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Exhibit 10.3  

 

FORM OF  

 OMNIBUS AGREEMENT  

 AMONG  

 PROVIDENT ENERGY TRUST,  

 PRO GP CORP.,  

 BREITBURN ENERGY COMPANY LP,  

 BREITBURN GP, LLC  

 AND  

 BREITBURN ENERGY PARTNERS L.P.  

 

  

   TABLE OF CONTENTS  

	ARTICLE I	 	 
	

DEFINITIONS	
 	

 
	

Section 1.1	
 	

Definitions.	
 	

1
	Section 1.2	 	Construction.	 	3
	

ARTICLE II	
 	

 
	

BUSINESS OPPORTUNITIES	
 	

 
	

Section 2.1	
 	

Partnership Business Opportunities.	
 	

3
	Section 2.2	 	Provident Business Opportunities.	 	4
	Section 2.3	 	Scope of Prohibition.	 	4
	Section 2.4	 	Enforcement.	 	4
	

ARTICLE III	
 	

 
	

RIGHT OF FIRST OFFER	
 	

 
	

Section 3.1	
 	

Right of First Offer Procedures.	
 	

5
	Section 3.2	 	Change of Control of Provident.	 	6
	Section 3.3	 	Exceptions to the Right of First Offer.	 	6
	

ARTICLE IV	
 	

 
	

REPRESENTATIONS AND WARRANTIES OF PROVIDENT	
 	

 
	

ARTICLE V	
 	

 
	

MISCELLANEOUS	
 	

 
	

Section 5.1	
 	

Notices.	
 	

6
	Section 5.2	 	Further Action.	 	8
	Section 5.3	 	Binding Effect.	 	8
	Section 5.4	 	Integration.	 	8
	Section 5.5	 	Creditors.	 	8
	Section 5.6	 	Waiver.	 	8
	Section 5.7	 	Counterparts.	 	8
	Section 5.8	 	Applicable Law; Submission to Jurisdiction.	 	8
	Section 5.9	 	Invalidity of Provisions.	 	8
	Section 5.10	 	Amendment or Modification.	 	8
	Section 5.11	 	Assignment.	 	8
	Section 5.12	 	Termination.	 	9
	Section 5.13	 	Laws and Regulations.	 	9

i

  

 
 

OMNIBUS AGREEMENT    
    

        THIS OMNIBUS AGREEMENT is entered into on, and effective as of,
                        , 2006 (the "Effective Date"), by and among Provident Energy Trust, an
open-ended unincorporated investment trust formed under the laws of the Province of Alberta ("Provident"), Pro GP Corp., a Delaware corporation ("Pro GP"), BreitBurn Energy Company LP, a
Delaware limited partnership ("BreitBurn Energy"), BreitBurn GP, LLC, a Delaware limited liability company (the "General Partner"), and BreitBurn Energy Partners L.P., a Delaware limited partnership
(the "Partnership," and collectively with Provident, BreitBurn Energy and the General Partner, the "Parties" and each, a "Party"). 

        In
consideration of the covenants, conditions and agreements contained herein, the Parties hereto hereby agree as follows: 

 
 

ARTICLE I
  
    DEFINITIONS    
    

Section 1.1  Definitions.

        The
following definitions shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement. 

        "Affiliate" means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls,
is controlled by or is under common control with, the Person in question. As used herein, the term "control" means the possession, direct or indirect, 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. 

        "Agreement" means this Omnibus Agreement, as it may be amended, supplemented or restated from time to time. 

        "Change of Control" means, with respect to any Person (the "Applicable Person"), any of the following events: (a) any sale, lease,
exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the Applicable Person's assets to any other Person, unless immediately following such
sale, lease, exchange or other transfer such assets are owned, directly or indirectly, by the Applicable Person; (b) the amalgamation, combination, consolidation or merger of the Applicable
Person with or into another Person pursuant to a transaction, or series of related transactions, other than any such transaction(s) where (i) the holders of the Voting Securities of the
Applicable Person immediately prior to such transaction own, directly or indirectly, not less than a majority of the outstanding Voting Securities of the surviving Person or its parent immediately
after such transaction and (ii) the board of directors of the surviving person is comprised of a majority of persons who were directors of the Applicable Person immediately prior to such
transaction; or (c) a "person" or "group" (within the meaning of Sections 13(d) or 14(d)(2) of the Exchange Act), other than Provident or its Affiliates with respect to the General Partner,
being or becoming the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more than 50% of all of the then outstanding Voting Securities
of the Applicable Person, except in a merger or consolidation which would not constitute a Change of Control under clause (b) above. 

        "Conflicts Committee" means the Conflicts Committee of the General Partner. 

        "Contribution Agreement" means that certain Contribution, Conveyance and Assumption Agreement, dated as of the Effective Date, among
Provident, BreitBurn Energy, the General Partner, the Partnership and certain other parties, together with the additional conveyance documents and instruments contemplated or referenced thereunder. 

        "Effective Date" is defined in the introductory paragraph. 

1

 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "General Partner" means BreitBurn GP, LLC, a Delaware limited liability company, and its successors and permitted assigns that are
admitted to the partnership as general partner of the Partnership, in its capacity as general partner of the Partnership (except as the context otherwise requires). 

        "Parties" is defined in the introductory paragraph. 

        "Partnership Agreement" means the First Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of
                        , 2006, as the same may be amended or restated from time to time. 

        "Partnership Business Opportunity" means a business opportunity with respect to (a) any third party upstream oil and gas properties
located in the United States or (b) any third party upstream oil and gas properties located in the United States and any related midstream or downstream assets; provided that the fair market
value of such midstream and downstream assets (as determined in good faith by the Board of Directors of the General Partner) constitutes less than the fair market value of such upstream assets (as
determined in good faith by the Board of Directors of the General Partner). 

        "Partnership Business Opportunity Information" is defined in Section 2.1. 

        "Partnership Group" means the General Partner, the Partnership and all of their respective Subsidiaries. 

        "Person" means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization,
association, government agency or political subdivision thereof or other entity. 

        "Provident Business Opportunity" means a business opportunity with respect to (a) any third party midstream or downstream assets
located in the United States, (b) any third party midstream or downstream assets located in the United States and any related upstream assets located in the United States; provided that the
fair market value of such upstream assets (as determined in good faith by Provident) constitutes less than the fair market value of such midstream and downstream assets (as determined in good faith by
Provident) or (c) any third party upstream oil and gas properties or midstream or downstream assets located outside the United States. 

        "Provident Business Opportunity Information" is defined in Section 2.2. 

        "Provident Group" means Provident, Pro GP, BreitBurn Energy and all of their respective Affiliates (other than the Partnership Group). 

        "Subject Assets" means all upstream oil and gas properties in the United States owned by the Provident Group. 

        "Subsidiary" means, with respect to any Person, (a) a corporation of which more than 50% of the voting power of shares entitled
(without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination,
by such Person, by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership (whether general or limited) in which such Person or a Subsidiary of such Person is, at
the date of determination, a general or limited partner of such partnership, but only if more than 50% of the partnership interests of such partnership (considering all of the partnership interests of
the partnership as a single class) is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person, or a combination thereof, or
(c) any other Person (other than a corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a combination thereof, directly or indirectly, at the date of 

2

 

determination,
has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or other governing body of such Person. 

        "Transfer" including the correlative terms "Transferring" or
"Transferred" means any direct or indirect transfer, assignment, sale, gift, pledge, hypothecation or other encumbrance, or any other disposition
(whether voluntary, involuntary or by operation of law) of any assets, property or rights. 

