Document:

EX-10.3

 Exhibit 10.3 

CARSON ASSETS INDEMNITY AGREEMENT 

This Carson Assets Indemnity Agreement (this “Agreement”), dated as of December 6, 2013 (the “Execution
Date”), is by and among Tesoro Logistics LP, a Delaware limited partnership (the “Partnership”), Tesoro Logistics GP, LLC, a Delaware limited liability company and the general partner of the Partnership (the
“General Partner”), Tesoro Logistics Operations LLC, a Delaware limited liability company (the “Operating Company”), Tesoro Corporation, a Delaware corporation (“Tesoro”), and Tesoro
Refining & Marketing Company LLC, a Delaware limited liability company (“TRMC”). The above-named entities are sometimes referred to in this Agreement individually as a “Party” and collectively as the
“Parties.” 
 RECITALS 

WHEREAS, TRMC purchased certain assets and properties pursuant to the Purchase and Sale Agreement dated August 8, 2012 by and
among the Sellers (as defined below) and TRMC (as such agreement may be amended, supplemented or restated from time to time, the “BP Purchase and Sale Agreement”); 

WHEREAS, TRMC contributed a portion of the assets acquired pursuant to the BP Purchase and Sale Agreement to the General Partner, the
General Partner contributed those assets to the Partnership and the Partnership contributed those assets to the Operating Company pursuant to the Contribution, Conveyance and Assumption Agreement dated May 17, 2013, by and among Tesoro, TRMC,
the General Partner, the Partnership and the Operating Company (as such agreement may be amended, supplemented or restated from time to time, the “Tranche 1 Contribution Agreement”); 

WHEREAS, TRMC contributed a portion of the assets acquired pursuant to the BP Purchase and Sale Agreement, the General Partner
contributed those assets to the Partnership and the Partnership contributed those assets to the Operating Company pursuant to the Contribution, Conveyance and Assumption Agreement dated November 18, 2013 by and among the Parties and Carson
Cogeneration Company, a Delaware corporation (as such agreement may be amended, supplemented or restated from time to time, the “Tranche 2 Contribution Agreement”); and 

WHEREAS, the Parties wish to enter into this agreement to memorialize their indemnity obligations with respect to the assets acquired
by the Operating Company pursuant to the Tranche 1 Contribution Agreement and the Tranche 2 Contribution Agreement (together, the “Contribution Agreements”). 

 NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and
agreements contained herein and in the Contribution Agreements, the Parties hereto agree as follows: 
 ARTICLE I 

DEFINITIONS 

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

“Affiliate” has the meaning given to that term in the BP Purchase and Sale Agreement, provided, however, that for the purposes
of this Agreement, the term does not include any entities or individuals who control or have the right to control the Partnership. 

“Agreement” has the meaning set forth in the preamble above. 

“Assets” means the assets described on Exhibit A. 

“BP Closing Date” means June 1, 2013. 

“BP Purchase and Sale Agreement” has the meaning set forth in the Recitals above. 

“BP Retained Liabilities” has the meaning given to the term “Retained Liabilities” in the BP Purchase and Sale
Agreement, provided, however, for the purposes of this Agreement, the term shall not include the Partnership Indemnified Parties. 

“Buyer Indemnified Party” has the meaning given to that term in the BP Purchase and Sale Agreement. 

“Cap” has the meaning set forth in Section 2.7(a). 

“Contribution Agreements” has the meaning set forth in the Recitals above. 

“Dispute Resolution Firm” has the meaning set forth in Section 2.7(e)(i). 

“Disputed Claim” has the meaning set forth in Section 2.7(e). 

“Environmental Law” has the meaning given to that term in the BP Purchase and Sale Agreement. 

“Execution Date” has the meaning set forth in the preamble above. 

“General Partner” has the meaning set forth in the preamble above. 

“Governmental Authority” has the meaning given to that term in the BP Purchase and Sale Agreement. 

“Indemnified Parties” means the Buyer Indemnified Parties and the Partnership Indemnified Parties. 

“Indemnity Claims” has the meaning set forth in Section 2.7(a). 

 “Indemnity Coverage Minimum” has the meaning set forth in
Section 2.8(a). 
 “Loss” or “Losses” have the meanings given to those terms in the BP
Purchase and Sale Agreement. 
 “Operating Company” has the meaning set forth in the preamble above. 

“Partnership” has the meaning set forth in the preamble above. 

“Partnership Change of Control” has the meaning set forth in the Second Amended and Restated Omnibus Agreement. 

“Partnership Group” has the meaning set forth in the Second Amended and Restated Omnibus Agreement. 

“Partnership Indemnified Party” has the meaning set forth in Section 2.6(b). 

“Party” and “Parties” have the meanings set forth in the preamble above. 

“Remedial Work” has the meaning given to that term in the BP Purchase and Sale Agreement, provided, however, for the purposes
of this Agreement, such term does not include any of the BP Retained Liabilities. 
 “Representation Indemnity Amount” has
the meaning set forth in Section 2.7(b)(ii). 
 “Second Amended and Restated Omnibus Agreement” has the meaning
given to that term in the Tranche 1 Contribution Agreement. 
 “Seller Indemnified Party” has the meaning given to that
term in the BP Purchase and Sale Agreement. 
 “Sellers” has the meaning given to that term in the BP Purchase and Sale
Agreement. 
 “Terminals” has the meaning given to that term in the Tranche 1 Contribution Agreement. 

“Tesoro” has the meaning set forth in the preamble above. 

“Third Party Environmental Claim” has the meaning given to that term in the BP Purchase and Sale Agreement. 

“Third Party Environmental Indemnity Claims” has the meaning set forth in Section 2.7(a). 

“Total Equity Balance” has the meaning set forth in Section 2.8(a). 

 “Tranche 1 Assets” has the meaning set forth in Exhibit A. 

“Tranche 1 Contribution Agreement” has the meaning set forth in the Recitals above. 

“Tranche 2 Assets” has the meaning set forth in Exhibit A. 

“Tranche 2 Contribution Agreement” has the meaning set forth in the Recitals above. 

“TRMC” has the meaning set forth in the preamble above. 

“TRMC Remedial Work” has the meaning set forth in Section 2.6(a). 

“Warranty Claims” has the meaning set forth in Section 2.7(a). 

ARTICLE II 

COVENANTS AND INDEMNIFICATION CLAIMS RELATED TO THE 

BP PURCHASE AND SALE AGREEMENT 

Section 2.1 No Amendment. TRMC agrees that it will not amend or waive any provision of the BP Purchase and Sale
Agreement, if such amendment or waiver would reasonably be expected to be adverse to the Partnership Group’s interest in the Assets, without the prior written consent of the Operating Company. 

Section 2.2 Post-Closing Compliance. The Operating Company agrees to comply with the “Post-Closing
Covenants” of TRMC contained in Article 12 of the BP Purchase and Sale Agreement as if the Operating Company were a party thereto to the extent such covenants apply to the Assets and to the extent that the Operating Company is allowed to comply
with respect to Assets it does not own pursuant to the operating agreements and subleases executed in connection with the Tranche 2 Contribution Agreement. TRMC hereby agrees to use commercially reasonable efforts to ensure the Sellers comply with
their obligations with respect to the Assets under the terms of Article 12 of the BP Purchase and Sale Agreement, and TRMC further agrees that, in the event TRMC receives the benefit of any actions taken by the Sellers in satisfaction of such
covenants, TRMC shall use commercially reasonable efforts to ensure that the Operating Company receives the benefit of such actions. 

Section 2.3 Benefit of BP Representations. In addition to the assignment of rights under the BP Purchase and Sale
Agreement as part of the Assets, TRMC agrees that, as between TRMC and the Operating Company, the Operating Company shall have the benefit of all of Sellers’ representations, warranties, covenants and indemnities in the BP Purchase and Sale
Agreement relating to the Assets as if the Operating Company was a party thereto; provided, however, that the Operating Company may coordinate through TRMC for any claim with respect thereto as set forth herein. 

