Document:

LONG BEACH OPERATING AGREEMENT

 EXHIBIT 10.5 
 LONG BEACH 
 OPERATING AGREEMENT 

This LONG BEACH OPERATING AGREEMENT (the “Agreement”) is dated as of September 14, 2012 (the
“Execution Date”), by and between Tesoro Logistics Operations LLC, a Delaware limited liability company (“Operator”), and for purposes of Section 13 only, Tesoro Logistics GP, LLC, a Delaware limited liability
company (“General Partner) and Tesoro Logistics LP, a Delaware limited partnership (“Partnership”), on the one hand, and Tesoro Refining and Marketing Company, a Delaware corporation (“TRMC”), on the
other hand. 
 RECITALS 
 WHEREAS, pursuant to that certain Long Beach Harbor Department Lease Document HD-2114 (as such lease may be amended, restated, modified or supplemented from time to time, “Lease
HD-2114”) with the City of Long Beach, California (the “City”), TRMC has leasehold interests in (A) Berths 84A and 86 (together, the “Berths”; and each, individually, a “Berth”) and
the dock related thereto (together with the Berths, the “Dock”), and (B) various fixtures and improvements located in, on and around the Dock, including piping, loading arms and sheds (together with the Dock, the
“Wharf”), all of which is situated at the Long Beach Terminal (“Terminal”) located in the Port of Long Beach (“POLB”) in the City; 

WHEREAS, subject to various permits, licenses and easements, TRMC owns (i) six (6) staging tanks at the
Wharf with an aggregate shell capacity of 235,000 barrels for the storage of intermediate and refined petroleum products, along with related hydrocarbon transfer pumps, piping, sheds and equipment (including electrical switching and communications
facilities and equipment) for such staging tanks (collectively, the “Staging Facility”), (ii) one 24” crude oil pipeline (the “Crude Oil Pipeline”), between the Wharf and TRMC’s Los Angeles Refinery
located in Carson and Los Angeles, California (the “Wilmington Refinery”), (iii) one 16” gasoline pipeline (the “Gasoline Pipeline”), between the Wharf and the Wilmington Refinery, and (iv) one
14” diesel/clear VGO pipeline (the “Clear Products Pipeline”; and together with the Gasoline Pipeline, the “Refined Products Pipelines”; and collectively, the Refined Products Pipelines and the Crude Oil
Pipeline, the “Pipelines”), between the Wharf and the Wilmington Refinery; 
 WHEREAS,
Lease HD-2114, including the rights, obligations and other restrictions set forth therein, and the leasehold interests in the Wharf are expected to be assigned (the “Lease Assignment”) or subleased (the “Sublease”)
by TRMC to Operator, upon receipt of the City’s consent; 
 WHEREAS, the operation of the Staging
Facility and the Pipelines by Operator, as lessee or sub-lessee under Lease HD-2114 will require a Certificate of Financial Responsibility (“COFR”) issued by the California Department of Fish and Game (“CDFG”) in
favor of Operator, which Operator expects to be issued contemporaneously with the Lease Assignment or Sublease, as the case may be; 
 WHEREAS, upon receipt of approval from the City of the Lease Assignment or Sublease, issuance by the CDFG of the COFR, and consents to the assignment of the rights of way of the Pipeline, Lease
HD-2114 and the leasehold interests in the Wharf, such items along with the Staging Facility and the Pipelines, are to be formally subleased and/or assigned and conveyed to Operator; 

WHEREAS, on the date hereof, but effective as of the date of the Lease Assignment or Sublease, as applicable,
Operator and TRMC have entered into that certain Long Beach Berth Access, Use and 

 
Throughput Agreement, where, among other things, TRMC will have continued access to and use of the Long Beach Assets in order to enable TRMC to ship, receive and deliver Products to and from
Marine Vessels and other third party terminals and pipelines over the Term and pursuant to the terms and conditions thereunder (the “BAUTA”); 
 WHEREAS, in conjunction with the BAUTA, during the period commencing on the Execution Date and continuing until the Termination Date, TRMC desires that Operator provide services relating to the
operation, management and maintenance of the Wharf, the Staging Facility and the Pipelines on TRMC’s behalf (collectively, and along with Lease HD-2114, the “Long Beach Assets”); 

WHEREAS, Operator is willing to provide services relating to the operation, management and maintenance of the Long
Beach Assets on TRMC’s behalf; and 
 WHEREAS, Operator and TRMC desire to enter into this Agreement
to memorialize the foregoing and the terms of their commercial relationship regarding the Long Beach Assets. 

NOW, THEREFORE, in consideration of the covenants and obligations contained herein, the Parties (as defined below)
to this Agreement hereby agree as follows: 
  

	SECTION 1	DEFINITIONS 

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

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

“Applicable Law” means any applicable statute, law, regulation, ordinance, rule, determination,
judgment, rule of law, order, decree, permit, approval, concession, grant, franchise, license, requirement, or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued by any
Governmental Authority having or asserting jurisdiction over the matter or matters in question, whether now or hereafter in effect. 
 “BAUTA” has the meaning set forth in the Recitals. 
 “Barrel” means a volume equal to 42 U.S. gallons or 231 cubic inches, each at 60 degrees Fahrenheit under one atmosphere of pressure. 

“Berth” or “Berths” has the meaning set forth in the Recitals. 

“Business Day” means a day, other than a Saturday or Sunday, on which banks in New York, New York are
open for the general transaction of business. 
 “CDFG” has the meaning set forth in the
Recitals. 
 “City” has the meaning set forth in the Recitals. 

“Claim” has the meaning set forth in Section 10(a). 

“Clean Products Pipeline” has the meaning set forth in the Recitals. 

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

  
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 “Confidential Information” has the meaning set forth in
Section 17. 
 “Crude Oil” means crude petroleum, synthetic crude oil, topped crude oil,
condensate and all associated blends thereof. 
 “Crude Oil Pipeline” has the meaning set forth
in the Recitals. 
 “TRMC” has the meaning set forth in the Preamble. 

“Default Notice” has the meaning set forth in Section 11(a). 

“Defaulting Party” has the meaning set forth in Section 11(a). 

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

“Execution Date” has the meaning set forth in the Recitals. 

“Force Majeure” means any event or circumstances, or any combination of events and/or circumstances,
whether foreseeable or not, the occurrence and/or effects of which is beyond the reasonable control of the Party claiming suspension and which by the exercise of due diligence such Party could not avoid or overcome, including: 

(i) strikes, picketing, lockouts or other industrial disputes or disturbances; 

(ii) acts of the public enemy or of belligerents, hostilities or other disorders, wars (declared or undeclared),
blockades, thefts, insurrections, acts of terrorism, riots, civil disturbances or sabotage; 
 (iii) acts of God,
acts of nature, landslides, subsidence, severe lightning, earthquakes, volcanic eruptions, fires, tornadoes, hurricanes, storms, floods, washouts, freezing of machinery, equipment or lines of pipe, tidal waves, perils of the sea and other adverse
weather conditions; 
 (iv) arrests and restraints or other interference or restrictions imposed by federal,
state or local government whether legal or de facto or purporting to act under some constitution, decree, law or otherwise, necessity for compliance with any court order, or any law, statute, ordinance, regulation, or order promulgated by a federal,
state, or local governmental authority having or asserting jurisdiction, embargoes or export or import restrictions, expropriation, requisition, confiscation or nationalization; and 

(v) epidemics or quarantine, explosions, breakage or accidents to equipment, machinery, plants, facilities or lines of
pipe, or electric power, natural gas, or water shortages. 
 A Party’s inability economically to perform
its obligations hereunder does not constitute an event of Force Majeure. 
 “Gasoline Pipeline”
has the meaning set forth in the Recitals. 
 “General Partner” has the meaning set forth in
the Preamble. 
 “Governmental Authority” means any federal, state, local or foreign government
or any provincial, departmental or other political subdivision thereof, or any entity, body, port authority or other authority exercising executive, legislative, judicial, regulatory, administrative or other governmental functions or any court,
department, commission, board, bureau, agency, instrumentality or administrative body of any of the foregoing. 

  
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 “Lease Assignment” has the meaning set forth in the
Recitals. 
 “Lease HD-2114” has the meaning set forth in the Recitals. 

“Long Beach Assets” has the meaning set forth in the Recitals. 

“Long Beach Contribution Agreement” means that certain Contribution, Conveyance and Assumption Agreement
dated as of the date hereof by and among Tesoro Corporation, Tesoro Companies, Inc., TRMC, General Partner, Partnership and Operator, as amended, restated, modified or supplemented from time to time. 

“MAOP” has the meaning set forth in Section 5(d). 

“Marine Vessel” means any ocean tanker, ocean barge, river barge or other vessel. 

“Month” means the period commencing on the Execution Date and ending on the last day of that calendar
month and each successive calendar month thereafter. 
 “MOTEMS” has the meaning set forth in
Section 5(a)(ii)(2). 
 “MPA” has the meaning set forth in Section 5(a)(ii)(4).

 “Non-Defaulting Party” has the meaning set forth in Section 11(a). 

“Omnibus Agreement” means that certain Amended and Restated Omnibus Agreement dated as of April 12,
2012, by and among Tesoro Companies, Inc., TRMC, Tesoro Alaska Company, Tesoro Logistics GP, LLC, Tesoro High Plains Pipeline Company LLC, Partnership and Operator, as amended, restated, modified or supplemented from time to time. 

“Operational Services Agreement” means that certain Amended and Restated Operational Services Agreement
dated as of April 12, 2012 by and among Tesoro Corporation, Tesoro Companies, Inc., TRMC, Tesoro Alaska Company, Tesoro Logistics GP, LLC, Partnership and Operator, as amended, restated, modified or supplemented from time to time. 

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

“Operator Group” has the meaning set forth in Section 10(b). 

“Operator Insurance Group” has the meaning set forth in Section 14(a). 

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

“Party” or “Parties” means that each of Operator and TRMC is a “Party” and
collectively are the “Parties” to this Agreement. 
 “Person” means any individual,
partnership, limited partnership, joint venture, corporation, limited liability company, limited liability partnership, trust, unincorporated organization or Governmental Authority or any department or agency thereof. 