        "Voting Securities" means securities of any class of a Person entitling the holders thereof to vote in the election of members of the
board of directors or other similar governing body of the Person. 

        Other
terms defined herein have the meanings so given them. 

Section 1.2
Construction.

        Unless
the context requires otherwise: (a) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns,
pronouns and verbs shall include the plural and vice versa; (b) references to Articles and Sections refer to Articles and Sections of this Agreement; (c) the terms "include", "includes",
"including" and words of like import shall be deemed to be followed by the words "without limitation"; and (d) the terms "hereof," "herein" and "hereunder" refer to this Agreement as a whole
and not to any particular provision of this Agreement. The table of contents and headings contained in this Agreement are for reference purposes only, and shall not affect in any way the meaning or
interpretation of this Agreement. 

 
 

ARTICLE II
  
    BUSINESS OPPORTUNITIES    
    

Section 2.1
Partnership Business Opportunities.

        For
as long as Provident and its Affiliates maintain a direct or indirect controlling interest in the General Partner, if the Provident Group is presented with an opportunity to pursue,
purchase or invest in any Partnership Business Opportunity, Provident shall give prompt written notice to the General Partner, on behalf of the Partnership Group, of the Partnership Business
Opportunity. Such notice shall set forth all information available to the Provident Group including, but not limited to, the identity of the Partnership Business Opportunity and its seller, the
proposed price, all written information about the Partnership Business Opportunity provided to the Provident Group by and on behalf of the seller as well as any information or analyses compiled by the
Provident Group from other sources (such information referred to collectively herein as "Partnership Business Opportunity Information"). Provident shall continue to provide to the General Partner, on
behalf of the Partnership Group, promptly any and all Partnership Business Opportunity Information subsequently received. The Parties shall maintain the confidentiality of all such Partnership
Business Opportunity Information, subject to compliance with applicable law. As soon as practicable but in any event within thirty (30) days after receipt of such initial notification and
information, the General Partner, on behalf of the Partnership Group, shall notify Provident that either (a) the General Partner, on behalf of the Partnership Group, has elected, with the
concurrence of the Partnership's Conflicts Committee, to cause a member of the Partnership Group to pursue the opportunity to acquire or invest in the Partnership Business Opportunity or
(b) the General Partner, on behalf of the Partnership Group, has elected, with the concurrence of the Partnership's Conflicts Committee, not to cause a member of the Partnership Group to pursue
the opportunity to acquire or invest in the Partnership Business Opportunity. If, at any time, the General Partner, on behalf of the Partnership Group, abandons such opportunity with the approval of
the Partnership's Conflicts Committee (as evidenced in writing by the General Partner following the request of Provident), the Provident Group may pursue such opportunity. 

3

 

Section 2.2
Provident Business Opportunities.

        For
as long as Provident and its Affiliates maintain a direct or indirect controlling interest in the General Partner, if the Partnership Group is presented with an opportunity to
pursue, purchase or invest in any business opportunity with respect to any Provident Business Opportunity, the General
Partner, on behalf of the Partnership Group, shall give prompt written notice to Provident of the Provident Business Opportunity. Such notice shall set forth all information available to the
Partnership Group including, but not limited to, the identity of the Provident Business Opportunity and its seller, the proposed price, all written information about the Provident Business Opportunity
provided to the Partnership Group by and on behalf of the seller as well as any information or analyses compiled by the Partnership Group from other sources (such information referred to collectively
herein as "Provident Business Opportunity Information"). The General Partner, on behalf of the Partnership Group, shall continue to provide to Provident promptly any and all Provident Business
Opportunity Information subsequently received. The Parties shall maintain the confidentiality of all such Provident Business Opportunity Information, subject to compliance with applicable law. As soon
as practicable but in any event within thirty (30) days after receipt of such initial notification and information, Provident shall notify the General Partner, on behalf of the Partnership
Group, that either (a) Provident has elected to cause a member of the Provident Group to pursue the opportunity to acquire or invest in the Provident Business Opportunity or
(b) Provident has elected not to cause a member of the Provident Group to pursue the opportunity to acquire or invest in the Provident Business Opportunity. If, at any time, the Provident Group
abandons such opportunity (as evidenced in writing following the request of the General Partner, on behalf of the Partnership), the Partnership Group may pursue such opportunity. 

Section 2.3  Scope of Prohibition.

        Except
as provided in this Article II, the Parties shall be free to engage in any business activity whatsoever, including those that may be in direct competition with the
Partnership Group or the Provident Group, as the case may be. 

Section 2.4
Enforcement.

        (a)   The
Parties agree and acknowledge that there is no adequate remedy at law for the breach by the Parties of the covenants and agreements set forth in this
Article II, and that any breach by the Parties of the covenants and agreements set forth in Article II would result in irreparable injury. The Parties further agree and acknowledge that
any Party to this Agreement may, in addition to the other remedies which may be available hereunder or under applicable law, file a suit in equity to enjoin the violating Party from such
breach, and the Parties consent to the issuance of injunctive relief hereunder. 

        (b)   If
any court determines that any provision of this Article II is invalid or unenforceable, the remainder of such provisions shall not thereby be affected and
shall be given full effect without regard to the invalid provision; provided, however, that if any court determines that any provision in either Section 2.1 or Section 2.2 is invalid or
unenforceable then the corresponding provision in Section 2.2 or Section 2.1, as the case may be, shall also be invalid or unenforceable. If any court construes any provision of this
Article II, or any part thereof, to be unreasonable because of the duration of such provision or the geographic scope thereof, such court shall have the power to reduce the duration or restrict
the geographic scope of such provision and to enforce such provision as so reduced or restricted. 

4

 

 
 

ARTICLE III
  
    RIGHT OF FIRST OFFER    
    

Section 3.1
Right of First Offer Procedures.

        For
as long as Provident and its Affiliates maintain a direct or indirect controlling interest in the General Partner, if any member of the Provident Group (the "Disposing Party")
desires to sell or otherwise Transfer any Subject Assets, the Disposing Party shall provide the Partnership Group a right of first offer to acquire such Subject Assets (the "Sale Assets") pursuant to
the following procedures: 

        (a)   The
Disposing Party shall deliver a written offer (the "Disposing Party Offer") to the General Partner, on behalf of the Partnership Group, which Disposing Party Offer
shall describe the Sale Assets, the purchase price (payable in cash or in securities of the Partnership at the option of the Disposing Party) at which it wishes to sell the Sale Assets and the
proposed terms of sale. The Disposing Party Offer shall constitute a binding offer to sell the Sale Assets to the Partnership Group on the terms set forth therein; 

        (b)   the
General Partner, on behalf of the Partnership Group and with the approval of the Conflicts Committee, shall have a period of forty-five (45) days
(the "Negotiation Period") from the date of the Offer to accept the Disposing Party Offer or negotiate alternative terms of sale acceptable to the General Partner, on behalf of the Partnership Group
and with the approval of the Conflicts Committee, and the Disposing Party; 

        (c)   if
the Disposing Party and the General Partner, on behalf of the Partnership Group and with the approval of the Conflicts Committee, agree upon the terms of sale for the
Sale Assets prior to the expiration of the Negotiation Period, such Parties shall enter into definitive documentation to effect such Transfer, which shall be closed within thirty (30) days
after the end of the Negotiation Period or such longer period as may be reasonably necessary to complete a unitholder vote by the Partnership (if required) or a financing (if required) or to obtain
any required consents; 