 Section 2.4 Losses. Upon a Loss incurred by any Partnership Indemnified
Party on or after the BP Closing Date with respect to the Assets arising out of (i) a breach of a representation or warranty made by the Sellers under the BP Purchase and Sale Agreement, (ii) a Third Party Environmental Claim filed in
state or federal court or first identified in any order, notice or request issued by, or any investigation initiated by a Governmental Authority within two years of the BP Closing Date, (iii) a breach of a covenant of the Sellers under the BP
Purchase and Sale Agreement, or (iv) the BP Retained Liabilities, the Operating Company shall promptly notify TRMC thereof with sufficient detail to enable TRMC to take action as set forth below. Based on the assignment of rights under the BP
Purchase and Sale Agreement as part of the Assets, the Operating Company may make a direct claim against the Sellers with respect to applicable claims. In addition, if requested by the Operating Company, upon receipt of any such notice from, and
discussion with, the Operating Company, TRMC shall promptly make an indemnification claim against the Sellers with respect to such Loss in accordance with the terms of the BP Purchase and Sale Agreement. In connection with any such claim for
indemnification, TRMC shall take direction from the Operating Company with respect to the conduct and resolution of any such claim, and agrees to use commercially reasonable efforts to comply with such instructions from the Operating Company. It is
the intent of this provision that no Partnership Indemnified Party have any direct claims against TRMC with respect to any Losses arising out of clauses (i) through (iv) of this Section 2.4, but it is intended that the
Partnership Indemnified Parties benefit with respect to any such claims as if they were parties to the BP Purchase and Sale Agreement. Upon any recovery by TRMC from the Sellers for indemnification claims made on behalf of any Partnership
Indemnified Party due to Losses arising out of clauses (iii) and (iv) of this Section 2.4, TRMC shall promptly pay the full amount of such recoveries to the applicable Partnership Indemnified Party. Upon any recovery by TRMC
from the Sellers for indemnification claims made on behalf of any Partnership Indemnified Party due to Losses arising out of clauses (i) and (ii) of this Section 2.4 or any indemnification claims made on behalf of any Buyer
Indemnified Party arising out of similar claims thereto under the BP Purchase and Sale Agreement (which for clarity for both the Partnership Indemnified Parties and the Buyer Indemnified Parties are the Warranty Claims and Third Party Environmental
Indemnity Claims described in Section 2.7), TRMC and the Operating Company agree to allocate such recoveries pursuant to Section 2.7. The Operating Company shall pay the reasonable costs and expenses incurred by TRMC in
making such claim on behalf of the Operating Company. The Operating Company, on behalf of the Partnership Indemnified Parties, acknowledges and agrees that the procedures for indemnification in this Section 2.4 are the exclusive remedies
of the Partnership Indemnified Parties for Losses arising out clauses (i) through (iv) of this Section 2.4. 

Section 2.5 Indemnity by Operating Company. 

(a) The Operating Company agrees to indemnify any Buyer Indemnified Party for any Losses incurred by any Buyer Indemnified Party on or after
the BP Closing Date due to a claim for indemnification made by a Seller Indemnified Party arising out of any obligation assumed by the Operating Company with respect to the Assets pursuant to the Contribution Agreements. 

(b) The Operating Company shall indemnify, defend and hold harmless each Buyer Indemnified Party from and against any Losses suffered or
incurred by a Buyer Indemnified Party by reason of a third party claim arising from or relating to the ownership, use and/or operation of the Tranche 1 Assets after the BP Closing Date or the ownership, use and/or operation of the Tranche 2 Assets
after the Execution Date. 

 (c) Upon any Buyer Indemnified Party being made aware of such a claim, TRMC shall promptly make a
claim for indemnification against the Operating Company, and the Operating Company and TRMC, on behalf of the Buyer Indemnified Parties, agree to conduct and resolve such a claim in accordance with the procedures provided in Section 3.6 of the
Second Amended and Restated Omnibus Agreement. TRMC, on behalf of the Buyer Indemnified Parties, acknowledges and agrees that the procedures for indemnification in this Section 2.5 are the exclusive remedies of the Buyer Indemnified
Parties for Losses pursuant to this Section 2.5. 
 Section 2.6 Environmental Indemnity by TRMC. 

(a) TRMC shall be responsible for and shall perform Remedial Work arising from or relating to the ownership, use and/or operation of the
Tranche 1 Assets prior to the BP Closing Date, including the Remedial Work listed on Schedule 2.6, and Remedial Work arising from or relating to the ownership, use and/or operation of the Tranche 2 Assets prior to the Execution Date
(collectively, the “TRMC Remedial Work”). The Operating Company shall be responsible for and bear any and all costs associated with operating the Tranche 1 Assets after the BP Closing Date and the Tranche 2 Assets after the
Execution Date in compliance with any order, “Environmental Permit” (as defined in the BP Purchase and Sale Agreement) or request of any Governmental Authority. 

(b) TRMC shall indemnify, defend and hold harmless the Partnership, the Operating Company, their Affiliates, their respective successors and
each of their respective officers (or persons in any similar capacity if such person is not a corporation), employees, consultants and agents of the Partnership, the Operating Company, their Affiliates and their respective successors (each, a
“Partnership Indemnified Party”) from and against any Losses suffered or incurred by a Partnership Indemnified Party by reason of or arising out of the TRMC Remedial Work, including any failure by TRMC to perform such TRMC Remedial
Work. 
 (c) TRMC shall also indemnify, defend and hold harmless each Partnership Indemnified Party from and against any Losses suffered or
incurred by a Partnership Indemnified Party by reason of a Third Party Environmental Claim arising from or relating to the ownership, use and/or operation of the Tranche 2 Assets between the BP Closing Date and the Execution Date, that (i) is
filed in state or federal court within two years of the BP Closing Date or (ii) first identified in any order, notice or request issued by, or any investigation initiated by a Governmental Authority pursuant to Environmental Law within two
years of the BP Closing Date. 
 (d) Except as set forth in Sections 2.6(b) and 2.6(c), in no event shall TRMC have any direct
responsibility to the Partnership or the Operating Company for Third Party Environmental Claims or any BP Retained Liabilities relating to the Assets. 

 (e) Any Hazardous Substances (as defined in the BP Purchase and Sale Agreement) first discovered
outside the physical boundaries of any Asset shall be conclusively presumed to be the result of a Release (as defined in the BP Purchase and Sale Agreement) subsequent to the Execution Date if such Hazardous Substances (i) are first discovered
more than five (5) years after the BP Closing Date and (ii) do not relate to, or arise out of, the ownership or operation of Terminal 2 (as defined in Exhibit A). For any Hazardous Substances that are outside the physical boundaries of
Terminal 2 but have or are alleged to have arisen from or be related to ownership or operation of Terminal 2, there shall be a rebuttable presumption that such Hazardous Substances are the result of a Release prior to the Execution Date if such
Hazardous Substances are first discovered within ten (10) years after the Execution Date; and if such Hazardous Substances are first discovered after ten (10) years past the Execution Date, there shall be no presumption, but the provisions
of Section 2.6(f) shall apply. 
 (f) In the event of any dispute between TRMC, on one hand, and the Partnership and the
Operating Company, on the other, whether any event, condition or environmental matter occurred before or after the BP Closing Date or before or after the Execution Date, the dispute shall be referred to a third-party qualified environmental
consulting firm mutually agreeable to TRMC, the Partnership and the Operating Company who shall evaluate responsibility, and where appropriate, allocate percentage responsibility and liability. The third party consultant shall consider all
information submitted to it by TRMC, the Partnership and the Operating Company to make the final determination, but shall not perform additional on-site studies or evaluations unless agreed to by the TRMC, the Partnership and the Operating Company.
The following additional procedures shall apply to any such dispute: 
 (i) TRMC, on one hand, and the Partnership and the
Operating Company, on the other, shall provide the other with copies of the relevant records and provide reasonable access to its personnel as necessary to verify the accuracy of the applicable issue; 

(ii) within thirty (30) days of the selection of the consulting firm, TRMC, on one hand, and the Partnership and the
Operating Company, on the other, shall each submit to the consulting firm (with a copy to the other party) their respective proposals with respect to the determination of the applicable issue; 

(iii) the consulting firm shall schedule a hearing at a site mutually agreeable to TRMC, the Partnership and the Operating
Company not later than twenty (20) days after receipt of the last proposal; 
 (iv) no less than seven (7) days
prior to the hearing, each party may submit additional information and arguments in response to the proposal offered by the other side; 

(v) TRMC, on one hand, and the Partnership and the Operating Company, on the other, shall each pay fifty percent (50%) of
the costs of the consulting firm and shall each pay their own costs and expenses related to the hearing; 
 (vi) within
fifteen (15) days after the hearing, the consulting firm shall issue an interim determination in writing as to responsibility, and where appropriate, its determination of the allocation of percentage responsibility and liability; 

 (vii) within ten (10) days of the consulting firm’s issuance of the
interim determination, TRMC, on one hand, and the Partnership and the Operating Company, on the other, may submit suggested corrective language to the consulting firm, which the consulting firm shall determine whether or not to include in its final
determination; and 
 (viii) within ten (10) days of the expiration of the period in Section 2.6(f)(vii),
the consulting firm shall make a final determination in writing as to responsibility and where appropriate, its determination of the allocation of percentage responsibility and liability, which determination shall be final and binding. 