  
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 “Pipeline” or “Pipelines” has the meaning
set forth in the Recitals. 
 “POLB” has the meaning set forth in the Recitals. 

“Pollution Event” has the meaning set forth in Section 10(c). 

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

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

“Refined Products Pipeline” has the meaning set forth in the Recitals. 

“Regulatory Obligations” means standards, regulations, permits or conditions required by a Governmental
Authority. 
 “Sublease” has the meaning set forth in the Recitals. 

“Staging Facility” has the meaning set forth in the Recitals. 

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

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

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

“TRMC Group” has the meaning set forth in Section 10(a). 

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

“Wilmington Refinery” has the meaning set forth in the Recitals. 

 

	SECTION 2	GENERAL UNDERTAKINGS 

 Subject to the terms and conditions of Lease HD-2114, the terms and conditions herein and all Applicable Law, Operator shall operate, manage and maintain the Long Beach Assets on behalf of TRMC during the
Term. 
  

	SECTION 3	TERMINATION DATE 

 The “Termination Date” will be the later of the date of: (i) the Lease Assignment or Sublease, as the case may be; or (ii) issuance of the COFR. 

 

	SECTION 4	TERM 

 The
term of this Agreement shall be for the period commencing on the Execution Date and continuing until the Termination Date. 
 Notwithstanding the foregoing, and in addition to terms and conditions contained in Sections 11 and 12, the applicable Party may terminate this Agreement if any of the following events occur: 

(a) the termination or cancellation of Lease HD-2114 for any reason during the Term, whereupon this Agreement shall
terminate immediately upon such event; and 
  

  
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 (b) In the event that Operator should reasonably determine that: the City
and/or the CDFG, as the case may be, has finally: (i) refused to approve the Lease Assignment or Sublease; or issue the COFR, as applicable; (ii) imposed conditions upon the Lease Assignment or Sublease or the issuance of the COFR that are
unacceptable to Operator and not consistent with current terms (other than increased rent, in accordance with current provisions of Lease HD-2114); or (iii) any of the Long Beach Assets are directed to be divested by a Governmental Authority;
and Operator has rescinded the contribution of the Long Beach Assets made pursuant to the Long Beach Contribution Agreement, then Operator may terminate this Agreement effective as of the date of rescission specifically provided for in the Long
Beach Contribution Agreement; provided, however, that indemnities will remain in place for liabilities and conditions arising prior to the Execution Date and for liabilities and conditions relating to Operator’s operation of the
Long Beach Assets between the Execution Date and the date of rescission. Revenues and expenses during the time period between the Execution Date and the date of rescission will not be refunded or reimbursed. 

 

	SECTION 5	OPERATION OF THE LONG BEACH ASSETS DURING TERM 

 (a) Operator Covenants. During the Term, Operator covenants as follows: 
 (i) the General Partner, on behalf of Operator, will provide necessary personnel, equipment and other services for the operation, management and maintenance of the Long Beach Assets in accordance with the
terms of Lease HD-2114, the BAUTA (including the schedules thereto), any other third party use agreements, and this Agreement. 
 (ii) Operator will reimburse TRMC for: 
 (1) all
rentals paid under Lease HD-2114; 
 (2) any and all repairs and maintenance costs and capital
expenditures for the Long Beach Assets, including without limitation all State or POLB required Marine Oil Terminal Engineering and Maintenance Standards (“MOTEMS”) obligations (other than those scheduled prior to the Execution Date
and covered under the Omnibus Agreement), but excluding the Long Beach Contribution Agreement items specified in Schedule VI of the Omnibus Agreement, and any and all repairs and maintenance costs and capital expenditures resulting from a defect in
existence at the Execution Date for which TRMC shall indemnify Operator pursuant to the Omnibus Agreement; 
 (3) all right of way expenses for the Pipelines; 

(4) without duplication of any amounts reimbursed or paid under the other paragraphs of this Agreement,
the Omnibus Agreement or the Operational Services Agreement, any and all taxes, fees, charges, insurance premiums, assessments or spill planning and/or response costs (except those costs for oil spill response services provided by the Marine
Preservation Association (“MPA”) and Marine Spill Response Corporation (“MSRC”) related to obligations for oil spill prevention response, as provided in Schedule IV of the Omnibus Agreement) and any amounts due for
utility services incurred by TRMC as lessee under Lease HD-2114 or owner of the Pipelines or the Staging Facility; 

  
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 (5) but excluding all pass through fees and costs paid by
TRMC to the POLB or third parties relating to the use of the Long Beach Assets by TRMC or other third parties and taxes that would otherwise be reimbursed by TRMC or third parties under Section 6(a) or Section 6(c) of the BAUTA or similar
provisions of third party agreements. 
 (iii) Operator will indemnify TRMC against any other Claims, liabilities
or losses that TRMC incurs in its status as Lessee under Lease HD-2114 or owner of the Staging Facility and Pipelines during the Term, except for pass through fees and costs excluded under Section 5(a)(ii)(5) above. 

(iv) Operator will not enter into any other third party contracts for use of the Long Beach Assets which increase the
total Dock utilization to greater than forty-five percent (45%) of the total available hours of the Terminal or provide access to or use of the Pipelines to any third party without the prior written consent of TRMC. 

(b) TRMC Covenants. During the Term, TRMC covenants that: 

(i) As compensation for the services provided hereunder, it shall pay Operator the following amounts: 

(1) an amount equal to all those fees specified in Section 5, Section 6(a)(i),
Section 6(a)(ii) and Section 6(b) of the BAUTA for all Crude Oil and Refined Products throughput across the Berths, computed and payable in the same manner set forth in the BAUTA, but not including those pass through fees and costs paid by
TRMC under Section 6(a)(iii) and Section 6(c) of the BAUTA; 
 (2) An amount equal to
all those fees and capital contributions and cost reimbursements and other amounts received by TRMC from third parties pursuant to existing and future contracts for use of the Long Beach Assets, including without limitation, those contracts with
Valero, Plains and Shell Oil Products US, but excluding pass through fees and charges that reimburse TRMC for fees paid to the POLB or third parties relating to use of the Long Beach Assets by such third parties or for taxes paid with respect to
such use. 
 (c) Mutual Covenants. During the Term, both Operator and TRMC covenant as follows:

 (i) to cooperate in good faith to complete the Lease Assignment or Sublease and to procure the issuance of the
COFR. The Parties will cooperate and proceed in good faith to expedite issuance by the City of the Lease Assignment or Sublease and by the CDFG of the COFR as soon as reasonably practicable, under terms and procedures consistent with the City and
state requirements; 
 (ii) to cooperate in good faith to obtain consents to assignment of all rights of way for
the Pipelines; 
 (iii) to cooperate in good faith to consummate the transfer of the Staging Facility and the
Pipelines concurrently with the Lease Assignment or Sublease, issuance of the COFR and receipt of consents to all other required assignments; and 

  
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 (iv) to amend this Agreement, if TMRC, with Operator’s consent, after
the Execution Date, enters into any other third party contracts for use of the Long Beach Assets, so as to provide Operator with the benefit of any revenues associated with such contracts and allocate to Operator the costs associated with
performance of such contracts. 
 (d) MAOP. From time to time, Operator may designate a maximum allowable
operating pressure (“MAOP”) on each Pipeline, which may be changed by Operator in its sole discretion upon notice to TRMC; provided, however, that if Operator should ever reduce the maximum operating pressure of a Pipeline below 180
psig, then Operator shall use all reasonable efforts to restore the Pipelines to a MAOP of at least 180 psig as quickly as reasonably possible. As of the date hereof, the designated maximum operating pressure on each of the Pipelines is 180 psig.
TRMC shall not deliver any Products into a Pipeline at a pressure that exceeds or could cause the Pipeline to exceed its MAOP, and in the event that TRMC determines that an ongoing delivery through a Pipeline may exceed the MAOP of that Pipeline,
then TRMC shall immediately shut down the delivery and cause the pressure to be reduced. TRMC shall immediately notify Operator at any time that the MAOP of a Pipeline has been exceeded. TRMC shall conduct all pumping operations in accordance with
applicable U.S. Department of Transportation regulations, using adequately trained and qualified personnel. 

TRMC shall maintain and make available for Operator’s inspection recording charts reflecting a true and accurate
record of line pressure. Upon request, TRMC shall provide Operator with dynamic volumetric pipeline monitoring or volumetric flow rates and cumulative total volumes of total volumes. In the event that the difference between pipeline monitoring
readings or shipper and receiver total volumes exceed three percent (3%) or becomes greater than two percent (2%) for longer than four (4) hours, TRMC shall shut down the transfer and shall not resume such transfer until the pipeline
monitoring readings can be reconciled or the difference between shipper and receiver cumulative totals reconciles to within two percent (2%). 
  

	SECTION 6	PAYMENTS 

(a) Monthly Reconciliation. At the end of each Month, TRMC will provide Operator with reasonably detailed
information concerning the throughput of Products across the Wharf, Staging Facility and Pipelines, respectively, together with an itemization and supporting detail for all fees, costs and expenses for which reimbursements are due hereunder. Within
five (5) days thereafter, Operator will calculate the total fees and reimbursements due by either Party to the other Party pursuant to Section 5 above. 

(b) Invoices. Operator will invoice TRMC Monthly, providing its calculations of all applicable items set
forth above. All amounts set forth above shall be due and payable no later than ten (10) days after TRMC’s receipt of Operator’s invoice. The invoiced amount shall be for the items described above and other charges during the prior
Month. Any past due payments owed by either Party shall accrue interest, payable on demand, at the lesser of (i) the rate of interest announced publicly by JPMorgan Chase Bank, in New York, New York, as JPMorgan Chase Bank’s prime rate
(which Parties acknowledge and agree is announced by such bank and used by the Parties for reference purposes only and may not represent the lowest or best rate available to any of the customers of such bank or the Parties), plus four percent
(4%), and (ii) the highest rate of interest (if any) permitted by Applicable Law, from the due date of the payment through the actual date of payment. 
  