        (d)   if,
at the end of the Negotiation Period, the Disposing Party and the General Partner, on behalf of the Partnership Group and with the approval of the Conflicts
Committee, each acting in good faith, have not agreed upon the terms of sale for the Sale Assets, or if the Transfer is not completed within the period specified in Section 3.1(c), the
Disposing Party may thereafter (i) Transfer the Sale Assets (subject to any changes in form or condition, financial or otherwise, which in the reasonable opinion of the Disposing Party are not
material taken as a whole) to a bona fide third party dealing at arm's length with the Disposing Party (a "Third Party Transferee") at a price and on
terms and conditions that, taken as a whole, in the reasonable opinion of the Disposing Party are not more favorable to the Third Party Transferee than those contained in the Disposing Party Offer or
(ii) conduct a bona fide auction for the Subject Assets, seeking offers (each, an "Offer") to be submitted to the Disposing Party by a specified
date (the "Offer Date") from two or more Third Party Transferees and from the General Partner, on behalf of the Partnership with the approval of the Conflicts Committee, for consideration by the
Disposing Party; 

        (e)   if
the Disposing Party conducts an auction pursuant to Section 3.1(d), the Disposing Party may accept the Offer that the Disposing Party, acting in good faith,
determines is the best Offer. If the Partnership Group does not submit an Offer or if the Partnership Group submits an Offer that is not determined by the Disposing Party, acting in good faith, to be
the best Offer, the Partnership Group waives all rights to the purchase of the Sale Assets, provided that the Disposing Party and the Third Party Transferee consummate the Transfer of the Sale Assets
within one hundred twenty (120) days from the expiration of the Negotiation Period in the case of a Transfer pursuant to Section 3.1(d)(i), or the Offer Date in the case of an auction
pursuant to Section 3.1(d)(ii); 

5

 

        (f)    in
the event that the Disposing Party and the Third Party Transferee fail to consummate the Transfer of the Sale Assets within the one hundred twenty (120) day
period as applicable in Section 3.1(e), the Partnership Group's rights under this Article III with respect to the Sale Assets shall again become effective, and the Disposing Party shall
not thereafter Transfer any of the Sale Assets without first offering such assets to the Partnership Group in the manner provided in this Section 3.1; and 

        (g)   upon
any Transfer to a Third-Party Transferee, the Disposing Party shall deliver to the General Partner, on behalf of the Partnership Group, a copy of the document
evidencing such Transfer. If the Transfer is pursuant to Section 3.1 (d)(i) the Disposing Party shall deliver to the General Partner, on behalf of the Partnership Group, a certificate of
an officer of the Disposing Party stating that the transfer of the Subject Assets from the Disposing Party to the Third Party Transferee was made at a price and upon the terms and conditions that,
taken as a whole, in the reasonable opinion of the Disposing Party were not more favorable to the Third Party Transferee than those set forth in the Offer. 

Section 3.2
Change of Control of Provident.

        Upon
a Change of Control of Provident, the right of first offer granted to the Partnership Group in Section 3.1 only shall apply to Subject Assets owned by the Provident Group as
of the Effective Date. 

Section 3.3
Exceptions to the Right of First Offer.

        The
foregoing provisions of Article III shall not be applicable to: 

        (a)   a
Transfer that includes Subject Assets and midstream or downstream assets and in which the fair market value of such Subject Assets that the Disposing Party desires to
sell or otherwise Transfer (as determined in good faith by the Disposing Party) constitutes less than the fair market value of the midstream or downstream assets that the Disposing Party desires to
sell or otherwise Transfer with such Subject Assets (as determined in good faith by the Disposing Party); and 

        (b)   a
Transfer of all or substantially all of the assets of Provident. 

 
 

ARTICLE IV
  
    REPRESENTATIONS AND WARRANTIES OF PROVIDENT    
    

        Provident represents and warrants that this Agreement has been duly authorized, executed and delivered by Provident and is a valid and legally binding agreement
of Provident, enforceable against Provident in accordance with its terms, provided that, the enforceability thereof may be limited by
(i) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting creditors' rights generally and by general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law) and (ii) public policy, applicable law relating to fiduciary duties and indemnification and an implied covenant
of good faith and fair dealing. 

 
 

ARTICLE V
  
    MISCELLANEOUS    
    

Section 5.1  Notices.

        All
notices or other communications required or permitted under, or otherwise in connection with, this Agreement must be in writing and must be given by depositing same in the U.S. mail,
addressed to the Person to be notified, postpaid and registered or certified with return receipt requested or by transmitting by national overnight courier or by transmitting by national overnight
courier or by 

6

 

delivering
such notice in person or by facsimile to such Party. Notice given by mail, national overnight courier or personal delivery shall be effective upon actual receipt. Notice given by facsimile
shall be effective upon confirmation of receipt when transmitted by facsimile if transmitted during the recipient's normal business hours or at the beginning of the recipient's next business day after
receipt if not transmitted 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, in each case as follows: 

If
to Provident: 

Provident
Energy Trust

800, 112 - 4th Avenue S.W.

Calgary, Alberta T2P OH3

Attention: Fax: 

If
to Pro GP Corp.: 

[Address]

Attention:

Fax: 

If
to BreitBurn Energy: 

BreitBurn
Energy Company LP

515 South Flower Street, Suite 4800

Los Angeles, CA 90071

Attention:

Fax: 

If
to the General Partner: 

BreitBurn
GP, LLC

515 South Flower Street, Suite 4800

Los Angeles, CA 90071

Attention:

Fax: 

If
to the Partnership: 

BreitBurn
Energy Partners L.P.

515 South Flower Street, Suite 4800

Los Angeles, CA 90071

Attention:

Fax: 

7

 

Section 5.2  Further Action.

        The
Parties shall execute and deliver all documents, provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this
Agreement. 

Section 5.3
Binding Effect.

        This
Agreement shall be binding upon and inure to the benefit of the Parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted assigns. 

Section 5.4  Integration.

        This
Agreement constitutes the entire Agreement among the Parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining
thereto. 

Section 5.5
Creditors.

        None
of the provisions of this Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the Partnership. 

Section 5.6  Waiver.

        No
failure by any Party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach
thereof shall constitute waiver of any such breach of any other covenant, duty, agreement or condition. 

Section 5.7
Counterparts.

        This
Agreement may be executed in counterparts, all of which together shall constitute an agreement binding on all the Parties hereto, notwithstanding that all such Parties are not
signatories to the original or the same counterpart. Each Party shall become bound by this Agreement immediately upon affixing its signature hereto. 

Section 5.8
Applicable Law; Submission to Jurisdiction.

        This
Agreement shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to the principles of conflicts of law. The Parties hereby submit to
the jurisdiction of the state and federal courts of the State of Delaware. 

Section 5.9  Invalidity of Provisions.

        If
any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein
shall not be affected thereby. 

Section 5.10
Amendment or Modification.

        This
Agreement may be amended or modified from time to time only by the written agreement of all the Parties hereto; provided, however, that the Partnership may not, without the prior
approval of the Conflicts Committee, agree to any amendment or modification of this Agreement that the General Partner determines will adversely affect the holders of Common Units. Each such
instrument shall be reduced to writing and shall be designated on its face an "Amendment" or an "Addendum" to this Agreement. 

Section 5.11
Assignment.