(g) In the event any Partnership Indemnified Party desires to make an indemnification claim against TRMC pursuant to Section 2.6(b)
or Section 2.6(c), it may do so pursuant to the procedures for making indemnification claims provided in Section 3.6 of the Second Amended and Restated Omnibus Agreement. For the avoidance of doubt, no other article or section of
the Second Amended and Restated Omnibus Agreement shall apply to this Section 2.6. 
 Section 2.7 Provisions
Regarding Limitations of Liability in the BP Purchase and Sale Agreement. 
 (a) Until the Sellers have paid an aggregate $150
million (the “Cap”) for indemnification claims pursuant to Section 15.2.1 of the BP Purchase and Sale Agreement (“Warranty Claims”) and with respect to Third Party Environmental Claims (the “Third Party
Environmental Indemnity Claims”, and together with the Warranty Claims, the “Indemnity Claims”), (y) if applicable, TRMC, on behalf of the Buyer Indemnified Parties, agrees to pay the amounts it receives from the
Sellers with respect to the Indemnity Claims to the Indemnified Parties, as applicable, and (z) if applicable, the Indemnified Parties shall direct the Sellers to pay such claims so that the total amounts paid by Sellers are paid, as follows:

 (i) to the Buyer Indemnified Parties, in an amount equal to (A) the product of (x) the total amount paid by
Sellers with respect to Indemnity Claims and (y) the total amount of Indemnity Claims made by the Buyer Indemnified Parties accepted by Sellers in accordance with terms of the BP Purchase and Sale Agreement divided by the aggregate
amount of all Indemnity Claims made by the Indemnified Parties accepted by Sellers in accordance with terms of the BP Purchase and Sale Agreement, minus (B) the amount any amounts previously received by the Buyer Indemnified Parties with
respect to Indemnity Claims; 
 (ii) to the Partnership Indemnified Parties, in an amount equal to (A) the product of
(x) the total amount paid by Sellers with respect to Indemnity Claims and (y) the total amount of Indemnity Claims made by the Partnership Indemnified Parties, and by TRMC on behalf thereof, pursuant to Section 2.4, accepted by
Sellers in accordance with terms of the BP Purchase and Sale Agreement divided by the aggregate amount of all claims made by the Indemnified Parties accepted by Sellers in accordance with terms of the BP Purchase and Sale Agreement,
minus (B) the amount any recoveries previously received by the Partnership Indemnified Parties; and 

 (iii) if (A) the total amount of Indemnity Claims made by the Partnership
Indemnified Parties, and by TRMC on behalf thereof pursuant to Section 2.4, accepted by Sellers in accordance with terms of the BP Purchase and Sale Agreement, minus (B) the total amount paid to the Partnership Indemnified
Parties pursuant to Section 2.7(a)(ii), minus (C) any amounts paid by the Buyer Indemnified Parties pursuant to this Section 2.7(a)(iii), plus (D) any amounts paid by the Partnership Indemnified
Parties pursuant to this Section 2.7(a)(iii), minus (E) the total amount of Warranty Claims made by the Partnership Indemnified Parties, and by TRMC on behalf thereof pursuant to Section 2.4, and accepted by
Sellers in accordance with the terms of the BP Purchase and Sale Agreement up to a maximum of $4 million, is: 
 (1) a
positive amount, that amount shall be paid to the Partnership Indemnified Parties instead of the Buyer Indemnified Parties (and if the amount to be paid by Sellers in the applicable payment is not sufficient upon the reallocation to take into
account this amount, the Buyer Indemnified Parties shall pay that insufficiency to the Partnership Indemnified Parties); or 

(2) a negative amount, the difference between zero and that negative amount shall be paid to the Buyer Indemnified Parties
instead of the Partnership Indemnified Parties (and if the amount to be paid by Sellers in the applicable payment is not sufficient upon the reallocation to take into account this amount, the Partnership Indemnified Parties shall pay that
insufficiency to the Buyer Indemnified Parties). 
 (b) For any Indemnity Claims that would have resulted in a recovery by either Indemnified
Party, as determined pursuant to Sections 2.7(d) and (e), but for the Cap: 
 (i) first, the Indemnified
Parties shall recalculate the amounts receivable pursuant to Section 2.7(a) as follows: 
 (1) for the Buyer
Indemnified Parties, in an amount equal to the product of (x) the total amount of Third Party Environmental Indemnity Claims paid by Sellers and those determined to be valid pursuant to Sections 2.7(d) and (e), up to the Cap, and
(y) the total amount of Third Party Environmental Indemnity Claims made by the Buyer Indemnified Parties accepted by Sellers in accordance with terms of the BP Purchase and Sale Agreement and those determined to be valid pursuant to Sections
2.7(d) and (e) divided by the aggregate amount of all Third Party Environmental Indemnity Claims made by the Indemnified Parties accepted by Sellers in accordance with terms of the BP Purchase and Sale Agreement and those
determined to be valid pursuant to Sections 2.7(d) and (e); and 

 (2) for the Partnership Indemnified Parties, in an amount equal to the product
of (x) the total amount of Third Party Environmental Indemnity Claims paid by Sellers and those determined to be valid pursuant to Sections 2.7(d) and (e), up to the Cap, and (y) the total amount of Third Party Environmental
Indemnity Claims made by Partnership Indemnified Parties, and by TRMC on behalf thereof pursuant to Section 2.4, accepted by Sellers in accordance with terms of the BP Purchase and Sale Agreement and those determined to be valid pursuant
to Sections 2.7(d) and (e) divided by the aggregate amount of all Third Party Environmental Indemnity Claims made by the Indemnified Parties accepted by Sellers in accordance with terms of the BP Purchase and Sale Agreement
and those determined to be valid pursuant to Sections 2.7(d) and (e); 
 (ii) second, if the total amount of
Third Party Environmental Indemnity Claims paid by Sellers is less than the Cap (such difference, the “Representation Indemnity Amount”), the Indemnified Parties shall recalculate the amounts receivable pursuant to
Section 2.7(a) with respect thereto as follows: 
 (1) for the Buyer Indemnified Parties, in an amount equal to
the product of (x) the Representation Indemnity Amount and (y) the total amount of Warranty Claims made by the Buyer Indemnified Parties accepted by Sellers in accordance with terms of the BP Purchase and Sale Agreement and those
determined to be valid pursuant to Sections 2.7(d) and (e) divided by the aggregate amount of all Warranty Claims made by the Indemnified Parties accepted by Sellers in accordance with terms of the BP Purchase and Sale
Agreement and those determined to be valid pursuant to Sections 2.7(d) and (e); and 
 (2) for the Partnership
Indemnified Parties, in an amount equal to the product of (x) the Representation Indemnity Amount and (y) the total amount of Warranty Claims made by the Partnership Indemnified Parties, and by TRMC on behalf thereof pursuant to
Section 2.4, accepted by Sellers in accordance with terms of the BP Purchase and Sale Agreement and those determined to be valid pursuant to Sections 2.7(d) and (e) divided by the aggregate amount of all
Warranty Claims made by the Indemnified Parties accepted by Sellers in accordance with terms of the BP Purchase and Sale Agreement and those determined to be valid pursuant to Sections 2.7(d) and (e); 

(iii) if the amount recalculated in Section 2.7(b)(i)(1) plus the amount recalculated in
Section 2.7(b)(ii)(1) is more than the amount actually received by Buyer Indemnified Parties, the Partnership Indemnified Parties shall pay to the Buyer Indemnified Parties the amount of such difference; 

 (iv) if the amount recalculated in Section 2.7(b)(i)(2) plus the
amount recalculated in Section 2.7(b)(ii)(2) is more than the amount actually received by Partnership Indemnified Parties, the Buyer Indemnified Parties shall pay to the Partnership Indemnified Parties the amount of such difference; and

 (v) further, if, by the operation of all of the prior provisions of this Section 2.7(b), the amount of the
Indemnity Claims made by the Partnership Indemnified Parties, and by TRMC on behalf thereof pursuant to Section 2.4, accepted by the Sellers in accordance with the BP Purchase and Sale Agreement and those determined to be valid pursuant
to Sections 2.7(d) and (e) that are not paid exceeds the greater of (i) $25 million (if only Third Party Environmental Claims exist) or (ii) $25 million plus the amount of applicable Warranty Claims up to $4 million (if
Warranty Claims exist), then the Buyer Indemnified Parties shall pay to the Partnership Indemnified Parties all amounts constituting that excess. 