	SECTION 7	NEW TAXES AND ASSESSMENTS 

 Without duplication of matters addressed in Section 5, which shall control with respect to such matters, TRMC shall promptly pay or reimburse Operator for any newly imposed taxes, duties, import

  
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fees, assessments or other charges of any federal, state, or local Governmental Authority that Operator is required to pay or collect, including oil spill response fund assessments, spill taxes,
pollution control taxes, coastal protection fees, marine preservation association fees, emission fees, charges, excises, duties, tariffs, inspections, if any, now or during the Term of this Agreement that are hereafter imposed on the services
hereunder. Further, TRMC shall promptly pay or reimburse Operator for any additional or increased taxes levied upon Operator by reason of Operator’s use of TRMC’s leased premises or any equipment thereon. Notwithstanding the foregoing,
each Party shall pay its own personal property, ad valorem, income, profit, franchise, or similar tax. 
  

	SECTION 8	COMPLIANCE WITH LAW AND GOVERNMENT REGULATIONS 

 (a) Applicable Law. Each Party shall be responsible for compliance with all Applicable Laws associated with such Party’s respective performance hereunder and the operation of such Party’s
facilities. Operator shall perform the services required to maintain and operate the Long Beach Assets in accordance with the terms of Lease HD-2114, Applicable Law, the BAUTA, applicable third party contracts, and prudent industry practices,
including Recognized and Generally Accepted Good Engineering Practices. To the extent required by Applicable Law, and as applicable to the services performed under this Agreement, each Party shall specifically comply, and require its contractors and
subcontractor(s) to comply with California Civil Code, Section 1714.43, as applicable to ensure that all contractors, subcontractors, vendors and suppliers comply with all labor laws, including laws against slave labor and human trafficking and
that such contractors, subcontractors, vendors and suppliers verify that the materials incorporated into any products manufactured for either Party are in compliance with all such laws. In the event any action or obligation imposed upon a Party
under this Agreement shall at any time be in conflict with any requirement of Applicable Law, then this Agreement shall immediately be modified to conform the action or obligation so adversely affected to the requirements of the Applicable Law, and
all other provisions of this Agreement shall remain effective. 
 (b) New Or Changed Applicable Law. If
during the Term, any new Applicable Law becomes effective or any existing Applicable Law or its interpretation is materially changed, which change is not addressed by another provision of this Agreement and which has a material adverse economic
impact upon a Party, then either Party, acting in good faith, shall have the option to request renegotiation of the relevant provisions of this Agreement with respect to future performance. The Parties shall then meet and negotiate in good faith
amendments to this Agreement that will conform this Agreement to the new Applicable Law while preserving the Parties’ economic, operational, commercial and competitive arrangements in accordance with the understandings set forth herein.

  

	SECTION 9	LIMITATION ON LIABILITY 

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

	SECTION 10	INDEMNIFICATION 

 (a) Duty to Indemnify TRMC Group. Except as expressly provided otherwise in this Agreement, Operator SHALL RELEASE, DEFEND, INDEMNIFY, AND HOLD HARMLESS TRMC, its marine carriers, and each of its
and their respective affiliates, officers, directors, employees, agents, 

  
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contractors, successors, and assigns (collectively the “TRMC Group”) from and against all claims, suits, causes of action, demands, losses, liabilities, damages, costs, expenses,
fees (including, but not limited to, reasonable attorney’s fees), and court costs (collectively “Claims”), inclusive of Claims made by third parties, arising from or relating to any injury to or death of persons and/or damage,
loss, or injury to any property TO THE EXTENT OF THE PERCENTAGE OR PROPORTION OF DETERMINED FAULT ARISING FROM THE BREACH, DEFAULT, STRICT LIABILITY, OR THE NEGLIGENT ACTS, ERRORS, OR OMISSIONS OF OPERATOR OR ANY MEMBER OF THE OPERATOR GROUP (AS
DEFINED BELOW) WHILE PERFORMING OR RELATING TO ITS OR THEIR OBLIGATIONS UNDER THIS AGREEMENT. Notwithstanding the foregoing, Operator’s obligation to indemnify shall not apply to any Claims caused by TRMC’s Group’s violation of
Section 5(d) except to the extent such violation is the result of acts or omissions of Operator. 
 (b)
Duty to Indemnify Operator Group. Except as expressly provided otherwise in this Agreement, TRMC SHALL RELEASE, DEFEND, INDEMNIFY, AND HOLD HARMLESS Operator and Operator’s affiliates, officers, directors, members, managers, employees,
agents, contractors, successors, and assigns (excluding any member of TRMC Group) (collectively the “Operator Group”) from and against all Claims, inclusive of Claims made by third parties, arising from or relating to any injury to
or death of persons and/or damage, loss, or injury to any property TO THE EXTENT OF THE PERCENTAGE OR PROPORTION OF DETERMINED FAULT ARISING FROM THE BREACH, DEFAULT, STRICT LIABILITY, OR THE NEGLIGENT ACTS, ERRORS, OR OMISSIONS OF TRMC OR ANY
MEMBER OF TRMC GROUP WHILE USING THE BERTHS AND/OR TO THE EXTENT OF THE PERCENTAGE OR PROPORTION OF DETERMINED FAULT ARISING FROM THE BREACH, DEFAULT, STRICT LIABILITY, OR THE NEGLIGENT ACTS, ERRORS, OR OMISSIONS OF TRMC WHILE PERFORMING OR RELATING
TO ITS OR THEIR OBLIGATIONS UNDER THIS AGREEMENT. TRMC Group’s obligation to indemnify Operator Group shall not include any Claims arising from TRMC Group’s violation of Section 5(d) except to the extent such violation is the result
of acts or omissions of Operator. 
 (c) Duty to Indemnify for Pollution Events. Notwithstanding anything
to the contrary in this Agreement, in the event of any escape, release, discharge, threat of discharge, or disposal of any pollutants or hazardous materials from any member of TRMC Group’s vehicles, Marine Vessels or equipment or otherwise
caused by any member of the TRMC Group while in, on, or adjacent to the Berths (each such event a “Pollution Event”), Operator shall have the right to commence emergency response and containment or clean-up activities, as deemed
appropriate or necessary by Operator or required by any Governmental Authority, and shall notify TRMC, as soon as reasonably possible, of such activities. TRMC SHALL ASSUME ALL RESPONSIBILITY FOR, AND SHALL RELEASE, DEFEND, INDEMNIFY, AND HOLD
HARMLESS THE OPERATOR GROUP FROM AND AGAINST, ANY AND ALL CLAIMS ARISING FROM OR RELATING TO A POLLUTION EVENT EXCEPT TO THE EXTENT THAT TRMC SHALL SHOW ANY SUCH POLLUTION EVENT IS CAUSED BY THE NEGLIGENCE OF OPERATOR. TRMC Group’s obligation
to indemnify Operator hereunder shall include any pollution event arising from TRMC Group’s violation of Section 5(d) unless such violation is the result of acts or omissions of Operator. 

(d) Written Claim. Neither Party shall be obligated to indemnify the other Party or be liable to the other Party
unless a written claim for indemnity is delivered to the other Party within ninety (90) days after the date that a Claim is reported or discovered, whichever is earlier. 

(e) No Limitation. Except as expressly provided otherwise in this Agreement, the scope of these indemnity
provisions may not be altered, restricted, limited, or changed by any other provision of this Agreement. The indemnity obligations of the Parties as set out in this Section 10 are independent of any insurance requirements as set out in
Section 14, and such indemnity obligations shall not be lessened or extinguished by reason of a Party’s failure to obtain the required insurance coverages or by any defenses asserted by a Party’s insurers. 

  
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 (f) Survival. These indemnity obligations shall survive the
termination of this Agreement until all applicable statutes of limitation have run regarding any Claims that could be made with respect to the activities contemplated by this Agreement. 

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

(h) Third Party Indemnification. If any Party has the rights to indemnification from a third party, the
indemnifying party under this Agreement shall have the right of subrogation with respect to any amounts received from such third-party indemnification claim. 
  

	SECTION 11	DEFAULT 

(a) Failure to Perform. If either Party breaches this Agreement or defaults in the prompt performance and
observance of any of the terms or conditions of this Agreement (the “Defaulting Party”), then the other Party (the “Non-Defaulting Party”) shall as soon as reasonably possible after discovery of the breach/default,
and before pursuing any remedy, notify the Defaulting Party of the breach/default (the “Default Notice”). The Default Notice shall include the following with specificity: a description of the breach/default and a good faith estimate
of any damage resulting from the breach/default. 
 (b) Remedy. If a breach/default is not remedied, or
if substantive action has not been commenced to remedy such breach/default (which action is not thereafter diligently pursued until remedied), within thirty (30) days after receiving the Default Notice, or within five (5) Business Days in
the event of payment default, the Non-Defaulting Party may, at its election: (a) terminate this Agreement if such breach has a material adverse effect upon the rights or benefits of the Non-Defaulting Party; (b) seek any other available
remedies; or (c) seek any other appropriate or applicable remedies available at law or in equity. 
 (c)
Waiver. The waiver by the Non-Defaulting Party of any right under this Agreement will not operate to waive any other right nor operate as a waiver of such right at any future date upon another default by the other Party under this Agreement.
A single or partial exercise of that right, power or privilege will not be presumed to preclude any subsequent or further exercise of that right, power or privilege or the exercise of any other right, power or privilege. 

(d) Cumulative Nature of Remedies. The remedies provided for in this Agreement shall not be exclusive, but shall
be cumulative and shall be in addition to all other remedies at law or in equity. 

  
 11 

	SECTION 12	FORCE MAJEURE 

 If a Party is unable to perform or is delayed in performing, in whole or in part, its obligations under this Agreement, other than the obligation to pay funds when due, as a result of an event of Force
Majeure at the Berths or with respect to the Pipelines, then that Party shall promptly notify the other Party of the event of Force Majeure with reasonably full particulars and timing of such event. Such Party also shall promptly notify the other
Party when the event of Force Majeure terminates or no longer adversely affects its ability to perform under this Agreement. The obligations of the Party giving notice, so far as they are affected by the event of Force Majeure, shall be suspended
during, but not longer than, the continuance of the Force Majeure event. The affected Party must act with commercially reasonable diligence to resume performance, but it shall not be required to expend funds to settle strikes, lockouts or other
labor difficulty. A Party’s inability economically to perform its obligations hereunder does not constitute an event of Force Majeure. An event of Force Majeure shall not extend the term of this Agreement. If an event of Force Majeure
materially affects either Party’s performance under this Agreement and exists for three hundred sixty five (365) consecutive days, then either Party shall have the right to terminate this Agreement without further costs or obligation to
the other Party. 
  

