party does remedy the default or breach, or commences promptly and attempts
diligently to remedy or remove the same where not remediable within such thirty (30) day period, and fully indemnifies the non-defaulting party from any and all loss and liability resulting directly from such default or breach, the notice shall
be withdrawn and this Sublease shall continue in full force and effect. 
 (b) Fair Market Value: The fair market value of the
Leasehold Improvements shall be reasonably determined by Sublessor with such determination based on information regarding, without limitation, the nature of the particular Leasehold Improvement, its age and functionality, and the current sale price
of similar improvements in the same industry, all as valued for their highest and best use at the time of termination of the Sublease. Sublessor shall provide Sublessee with written notice of the determination of the fair market value of the
Leasehold Improvements within thirty (30) days after the termination of this Sublease. If Sublessee disagrees with Sublessor’s determination of the fair market value, and the parties cannot mutually agree upon the fair market value within
twenty (20) days after the expiration of the thirty (30) day notice period, then the fair market value shall be determined by appraisal in the manner set forth below: 

(i) The fair market value of the Leasehold Improvements shall be appraised by an appraiser with at least ten (10) years’ experience
in the oil and gas appraisal sector chosen by Sublessor (“First Appraisal”) and the appraisal report forwarded to Sublessee. If the First Appraisal is deemed unacceptable by Sublessee, then Sublessee shall so advise Sublessor
in writing within ten (10) working days after receipt of the First Appraisal and Sublessee shall have the right to engage an appraiser with at least ten (10) years’ experience in the oil and gas appraisal sector to appraise the
Leasehold Improvements (“Second Appraisal”) and the appraisal report forwarded to Sublessor. In the event Sublessor shall deem the Second Appraisal to be unacceptable, then Sublessor shall advise Sublessee within ten
(10) working days after receipt of the Second Appraisal, and the first appraiser and second appraiser shall together choose a third appraiser with at least ten (10) years’ experience in the oil and gas appraisal sector who shall
appraise the Leasehold Improvements (“Third Appraisal”) and forward the appraisal report to Sublessor and Sublessee. The cost of the First Appraisal shall be borne by Sublessor, and the cost of the Second Appraisal shall be
borne by Sublessee. The cost of the Third Appraisal shall be shared equally between Sublessor and Sublessee. The fair market value for the Leasehold Improvements shall be the average of the two (2) closest appraisals. Each of the
appraisers shall appraise the Leasehold Improvements for their highest and best use. 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 6. Rent Negotiations. Sublessee shall conduct the compensation negotiations required by
Section 5 of the Master Lease. Sublessor shall have the right to approve the negotiated compensation, which approval shall not be unreasonably withheld. When the compensation has been adjusted, Sublessee shall pay the same. 

7. Removal and Restoration Obligations. To the extent the Master Lease requires removal of leasehold improvements and restoration of the
Premises at the end of the Master Lease term, Sublessee shall be responsible for such removal and restoration. Further, in the event this Sublease is terminated by reason of Sublessee’s default hereunder within the thirty-six month
(36) period prior to expiration of the Master Lease term, Sublessee shall be responsible, in addition to all other damages arising from such default, for the cost incurred by Sublessor in effecting the removal and restoration required under the
Master Lease. 
 8. Cross-Defaults. Certain other contracts, licenses or agreements related to the Premises shall be cross defaulted
with this Sublease (each, individually, a “Cross-Defaulted Agreement” and collectively the “Cross-Defaulted Agreements”), which Cross Defaulted Agreements are listed on Exhibit E attached hereto. If Sublessee
defaults under this Sublease, such default shall be a default under each of the Cross-Defaulted Agreements. Any default by Sublessee under any of the Cross-Defaulted Agreements shall be a default under this Sublease. Without limitation on the above
provisions or Sublessor’s other remedies as a result of any such default, any termination of this Sublease for any reason shall automatically terminate the Terminal 2 & 3 Lease, and any termination of the Terminal 2 & 3 Lease shall
automatically terminate this Sublease. 
 9. Consent of Master Landlord. The commencement of this Sublease is conditioned upon the
execution by Master Landlord of a consent in the form attached hereto as Exhibit F, or such other form as Master Landlord may reasonably require. If, in connection with granting consent to the Sublease, Master Landlord requires material
modifications to the terms hereof, either party shall have the right to refuse such modifications, in which case this Sublease shall be deemed rescinded and of no further force or effect. 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 10. Early Right of Termination. If Sublessee desires to cease the conduct of operations
from the Premises, Sublessee shall have the right to deliver to Sublessor a notice of such intent at least ninety (90) days prior to the intended date on which operations will cease, and Sublessor shall have the right, but not the obligation,
to terminate this Sublease by delivering written notice to Sublessee. If Sublessor has not made such election prior to the date of such termination, Sublessor shall continue to have the right to terminate this Sublease at any time after Sublessee
ceases operations and before Sublessee recommences operations from the Premises, to terminate this Sublease by delivering written notice to Sublessee. Unless and until Sublessee has given the foregoing notice to Sublessor of its intent to cease
operations from the Premises, Sublessee shall continuously operate from the Premises to an extent reasonably consistent with prior operations from the Premises by Sublessor, and a failure of Sublessee to so operate, unless such failure is a result
of casualty or other force majeure event, shall constitute a default on the part of Sublessee. 
 11. Amendments to Master Lease.
Sublessee shall have the right to seek amendments to the terms of the Master Lease, which amendments shall be subject to Sublessor’s consent, which consent shall not be unreasonably withheld, conditioned or delayed. In the event of any such
amendment, Sublessee shall be responsible for complying with the amended terms of the Master Lease, and Sublessee shall indemnify, defend and hold Sublessor harmless from and against any loss, cost or liability arising as a result of such amendment.
Notwithstanding the foregoing, Sublessor shall have no obligation to consent to an amendment of the Master Lease (i) that extends the term of the Master Lease unless Sublessor is released from all further liability under the Master Lease as of
the date on which the Master Lease would otherwise have expired, or (ii) that increases the rent or other obligations of the tenant under the Master Lease unless Sublessor is relieved of liability for the increased rent or other obligations.