(c) Prior to allowing any Buyer Indemnified Party or Partnership Indemnified Party to receive a recovery pursuant to Section 15 of the BP
Purchase Agreement for an Indemnity Claim, TRMC and the Operating Company, respectively, shall obtain an agreement from any such party to comply with the procedures set forth in this Section 2.7. TRMC and the Operating Company shall
control the procedures set forth in this Section 2.7 on behalf of the Buyer Indemnified Parties and the Partnership Indemnified Parties. 

(d) After Sellers have paid to the Indemnified Parties an amount equal to the Cap pursuant to Section 15 of the BP Purchase and Sale
Agreement, if an Indemnified Party believes it would have an Indemnity Claim but for the Cap, TRMC, on behalf of the Buyer Indemnified Parties, or the Operating Company, on behalf of the Partnership Indemnified Parties, as applicable, shall give
notice to the other of the existence of such Indemnity Claim together with a reasonable description thereof and any applicable backing documentation. TRMC and the Operating Company shall have thirty (30) days to agree whether that Indemnity
Claim would have been valid under the BP Purchase and Sale Agreement. Upon agreement as to a valid claim, the amount of that Indemnity Claim shall be included in the calculations made pursuant to Section 2.7(b). 

(e) In the event TRMC and the Operating Company are unable to come to a resolution pursuant to Section 2.7(d) (a “Disputed
Claim”): 
 (i) either TRMC or the Operating Company may submit the Disputed Claim to an agreed upon third party
qualified environmental consultant, in the case of a Third Party Environmental Indemnity Claim, or a nationally recognized independent accounting firm, in the case of a Warranty Claim (in either case, the “Dispute Resolution Firm”);

 (ii) TRMC and the Operating Company shall provide the other with copies of the relevant records and provide reasonable
access to its personnel as necessary to verify the accuracy of the applicable Disputed Claim; 

 (iii) within thirty (30) days of the selection of the Dispute Resolution
Firm, TRMC and the Operating Company shall each submit to the Dispute Resolution Firm (with a copy to the other party) their respective proposals with respect to the determination of the amount of such Disputed Claim; 

(iv) the Dispute Resolution Firm shall schedule a hearing at a site mutually agreeable to TRMC and the Operating Company not
later than twenty (20) days after receipt of the last proposal; 
 (v) no less than seven (7) days prior to the
hearing, each party may submit additional information and arguments in response to the proposal offered by the other side; 

(vi) within fifteen (15) days after the hearing, the Dispute Resolution Firm shall choose the proposal of one of the
parties with respect to the Disputed Claim; 
 (vii) any determination of the amount of the Disputed Claim so made by the
Dispute Resolution Firm shall be included in the calculations made pursuant to Section 2.7(b); 
 (viii) TRMC and
the Operating Company shall each pay fifty percent (50%) of the costs of the Dispute Resolution Firm and shall each pay their own costs and expenses related to the hearing; and 

(ix) the Dispute Resolution Firm’s decision shall be final and binding. 

(f) Any payment to be made by a Party pursuant to this Section 2.7 shall be paid promptly, but in any event within ten
(10) days of the determination that a payment is to be made. 
 Section 2.8 Assurances of TRMC. 

(a) In order to provide for sufficient financial reserves for the satisfaction of any potential indemnity claims that might be made pursuant to
Section 2.6, TRMC shall maintain, as of the end of each calendar year, a Total Equity Balance equal to or greater than $250 million (the “Indemnity Coverage Minimum”). “Total Equity Balance” means the
amount that is equal to the difference between the total assets and total liabilities of TRMC, each as determined in conformity with accounting principles generally accepted in the United States. 

(b) On or before April 30th of each year, TRMC shall submit to the Partnership and the Operating Company TRMC’s calculation of its
Total Equity Balance as of the end of the prior calendar year. Such calculation may be accompanied by (i) financial Schedules of Assets, Liabilities And Equity of TRMC as of December 31 of the prior calendar year and (ii) a Schedule
of Revenue of TRMC, which may be unaudited, so long as they are certified as being true and correct in all material respects and with amounts determined in conformity with generally accepted accounting principles of the United States, consistently
applied, by the Treasurer or Chief Financial Officer of TRMC, to such person’s actual knowledge. 

 (c) In the event that the calculation of TRMC’s Total Equity Balance submitted pursuant to
Section 2.8(b) is less than the Indemnity Coverage Minimum, TRMC shall provide alternative surety within thirty (30) days, of a nature acceptable to the Partnership and the Operating Company, with consent not to be unreasonably
withheld, for the full amount of the Indemnity Coverage Minimum until such time as TRMC delivers pursuant to Section 2.8(b) a calculation of its Total Equity Balance that is equal to or greater than the Indemnity Coverage Minimum. TRMC,
the Partnership and the Operating Company agree that alternative surety that may be used by TRMC to meet its obligations under this Section 2.8(c) include, but are not limited to, (i) insurance, (ii) an irrevocable letter of
credit and (iii) surety bond. 
 (d) The provisions of this Section 2.8 shall extend until the earlier of ten
(10) years from the BP Closing Date or a Partnership Change of Control (as defined in the Second Amended and Restated Omnibus Agreement). 

(e) TRMC hereby represents and warrants to the other Parties as of the date hereof that its Total Equity Balance is greater than or equal to
the Indemnity Coverage Minimum. 
 Section 2.9 Operating Company’s Right to Perform TRMC Remedial Work. From
and after the BP Closing Date, should TRMC default in any obligation under this Agreement to perform TRMC Remedial Work, and if, as a consequence, a Governmental Authority or third party shall notify the Partnership or the Operating Company that
either of them must perform any TRMC Remedial Work with respect to the Assets, the Partnership or the Operating Company, as applicable, shall notify TRMC of the same, TRMC shall promptly undertake the same, and TRMC shall immediately notify the
relevant Governmental Authority or third party that TRMC shall respond to such notice in the place of the Partnership or the Operating Company, as applicable. However, if the Partnership or the Operating Company is compelled to undertake or pursue
TRMC Remedial Work with respect to the Assets, or threatened with penalties or other adverse consequences (including damages, litigation, indemnification obligations, attorneys’ fees, etc.), then the Operating Company shall have the right and
authority, but not the obligation, to conduct the TRMC Remedial Work with respect to the Assets at TRMC’s sole expense. The Operating Company shall have the right to install, maintain, operate, store, use and remove equipment, including
monitoring wells, recovery wells and other assessment or remediation equipment, to remove, remediate, store and test soils and groundwater therefrom and thereon and to otherwise take all actions required to comply with Environmental Law. The
Operating Company shall provide TRMC, within thirty (30) days of TRMC’s written request, copies of all correspondence between the Operating Company and a Governmental Authority or third party regarding the Operating Company’s
activities with respect to the Assets where the TRMC Remedial Work is to be performed. TRMC shall not interfere with the Operating Company’s actions taken pursuant to this Section 2.9, and shall cooperate with the Operating Company
in obtaining any permits, consents or approvals necessary for the Operating Company to perform its actions taken with respect to the Assets. In the event the Operating Company undertakes to perform TRMC Remedial Work pursuant to this
Section 2.9, the Operating Company may seek any remedies available to it under this Agreement to immediately seek temporary and permanent injunctive relief for specific performance by TRMC of its obligation to perform TRMC Remedial Work,
in addition to any other rights and remedies available to the Operating Company under this Section 2.9, at law or in equity. 