	SECTION 13	ASSIGNMENT 

As of the Execution Date, the General Partner shall assign all of its rights and obligations under this Agreement to the
Partnership. The Partnership shall immediately assign its rights and obligations hereunder to Operator. Upon such assignment to Operator, Operator shall have all of the respective rights and obligations set forth herein. 

Except as otherwise provided in this Section 13, TRMC shall not transfer, assign, or convey its interests hereunder,
in whole or in part, to a third party without the written consent of the Operator, which shall not be unreasonably withheld. Operator may assign its interest hereunder without consent from TRMC to any subsidiary or affiliated company, or any new
lessee or sublessee of the Berths in the event Operator assigns or subleases its interest in Lease HD-2114 prior to the date of the Lease Assignment or Sublease. Operator shall be permitted to make a collateral assignment of this Agreement solely to
secure working capital financing for Operator. TRMC may assign its interest hereunder without consent from Operator to any subsidiary or affiliated company or any purchaser of the Wilmington Refinery, provided that such purchaser meets
acceptable credit standards to be determined in Operator’s commercially reasonable discretion. A Party making a permitted assignment shall notify the other Party in writing at least ten (10) days prior to the effective date of such
assignment. 
  

	SECTION 14	INSURANCE 

(a) Insurance Required by Operator. Operator shall obtain at its sole cost and expense and shall carry and maintain
in full force and effect, and cause its marine carriers, contractors, agents and representatives (collectively the “Operator Insurance Group”) to obtain and maintain, insurance coverages with insurance companies rated not less than
A-, IX by A.M. Best or otherwise reasonably satisfactory to TRMC of the following types and amounts: 
 (i)
Workers’ Compensation. Workers’ Compensation Insurance for statutory limits and in accordance with the Laws and Regulations of the state(s) where the work or operations under this Agreement are to be performed, including, without
limitation, U.S. Longshore and Harbor Workers Compensation Act as well as the Outer Continental Shelf Lands Act with Volunteer Compensation for marine operations to include transportation, wages, maintenance and cure, and Jones Act Coverage where
required; 

  
 12 

 (ii) Employer’s Liability. Employer’s Liability Insurance
(including, where applicable, maritime employer liability coverage and/or coverage for liabilities under the U.S. Longshore and Harbor Workers’ Act and the Jones act), in the following minimum limits: 

 

	 	(1)	 Bodily injury by accident – $1,000,000 per accident; 

 

	 	(2)	 Bodily injury by disease – $1,000,000 each employee; and 

 

	 	(3)	 Bodily injury by disease – $1,000,000 policy limit. 

(iii) Commercial Automobile. Commercial Automobile Liability Insurance covering each vehicle whether owned,
non-owned, hired, operated, or used by Operator and/or any member of Operator Insurance Group while in, on or adjacent to the Long Beach Assets, with a combined single limit of not less than one million dollars ($1,000,000) for bodily injury and
property damage as to any one accident, including an MCS-90 endorsement. 
 (iv) Commercial General
Liability. Commercial General Liability Insurance including coverages for contractual liability, third-party personal injury liability, and sudden and accidental pollution, with limits of not less than one million dollars ($1,000,000) combined
single limits each occurrence. 
 (v) Excess Liability. Excess Liability Insurance in excess of the
insurance coverages required at Sections 14(a)(ii), (iii) and (iv) above, with a limit of not less than twenty-five million dollars ($25,000,000) per occurrence. 

(b) Certificates of Insurance; Endorsements. Operator shall cause TRMC to be named as an additional insured on all
policies of insurance secured by Operator and the members of Operator’s Group in accordance with this Agreement. Operator shall furnish TRMC with certificates of insurance evidencing this coverage. All policies shall be endorsed to provide that
no material change or cancellation of the coverage shall occur until TRMC has received thirty (30) days written notice. Operator hereby waives, and shall cause its insurers and those of the Operator Insurance Group to also waive any right of
subrogation that they may have against TRMC or the TRMC Group. All insurance coverage required hereunder shall be primary to, and not in excess of or contributory with, any insurance that may be maintained by Operator. 

 

	SECTION 15	NOTICE 

All notices, requests, demands, and other communications hereunder will be in writing and will be deemed to have been duly
given: (i) if by transmission by facsimile or hand delivery, when delivered; (ii) if mailed via the official governmental mail system, five (5) Business Days after mailing, provided said notice is sent first class, postage
pre-paid, via certified or registered mail, with a return receipt requested; (iii) if mailed by an internationally recognized overnight express mail service such as Federal Express, UPS, or DHL Worldwide, one (1) Business Day after deposit
therewith prepaid; or (iv) by e-mail one (1) Business Day after delivery with receipt confirmed. All notices will be addressed to the Parties at the respective addresses set forth on Schedule 15 attached hereto. Either Party may, at
any time and from time to time may, modify and/or supplement Schedule 15 by providing the other Party with a substitute Schedule 15, changing the addresses for such Party, without requiring amendment of this Agreement. 

  
 13 

	SECTION 16	REPORTS AND AUDIT 

 (a) Either Party shall have the right, at its sole cost and expense, upon forty-five (45) days prior written notice, to audit the books, accounts, and records of the other Party directly related to
that Party and related to an invoice of the other Party to verify the accuracy of such invoice, or as otherwise appropriate to audit performance under this Agreement. Under no circumstances shall the scope of such audit include the books, accounts
or records of a third party. All audited information shall be kept confidential pursuant to the terms of this Agreement. The audited Party will not be required to divulge any information that identifies specific volumes attributable to any customer
other than the auditing Party, or that is otherwise in violation of any applicable anti-competition laws, rules or regulations. A third-party auditor may be required to enter into a confidentiality agreement if it is deemed necessary by the Party
being audited. Under no circumstances may an auditor disclose third-party information, including, but not limited to third-party TRMC identities and third-party pricing information, to the Party exercising its right for an audit without the written
permission of the Party being audited. The Party being audited will have sole discretion whether to permit such disclosure. 
 (b) Within one-hundred and eighty (180) days of an audit commencing, all final audit findings must be presented to the Party being audited. Subject to the time limitations set forth herein, the
Parties will negotiate in good faith to verify and promptly settle claims pursuant to this clause; provided that any claim not filed with the appropriate court of law within twenty-four (24) months of the date of the invoice in question
shall be waived. 
  

	SECTION 17	CONFIDENTIAL INFORMATION 

 (a) Treatment. Each Party shall treat as strictly confidential any Confidential Information obtained or received by it as a result of entering into or performing its obligations under this
Agreement, other than disclosure to their representatives, agents, tax advisors, accountants, counsel, other advisors, and employees on a need-to-know basis who agree to be bound by this confidentiality provision. 

(b) Definition & Exceptions. “Confidential Information” means information furnished by one Party
to the other that is marked or otherwise identified or reasonably identifiable as proprietary or confidential, and, with respect to both Parties, the terms and provisions of this Agreement. Confidential Information shall not include any: 

(i) information that is or becomes generally available to the public other than as a result of a disclosure by the Party
in violation of this Agreement; 
 (ii) information that is already known to a Party prior to being furnished by
the other Party or its representatives; 
 (iii) information that becomes available to a Party from a third-party
source if such source was not subject to any confidentiality obligation or other prohibition against transmitting the information; or 
 (iv) information that is independently developed by a Party without reference to Confidential Information of the other Party. 

(c) Limited Disclosure Exceptions. These provisions shall not operate to the extent that
(a) disclosure is required by Applicable Law or under Lease HD-2114; (b) disclosure is made with the prior written consent of the other Party; (c) disclosure is necessary to the receiving Party’s bankers or financial institutions
(who agree to be bound by this confidentiality provision) in connection with the financing of 

  
 14 

 
such Party’s operations or Product; or (d) disclosure is required in the ordinary course of the ongoing operation of the Long Beach Assets, for scheduling and operation of the Wharf
under the BAUTA and third party use agreements and in dealings with the POLB, as required under Lease HD-2114. Prior to making a disclosure required by Applicable Law, the disclosing Party shall at least ten (10) Business Days prior to any
disclosure inform the other Party (if allowed pursuant to Applicable Law) in writing as to the proposed form, nature and purpose of the disclosure, and shall permit the non-disclosing Party to take any available legal steps to prevent or limit such
disclosure. 
 (d) Survival. The provisions of this Section 17 shall survive the termination of this
Agreement for two (2) years. 
  

	SECTION 18	MISCELLANEOUS 

 (a) Modification; Waiver. This Agreement may be amended or modified only by a written instrument executed by the Parties; provided, however, that the Operator has the right to modify, supplement,
or restate, with the exception of eliminating any specific crude oils listed in Annex D, from time to time, the schedules, exhibits, and Annexes. Any of the terms and conditions of this Agreement may be waived in writing at any time by the Party
entitled to the benefits thereof. No waiver of any of the terms and conditions of this Agreement will be effective unless in writing signed by a duly authorized individual on behalf of the Party against which the waiver is sought to be enforced. No
waiver of any term or condition or of any breach of this Agreement will be deemed or will constitute a waiver of any other term or condition or of any later breach (whether or not similar), nor will such waiver constitute a continuing waiver unless
otherwise expressly provided. 
 (b) Entire Agreement. This Agreement, together with the other agreements
executed contemporaneously herewith, together with the schedules and annexes, constitutes the entire agreement among the Parties pertaining to the subject matter hereof and supersedes all prior agreements and understandings of the Parties in
connection therewith. 
 (c) Governing Law; Jurisdiction. This Agreement shall be governed by the laws of
the State of Texas without giving effect to its conflict of laws principles; provided that any issues or claims arising out of the terms and conditions of Lease HD-2114, or rules and regulations of the POLB and the City will be governed by
the laws of the State of California. Each Party hereby irrevocably submits to the exclusive jurisdiction of any federal court of competent jurisdiction situated in the United States District Court for the Western District of Texas, San Antonio
Division, or if such federal court declines to exercise or does not have jurisdiction, in the District Court of Bexar County, Texas; provided that this limitation shall not prevent a party from joining the other party in an action in another
forum involving the POLB and/or the City. The Parties expressly and irrevocably submit to the jurisdiction of said courts and irrevocably waive any objection which they may now or hereafter have to the laying of venue of any action, suit or
proceeding arising out of or relating to this agreement brought in such courts, irrevocably waive any claim that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum and further irrevocably waive
the right to object, with respect to such claim, action, suit or proceeding brought in any such court, that such court does not have jurisdiction over such Party. The Parties hereby irrevocably consent to the service of process by registered mail,
postage prepaid, or by personal service within or without the State of Texas. Nothing contained herein shall affect the right to serve process in any manner permitted by law. 