        No
Party shall have the right to assign its rights or obligations under this Agreement without the consent of the other Parties hereto. 

8

 

Section 5.12  Termination.

        The
provisions of Article II of this Agreement (but not less than all of such Article) may be terminated (a) by Provident upon notice to the other Parties upon a Change of
Control of Provident or (b) by the General Partner upon notice to the other Parties upon a Change of Control of the General Partner. 

Section 5.13
Laws and Regulations.

        Notwithstanding
any provision of this Agreement to the contrary, no Party hereto shall be required to take any act, or fail to take any act, under this Agreement if the effect thereof
would be to cause such Party to be in violation of any applicable law, statute, rule or regulation. 

9

        IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the Effective Date. 

	 	 	PROVIDENT ENERGY TRUST
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
PRO GP CORP.
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
BREITBURN ENERGY COMPANY L.P.
	

 	
 	

By: Pro GP Corp., its General Partner
	
 	
 	

By:	

 
	 	 	 	

	 	 	Name: Halbert S. Washburn
	 	 	Title: Co-Chief Executive Officer
	

 	
 	
BREITBURN GP, LLC
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
BREITBURN ENERGY PARTNERS L.P.
	

 	
 	

By: BreitBurn GP, LLC, its General Partner
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 

QuickLinks

OMNIBUS AGREEMENT

ARTICLE I DEFINITIONS

ARTICLE II BUSINESS OPPORTUNITIES

ARTICLE III RIGHT OF FIRST OFFER

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PROVIDENT

ARTICLE V MISCELLANEOUSQuickLinks
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Exhibit 10.4  

 
 

FORM OF    
    
    ADMINISTRATIVE SERVICES AGREEMENT    
    
    AMONG    
    
    BREITBURN GP, LLC,    
    
    BREITBURN ENERGY PARTNERS L.P.,    
    
    BREITBURN OPERATING L.P.,

    
    AND    
    
    BREITBURN MANAGEMENT COMPANY, LLC    

   TABLE OF CONTENTS  

	ARTICLE I

DEFINITIONS
	

Section 1.1	
 	

Definitions	
 	

1
	Section 1.2	 	Construction	 	3
	

ARTICLE II

RETENTION OF BREITBURN MANAGEMENT; SCOPE OF SERVICES
	

Section 2.1	
 	

Retention of BreitBurn Management	
 	

3
	Section 2.2	 	Scope of Services	 	4
	Section 2.3	 	Exclusion of Services	 	4
	Section 2.4	 	Performance of Services by Affiliates and Third Parties	 	4
	Section 2.5	 	Intellectual Property	 	4
	Section 2.6	 	Appointment of Independent Accounting Firm and Independent Petroleum Engineer	 	4
	

ARTICLE III

BOOKS, RECORDS AND REPORTING
	

Section 3.1	
 	

Books and Records	
 	

5
	Section 3.2	 	Audits	 	5
	Section 3.3	 	Reports	 	5
	

ARTICLE IV

PAYMENT AMOUNT
	

Section 4.1	
 	

Payment Amount	
 	

5
	Section 4.2	 	Payment of Payment Amount	 	6
	Section 4.3	 	Disputed Charges	 	6
	Section 4.4	 	Set Off	 	6
	Section 4.5	 	BreitBurn Management's Employees	 	6
	Section 4.6	 	Approval of Expenses	 	7
	

ARTICLE V

FORCE MAJEURE
	

Section 5.1	
 	

Force Majeure	
 	

7
	

ARTICLE VI

ASSIGNMENTS AND SUBCONTRACTS
	

Section 6.1	
 	

Assignments	
 	

7
	Section 6.2	 	Other Requirements	 	8
	 	 	 	 	 

i

 

	

ARTICLE VII

TERMINATION
	

Section 7.1	
 	

Termination by the Partnership on behalf of the Partnership Group	
 	

8
	Section 7.2	 	Termination by BreitBurn Management	 	8
	Section 7.3	 	Effect of Termination	 	9
	

ARTICLE VIII

CONFIDENTIAL INFORMATION
	

Section 8.1	
 	

Nondisclosure	
 	

9
	Section 8.2	 	Permitted Disclosure	 	9
	

ARTICLE IX

LIMITATION OF LIABILITY; INDEMNIFICATION
	

Section 9.1	
 	

Limitation of Liability	
 	

9
	Section 9.2	 	Indemnification	 	10
	

ARTICLE X

DISPUTE RESOLUTION
	

ARTICLE XI

GENERAL PROVISIONS
	

Section 11.1	
 	

Notices	
 	

10
	Section 11.2	 	Further Action	 	11
	Section 11.3	 	Binding Effect	 	11
	Section 11.4	 	Integration	 	11
	Section 11.5	 	Creditors	 	11
	Section 11.6	 	Waiver	 	11
	Section 11.7	 	Counterparts	 	11
	Section 11.8	 	Applicable Law	 	12
	Section 11.9	 	Invalidity of Provisions	 	12
	Section 11.10	 	Amendment or Restatement	 	12
	Section 11.11	 	Directly or Indirectly	 	12

ii

ADMINISTRATIVE SERVICES AGREEMENT  

        THIS ADMINISTRATIVE SERVICES AGREEMENT is entered into on, and effective as of            , 2006 (the "Effective
Date"), among BreitBurn GP, LLC, a Delaware limited liability company (the "General Partner"), BreitBurn Energy Partners L.P., a Delaware limited
partnership (the "Partnership"), BreitBurn Operating L.P., a Delaware limited partnership (the "Operating Partnership"), and BreitBurn Management Company, LLC, a Delaware limited liability company
("BreitBurn Management," and collectively with the General Partner, the Partnership and the Operating Partnership, the "Parties" and each, a "Party"). 

RECITALS  

        A.    The
Partnership is the owner, directly or indirectly, of interests in the Business (as hereinafter defined); 

        B.    The
Partnership Group (as hereinafter defined) requires certain services to operate the Business and to fulfill other general and administrative functions relating to the
Business; and 

        C.    The
Partnership Group desires that BreitBurn Management provide such services, and BreitBurn Management is willing to undertake such engagement, subject to the terms and
conditions of this Agreement; 

        NOW,
THEREFORE, the Partnership and BreitBurn Management agree as follows: 

ARTICLE I  

 DEFINITIONS  

        Section 1.1    Definitions.    

        The
following definitions shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement. 

        "Affiliate" means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls,
is controlled by or is under common control with, the Person in question. As used herein, the term "control" means the possession, direct or indirect, 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. 

        "Agreement" means this Administrative Services Agreement, as it may be amended, supplemented or restated from time to time. 

        "Business" means the business of the Partnership Group. 

        "Bankrupt" with respect to any Person means such Person shall generally be unable to pay its debts as such debts become due, or shall so
admit in writing or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against such Person seeking to adjudicate it a bankrupt or insolvent, or
seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or
relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for it or for any substantial part of its property and, in the case
of any such proceeding instituted against it (but not instituted by it), shall remain undismissed or unstayed for a period of 30 days; or such Person shall take any action to authorize any of
the actions set forth above. 

        "BreitBurn Energy" means BreitBurn Energy Company, L.P., a Delaware limited partnership. 

        "BreitBurn Management Party" is defined in Section 9.1. 