 ARTICLE III 

REIMBURSEMENT AND ADDITIONAL INDEMNITY 

Section 3.1 Repair Reimbursement. TRMC will reimburse the Operating Company on a dollar-for-dollar basis, without
duplication, for expenses incurred by the Operating Company for repairs and maintenance to storage tanks and pipelines included as part of the Assets, and expenses that are made solely in order to comply with current minimum standards under
(a) the U.S. Department of Transportation’s Pipeline Integrity Management Rule 49 CFR 195.452 or (b) the API Standard 653 for Aboveground Storage Tanks, but only if and to the extent that such repairs and maintenance are identified,
and such expenses are incurred, before, during or as a result of the first scheduled API 653 inspections, internal line inspections or tests, as applicable, that occur prior to the second anniversary of the Execution Date. Notwithstanding the
foregoing, TRMC shall have the right to review the tank repair scope and the API 653 inspection reports, as applicable, and shall have no obligation to reimburse the Operating Company for repairs, maintenance or expenses to the extent TRMC
concludes, in its reasonable discretion, that such repairs, maintenance or expenses were unnecessary.  
 Section 3.2
Indemnification Regarding Ownership. With respect to the Tranche 2 Assets, TRMC shall indemnify, defend and hold harmless the Partnership Indemnified Parties from and against any Losses suffered or incurred by the Partnership
Indemnified Parties by reason of or arising out of the failure of TRMC to transfer to the General Partner good and valid title to the Tranche 2 Assets as of the Execution Date, free and clear of any encumbrances, other than Permitted Liens (as
defined in the Tranche 2 Contribution Agreement) as of the Execution Date, and such failure renders any of the Partnership Indemnified Parties liable to a third party or unable to use or operate the Tranche 2 Assets in substantially the same manner
that the Tranche 2 Assets were used and operated by TRMC or its Affiliates immediately prior to the Execution Date, to the extent that TRMC is notified in writing of any of the foregoing prior to the fifth anniversary of the Execution Date or if a
Partnership Change of Control has occurred, the earlier of (a) the second anniversary of the Execution Date and (b) the date of the occurrence of a Partnership Change of Control.  

Section 3.3 Additional Indemnification by TRMC. TRMC shall indemnify, defend, and hold harmless the Partnership
Indemnified Parties from and against any Losses suffered or incurred by the Partnership Indemnified Parties by reason of or arising out of (a) events and conditions associated with the ownership or operation of the Tranche 2 Assets that occur
after the BP Closing Date but on or before the Execution Date (other than Losses provided for under Sections 2.4, 2.6 and Section 3.2) to the extent that TRMC is notified in writing of any of the foregoing prior to the
tenth anniversary of the Execution Date, (b) any pending legal actions against Tesoro and its Affiliates as of the Execution Date set forth on Schedule III to the Second Amended and Restated Omnibus Agreement, (c) events and
conditions associated with the Retained Assets (as defined in the Second Amended and Restated Omnibus Agreement), whether occurring before or after the Execution Date, and (d) all federal, state and local income tax liabilities attributable to
the ownership or operation of the Tranche 2 Assets after the BP Closing Date but on or before the Execution Date, including under Treasury Regulation Section 1.1502-6 (or any similar provision of state or local law).  

 ARTICLE IV 

APPLICABILITY OF INDEMNITY PROVISIONS OF THE SECOND AMENDED AND 

RESTATED OMNIBUS AGREEMENT 

Except as otherwise provided in Sections 2.5(c) or 2.6(g), (a) the environmental indemnity provisions of Article III of the
Second Amended and Restated Omnibus Agreement, (b) Section 3.2 of the Second Amended and Restated Omnibus Agreement, and (c) Section 3.5 of the Second Amended and Restated Omnibus Agreement, shall not apply to the Assets. Neither
TRMC nor the General Partner have provided any representation or warranty to the Partnership or the Operating Company regarding title to the Assets other than as set forth in the Tranche 2 Contribution Agreement. 

ARTICLE V 

MISCELLANEOUS 

Section 5.1 Costs. Each Party shall pay its own costs and expenses with respect to the transactions contemplated by
this Agreement. 
 Section 5.2 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 5.3 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors and assigns 
 Section 5.4 No Third Party Rights. Except with respect to the
Indemnified Parties, 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 5.5 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 5.6 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 5.7
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 5.8 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 5.9 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 Execution Date. 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 5.10 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 5.11 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 5.11. 
 If to
the 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
Execution Date. 
  

									
	 TESORO LOGISTICS LP
	 		 	TESORO CORPORATION
					
	 By:
	 	Tesoro Logistics GP, LLC,	 		 	By:	 	/s/ Gregory J. Goff
		 	its general partner	 		 		 	Gregory J. Goff
		 		 		 		 	President and Chief Executive Officer
					
	 By:
	 	/s/ Phillip M. Anderson	 		 		 	
		 	 Phillip M. Anderson
	 		 		 	
		 	 President
	 		 		 	
			
	 TESORO LOGISTICS GP, LLC
	 		 	TESORO LOGISTICS OPERATIONS LLC
					
	By:	 	/s/ Phillip M. Anderson	 		 	By:	 	/s/ Phillip M. Anderson
		 	 Phillip M. Anderson
	 		 		 	Phillip M. Anderson
		 	 President
	 		 		 	President
				
	 TESORO REFINING & MARKETING COMPANY LLC
	 		 		 	
					
	By:	 	 /s/ Gregory J. Goff
	 		 		 	
		 	 Gregory J. Goff
	 		 		 	
		 	 Chairman of the Board of Managers and President
	 		 		 	

 Signature Page to Indemnity Agreement 

 EXHIBIT A 

Assets 
 (1) The Terminals, as well as
certain other related assets and properties that are either located on the same parcels of real estate as those assets and properties or used in connection therewith, and all contracts, permits, licenses and other intangible rights related to the
Terminals to the extent assignable and to the extent used in connection with the ownership and operation of any of the other assets and properties described above, which assets were acquired pursuant to the Tranche 1 Contribution Agreement and are
listed in detail on Exhibit A to the Tranche 1 Contribution Agreement (collectively, the “Tranche 1 Assets”); 
 (2) (i) The Fee-Owned
Pipeline 88 Interest, (ii) the Carson Products Terminal Complex, (iii) the TSPC Assets, (iv) Berth 121, (v) Terminal 2, and (vi) Terminal 3, each as defined in the Tranche 2 Contribution Agreement, as well as certain other
related assets and properties that are either located on the same parcels of real estate as those assets and properties or used in connection therewith, and all contracts, permits, licenses and other intangible rights related to such assets to the
extent assignable and to the extent used in connection with the ownership and operation of any of the other assets and properties described above, which assets are listed in detail on Exhibit A to the Tranche 2 Contribution Agreement (the
“Tranche 2 Assets”); and 
 (3) All rights and interests under the BP Purchase and Sale Agreement with respect to the Tranche 1 Assets and
Tranche 2 Assets, which were assigned to the Operating Company pursuant to the Contribution Agreements. 
 Indemnity Agreement 

Exhibit A 

 SCHEDULE 2.6 

Environmental Liabilities 

Pursuant to Section 2.6(a), TRMC Remedial Work shall include Remedial Work with respect to the following environmental liabilities at the
Terminals: 
 The following documents provide comprehensive, facility-specific data that describe soil and/or groundwater environmental
liabilities. Each document is available in the public domain for future reference. 
  

			
	VINVALE MARKETING TERMINAL	  	 First Quarter 2013 Status Report,
 Atlantic
Richfield Company, Vinvale Terminal
 8601 South Garfield Avenue

South Gate, CA 90280

		
		  	 CRWQCB—LA CAO No. 96-014
 April 15,
2013

		
		  	 Prepared by
 Stantec Consulting Services
Inc.
 290 Conejo Ridge Avenue
 Thousand Oaks, CA 91361

805-230-1266

		
	COLTON MARKETING TERMINAL	  	 Fourth Quarter 2012 Groundwater Monitoring Report

Atlantic Richfield Company, ARCO facility 19T (Colton Terminal) 2359 South Riverside Ave

Rialto, CA 92376

		
		  	 CRWQCB – SA No. 083603123T
 January 15,
2013

		
		  	 Prepared by
 Stratus Environmental Inc.