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

  
 15 

 (e) Severability. Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be valid and effective under applicable law, but if any provision of this Agreement or the application of any such provision to any person or circumstance will be held invalid, illegal or unenforceable in any
respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision hereof, and the Parties will negotiate in good faith with a view to substitute for such provision a suitable and
equitable solution in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid, illegal or unenforceable provision. 
 (f) Independent Contractor. Operator’s relationship to TRMC hereunder shall be that of an independent contractor. Nothing in this Agreement shall be construed to make Operator or any of its
employees, an agent, associate, joint venturer or partner of TRMC. 
 (g) No Public Use. Operator’s
services hereunder shall not be deemed those of a public utility or common carrier. If any action is taken or threatened to declare these services a public use, then, upon notifying TRMC, Operator may (i) restructure and restate this Agreement,
provided that such restructuring and restatement does not increase the charges that TRMC is obligated to pay or prevent TRMC from meeting its Minimum Throughput Volume obligations hereunder, or (ii) terminate this Agreement upon thirty
(30) days’ prior written notice. 
 (h) No Bonded Services. Operator is not providing a U.S.
Customs bonded warehouse service. 
 (i) No Third Party Beneficiaries. Except as expressly set forth
herein, it is expressly understood that the provisions of this Agreement do not impart enforceable rights in anyone who is not a Party or successor or permitted assignee of a Party. 

(j) WAIVER OF JURY TRIAL. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDINGS RELATING TO THIS AGREEMENT OR ANY PERFORMANCE OR FAILURE TO PERFORM OF ANY OBLIGATION HEREUNDER. 
 (k) Schedules, Exhibits and Annexes. Any schedules, exhibits and/or annexes attached hereto and referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in
full herein. 
 [Remainder of this page intentionally left blank.] 

  
 16 

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

			
	 TESORO LOGISTICS OPERATIONS LLC

		
	 By:
	 	 /s/ Phillip M. Anderson

		 	 Phillip M. Anderson

		 	 President

	
	 Solely in respect of Section 13 only:

	
	 TESORO LOGISTICS LP

		
	 By:
	 	 TESORO LOGISTICS GP, LLC,

		 	 its general partner

		
	 By:
	 	 /s/ Phillip M. Anderson

		 	 Phillip M. Anderson

		 	 President

	
	 Solely in respect of Section 13 only:

	 TESORO LOGISTICS GP, LLC

		
	 By:
	 	 /s/ Phillip M. Anderson

		 	 Phillip M. Anderson

		 	 President

	
	 TESORO REFINING AND MARKETING COMPANY

		
	 By:
	 	 /s/ Gregory J. Goff

		 	 Gregory J. Goff

		 	 President

 Signature Page to 
 Long Beach Operating Agreement 

 SCHEDULE 15 
 Notice Addresses 
 If to Operator, to: 

Tesoro Logistics Operations LLC 
 19100 Ridgewood Parkway 
 San Antonio, Texas 78259 

For legal notices: 
 Attention: Charles S. Parrish, General Counsel 
 phone: (210) 626-4280

 fax: (210) 745-4494 
 email: charles.s.parrish@tsocorp.com 
 For all other notices and
communications: 
 Attention: Victoria R. Somers, Contracts Administrator – Logistics 

phone: (210) 626-6390 
 fax: (210) 745-4490 
 email: victoria.r.somers@tsocorp.com 

If to TRMC, to: 

Tesoro Refining and Marketing Company 
 19100 Ridgewood Parkway 
 San Antonio, Texas 78259 

For legal notices: 
 Attention: Charles S. Parrish, General Counsel 
 phone: (210) 626-4280

 fax: (210) 745-4494 
 email: charles.s.parrish@tsocorp.com 
 For all other notices and
communications: 
 Attention: Rick D. Weyen, Vice President, Logistics 

phone: (210) 626-4433 
 fax: (210) 745-4631 
 email: Rick.D.Weyen@tsocorp.com 

or to such other address or to such other Person as either Party will have last designated by notice to the other Party.TRANSPORTATION SERVICES AGREEMENT

 EXHIBIT 10.6 
 TRANSPORTATION SERVICES AGREEMENT 
 (LAR Short Haul Pipelines)

 This TRANSPORTATION SERVICES AGREEMENT (this “Agreement”) is executed as of
September 14, 2012 (the “Execution Date”), and dated effective as of the Commencement Date (as defined in Section 3 below), by and between Tesoro Logistics Operations LLC, a Delaware limited liability company
(“TLO”), and for purposes of Section 17(a) only, Tesoro Logistics GP, LLC, a Delaware limited liability company (“General Partner”) and Tesoro Logistics LP, a Delaware limited partnership
(“Partnership”), on the one hand, and Tesoro Refining and Marketing Company, a Delaware corporation (“TRMC”), on the other hand, each individually a “Party” and collectively referred to as
“Parties.” 
 RECITALS 

WHEREAS, TRMC currently owns one jet fuel pipeline (the “Jet Fuel Pipeline”) and one
gasoline/diesel pipeline (the “Gasoline Diesel Pipeline,” and together with the Jet Fuel Pipeline, the “LAR Short Haul Pipelines”), as depicted and further specified on Schedule A attached hereto, which connect to a
petroleum products terminal in Carson, California that is owned and operated by Shell Oil Products US (the “Shell Carson Terminal”); 
 WHEREAS, each of the LAR Short Haul Pipelines provides services for the operations of TRMC’s refinery located in Los Angeles, California (the “Wilmington Refinery”);

 WHEREAS, the LAR Short Haul Pipelines are not operated as a common carrier under California law or as
a public utility as defined pursuant to FERC regulations; 
 WHEREAS, TRMC intends to formally assign and
convey its interest in the LAR Short Haul Pipelines to TLO upon receipt of the requisite easements, rights of way and property agreements; 
 WHEREAS, during the Term (as defined below), TLO intends to provide transportation services with respect to Products delivered by TRMC on the LAR Short Haul Pipelines, subject to and upon the terms
and conditions of this Agreement; and 
 WHEREAS, TLO will agree to operate and maintain the LAR Short
Haul Pipelines in good working order and ship Products for TRMC on the LAR Short Haul Pipelines, subject to the terms and conditions of this Agreement. 
 NOW, THEREFORE, in consideration of the covenants and obligations contained herein, the Parties to this Agreement hereby agree as follows: 

 

	1.	 DEFINITIONS 

 The definitions set forth below shall apply whenever a capitalized term specified below is used in this Agreement. 
 “Agreement” has the meaning set forth in the Preamble. 
 “Applicable Law” means any applicable statute, law, regulation, ordinance, rule, determination, judgment, rule of law, order, decree, permit, approval, concession, grant, franchise,
license, requirement, 

 
or any similar form of decision of, or any provision or condition of any permit, license or other operating authorization issued by any Governmental Authority having or asserting jurisdiction
over the matter or matters in question, whether now or hereafter in effect. 
 “Barrel” means a
volume equal to 42 U.S. gallons of 231 cubic inches each, at 60 degrees Fahrenheit under one atmosphere of pressure. 
 “bpd” means Barrels per day. 
 “Business
Day” means a day, other than a Saturday or Sunday, on which banks in New York, New York are open for the general transaction of business. 
 “Capacity Expansion” has the meaning set forth in Section 2(b). 
 “Capacity Resolution” has the meaning set forth in Section 14(c). 
 “Commencement Date” has the meaning set forth in Section 3. 
 “Confidential Information” means all confidential, proprietary or non-public information of a Party, whether set forth in writing, orally or in any other manner, including all non-public
information and material of such Party (and of companies with which such Party has entered into confidentiality agreements) that another Party obtains knowledge of or access to, including non-public information regarding products, processes,
business strategies and plans, customer lists, research and development programs, computer programs, hardware configuration information, technical drawings, algorithms, know-how, formulas, processes, ideas, inventions (whether patentable or not),
trade secrets, schematics and other technical, business, marketing and product development plans, revenues, expenses, earnings projections, forecasts, strategies, and other non-public business, technological, and financial information. 

“Contribution Agreement” means that certain Contribution, Conveyance and Assumption Agreement dated as
September 14, 2012 by and among Tesoro Corporation, Tesoro Companies, Inc., TRMC, Tesoro Logistics GP, LLC, Partnership and TLO, as amended, restated, modified or supplemented from time to time 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of
the management and policies of a Person, whether through ownership of voting securities, by contract, or otherwise. 
 “Credit” has the meaning set forth in Section 6(b). 
 “Excess Barrels” means, with respect to any Month, all Barrels of Products shipped by TRMC on the LAR Short Haul Pipelines during such Month in excess of the Minimum Throughput
Volume.
 “Execution Date” has the meaning set forth in the Recitals. 

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

“Extension Period” has the meaning set forth in Section 4. 

“First Offer Period” has the meaning set forth in Section 12(d). 

  
 - 2 -

 “Force Majeure” means circumstances not reasonably within
the control of TLO and which, by the exercise of due diligence, TLO is unable to prevent or overcome that prevent performance of TLO’s obligations, including: acts of God, strikes, lockouts or other industrial disturbances, wars, riots, fires,
floods, storms, orders of courts or Governmental Authorities, explosions, terrorist acts, breakage, accident to machinery, storage tanks or lines of pipe and inability to obtain or unavoidable delays in obtaining material or equipment and similar
events. 
 “Force Majeure Notice” and “Force Majeure Period” each have the
meaning set forth in Section 13(a). 
 “FERC” means the Federal Energy Regulatory
Commission. 
 “Gasoline Diesel Pipeline” has the meaning set forth in the Recitals.

 “General Partner” has the meaning set forth in the Preamble. 