        "Confidential Information" means non-public information about the disclosing Party's or any of its Affiliates' business or
activities that is proprietary and confidential, which shall include, without 

 

limitation,
all business, financial, technical and other information, including software (source and object code) and programming code, of a Party or its Affiliates marked or designated "confidential"
or "proprietary" or by its nature or the circumstances surrounding its disclosure it should reasonably be regarded as confidential. Confidential Information includes not only written or other tangible
information, but also information transferred orally, visually, electronically or by any other means. Confidential Information does not include information that (i) is in or enters the public
domain without breach of this Agreement, or (ii) the receiving Party lawfully receives from a third party without restriction on disclosure and to the receiving Party's knowledge without breach
of a nondisclosure obligation.. 

        "Damages" is defined in Section 9.2. 

        "Default Rate" means an interest rate (which shall in no event be higher than the rate permitted by applicable law) equal to the prime
interest rate of the Operating Partnership's principal lender. 

        "Effective Date" is defined in the introductory paragraph. 

        "Environmental Law" means current local, county, state, federal, and/or foreign law (including common law), statute, code, ordinance,
rule, order, judgment, decree, regulation or other legal obligation relating to the protection of health, safety or the environment or natural resources, including, without limitation, the
Comprehensive Environmental Response Compensation and Liability Act (42 U.S.C. section 9601 et seq.), as amended, the Resource Conservation and Recovery Act (42 U.S.C. section 6901 et
seq.), as amended, the Federal Water Pollution Control Act (33 U.S.C. section 1251 et seq.), as amended, the Clean Air Act (42 U.S.C. section 7401 et seq.), as amended, the Toxic
Substances Control Act (15 U.S.C. section 2601 et seq.), as amended, the Occupational Safety and Health Act (29 U.S.C. section 651 et seq.), as amended, the Safe Drinking Water Act (42
U.S.C. section 300(f) et seq.), as amended, analogous state, tribal or local laws, and any similar, implementing or successor law, and any amendment, rule, regulation, or directive issued
thereunder, including any determination by, or interpretation of any of the foregoing by any Governmental Authority that has the force of law. 

        "Force Majeure" means any cause beyond the reasonable control of a Party, including the following causes (unless they are within such
Party's reasonable control): acts of God, strikes, lockouts, acts of the public enemy, wars or warlike action (whether actual or impending), arrests and other restraints of government (civil or
military), blockades, embargoes, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, sabotage, tornadoes, named tropical storms and hurricanes, and floods, civil disturbances,
terrorism, mechanical breakdown of machinery or equipment, explosions, confiscation or seizure by any government or other public authority, any order of any court of competent jurisdiction, regulatory
agency or governmental body having jurisdiction. 

        "G&A Services" means those general and administrative services necessary or useful for the conduct of the business of the Partnership
Group, including, but not limited to, accounting, corporate development, finance, land, legal and engineering. 

        "Governmental Approval" means any material consent, authorization, certificate, permit, right-of-way grant or
approval of any Governmental Authority that is necessary for the construction, ownership and operation of the Assets in accordance with applicable Laws. 

        "Governmental Authority" means any court or tribunal in any jurisdiction or any federal, state, tribal, municipal or local government or
other governmental body, agency, authority, department, commission, board, bureau, instrumentality, arbitrator or arbitral body or any quasi-governmental or private body lawfully exercising any
regulatory or taxing authority. 

        "Laws" means any applicable statute, Environmental Law, common law, rule, regulation, judgment, order, ordinance, writ, injunction or
decree issued or promulgated by any Governmental Authority. 

2

 

        "Parties" is defined in the introductory paragraph. 

        "Partnership" is defined in the introductory paragraph. 

        "Partnership Agreement" means the First Amended and Restated Agreement of Limited Partnership of the Partnership, as may be amended or
restated from time to time. 

        "Partnership Group" means the General Partner, the Partnership, the Operating Partnership and all of their respective Subsidiaries. 

        "Partnership Group Party" is defined in Section 9.1. 

        "Payment Amount" is defined in Section 4.1. 

        "Person" means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization,
association, government agency or political subdivision thereof or other entity. 

        "Services" is defined in Section 2.2. 

        "Subsidiary" means, with respect to any Person, (a) a corporation of which more than 50% of the voting power of shares entitled
(without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination,
by such Person, by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership (whether general or limited) in which such Person or a Subsidiary of such Person is, at
the date of determination, a general or limited partner of such partnership, but only if more than 50% of the partnership interests of such partnership (considering all of the partnership interests of
the partnership as a single class) is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person, or a combination thereof, or
(c) any other Person (other than a corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a combination thereof, directly or indirectly, at the date of
determination, has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or other governing body of such Person. 

        Other
terms defined herein have the meanings so given them. 

        Section 1.2    Construction.    

        Unless
the context requires otherwise: (a) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns,
pronouns and verbs shall include the plural and vice versa; (b) references to Articles and Sections refer to Articles and Sections of this Agreement; (c) references to Exhibits refer to
the Exhibits attached to this Agreement, each of which is made a part hereof for all purposes; (d) the terms "include", "includes", "including" and words of like import shall be deemed to be
followed by the words "without limitation"; (e) the terms "hereof," "herein" and "hereunder" refer to this Agreement as a whole and not to any particular
provision of this Agreement; and (f) references to money refer to legal currency of the United States of America. The table of contents and headings contained in this Agreement are for
reference purposes only, and shall not affect in any way the meaning or interpretation of this Agreement. 

ARTICLE II  

 RETENTION OF BREITBURN MANAGEMENT; SCOPE OF SERVICES  

        Section 2.1    Retention of BreitBurn Management.    

        The
Partnership hereby engages BreitBurn Management to perform the Services, as directed by the General Partner, and to provide all personnel and any facilities, goods and equipment not 

3

 

otherwise
provided by the Partnership Group necessary to perform the Services. BreitBurn Management hereby accepts such engagement and agrees to perform the Services requested by the General Partner
and to provide any personnel, facilities, goods and equipment not otherwise provided by the Partnership Group, and to provide all employees as may be reasonable and necessary to perform the Services.
The Partnership recognizes that BreitBurn Management is concurrently entering into an Administrative Services Agreement with BreitBurn Energy. 

        Section 2.2    Scope of Services.    

        The
"Services" shall consist of such services the General Partner determines may be reasonable and necessary to operate the Business, including, without limitation, any G&A Services and
those services described on Schedule I hereto. BreitBurn Management hereby covenants and agrees that the Services will be performed in accordance with (i) applicable material
Governmental Approvals and Laws and (ii) industry standards. 

        Section 2.3    Exclusion of Services.    

        The
General Partner may temporarily or permanently exclude any particular service from the scope of the Services upon 90 days' notice to BreitBurn Management. 

        Section 2.4    Performance of Services by Affiliates and Third Parties.    

        The
Parties hereby agree that in discharging its obligations hereunder, BreitBurn Management may engage any of its Affiliates or any qualified third party to perform the Services (or any
part of the Services) on its behalf and that the performance of the Services (or any part of the Services) by any such Affiliate or third party shall be treated as if BreitBurn Management performed
such Services itself. Notwithstanding the foregoing, nothing contained herein shall relieve BreitBurn Management of its obligations hereunder. 

        Section 2.5    Intellectual Property.    