5412 Bolsa Avenue
 Huntington Beach, CA 92649

714-230-2495

  
 Indemnity Agreement

 Schedule 2.6 

			
	SAN DIEGO MARKETING TERMINAL	  	 Atlantic Richfield Company
 Semi-Annual Status
Report
 Facility 33T (San Diego Terminal)
 2295 East Harbor
Drive
 San Diego, CA 92113

		
		  	 County of San Diego, Dept. of Environmental Health,

Land & Water Quality Division, Site Assessment and Mitigation Program

Case #H02375
 October 26, 2012

		
		  	 Prepared by
 Stantec Consulting Services
Inc.
 9179 Aero Drive
 San Diego, CA 92123

619-296-6195

		
	EAST HYNES TERMINAL	  	 2012 Annual Groundwater Monitoring Report
 East
Hynes Terminal
 5905 Paramount Boulevard
 Long Beach, CA
90805

		
		  	 CRWQCB – LA Clean Up and Abatement Order 95-107

January 15, 2013

		
		  	 Prepared by AECOM Environmental
 3995 Via Oro
Avenue
 Long Beach, CA 90810
 562-420-2993

		
	HATHAWAY STORAGE TERMINAL	  	 2012 Annual Groundwater Monitoring Report

Hathaway Facility
 2350 Obispo Avenue

Signal Hill, CA 90755

		
		  	 SCP No. 1167
 January 29, 2013

		
		  	 Prepared by AECOM Environmental
 3995 Via Oro
Avenue
 Long Beach, CA 90810

562-420-2993

  
 Indemnity Agreement

 Schedule 2.6 

			
	CARSON CRUDE STORAGE FACILITY	  	 Second Semiannual 2011 Groundwater Monitoring Results

Carson Regional Groundwater Group Monitoring Wells
 Carson,
reference well CRGG7A

		
		  	January 16, 2012
		
		  	 Prepared by CH2M Hill
 6 Hutton Centre Drive,
Suite 700
 Santa Ana, CA 92707
 714-429-2050

		
	TERMINAL 2	  	 Semiannual Groundwater Monitoring Report

January 1 – June 30, 2013
 Tesoro Refining & Marketing
Company LLC, Terminal 2 Facility
 1300-1350 West Pier B Street

Port of Long Beach, CA

		
		  	 SCP# 0343A
 CRWQCB—LA pending CAO No.
R4-2011-xxxx
 (DRAFT dated July 22, 2011)
 July 12,
2013

		
		  	 Prepared by
 AECOM Technical Services,
Inc.
 3995 Via Oro Avenue
 Long Beach, CA 90810

562-420-2993

		
	TERMINAL 3	  	 Annual Groundwater Monitoring Report
 January 1
– December 31, 2012
 ARCO Terminal Services Corporation, Terminal 3 Facility

1400 West Pier C Street
 Port of Long Beach, CA

		
		  	 SCP# 0343B
 January 14, 2013

		
		  	 Prepared by
 AECOM Environment

3995 Via Oro Avenue
 Long Beach, CA 90810

562-420-2993

  
 Indemnity Agreement

 Schedule 2.6 

			
	 LK-34 PIPELINE SITE
	  	 Semiannual Groundwater Monitoring Report

January 2013 through June 2013
 Tesoro Refining & Marketing
Company LLC, LK-34
 Pipeline Site
 17000 Lakewood Blvd

Bellflower, CA

		
		  	 SCP No. 886
 July 29, 2013

		
		  	 Prepared by AECOM Technical Services, Inc.

3995 Via Oro Avenue
 Long Beach, CA 90810

562-420-2993

		
	 BURNETT STREET VALVE BOX SITE
	  	 Semiannual Groundwater Monitoring Report

January 2013 through June 2013
 Tesoro Refining & Marketing
Company LLC, LK-34
 Pipeline Site
 Terminal Island Freeway

Long Beach, CA

		
		  	 SCP No. 696
 July 29, 2013

		
		  	 Prepared by AECOM Technical Services, Inc.

3995 Via Oro Avenue
 Long Beach, CA 90810

562-420-2993

  
 Indemnity Agreement

 Schedule 2.6EX-10.4

 Exhibit 10.4 

BERTH 121 SUBLEASE RIGHTS AGREEMENT 

This Berth 121 Sublease Rights Agreement (this “Agreement”), dated as of December 6, 2013 (the “Effective
Date”), is by and between Tesoro Refining & Marketing Company LLC, a Delaware limited liability company (“TRMC”), and Carson Cogeneration Company, a Delaware corporation (“Carson Cogen”). The
above-named entities are sometimes referred to in this Agreement individually as a “Party” and collectively as the “Parties.” 

RECITALS 

WHEREAS, Carson Cogen is a party to that certain Pier E Tanker Terminal Agreement dated October 24, 1980 with the City of Long
Beach, California (as such agreement may be amended, supplemented, restated, extended or renewed from time to time, the “Berth 121 Port Lease”); and 

WHEREAS, Carson Cogen desires to sublease its interest in the Berth 121 Port Lease to TRMC or its assignee (as applicable, the
“Operating Company”) upon the receipt of certain required consents and approvals. 
 NOW, THEREFORE, in
consideration of the mutual covenants, representations, warranties and agreements contained herein, 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. 

“Berth 121” means the marine terminal leased from the Port of Long Beach, California, pursuant to the Berth 121 Port Lease,
that receives crude oil and other feedstocks from marine vessels for delivery to the Refinery and other third-party refineries and terminals, and receives refined and intermediate products from the Refinery for delivery to marine vessels. 

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

“Berth 121 Operating Agreement” means that certain Berth 121 Operating Agreement entered into contemporaneously herewith
between Carson Cogen and the Operating Company. 
 “Berth 121 Use Agreement” means that certain Agreement dated
July 3, 1979, by and between Carson Cogen and Phillips 66, each as ultimate assignees, relating to the operation of Berth 121 and Pipeline 95 (owned by Phillips 66), as such agreement may be amended, restated modified or supplemented from time
to time. 
 “BP Closing Date” means June 1, 2013. 

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

 “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 Berth 121. 
 “Effective Date” 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 Carson Cogen to sublease
the Berth 121 Port Lease to the Operating Company. 
 “Operating Company” has the meaning set forth in the Recitals. 

“Other Approvals” means (i) the approval of Phillips 66 to the ability of Carson Cogen to assign the Berth 121 Use
Agreement to the Operating Company and (ii) any other consents or approvals required to sublease the Berth 121 Port Lease to the Operating Company. 

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

“Partnership Group” means Tesoro Logistics Operations LLC, a Delaware limited liability company, Tesoro Logistics GP, LLC, a
Delaware limited liability company, and Tesoro Logistics LP, a Delaware limited partnership, and their respective subsidiaries. 

“Phillips 66” means Phillips 66 Company, a Delaware corporation. 

“Refinery” means TRMC’s refinery located at 2350 East 223rd Street in Carson, California. 

“Sublease” has the meaning set forth in Section 2.1. 

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

ARTICLE II 

SUBLEASE AND RIGHT OF ENTRY AGREEMENT 

Section 2.1 Sublease. Upon receiving the Long Beach Approval, the CDFG Approval and the Other Approvals, Carson Cogen and
the Operating Company shall enter into a sublease with respect to the Berth 121 Port Lease, substantially in the form attached hereto as Exhibit A (the “Sublease”). 

Section 2.2 Right of Entry Agreements. Simultaneously with the execution of the Sublease, and if TRMC is not the Operating
Company, the Operating Company shall enter into a Right of Entry Agreement with respect to Berth 121, substantially in the form attached hereto as Exhibit B, in order to provide TRMC access to Berth 121 to conduct environmental remediation
activities.  

 ARTICLE III 

MISCELLANEOUS 

Section 3.1 Assignment. TRMC shall have the right to assign all of its rights and obligations under the Sublease. 

Section 3.2 Expiration of Berth 121 Port Lease. If the Sublease has not been entered into at the time the Berth 121 Port
Lease expires: 
 (a) If a new lease of Berth 121 is not entered into between the City of Long Beach, as landlord, and Carson Cogen or one of
its affiliates (other than members of the Partnership Group), as tenant, then Carson Cogen shall convey to the Operating Company without further consideration all leasehold improvements with regard to Berth 121 owned by Carson Cogen. 

(b) If a new lease of Berth 121 is entered into between the City of Long Beach, as landlord, with Carson Cogen or one of its affiliates (other
than members of the Partnership Group), then Carson Cogen or its applicable affiliate will negotiate in good faith with the Operating Company for a new Operating Agreement on terms similar to those in the Berth 121 Operating Agreement with such
modifications as are necessary to reflect the terms of the new lease of Berth 121 with the City of Long Beach. 
 Section 3.3
Costs. Each Party shall pay its own costs and expenses with respect to the transactions contemplated by this Agreement. 

Section 3.4 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 3.5 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective successors and assigns. 
 Section 3.6 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 3.7 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 3.8 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 3.9 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 3.10 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. 