“Governmental Authority” means any federal, state, local or foreign government or any provincial,
departmental or other political subdivision thereof, or any entity, body or authority exercising executive, legislative, judicial, regulatory, administrative or other governmental functions or any court, department, commission, board, bureau,
agency, instrumentality or administrative body of any of the foregoing. 
 “Jet Fuel Pipeline”
has the meaning set forth in the Recitals. 
 “LAR Short Haul Pipelines” has the meaning set
forth in the Recitals. 
 “MAOP” has the meaning set forth in Section 8(d). 

“Minimum Throughput Capacity” has the meaning set forth in Section 2(a). 

“Minimum Throughput Volume” means (i) an aggregate volume of 456,250 Barrels of Products per Month
throughput on both Segments; provided, however, that the Minimum Throughput Volume during the Month in which the Commencement Date occurs shall be prorated in accordance with the ratio of the number of days, including and following the Commencement
Date, in such Month to the total number of days in such Month. 
 “Month” means the period
commencing on the Commencement Date and ending on the last day of that calendar month and each successive calendar month thereafter. 
 “Notice Period” has the meaning set forth in Section 15(a). 
 “Omnibus Agreement” means that certain Amended and Restated Omnibus Agreement dated as of the date April 1, 2012, by and among Tesoro Companies, Inc., TRMC, Tesoro Alaska Company,
Tesoro Logistics GP, LLC, Tesoro High Plains Pipeline Company LLC, Partnership and TLO, as amended, restated, modified or supplemented from time to time. 
 “Operational Services Agreement” means that certain Amended and Restated Operational Services Agreement dated as of April 1, 2012, by and among Tesoro Corporation, Tesoro Companies,
Inc., TRMC, Tesoro Alaska Company, Tesoro Logistics GP, LLC, Partnership and TLO, as amended, restated, modified or supplemented from time to time. 

  
 - 3 -

 “Party” and “Parties” each have the
meaning set forth in the Preamble. 
 “Partnership Change of Control” means Tesoro Corporation
ceases to Control the general partner of Tesoro Logistics LP. 
 “Person” means any individual,
partnership, limited partnership, joint venture, corporation, limited liability company, limited liability partnership, trust, unincorporated organization or Governmental Authority or any department or agency thereof. 

“Products” means gasoline (before oxygenate blending), diesel, jet fuel and other similar light refined
petroleum products. 
 “Receiving Party Personnel” has the meaning set forth in
Section 20(d). 
 “Restoration” has the meaning set forth in Section 14(b)(ii).

 “Segment” means each of the two separate LAR Short Haul Pipelines that transport Products
from the Wilmington Refinery to the Shell Carson Terminal, all as depicted in the diagram in Schedule A of this Agreement. 
 “Shell Carson Terminal” has the meaning set forth in the Recitals. 
 “Shortfall Payment” has the meaning set forth in Section 6(b). 
 “Suspension Notice” has the meaning set forth in Section 15(a). 
 “Term” and “Initial Term” each have the meaning set forth in Section 4. 
 “Termination Notice” has the meaning set forth in Section 13(a). 
 “Throughput Fee” has the meaning set forth in Section 5(a). 
 “Transportation Right of First Refusal” has the meaning set forth in Section 12(d). 
 “TLO” has the meaning set forth in the Preamble. 

“TLO Indemnitee” has the meaning set fort in Section 16(b). 

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

“TRMC Indemnitee” has the meaning set forth in Section 16(a). 

“TRMC Termination Notice” has the meaning set forth in Section 13(b). 

“Wilmington Refinery” has the meaning set forth in the Recitals. 

 

	2.	 CAPACITY 

 (a) Minimum Throughput Capacity. TLO represents to TRMC that as of the Commencement Date, the average throughput capacity of the Segments is set forth on Schedule B (the “Minimum Throughput
Capacity”). TLO agrees to provide to TRMC the services set forth herein for the entire throughput capacity of the Segments (including any increase in the throughput capacity in connection with a Capacity Expansion) for throughput of
Products by TRMC. TLO shall maintain the average throughput capacity of the Segments at no less than the Minimum Throughput Capacity. 

  
 - 4 -

 (b) Capacity Expansion. TRMC may at any time make a written request
to TLO to increase the throughput capacity of the Segments or to construct any new pipelines between the Wilmington Refinery and any local third party terminal or storage facility (a “Capacity Expansion”), and shall include in such
written request the parameters and specifications of the requested Capacity Expansion. Upon the receiving such a request, TLO shall promptly evaluate the relevant factors related to such request, including, without limitation: engineering and design
criteria, limitations affecting such Capacity Expansion and any related tankage, cost and financing factors and the effect of such Capacity Expansion on the overall operation of the LAR Short Haul Pipelines. If TLO determines that such a Capacity
Expansion is operationally and commercially feasible, TLO shall present a proposal to TRMC concerning the design of such Capacity Expansion, its projected costs and how such costs might be funded by or recovered from TRMC. If TLO determines that
such a Capacity Expansion is not commercially or operationally feasible, it shall provide TRMC with an explanation of and justification for why it made such determination. If TLO notifies TRMC that the Capacity Expansion may be commercially and
operationally feasible, the Parties shall negotiate reasonably and in good faith to determine appropriate terms and conditions for the Capacity Expansion, which shall include, without limitation, the scope of the Capacity Expansion, the appropriate
timing for constructing the Capacity Expansion and a mechanism for TLO to recover its costs, plus a reasonable return on capital associated with such Capacity Expansion, which may include, without limitation, direct funding of all or part of the
costs by TRMC, an increase in the Throughput Fee. 
  

	3.	 COMMENCEMENT DATE 

 The Parties anticipate that the “Commencement Date” will be                      ,
2012. The actual Commencement Date shall be the date specified by TLO in a written notice to TRMC. The Parties agree that there are a number of factors that may affect the actual Commencement Date. Consequently, neither Party shall have any right or
remedy against the other Party if the actual Commencement Date is earlier or later than the anticipated Commencement Date. 
  

	4.	 TERM 

 The initial term of this Agreement shall be for a period of ten (10) years until the anniversary of the Commencement Date in 2022 (the “Initial Term”); provided, however, that TRMC
may, at its option, extend the Initial Term for up to two (2) renewal terms of five (5) years each (each, an “Extension Period”) by providing written notice of its intent to TLO no less than ninety (90) days prior to
the end of the Initial Term or the then-current Extension Period. TRMC shall also have the option to modify the Term of this Agreement so that it continues for twenty (20) years after the Commencement Date (the “Extended
Term”). If applicable, TRMC shall notify TLO of its desire to invoke the Extended Term no later than ninety (90) days prior to the fifth anniversary of the Commencement Date. The Initial Term, Extended Term and any extensions of this
Agreement as provided above, shall be referred to herein as the “Term”. 
  

	5.	 FEES AND REIMBURSEMENT FOR CAPITAL EXPENDITURES 

(a) Throughput Fees. TRMC agrees to pay TLO a fee of $0.15 per Barrel (the “Throughput Fee”) for
all net Barrels of Products throughput on the LAR Short Haul Pipelines. TLO shall not increase the Throughput Fee during the Term of this Agreement, except as specifically set forth in paragraph (b) of this Section. 

  
 - 5 -

 (b) Index-Based Changes. The Throughput Fees set forth in this
Agreement shall be increased on July 1 of each year of the Term, by a percentage equal to the greater of zero or the positive change in the CPI-U (All Urban Consumers) for the prior calendar year, as reported by the U.S. Bureau of Labor
Statistics. 
 (c) Other Surcharges and Reimbursements. TRMC shall reimburse TLO for, or TLO shall be
permitted to charge TRMC an additional monthly surcharge for, the following: 
 (i) The costs
that TLO incurs in complying with any new Applicable Laws that affect the services provided by TLO to TRMC under this Agreement; provided, that (A) compliance by TLO with any such new law or regulation requires substantial unanticipated capital
expenditures by TLO, (B) TLO has made good faith efforts to mitigate the effect of any such law or regulation and (C) TLO has negotiated in good faith with TRMC in order to agree on the level of any surcharge; 

(ii) All taxes (other than ad valorem taxes, property taxes, income taxes, gross receipt taxes, payroll
taxes and similar taxes) that TLO specifically incurs on TRMC’s behalf for the services TLO provides to TRMC under this Agreement, if such reimbursement is not prohibited by law; 

(iii) All future Federal, State or local volume related pass-through fees and facility use permit fees
that are directly associated with services provided to TRMC. 
 (iv) Actual costs of any capital
expenditures TLO agrees to make at TRMC’s request, including those provided for under Section 14 below. 
  

	6.	 PAYMENTS 

 (a) Volumetric Information. Within five (5) days of the end of each Month, TRMC shall provide TLO with a statement of the total volumes of Products shipped on the Segments during the preceding
Month, with reasonable supporting documentation to establish the throughput on the Segments during such prior Month. If TRMC determines that any information reflected in such statement is incorrect, then TRMC shall promptly notify TLO accordingly
and shall provide supporting information to reflect the correction. 
 (b) Monthly Shortfall Payment. If,
during any Month, actual shipments by TRMC on the LAR Short Haul Pipelines are less than the Minimum Throughput Volume, then TRMC shall pay to TLO, in addition to Throughput Fee owed for actual barrels shipped during such Month, an amount equal to
(i) the amount of such shortfall (in Barrels) multiplied by (ii) the Throughput Fee (the “Shortfall Payment”). The dollar amount of any Shortfall Payment included in the monthly invoice described in Section 6(d) below
and paid by TRMC shall be posted as a credit to TRMC’s account (the “Credit”), and such Credit shall be applied in subsequent monthly invoices against amounts owed by TRMC for Throughput Fees on Excess Barrels shipped on the
LAR Short Haul Pipelines during any of the succeeding three (3) Months. Credits will be applied in the order in which such Credits accrue and any portion of the Credit that is not used by TRMC during the succeeding three (3) Months will
expire (e.g., a Credit which accrues in January will be available in February, March and April, will expire at the end of April, and must be applied prior to applying any Credit which accrues in February). 