        (a)   Any
(i) inventions, whether patentable or not, developed or invented, or (ii) copyrightable material (and the intangible rights of copyright therein)
developed, by BreitBurn Management, its Affiliates or its or their employees in connection with the performance of the Services shall be the property of BreitBurn Management;  provided, however, that the
Partnership Group shall be granted an irrevocable, royalty-free, non-exclusive and
non-transferable right and license to use such inventions or material; and further provided, however, that the Partnership Group shall only
be granted such a right and license to the extent such grant does not conflict with, or result in a breach, default, or violation of a right or license to use such inventions or material granted to
BreitBurn Management by any Person other than an Affiliate of BreitBurn Management. Notwithstanding the foregoing, BreitBurn Management will use all commercially reasonable efforts to grant such right
and license to the Partnership Group. 

        (b)   The
General Partner, the Partnership and the Operating Partnership hereby grant to BreitBurn Management and its Affiliates an irrevocable, royalty-free,
non-exclusive and non-transferable right and license to use, during the term of this Agreement, any intellectual property provided by the Partnership Group to BreitBurn
Management or its Affiliates, but only to the extent such use is necessary for the performance of the Services. BreitBurn Management agrees that it and its Affiliates will utilize such intellectual
property solely in connection with the performance of the Services. 

        Section 2.6    Appointment of Independent Accounting Firm and Independent Petroleum Engineer.    

        Notwithstanding
anything to the contrary in this Agreement, the Parties hereby recognize and agree that the General Partner shall have the exclusive authority to appoint an independent
accounting firm to audit the financial statements of the Partnership and an independent petroleum engineer to 

4

 

provide
reports to the Partnership relating to estimates of proved reserves for Securities and Exchange Commission and other reporting purposes. 

ARTICLE III  

 BOOKS, RECORDS AND REPORTING  

        Section 3.1    Books and Records.    

        BreitBurn
Management shall maintain accurate books and records regarding the performance of the Services and its calculation of the Payment Amount, and shall maintain such books and
records for the period required by applicable accounting practices or law. 

        Section 3.2    Audits.    

        The
Partnership shall have the right, upon reasonable notice, and at all reasonable times during usual business hours, to audit, examine and make copies of the books and records referred
to in Section 3.1. Such right may be exercised through any agent or employee of the Partnership Group designated in writing by it or by an independent public accountant, engineer, attorney or
other agent so designated. The Partnership shall bear all costs and expenses incurred in any inspection, examination or audit. BreitBurn Management shall review and respond in a timely manner to any
claims or inquiries made by the Partnership regarding matters revealed by any such inspection, examination or audit. 

        Section 3.3    Reports.    

        BreitBurn
Management shall prepare and deliver to the Partnership any reports provided for in this Agreement and such other reports as the Partnership may reasonably request from time to
time regarding the performance of the Services. 

ARTICLE IV  

 PAYMENT AMOUNT  

        Section 4.1    Payment Amount.    

        The
Partnership shall reimburse BreitBurn Management on a monthly basis for all direct and indirect expenses BreitBurn Management incurs, or payments it makes on behalf of the
Partnership Group or expenses allocated to BreitBurn Management by its Affiliates, in each case in connection with the performance by BreitBurn Management or its Affiliates of the Services (including,
subject to Section 4.5, salary, bonus, incentive compensation and other amounts paid to any Person to perform the Services) (collectively, the "Payment
Amount"); provided, however, that to the extent any Services performed by BreitBurn Management or its Affiliates benefit both the Partnership and BreitBurn Energy, each of the
Partnership and BreitBurn Energy shall be responsible for reimbursement of BreitBurn Management for such Services in proportion to the benefits each of them received therefrom. BreitBurn Management
shall charge the Partnership based on BreitBurn Management's good-faith determination of the actual time spent by its personnel performing the Services, plus related expenses. BreitBurn
Management personnel providing services to both the Partnership and one or more other affiliates shall be charged based on BreitBurn Management's good faith estimate of actual time spent performing
the services plus expenses or on other systematic and rational allocations as determined by BreitBurn Management. Notwithstanding the foregoing, the Partnership shall be obligated to reimburse
BreitBurn Management for a portion of the cost of the existing benefit plans of BreitBurn Management, including those plans of BreitBurn Energy Company L.P. adopted by BreitBurn Management. The amount
of the reimbursement shall be determined by BreitBurn Management on any basis that it deems to be reasonable and need not be based on the amount of services performed for the Partnership. 

5

 

        Section 4.2    Payment of Payment Amount.    

        BreitBurn
Management shall invoice the Partnership on or before the 25th day of each month for the estimated Payment Amount for the next succeeding month, plus or minus any adjustment
necessary to correct prior estimated billings to actual billings. Subject to Section 4.3, all invoices shall be due and payable, in immediately available funds, on the last day of the month to
which the invoice relates. Upon the request of the Partnership, BreitBurn Management shall furnish a reasonable detail of the Services provided and charges assessed during any month. 

        Section 4.3    Disputed Charges.    

        THE
PARTNERSHIP MAY, WITHIN 120 DAYS AFTER RECEIPT OF A CHARGE FROM BREITBURN MANAGEMENT, TAKE WRITTEN EXCEPTION TO SUCH CHARGE, ON THE GROUND THAT THE SAME WAS NOT A REASONABLE COST
INCURRED BY BREITBURN MANAGEMENT OR ITS AFFILIATES IN CONNECTION WITH THE SERVICES. THE PARTNERSHIP SHALL NEVERTHELESS PAY BREITBURN MANAGEMENT IN FULL WHEN DUE THE FULL PAYMENT AMOUNT OWED TO
BREITBURN MANAGEMENT. SUCH PAYMENT SHALL NOT BE DEEMED A WAIVER OF THE RIGHT OF THE PARTNERSHIP TO RECOUP ANY CONTESTED PORTION OF ANY AMOUNT SO PAID. HOWEVER, IF THE AMOUNT AS TO WHICH SUCH WRITTEN
EXCEPTION IS TAKEN, OR ANY PART THEREOF, IS ULTIMATELY DETERMINED NOT TO BE A REASONABLE COST INCURRED BY BREITBURN MANAGEMENT OR ITS AFFILIATES IN CONNECTION WITH ITS PROVIDING THE SERVICES
HEREUNDER, SUCH AMOUNT OR PORTION THEREOF (AS THE CASE MAY BE) SHALL BE REFUNDED BY BREITBURN MANAGEMENT TO THE PARTNERSHIP TOGETHER WITH INTEREST THEREON AT THE DEFAULT RATE DURING THE PERIOD FROM
THE DATE OF PAYMENT BY THE PARTNERSHIP TO THE DATE OF REFUND BY BREITBURN MANAGEMENT. 

        Section 4.4    Set Off.    

        In
the event that BreitBurn Management owes the Partnership a sum certain in an uncontested amount under any other agreement, then any such amounts may be aggregated and the Partnership
and BreitBurn Management may discharge their obligations by netting those amounts against any amounts owed by the Partnership to BreitBurn Management under this Agreement. If the Partnership or
BreitBurn Management owes the other party a greater aggregate amount, that Party may pay to the other Party the difference between the amounts owed. 

        Section 4.5    BreitBurn Management's Employees.    