Section 3.11 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 3.12 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 3.13 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 3.13. 
 If to
TRMC: 
 Tesoro Refining & Marketing Company LLC 

19100 Ridgewood Parkway 
 San
Antonio, Texas 78259-1828 
 Attn: Charles A. Cavallo III 

Facsimile: (210) 745-4494 

If to Carson Cogen: 
 Carson
Cogeneration Company 
 19100 Ridgewood Parkway 

San Antonio, Texas 78259-1828 

Attn: Brooks A. Meltzer 

Facsimile: 210-569-5272 

[Signature Page Follows] 

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

									
	TESORO REFINING & MARKETING COMPANY LLC	 		 	CARSON COGENERATION COMPANY
					
	By:	 	/s/ Gregory J. Goff	 		 	By:	 	/s/ Gregory J. Goff
		 	Gregory J. Goff	 		 		 	Gregory J. Goff
		 	 Chairman of the Board of Managers
 and
President
	 		 		 	 Chairman of the Board of
 Directors and
President

 Signature Page to 

Berth 121 Sublease Rights Agreement 

 EXHIBIT A 

Berth 121 Sublease 

[See Attached] 

  
 Exhibit A 

Berth 121 Sublease Rights Agreement 

 SUBLEASE AGREEMENT 

BETWEEN 
 CARSON
COGENERATION COMPANY 
 AS SUBLESSOR 

AND 
 TESORO LOGISTICS
OPERATIONS LLC 
 AS SUBLESSEE 

  
 Exhibit A 

Berth 121 Sublease Rights Agreement 

 SUBLEASE 

This Sublease (“Sublease”), dated as of the          day of
            , 201    , is made by and between Carson Cogeneration Company, a Delaware corporation (“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 Pier E Tanker Terminal Agreement dated October 24, 1980 (the “Master Lease”), between Sublessor, as successor-in-interest to Atlantic Richfield Company, and the City of Long Beach, a municipal corporation,
acting by and through its Board of Harbor Commissioners (“Master Landlord”). The Master Lease governs premises commonly known as Berth 121, a deep water, high capacity crude berth as shown on the drawing attached as Exhibit A to the
Master Lease, together with the water area contiguous to Berth 121 as may be required for the berthing of vessels (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 “Current 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. 
 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 

Berth 121 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 26 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. 
 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. 

  
 Exhibit A 

Berth 121 Sublease Rights Agreement 

 (b) Any capital expenditures required by the Master Lease or the Contracts shall be made by
Sublessee. Sublessee shall also make payments to Phillips 66 Company, a Delaware corporation (“Phillips 66”), as and when required by the Contracts, with concurrent notice thereof to Sublessor. 

(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 of the Current Leasehold Improvements located on the Premises and owned by Sublessor as of the
Commencement Date. 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 termination of this Sublease by reason of a default on the part of Sublessee, the Current Leasehold Improvements, together with any other leasehold improvements made subsequent to the
Commencement Date (“Future Leasehold Improvements”; the Current Leasehold Improvements and the Future Leasehold Improvements being sometimes collectively referred to herein as the “Leasehold Improvements”), shall
automatically become the property of Sublessor. In the event of an early termination of this Sublease not due to the fault of 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 Leasehold 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
Leasehold 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 

Berth 121 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 

Berth 121 Sublease Rights Agreement 

 6. Rent Negotiations. Sublessee shall conduct the compensation negotiations required by
Section 8 of the Master Lease. Sublessor shall have the right to approve the negotiated compensation, which approval shall not unreasonably be 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 and the Sublease is terminated as a result of such default, each of the Cross Defaulted Agreements shall concurrently terminate. If any of the Cross-Defaulted Agreements terminate, this Sublease shall concurrently
terminate. The foregoing shall not limit Sublessor’s remedies arising from such default. 
 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. 

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. 

  
 Exhibit A 

Berth 121 Sublease Rights Agreement 

 11. Amendments to Master Lease. Subject to the terms of the Use Agreement, 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. If Sublessee elects not to enter in such a new sublease, then Sublessee shall convey the Leasehold Improvements to
Sublessor for no further consideration. 
 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 

Berth 121 Sublease Rights Agreement 

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

  

			
	Sublessor:	  	 Sublessee:

		
	Carson Cogeneration Company,	  	Tesoro Logistics Operations LLC,
	a Delaware corporation	  	a Delaware limited liability company

  

													
	By:	 	 	 	 	 		 	By:	 	 	 	 
		 	Name:	 	 	 		 		 	Name:	 	 
		 	Title:	 	 	 		 		 	Title:	 	 

  
 Exhibit A 

Berth 121 Sublease Rights Agreement 

 Exhibit A 

Contracts 
  

	1.	Agreement, dated July 3, 1979, between Carson Cogeneration Company and Phillips 66 Company, a Delaware corporation, relating to the operation of Berth 121 and Pipeline 95. 

 

	2.	Agreement for Use of Marine Terminal and Pipeline, dated August 30, 1978, between Carson Cogeneration Company, Phillips 66 Company, a Delaware corporation, and Valero Refining and Marketing Company, relating to the
operation of Berth 121 and Pipeline 95. 

  
 Exhibit A 

Berth 121 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 

Berth 121 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 Carson
Cogeneration Company , a Delaware corporation (“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 

Berth 121 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:

		
	Carson Cogeneration Company,	  	Tesoro Logistics Operations LLC,
	a Delaware corporation	  	a Delaware limited liability company

  

													
	By:	 	 	 	 	 		 	By:	 	 	 	 
		 	Name:	 	 	 		 		 	Name:	 	 
		 	Title:	 	 	 		 		 	Title:	 	 

  
 Exhibit A 

Berth 121 Sublease Rights Agreement 

 Schedule 1 to Assignment and Assumption of Contracts 

 

	1.	Agreement, dated July 3, 1979, between Carson Cogeneration Company and Phillips 66 Company, a Delaware corporation, relating to the operation of Berth 121 and Pipeline 95. 

 

	2.	Agreement for Use of Marine Terminal and Pipeline, dated August 30, 1978, between Carson Cogeneration Company, Phillips 66 Company, a Delaware corporation, and Valero Refining and Marketing Company, relating to the
operation of Berth 121 and Pipeline 95. 

  
 Exhibit A 

Berth 121 Sublease Rights Agreement 

 Exhibit D 

Bill of Sale 
 FOR GOOD
AND VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the undersigned, Carson Cogeneration Company, a Delaware corporation (“Carson Cogen”), 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 Current Leasehold Improvements located on the Premises (as that term is defined in that certain Sublease dated
                     between Carson Cogen, 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    	 		 		 	Carson Cogeneration Company,
		 		 		 	a Delaware corporation
						
		 		 		 	By:	 	 	 	 
		 		 		 		 	Name:	 	 
		 		 		 		 	Title:	 	 

  
 Exhibit A 

Berth 121 Sublease Rights Agreement 

 SCHEDULE 1 TO BILL OF SALE 

List of Current 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 

Berth 121 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 TRMC, as sublessor, and the
Operating Company, as sublessee, for the sublease of Berths 84 and 86 (the “Long Beach Terminal Sublease”) 
 3. Sublease
Agreement to be executed by and among TRMC, as sublessor, and the Operating Company, as sublessee, for the sublease of a portion of Terminal 2 (the “Terminal 2 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 

Berth 121 Sublease Rights Agreement 

 Exhibit F 

Form of Master Landlord Consent 

To Be Attached 

  
 Exhibit A 

Berth 121 Sublease Rights Agreement 

 EXHIBIT B 

Right of Entry Agreement 

[See Attached] 

  
 Exhibit B 

Berth 121 Sublease Rights Agreement 

 Right of Entry Agreement 

 

			
	 RECORDING REQUESTED BY
  

Tesoro Refining & Marketing Company LLC
  

AND WHEN RECORDED MAIL TO
	  	
		
	 Name Tesoro
Corporation                    
  

Street 19100 Ridgewood
Parkway                    
  

Address San Antonio, Texas
78259                    
  

Attention: Brooks Meltzer,
Esq.                    
	  	

  
  

SPACE ABOVE THIS LINE FOR
RECORDER’S USE 
 APN: Portion of 7436-031-902 

RIGHT OF ENTRY AGREEMENT 
 FOR
ASSESSMENT, REMEDIATION AND CLOSURE ACTIVITIES 
 BERTH 121 

CITY OF LONG BEACH, COUNTY OF LOS ANGELES, CALIFORNIA 

This Right of Entry Agreement (“Agreement”) is made and entered into between Tesoro Refining & Marketing Company LLC (“TRMC”), a
Delaware limited liability company, and Carson Cogeneration Company (“Carson Cogen”), a Delaware corporation, regarding the property described in Exhibit A (the “Property”), effective as of the date of execution below.