(c) Monthly Reconciliation. At the end of each Month, TLO will calculate the total fees that TRMC incurred for
shipments on the LAR Short Haul Pipelines during such Month as follows: 
 (i) the Throughput Fee
owed by TRMC for actual barrels shipped during such Month; less 

  
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 (ii) any applicable Credits, provided, however, that the
Credits applied in any Month shall not exceed the amount of Throughput Fees allocable for such Month to Excess Barrels; plus 
 (iii) any applicable Shortfall Payment for such Month; plus 
 (iv) any monthly surcharges payable for such Month pursuant to Section 5(c). 
 (d) Invoice. TLO will invoice TRMC monthly providing its calculations of all the items set forth above, and all amounts owed shall be due and payable no later than ten (10) days after
TRMC’s receipt of TLO’s invoice. Any past due payments owed by TRMC to TLO shall accrue interest, payable on demand, at the lesser of (i) the rate of interest announced publicly by JPMorgan Chase Bank, in New York, New York, as
JPMorgan Chase Bank’s prime rate (which Parties acknowledge and agree is announced by such bank and used by the Parties for reference purposes only and may not represent the lowest or best rate available to any of the customers of such bank or
the Parties), plus four percent (4%), and (ii) the highest rate of interest (if any) permitted by Applicable Law, from the due date of the payment through the actual date of payment. 

 

	7.	 TRANSPORTATION SERVICES; VOLUME LOSSES 

(a) The services provided by TLO pursuant to this Agreement shall only consist of the transportation and throughput of
Products on the LAR Short Haul Pipelines. 
 (b) TLO shall have no obligation to measure volume gains or losses
of petroleum in the normal course of transportation, and shall have no liability to TRMC for physical losses or degradation of Products, except for losses resulting from negligence, willful misconduct or breach of this Agreement by TLO or its
employees, agents or contractors. TLO will not provide insurance for TRMC’s Products. 
  

	8.	 SERVICE; SCHEDULING; OPERATIONS 

 In order to effectuate the underlying objectives of this Agreement, TLO agrees as follows: 
 (a) During the Term, each Segment of the LAR Short Haul Pipelines is not operated as a common carrier under California law and is not a public utility, as defined pursuant to FERC regulations. TLO shall
not use any Segment to provide services for any third party, except upon specific directions from TRMC. 
 (b)
Subject to Force Majeure, required maintenance and repairs and the other provisions hereunder, TLO shall make each active Segment continuously available to TRMC at all times, and shall ship all volumes of Products nominated by TRMC for shipment in
such Segment upon request. Each Segment shall remain exclusively dedicated to shipment of one class of Products (i.e., gasoline or jet fuel), which shall not be changed except by mutual agreement of the Parties. TRMC shall be responsible for
providing a pressurized feed sufficient for the movement of Products through each Segment from its origin to its final destination. TRMC shall be responsible for making all arrangements for the scheduling, origin and destination of Products shipped
through the Segments, and for ensuring that the receiving facilities are capable of receiving shipments as they are delivered. In the event that TLO must remove a Segment from active service for repair or maintenance, then TLO shall provide TRMC
with as much advance notice as possible under the circumstances, and the Parties shall cooperate to minimize the impact of such downtime on operation of the Wilmington Refinery. 

  
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 (c) TLO and TRMC shall coordinate and mutually agree on shipment schedules
with each other and with connecting pipelines or terminals, and TLO shall not be obligated to make any shipment at any time when a connecting pipeline or terminal is not prepared to deliver or receive it, as applicable, or when doing so would result
in an unsafe operating condition, it being understood that TRMC shall be primarily responsible for nominating receipts and deliveries to third party pipeline carriers or terminals. 

(d) From time to time, TLO may designate a maximum allowable operating pressure (“MAOP”) on each
Segment, which may be changed by TLO in its sole discretion upon notice to TRMC; provided, however, that if TLO should ever reduce the maximum operating pressure of a Segment such that TLO is no longer capable of maintaining the Minimum Throughput
Capacity, then TRMC may exercise its rights and remedies under Section 14(c) below. As of the date hereof, the designated maximum operating pressure on the Jet Fuel Pipeline is 720 PSIG and the Gasoline Diesel Pipeline is 720 PSIG. TRMC shall
not deliver any Products into a Segment at a pressure that exceeds or could cause the Segment to exceed its MAOP, and in the event that TRMC determines that an ongoing delivery through a Segment may exceed the MAOP of that Segment, then TRMC shall
immediately shut down the delivery and cause the pressure to be reduced. TRMC shall immediately notify TLO at any time that the MAOP of a Segment has been exceeded. TRMC shall conduct all pumping operations in accordance with applicable U.S.
Department of Transportation regulations, using adequately trained and qualified personnel. TMRC shall maintain and make available for TLO’s inspection recording charts reflecting a true and accurate record of line pressure. Upon request, TRMC
shall provide TLO with dynamic volumetric pipeline monitoring or volumetric flow rates and cumulative total volumes of total volumes. In the event that the difference between pipeline monitoring readings or shipper and receiver total volumes exceeds
three percent (3%) or becomes greater than two percent (2%) for longer than four (4) hours, TRMC shall shut down the transfer and shall not resume such transfer until the pipeline monitoring reading can be reconciled or the difference
between shipper and receiver cumulative totals reconciles to within two percent (2%). 
 (e) TRMC shall be
responsible for providing all linefill in the LAR Short Haul Pipelines and for providing all materials for line flushing and pushing products movements through the pipelines to their destination and for any required line flushes. TRMC shall be
solely responsible for receiving, handling and disposing of any transmix generated in connection with operation of the LAR Short Haul Pipelines. If TLO requires that products be removed from a pipeline to accommodate any inspections or repairs, then
TRMC shall comply with such requests. 
 (f) In the event TLO is required to file a tariff with the FERC or any
other Governmental Authority with respect to the LAR Short Haul Pipelines, to the maximum extent permitted under Applicable Law, TLO shall ensure that any such tariffs do not prejudice any of TRMC’s rights under the terms of this Agreement.

  

	9.	 CUSTODY, TRANSFER AND TITLE 

 TLO shall be deemed to have custody of the Products being transported through the LAR Short Haul Pipelines to the nominated destination at the time it enters the LAR Short Haul Pipelines and until the
time it enters the nominated destination. Upon re-delivery of any Products to TRMC’s account, TRMC shall become solely responsible for any loss, damage or injury to Person or property or the environment, arising out of transportation,
possession or use of such Products after transfer of custody. Except as provided in Section 7(b), title and risk of loss to all TRMC’s Products received at the LAR Short Haul Pipelines shall remain with TRMC at all times. Both Parties
acknowledge that this Agreement represents a bailment of Products by TRMC to TLO and not a consignment of same, it being understood that TLO has no authority hereunder to sell or seek purchasers for Products of TRMC. TRMC hereby warrants that it
shall have good title to and the right to deliver, Products pursuant to the terms of this Agreement. 

  
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TRMC acknowledges that, notwithstanding anything to the contrary contained in this Agreement, TRMC has or acquires no right, title or interest in or to the LAR Short Haul Pipelines, except the
right to deliver Products through the Pipelines as set forth herein. TLO shall retain control of the LAR Short Haul Pipelines at all times. 
  

	10.	 REGULATORY MATTERS 

 (a) As of the date of this Agreement, the shipment of Products on the LAR Short Haul Pipelines is not subject to regulation by the FERC or State of California. 

(b) The Parties are entering into this Agreement in reliance upon and shall fully comply with all Applicable Law which
directly or indirectly affect the Products to be throughput hereunder, or any receipt, throughput delivery, transportation, handling or storage of Products hereunder. Each Party shall fully comply with all Applicable Law associated with such
Party’s respective performance hereunder and the maintenance and operation of such Party’s facilities. In the event any action or obligation imposed upon a Party under this Agreement shall at any time be in conflict with any requirement of
Applicable Law, then this Agreement, shall immediately be modified to conform the action or obligation so adversely affected to the requirements of Applicable Law, and all other provisions of this Agreement shall remain effective. 

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

	11.	 LIMITATION ON LIABILITY AND LIMITATION OF WARRANTIES 

(a) Notwithstanding anything to the contrary contained herein, neither Party shall be liable or responsible to the other
Party or such other Party’s affiliated Persons for any consequential, incidental, or punitive damages, or for loss of profits or revenues (collectively referred to as “special damages”) incurred by such Party or its affiliated Persons
that arise out of or relate to this Agreement, regardless of whether any such claim arises under or results from contract, tort, or strict liability; provided that the foregoing limitation is not intended and shall not affect (i) special
damages imposed in favor of unaffiliated Persons that are not Parties to this Agreement, and (ii) special damages actually incurred by TLO as a proximate result of TRMC’s violation of Section 8(d) except to the extent such violation
is the result of acts or omissions of TLO. 
 (b) EXCEPT AS EXPRESSLY HEREIN PROVIDED, THERE ARE NO GUARANTEES
OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WHETHER ARISING BY OPERATION OF LAW OR OTHERWISE. 

 

	12.	 TERMINATION; RIGHT TO ENTER INTO NEW AGREEMENT 

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

(i) the Party materially breaches any provision of this Agreement and such breach is not cured within
fifteen (15) Business Days after notice thereof (which notice shall describe such breach in reasonable detail) is received by such Party; or 

  
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 (ii) the Party (A) files a petition or otherwise
commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy, insolvency, reorganization or similar Applicable Law, or has any such petition filed or commenced against it; (B) makes an
assignment or any general arrangement for the benefit of creditors; (C) otherwise becomes bankrupt or insolvent (however evidenced); or (D) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with
respect to it or any substantial portion of its property or assets. 
 If any of the Parties is in default as
described above, then the non-defaulting party may: (1) terminate this Agreement upon notice to the defaulting Party; (2) withhold any payments due to the defaulting Party under this Agreement; and/or (3) pursue any other remedy at
law or in equity, including the remedies of TRMC set forth below. 
 (b) Termination due to Repurchase by
TRMC. In the event that any or all of the LAR Short Haul Pipelines are directed to be divested by a Governmental Authority, and TRMC has repurchased the LAR Short Haul Pipelines pursuant to the Contribution Agreement, then TLO may terminate this
Agreement effective as of the date of repurchase specifically provided for in the Contribution Agreement; provided, however, that indemnities will remain in place for liabilities and conditions arising prior to the Commencement Date
and for liabilities relating to TLO’s operation of the LAR Short Haul Pipelines between the Commencement Date and the date of repurchase. Revenues and expenses during the time period between the Commencement Date and the date of repurchase will
not be refunded or reimbursed. 
 (c) Upon termination of this Agreement for reasons other than (x) a
default by TRMC, (y) repurchase by TRMC, and (z) any other termination of this Agreement initiated by TRMC pursuant to Section 13 or Section 15, TRMC shall have the right to require TLO to enter into a new transportation services
agreement with TRMC that (i) is consistent with the terms set forth in this Agreement, and (ii) has commercial terms that are, in the aggregate, equal to or more favorable to TLO than fair market value terms as would be agreed by
similarly-situated parties negotiating at arm’s length; provided, however; that the term of any such new transportation services agreement shall not extend beyond twenty (20) years past the Commencement Date in 2032. 