        The
obligations under Sections 4.1 and 4.2, to the extent they relate to Services provided by employees of BreitBurn Management or its Affiliates, shall be limited to payment to
BreitBurn Management for expenses in connection with its or its Affiliates' employees engaged in the provision of Services hereunder, and the Partnership shall not be obligated to pay to BreitBurn
Management's or its Affiliates' employees directly any compensation, salaries, wages, bonuses, benefits, social security taxes,
workers' compensation insurance, retirement and insurance benefits, training and other such expenses; provided, however, that the Partnership may, at its option, compensate such employees under the
Partnership's Long-Term Incentive Plan for the provision of Services hereunder; and provided further, however, that if BreitBurn Management fails to pay any employee, with the exception of
employee claims for amounts owed that BreitBurn Management disputes in good faith, within 30 days of the date such employee's payment is due: 

        (a)   The
Partnership may (i) pay such employee directly, (ii) employ such employee directly, (iii) notify BreitBurn Management and begin to pay all
employees providing service to the Partnership directly, or (iv) notify BreitBurn Management that this Agreement is terminated and employ all employees directly; and 

6

 

        (b)   BreitBurn
Management shall reimburse the Partnership, as the case may be, the amount the Partnership paid to BreitBurn Management for employee services that BreitBurn
Management did not pay to any such employee. 

        The
Partnership recognizes that, pursuant to the Administrative Services Agreement between BreitBurn Management and BreitBurn Energy, BreitBurn Management will have similar rights to
those of the Partnership contained in this Section 4.5. 

        Section 4.6    Approval of Expenses.    

        BreitBurn
Management acknowledges that all charges for Services assessed by BreitBurn Management and included in the Payment Amount must be approved by the persons authorized to approve
such Payment Amount pursuant to the Partnership's governance and delegation-of-authority process. Additionally, BreitBurn Management acknowledges that the Audit Committee of
the General Partner's Board of Directors may at any time review the Payment Amounts and the levels of Services and, as a result, may direct the Partnership to decrease the level of Services or to
dispute a prior invoice pursuant to Section 4.3. In addition to the information BreitBurn Management is obligated to provide pursuant to Section 4.2, BreitBurn Management shall provide
such other information as reasonably necessary to determine the veracity or appropriateness of any Payment Amount hereunder. 

ARTICLE V  

 FORCE MAJEURE  

        Section 5.1    Force Majeure.    

        A
Party's obligation under this Agreement shall be excused when and to the extent its performance of that obligation is prevented due to Force Majeure; provided,
however, that a Party shall not be excused by Force Majeure from any obligation to pay money. The Party that is prevented from performing its obligation by reason of Force
Majeure shall promptly notify the other Parties of that fact and shall exercise due diligence to end its inability to perform as promptly as practicable. Notwithstanding the foregoing, a Party is not
required to settle any strike, lockout or other labor dispute in which it may be involved; provided, however, that, in the event of a strike, lockout or
other labor dispute affecting BreitBurn Management, BreitBurn Management shall use reasonable efforts to continue to perform all obligations hereunder by utilizing its management personnel and that of
its Affiliates. 

ARTICLE VI  

 ASSIGNMENTS AND SUBCONTRACTS  

        Section 6.1    Assignments.    

        (a)   Without
the prior consent of BreitBurn Management, none of the Partnership or the other members or the Partnership Group may sell, assign, transfer or convey any of its
rights, or delegate any of its obligations, under this Agreement to any Person. 

        (b)   Without
the prior consent of the Partnership, BreitBurn Management may not sell, assign, transfer or convey any of its rights, or delegate any of its obligations, under
this Agreement to any Person, other than the delegation of performance of Services to an Affiliate of BreitBurn Management or a qualified third party as permitted by Section 2.4 and the sale,
assignment, transfer or conveyance of its rights hereunder to any such Affiliate. 

7

 

        Section 6.2    Other Requirements.    

        Subject
to the other provisions hereof: 

        (a)   All
materials and workmanship used or provided in performing the Services shall be in accordance with applicable specifications and standards. 

        (b)   BreitBurn
Management shall exercise reasonable diligence to obtain the most favorable terms or warranties available from vendors, suppliers and other third parties, and
where appropriate, BreitBurn Management shall assign such warranties to the Partnership. 

        (c)   In
rendering the Services, BreitBurn Management shall not discriminate against any employee or applicant for employment because of race, creed, color, religion, sex,
national origin, age or handicap, and shall comply with all applicable provisions of Executive Order 11246 of September 24, 1965, and any successor order thereto. Subject to the above,
BreitBurn Management shall, to the extent practicable, engage employees who reside in or whose businesses are located in the local area or state where the Services are performed. 

        (d)   BreitBurn
Management agrees to exercise reasonable diligence to ensure that, during the term of this Agreement, it shall not employ unauthorized aliens as defined in the
Immigration Reform and Control Act of 1986, or any successor law. 

ARTICLE VII  

 TERMINATION  

        Section 7.1    Termination by the Partnership on behalf of the Partnership Group.    

        (a)   Upon
the occurrence of any of the following events, the Partnership, on behalf of the Partnership Group, may terminate this Agreement by giving written notice of such
termination to BreitBurn Management: 

          (i)  Provident
Energy Trust and its Affiliates cease to maintain a direct or indirect controlling interest in the General Partner or BreitBurn Management; or 

         (ii)  BreitBurn
Management's failure to pay any employee within thirty (30) days of the date such employee's payment is due, subject to the limitations described in
Section 4.5. 

Any
termination under this Section 7.1(a) shall become effective immediately upon delivery of the notice first described in this Section 7.1(a), or such later time (not to exceed the
first anniversary of the delivery of such notice) as may be specified by the Partnership. 

        (b)   In
addition to its rights under Section 7.1(a), the Partnership may terminate this Agreement at any time by giving notice of such termination to BreitBurn
Management. Any termination under this Section 7.1(b) shall become effective 90 days after delivery of such notice, or such later time (not to exceed the first anniversary of the
delivery of such notice) as may be specified by the Partnership. 

        (c)   In
the event that BreitBurn Management becomes Bankrupt or dissolves and commences liquidation or winding-up, this Agreement shall automatically terminate
without notice to BreitBurn Management. 

        Section 7.2    Termination by BreitBurn Management.    

        (a)   BreitBurn
Management may terminate this Agreement by giving written notice of such termination to the Partnership in the event that Provident Energy Trust and its
Affiliates cease to maintain a direct or indirect controlling interest in the General Partner or BreitBurn Management. 

8

 

Any
termination under this Section 7.2(a) shall become effective immediately upon delivery of the notice first described in this Section 7.2(a). 

        (b)   In
addition to its rights under Section 7.2(a), BreitBurn Management may terminate this Agreement at any time by giving notice of such termination to the
Partnership. Any termination under this Section 7.2(b) shall become effective 90 days after delivery of such notice, or such later time (not to exceed the first anniversary of the
delivery of such notice) as may be specified by BreitBurn Management. 

        Section 7.3    Effect of Termination.    

        If
this Agreement is terminated in accordance with Section 7.1 or 7.2, all rights and obligations under this Agreement shall cease except for (a) obligations that expressly
survive termination of this Agreement; (b) liabilities and obligations that have accrued prior to such termination, including the obligation to pay any amounts that have become due and payable
prior to such termination, and (c) the obligation to pay any portion of the Payment Amount that has accrued prior to such termination, even if such portion has not become due and payable at
that time. 

ARTICLE VIII  

 CONFIDENTIAL INFORMATION  

        Section 8.1    Nondisclosure.    

        Each
of BreitBurn Management and the Partnership Group agrees that (i) it will not disclose to any third party or use any Confidential Information disclosed to it by the other
except as expressly permitted in this Agreement, and (ii) it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its
possession or control, which will in no event be
less than the measures it uses to maintain the confidentiality of its own information of similar type and importance. 

        Section 8.2    Permitted Disclosure.    