 12. Master Lease Renewal. In the event Sublessor consummates a new master lease of the Premises following the expiration of the
Master Lease, Sublessor shall negotiate in good faith with Sublessee for a new sublease based on the terms of the new master lease. 
 13.
Counterparts. This Sublease may be signed by the parties in different counterparts and the signature pages combined to create one document binding on all parties. 

[Signature Page Follows] 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 IN WITNESS WHEREOF, the parties have executed this Sublease as of the date first above written.

  

													
	Sublessor:	  		  	Sublessee:
			
	Tesoro Refining & Marketing Company LLC,	  		  	Tesoro Logistics Operations LLC,
	a Delaware limited liability company	  		  	a Delaware limited liability company
					
	By:	  	 	  		  	By:	 	 
		  	Name:	  	 	  		  		 	Name:	  	 
		  	Title:	  	 	  		  		 	Title:	  	 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 Exhibit A 

Contracts 
 None 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 Exhibit B 

Leasehold Improvements 
 All machinery and
equipment, mobile or otherwise, systems and other tangible personal property owned and used by Sublessor primarily in connection with leasing or operation of the Premises, including (a) all production units, processing units and distillation
systems, (b) all heating, lighting, and power systems, fire prevention and fire extinguishing systems, control systems, emergency warning and emergency preparedness systems and related assets, (c) all storage and other tanks, meters, pumps, engines,
compressors, pipes, fittings, valves, connections, regulators, loading and unloading lines and racks, (d) all computers, servers, printers, computer hardware, wired or mobile telephones, on-site process control and automation systems,
telecommunications assets, and other information-technology-related equipment that is used exclusively in connection with the Premises and that is owned by Sublessor or leased by Sublessor, (e) all tools, (f) all furniture and furnishings, (g) all
vehicles and (h) all other tangible personal property, in each case presently owned by Sublessor, located in or on the Premises. 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 Exhibit C 

Assignment and Assumption of Contracts 

This Assignment and Assumption of Contracts (“Assignment”) is dated
                        , 201     and is entered into concurrently with that certain Sublease of even date
herewith (the “Sublease”) by and between Tesoro Refining & Marketing Company LLC, a Delaware limited liability company (“Assignor”) and Tesoro Logistics Operations LLC, a Delaware limited liability company
(“Assignee”). This Assignment shall be effective upon the commencement of the term of the Sublease. 
 Assignor and
Assignee agree as follows: 
 1. Assignor hereby assigns all of Assignor’s right, title and interest under each of the contracts listed
on Schedule 1 attached hereto (the “Contracts”) to Assignee, and Assignee hereby accepts such assignment and agrees to assume each and every obligation of Assignor under each of the Contracts arising or to be performed after
the date of this Assignment. 
 2. Assignor shall indemnify and hold Assignee harmless from and against any and all loss, cost or liability
for obligations to be performed by Assignor under the Contracts before the date of this Assignment. 
 3. Assignee shall indemnify and hold
Assignor harmless from and against any and all loss, cost or liability for obligations to be performed by Assignor under the Contracts on and after the date of this Assignment. 