 TRMC desires to access the Property and Carson Cogen hereby grants TRMC (and its consultants, agents, contractors, subcontractors, and employees) access
to the Property, to conduct activities at, on, and about the Property as required by the California Department of Toxic Substances Control, California Regional Water Quality Control Board, local Certified Unified Program Agency, or any other
applicable regulatory agency (“Agency”) in connection with remedial activities at the Property (“Activities”), including but not limited to: (i) the excavation, trenching, stockpiling, storage, treatment, and backfilling of
soil; (ii) the treatment or removal of soil vapor, groundwater, or surface water; (iii) the removal or closure of tanks, containment trenches and associated piping; (iv) the installation, monitoring, maintenance, storage, operation
and closure of borings, wells, fixtures, installations, and equipment (e.g., injection wells, monitoring wells, extraction wells, treatment systems); (v) storage of vehicles, portable containers and/or tanks and equipment on the Property; and
(vi) any other activities necessary to remediate the Property. 
  

  
 Exhibit B –

 Berth 121 Sublease Rights Agreement 

	 	1.	It is understood by the parties hereto, that the Activities shall be conducted under the oversight of the California Department of Toxic Substances Control, California Regional Water Quality Control Board, local
Certified Unified Program Agency, or Agency, and that such agency has authority under applicable law to direct the schedule and scope of the Activities, including the sole discretion to determine when the Activities are complete. 

 

	 	2.	TRMC agrees to hold harmless and indemnify Carson Cogen from and against all claims, causes of action, damages, costs, and expenses arising out of or resulting from TRMC’s negligence, or the negligence of its
consultants, agents, contractors, subcontractors, and employees, in conducting the Activities. 

  

	 	3.	TRMC or its consultants, agents, contractors, subcontractors or employees shall promptly remove from the Property, at TRMC’s sole expense, all waste material generated by its Activities, or the Activities of
TRMC’s consultants, agents, contractors, subcontractors or employees in the exercise of TRMC’s rights under this Agreement. 

  

	 	4.	TRMC, or its consultants, agents, contractors, subcontractors or employees, at TRMC’s sole expense, shall keep the work area clean and neat following the Activities, and restore as much as reasonably possible, the
surface appearance of the Property to its original, pre-existing condition upon completion of the Activities. 

  

	 	5.	This Agreement shall terminate when the California Department of Toxic Substances Control, California Regional Water Quality Control Board, local Certified Unified Program Agency, or Agency determines in writing that no
further Activities are required on the Property, or as otherwise agreed between the parties in writing, and all equipment described in this Agreement are either removed or abandoned in place. 

 

	 	6.	Nothing in this Agreement shall be construed as an obligation by TRMC to remediate the Property or to comply with any California Department of Toxic Substances Control, California Regional Water Quality Control Board,
local Certified Unified Program Agency, or Agency directive; provided, however, this Section 6 shall not affect any terms or provisions of any other agreement between the parties hereto. 

 

	 	7.	Any notice with respect to this Agreement shall be provided as follows: 

  

					
		 	To TRMC:	  	Tesoro Corporation
		 		  	19100 Ridgewood Parkway
		 		  	San Antonio, TX 78259
		 		  	Attn: Charles A. Cavallo III
		 		  	Facsimile: (210) 745-4494

  
 Exhibit B –

 Berth 121 Sublease Rights Agreement 

					
			
		 	To Carson	  	Tesoro Corporation
		 	Cogen:	  	19100 Ridgewood Parkway
		 		  	San Antonio, TX 78259
		 		  	Attn: Brooks A. Meltzer
		 		  	Facsimile: (210) 569-5272

  

	 	8.	This Agreement shall be binding upon TRMC and Carson Cogen and their successors and assigns. 

  

	 	9.	TRMC shall have the right to record or file this Agreement or a memorandum in the real property records of the County of Los Angeles. Carson Cogen agrees to execute (sign) such documents as may be necessary to
accomplish such recording. 

  

	 	10.	This Agreement contains a complete expression of the agreement between the parties with respect to the subject matter hereof, and there are no promises, representations or inducements, verbal or written with respect to
the subject matter hereof, except such as are herein provided. The terms of the Agreement cannot be modified except by written agreement of the parties. 

  

	 	11.	If any provision of this Agreement shall be held invalid, illegal or unenforceable in any respect, such provision shall not affect any other provision hereof or the validity of the remainder of this Agreement.

  

	 	12.	This Agreement shall be construed, interpreted, and governed by and in accordance with the laws of California, without regard to its choice of law provisions. 

 

	 	13.	This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which, taken together, shall constitute one and the same Agreement. 

 

  
 Exhibit B –

 Berth 121 Sublease Rights Agreement 

 IN WITNESS WHEREOF, the parties authorized representatives have signed this Agreement on the
latter signature date specified below. 
  

									
	TESORO REFINING & MARKETING
COMPANY LLC, a Delaware limited
liability company	 		 	CARSON COGENERATION
COMPANY, a Delaware corporation
					
	By:	 	 	 		 	By:	 	 
					
	Name:	 		 		 	Name:	 	
					
	Title:	 		 		 	Title:	 	
					
	Date:	 		 		 	Date:	 	

  

  
 Exhibit B –

 Berth 121 Sublease Rights Agreement 

			
	STATE OF
                                        
	  	}
		  	}ss
	COUNTY OF
                                        
	  	}

 On                     ,
before me,                             , a Notary Public in and for said state, personally appeared
[            ], [            ] of Tesoro Refining & Marketing Company LLC, who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. 
 I certify under PENALTY OF PERJURY under the
laws of the State of                      that the foregoing paragraph is true and correct. 

WITNESS my hand and official seal. 
 Signature
                                         
                    
  

			
	STATE OF
                                        
	  	}
		  	}ss
	COUNTY OF
                                    	  	}

 On
                    , before me,
                            , a Notary Public in and for said state, personally appeared
[            ], [            ] of Carson Cogeneration Company, who proved to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the
entity upon behalf of which the person(s) acted, executed the instrument. 
 I certify under PENALTY OF PERJURY under the laws of the State
of                      that the foregoing paragraph is true and correct. 

WITNESS my hand and official seal. 
 Signature
                                         
                    

  
 Exhibit B –

 Berth 121 Sublease Rights Agreement 

 EXHIBIT A 

LEGAL DESCRIPTION OF PROPERTY 
 All that
certain real property situated in the County of Los Angeles, State of California, described as follows: 
 A portion of the following described land which
is included within the leased premises as set out in the unrecorded lease executed by City of Long Beach, as lessor, and Carson Cogeneration Company, a Delaware corporation, as lessee: 

That portion of the artificially created land within the tidelands and submerged lands conveyed to the City of Long Beach, by the State of California under an
Act of May 1, 1911, Chapter 676, Page 1304, as amended, in the City of Long Beach, County of Los Angeles, State of California, described as follows: 

Beginning at the Southwest corner of Block 20, East San Pedro as shown on Map recorded in Book 52, Pages 13 to 18, Miscellaneous Records of said County; said
Point of Beginning being also the Southwest corner of Parcels 59 and 2” I.P. No. 269 as shown on Map recorded in Book 51, Pages 1 to 21 inclusive, Record of Survey of said County; thence North 66°27’00” East 1800.03 feet along the

 Southerly line and its Northeasterly prolongation of said Parcel 59; thence South 23°33’00” East 2081.59 feet to the True Point of Beginning
of Parcels I and II. 
 Parcel I: 
 Beginning at said True
Point of Beginning; thence South 19°54’14” East 1142.00 feet; thence South 70°05’46” West 77.18 feet; thence North 19°54’14” West 169.50 feet; thence South 70°05’46” West 131.00 feet; thence
North 19°54’14” West 191.50 feet; thence South 70°05’46” West 72.50 feet; thence North 19°54’14” West 636.00 feet; thence North 70°05’46” East 203.50 feet; thence North 19°54’14”
West 145.00 feet; thence North 70°05’46” East 77.18 feet to the True Point of Beginning. 
 Parcel II: 

Beginning at said True Point of Beginning; thence North 70°05’46” East 230.82 feet; thence South 19°54’14” East 1142.00 feet;
thence South 70°05’46” West 230.82 feet; thence North 19°54’14” West 1142.00 feet to the True Point of Beginning. 
 APN:
Portion of 7436-031-902 

  
 Exhibit B –

 Berth 121 Sublease Rights Agreement

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