        Notwithstanding
the foregoing, each Party may disclose Confidential Information (i) to the extent required by a court of competent jurisdiction or other governmental authority or
otherwise as required by law, including without limitation disclosure obligations imposed under the federal securities laws, provided that such Party has given the other Party prior notice of such
requirement when legally permissible to permit the other Party to take such legal action to prevent the disclosure as it deems reasonable, appropriate or necessary, or (ii) to its consultants,
legal counsel, Affiliates, accountants, banks and other financing sources and their advisors. 

ARTICLE IX  

 LIMITATION OF LIABILITY; INDEMNIFICATION  

        Section 9.1    Limitation of Liability.    

        Except
as may be provided in Section 9.2 below, BreitBurn Management and its controlling persons, directors, officers, employees, agents and permitted assigns (each, a "BreitBurn
Management Party") shall not be liable to the Partnership Group and their respective directors, officers, employees, agents or permitted assigns (each, a "Partnership Group Party") for any
liabilities, claims, damages, losses or expenses, including, but not limited to, any special, indirect, incidental or consequential damages, of a Partnership Group Party arising in connection with
this Agreement and the Services provided hereunder. 

9

 

        Section 9.2    Indemnification.    

        (a)   BreitBurn
Management shall indemnify, defend and hold harmless each of the Partnership Group Parties from and against all liabilities, claims, damages, losses and
expenses (including, but not limited to, court costs and reasonable attorneys' fees)(collectively referred to as "Damages") of any kind or nature, of third parties unrelated to any Partnership Group
Party caused by or arising in connection with the gross negligence or willful misconduct of BreitBurn Management in connection with the performance of the Services, except to the extent that Damages
were caused directly or indirectly by acts or omissions of any Partnership Group Party. 

        (b)   The
Partnership hereby acknowledges that BreitBurn Management is an "Indemnitee" as such term is defined in the Partnership Agreement and entitled to indemnity under the
provisions of Sections 7.7 and 7.8 of the Partnership Agreement. 

ARTICLE X  

 DISPUTE RESOLUTION  

        If the Parties are unable to resolve any dispute regarding the validity or terms of this Agreement or its termination, service or performance issues, there is a
material breach of this Agreement that has not been corrected within thirty (30) days of receipt of notice of such breach or any other dispute between the parties related to this Agreement,
either party hereto may refer the matter to an arbitrator selected in accordance with the rules of JAMS in Los Angeles County, California as the exclusive remedy for any such dispute, and in lieu of
any court action, which is hereby waived. The only exception shall be a claim by either Party for injunctive relief pending arbitration. 

ARTICLE XI  

 GENERAL PROVISIONS  

        Section 11.1    Notices.    

        All
notices or other communications required or permitted under, or otherwise in connection with, this Agreement must be in writing and must be given by depositing same in the mail,
addressed to the Person to be notified, postpaid and registered or certified with return receipt requested or by transmitting by national overnight courier or by transmitting by national overnight
courier or by delivering such notice in person or by facsimile to such Party. Notice given by mail, national overnight
courier or personal delivery shall be effective upon actual receipt. Notice given by facsimile shall be effective upon confirmation of receipt when transmitted by facsimile if transmitted during the
recipient's normal business hours or at the beginning of the recipient's next business day after receipt if not transmitted 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, in each case as follows: 

if
to the General Partner: 

BreitBurn
GP, LLC

515 South Flower Street, Suite 4800

Los Angeles, CA 90071

Attention:

Fax: 

10

 

if
to the Partnership: 

BreitBurn
Energy Partners L.P.

515 South Flower Street, Suite 4800

Los Angeles, CA 90071

Attention:

Fax: 

if
to the Operating Partnership: 

BreitBurn
Operating L.P.

515 South Flower Street, Suite 4800

Los Angeles, CA 90071

Attention:

Fax: 

if
to BreitBurn Management: 

BreitBurn
Management Company LLC

515 South Flower Street, Suite 4800

Los Angeles, CA 90071

Attention:

Fax: 

        Section 11.2    Further Action.    

        The
Parties shall execute and deliver all documents, provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this
Agreement. 

        Section 11.3    Binding Effect.    

        This
Agreement shall be binding upon and inure to the benefit of the Parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted assigns. 

        Section 11.4    Integration.    

        This
Agreement constitutes the entire Agreement among the Parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining
thereto. 

        Section 11.5    Creditors.    

        None
of the provisions of this Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the Partnership. 

        Section 11.6    Waiver.    

        No
failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach
thereof shall constitute waiver of any such breach of any other covenant, duty, agreement or condition. 

        Section 11.7    Counterparts.    

        This
Agreement may be executed in counterparts, all of which together shall constitute an agreement binding on all the Parties hereto, notwithstanding that all such Parties are not
signatories to the original or the same counterpart. Each Party shall become bound by this Agreement immediately upon affixing its signature hereto. 

11

 

        Section 11.8    Applicable Law.    

        This
Agreement shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to the principles of conflicts of law. 

        Section 11.9    Invalidity of Provisions.    

        If
any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein
shall not be affected thereby. 

        Section 11.10    Amendment or Restatement.    

        This
Agreement may be amended or restated only by a written instrument executed by each of the Parties; provided, however, that the Partnership may not, without the prior approval of its
Conflicts Committee, agree to any amendment or modification of this Agreement that the General Partner determines will adversely affect the holders of common units representing limited partner
interests in the Partnership. The Parties hereto agree that, for purposes of this Section 8.10, any material change in the nature, quantity or duration of the Services to be provided under this
Agreement shall constitute a modification of this Agreement. 

        Section 11.11    Directly or Indirectly.    

        Where
any provision of this Agreement refers to action to be taken by any Party, or which such Party is prohibited from taking, such provision shall be applicable whether such action is
taken directly or indirectly by such Party, including actions taken by or on behalf of any Affiliate of such Party. 

12

        IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the Effective Date. 

	 	 	BREITBURN GP, LLC
	

 	
 	

By:	
 	

          
 Name:

Title:
	

 	
 	

BREITBURN ENERGY PARTNERS L.P.
	

 	
 	

By:	
 	

BreitBurn GP LLC, its General Partner
	

 	
 	

 	
 	

By:	
 	

          
 Name:

Title:
	

 	
 	

BREITBURN OPERATING L.P.
	

 	
 	

By:	
 	

BreitBurn Operating GP LLC, its General Partner
	

 	
 	

 	
 	

By:	
 	

          
 Name:

Title:
	

 	
 	

BREITBURN MANAGEMENT COMPANY LLC
	

 	
 	

By:	
 	

          
 Name:

Title:

   SCHEDULE I  

SERVICES PROVIDED BY BREITBURN MANAGEMENT

TO PARTNERSHIP  

	1.
	Accounting

	2.
	Information
Technology

	3.
	Real
Property

	4.
	Legal

	5.
	Securities
and Exchange Commission Reporting

	6.
	Operations/Reservoir
Engineering/Geology/Geophysics

	7.
	Administrative
Services

	8.
	Financial
Services

	9.
	Insurance
Service

	10.
	Risk
Management

	11.
	Corporate
Development

	12.
	Commercial
and Marketing

	13.
	Treasury

	14.
	Tax

	15.
	Audit

	16.
	SOX

	17.
	Investor
Relations 

I-1

QuickLinks

FORM OF ADMINISTRATIVE SERVICES AGREEMENT AMONG BREITBURN GP, LLC, BREITBURN ENERGY PARTNERS L.P., BREITBURN OPERATING L.P., AND BREITBURN MANAGEMENT COMPANY, LLC

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