4. In the event any party shall commence an action to enforce or interpret any of the provisions of this Assignment, the prevailing party in
such action shall be entitled to reimbursement from the other party of all costs and expenses, including reasonable attorneys’ fees, incurred in connection therewith. 

5. This Assignment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 IN WITNESS WHEREOF, the parties have executed this Assignment and Assumption of Contracts as of
the date first above written. 
  

													
	Assignor:	  		  	Assignee:
			
	Tesoro Refining & Marketing Company LLC,	  		  	Tesoro Logistics Operations LLC,
	a Delaware limited liability company	  		  	a Delaware limited liability company
					
	By:	  	 	  		  	By:	  	 
		  	Name:	  	 	  		  		  	Name:	  	 
		  	Title:	  	 	  		  		  	Title:	  	 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 Schedule 1 to Assignment and Assumption of Contracts 

No Contracts 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 Exhibit D 

Bill of Sale 
 FOR GOOD
AND VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the undersigned, Tesoro Refining & Marketing Company LLC, a Delaware limited liability company (“TRMC”), does hereby transfer and assign to Tesoro
Logistics Operations LLC, a Delaware limited liability company (“TLO”), all of its right, title and interest, if any, in and to the leasehold improvements located on the Premises (as that term is defined in that certain Sublease
dated                      between TRMC, as sublessor, and TLO, as sublessee), including without limitation the items listed in Schedule 1
attached hereto, such transfer and assignment being on an “as is” basis, without any representations or warranties, express, implied or statutory, of any kind whatsoever. 

 

									
	Dated:                     , 201    	  		 	Tesoro Refining & Marketing Company LLC,
		  		 	a Delaware limited liability company
				
		  		 	By:	  	 
		  		 		  	Name:	  	 
		  		 		  	Title:	  	 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 SCHEDULE 1 TO BILL OF SALE 

List of Leasehold Improvements to be Transferred from Sublessor to Sublessee 

All machinery and equipment, mobile or otherwise, systems and other tangible personal property owned and used by Sublessor primarily in connection with
leasing or operation of the Premises, including (a) all production units, processing units and distillation systems, (b) all heating, lighting, and power systems, fire prevention and fire extinguishing systems, control systems, emergency warning and
emergency preparedness systems and related assets, (c) all storage and other tanks, meters, pumps, engines, compressors, pipes, fittings, valves, connections, regulators, loading and unloading lines and racks, (d) all computers, servers, printers,
computer hardware, wired or mobile telephones, on-site process control and automation systems, telecommunications assets, and other information-technology-related equipment that is used exclusively in connection with the Premises and that is owned
by Sublessor or leased by Sublessor, (e) all tools, (f) all furniture and furnishings, (g) all vehicles and (h) all other tangible personal property, in each case presently owned by Sublessor, located in or on the Premises. 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 EXHIBIT E 

List of Cross Defaulted Agreements 

1. Amended and Restated Long Beach Berth Access Use and Throughput Agreement dated December
            , 2013, by and among Tesoro Refining & Marketing Company LLC, a Delaware limited liability company (“TRMC”), the Tesoro Logistics GP, LLC, a Delaware
limited liability company and the general partner of the Partnership (the “General Partner”), Tesoro Logistics LP, a Delaware limited partnership (the “Partnership”) and the Tesoro Logistics Operations LLC, a
Delaware limited liability company (the “Operating Company”) (“BAUTA”). 
 2. Sublease Agreement dated
December             , 2013, by and among Carson Cogeneration Company, a Delaware corporation, as sublessor, and the Operating Company, as sublessee, for the sublease of a portion of Berth
121 (the “Berth 121 Sublease”) 
 3. Sublease Agreement dated December
            , 2013, by and among TRMC, as sublessor, and the Operating Company, as sublessee, for the sublease of Berths 84 and 86 (the “Long Beach Terminal Sublease”) 

4. Lease Agreement to be executed by and among TRMC, as lessor, and the Operating Company, as lessee, for the lease of Terminal 2 and Terminal
3 (the “Terminal 2 & 3 Lease”) 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement 

 Exhibit F 

Form of Master Landlord Consent 

To Be Attached 

  
 Exhibit A –

 Terminal 2 Sublease Rights Agreement

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