(d) In the event that TLO proposes to enter into a transportation services agreement with a third party upon termination
of this Agreement for reasons other than (x) a default by TRMC, (y) repurchase by TRMC, and (z) any other termination of this Agreement initiated by TRMC pursuant to Section 13 or Section 15, TLO shall give TRMC 90
days’ prior written notice of any proposed new transportation services agreement with a third party, including (i) details of all of the material terms and conditions thereof and (ii) a thirty (30)-day period (beginning upon
TRMC’s receipt of such written notice) (the “First Offer Period”) in which TRMC may make a good faith offer to enter into a new transportation agreement with TLO (the “Transportation Right of First
Refusal”). If TRMC makes an offer on terms no less favorable to TLO than the third-party offer with respect to such transportation services agreement during the First Offer Period, then TLO shall be obligated to enter into a
transportation services agreement with TRMC on the terms set forth above. If TRMC does not exercise its Transportation Right of First Refusal in the manner set forth above, TLO may, for the next ninety (90) days, proceed with the negotiation of
the third-party transportation services agreement. If no third party agreement is consummated during such ninety (90) day period, the terms and conditions of this Section 12(d) shall again become effective. 

  
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 (e) Upon termination or expiration of this Agreement, TRMC shall promptly
remove all of its Products from the LAR Short Haul Pipelines within thirty (30) days of such termination or expiration. 
  

	13.	 FORCE MAJEURE 

 (a) As soon as possible upon the occurrence of a Force Majeure, TLO shall provide TRMC with written notice of the occurrence of such Force Majeure (a “Force Majeure Notice”). TLO shall
identify in such Force Majeure Notice the particular Segment or Segments of the LAR Short Haul Pipelines that are affected by the Force Majeure and the approximate length of time that TLO reasonably believes in good faith such Force Majeure shall
continue (the “Force Majeure Period”). If TLO advises in any Force Majeure Notice that it reasonably believes in good faith that the Force Majeure Period shall continue for more than twelve (12) consecutive Months, then,
subject to Section 14 below, at any time after TLO delivers such Force Majeure Notice, either Party may terminate that portion of this Agreement relating to the affected Segment, but only upon delivery to the other Party of a notice (a
“Termination Notice”) at least twelve (12) Months prior to the expiration of the Force Majeure Period; provided, however, that such Termination Notice shall be deemed cancelled and of no effect if the Force Majeure ends prior
to the expiration of such twelve (12)-Month period. For the avoidance of doubt, neither Party may exercise its right under this Section 13(a) to terminate this Agreement as a result of a Force Majeure with respect to any machinery, storage,
tanks, lines of pipe or other equipment that has been unaffected by, or has been restored to working order since, the applicable Force Majeure, including pursuant to a Restoration under Section 14. 

(b) Notwithstanding the foregoing, if TRMC delivers a Termination Notice to TLO (the “TRMC Termination
Notice”) and, within thirty (30) days after receiving such TRMC Termination Notice, TLO notifies TRMC that TLO reasonably believes in good faith that it shall be capable of fully performing its obligations under this Agreement within a
reasonable period of time, then the TRMC Termination Notice shall be deemed revoked and the applicable portion of this Agreement shall continue in full force and effect as if such TRMC Termination Notice had never been given. 

 

	14.	 CAPABILITIES OF LAR SHORT HAUL PIPELINES 

(a) Interruptions of Service. TLO shall use reasonable commercial efforts to minimize the interruption of service
on the LAR Short Haul Pipelines and any Segment thereof. TLO shall promptly inform TRMC of any anticipated partial or complete interruption of service which is projected to extend more than twenty-four (24) hours on any part of the LAR Short
Haul Pipelines affecting TLO’s ability to receive or deliver Products on any Segment of the LAR Short Haul Pipelines, including relevant information about the nature, extent, cause and expected duration of the interruption and the actions TLO
is taking to resume full operations, provided that TLO shall not have any liability for any failure to notify, or delay in notifying, TRMC of any such matters except to the extent TRMC has been materially prejudiced or damaged by such failure or
delay. TLO shall have the right to immediately shut down operation of any Segment or reduce pressures at any time that it determines, in its sole discretion, that such action may be required to protect public health, safety or the environment or to
comply with Applicable Law. In such case, TRMC shall comply with TLO’s requests to effectuate such a shutdown or reduction, and the Parties shall cooperate to allow the Segment to resume operations in accordance with prudent industry practices
and the other provisions of this Agreement. 
 (b) Maintenance and Repair Standards. 

(i) Subject to Force Majeure, interruptions for routine repair and maintenance consistent with customary
Products pipeline standards, and any applicable regulatory 

  
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requirements, TLO shall accept for shipment on the LAR Short Haul Pipelines in accordance with pipeline industry standards all Products that TRMC requests TLO to transport. Further, TLO shall
maintain and repair all portions of the LAR Short Haul Pipelines in accordance with pipeline industry standards and in a manner which allows the LAR Short Haul Pipelines to be capable, subject to Force Majeure, of shipping, storing and delivering
volumes of Products which are no less than the Minimum Throughput Capacity. 
 (ii) If for any
reason, including without limitation a Force Majeure event, the throughput capacity of the Segments of the LAR Short Haul Pipelines should fall below the Minimum Throughput Capacity, then within a reasonable period of time after the commencement of
such reduction, TLO shall make repairs to and/or replace the affected portion of the LAR Short Haul Pipelines to restore the capacity of the Segments to the required Minimum Throughput Capacity (“Restoration”). Except as provided
below in Sections 14(c) and 14(d), all such Restoration shall be at TLO’s cost and expense unless the damage creating the need for such repairs was caused by the negligence or willful misconduct of TRMC, its employees, agents or customers.

 (c) Capacity Resolution. In the event of the failure of TLO to maintain the Segments of the LAR Short
Haul Pipelines at the Minimum Throughput Capacity, then either Party shall have the right to call a meeting between executives of both Parties by providing at least two (2) Business Days’ advance written notice. Any such meeting shall be
held at a mutually agreeable location and will be attended by executives of both Parties each having sufficient authority to commit his or her respective Party to a Capacity Resolution (hereinafter defined). At the meeting, the Parties will
negotiate in good faith with the objective of reaching a joint resolution for the Restoration of capacity on the affected portion of the LAR Short Haul Pipelines which will, among other things, specify steps to be taken by TLO to fully accomplish
Restoration and the deadlines by which the Restoration must be completed (the “Capacity Resolution”). Without limiting the generality of the foregoing, the Capacity Resolution shall set forth an agreed upon time schedule for the
Restoration activities. Such time schedule shall be reasonable under the circumstances, consistent with customary pipeline transportation industry standards and shall take into consideration TLO’s economic considerations relating to costs of
the repairs and TRMC’s requirements concerning the operation of the Wilmington Refinery. In the event that TRMC’s economic considerations justify incurring additional costs to restore the LAR Short Haul Pipelines in a more expedited manner
than the time schedule determined in accordance with the preceding sentence, TRMC may require TLO to expedite the Restoration to the extent reasonably possible, subject to TRMC’s payment, in advance, of the estimated incremental costs to be
incurred as a result of the expedited time schedule. In the event the Parties agree to an expedited Restoration plan wherein TRMC agrees to fund a portion of the Restoration cost, then neither Party shall have the right to terminate this Agreement
pursuant to Section 13(a) above so long as such Restoration is completed with due diligence, and TRMC shall pay such portion to TLO in advance based on an estimate conforming to reasonable engineering standards applicable to petroleum products
pipelines, as applicable. Upon completion, TRMC shall pay the difference between the actual portion of Restoration costs to be paid by TRMC pursuant to this Section 14(c) and the estimated amount paid under the preceding sentence within thirty
(30) days after receipt of TLO’s invoice therefor, or, if appropriate, TLO shall pay TRMC the excess of the estimate paid by TRMC over TLO’s actual costs as previously described within thirty (30) days after completion of the
Restoration. 
 (d) TRMC’s Right To Cure. If at any time after the occurrence of (x) a
Partnership Change of Control or (y) a sale of the Wilmington Refinery, TLO either (i) refuses or fails to meet with TRMC within the period set forth in Section 14(c), (ii) fails to agree to perform a Capacity

  
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Resolution in accordance with the standards set forth in Section 14(c) or (iii) fails to perform its obligations in compliance with the terms of a Capacity Resolution, TRMC may, as its
sole remedy for any breach by TLO of any of its obligations under Section 14(c), require TLO to complete a Restoration of the affected portions of the LAR Short Haul Pipelines. Any such Restoration required under this Section 14(d) shall
be completed by TLO at TRMC’s cost. TLO shall use commercially reasonable efforts to continue to provide transportation of Products tendered by TRMC while such Restoration is being completed. Any work performed by TLO pursuant to this Section
shall be performed and completed in a good and workmanlike manner consistent with applicable pipeline industry standards and in accordance with all applicable laws, rules and/or regulations. Additionally, during such period after the occurrence of
(x) a Partnership Change of Control or (y) a sale of the Wilmington Refinery, TRMC may exercise any remedies available to it under this Agreement (other than termination), including the right to immediately seek temporary and permanent
injunctive relief for specific performance by TLO of the applicable provisions of this Agreement, including, without limitation, the obligation to make Restorations described herein. 

 

	15.	 SUSPENSION OF WILMINGTON REFINERY OPERATIONS 

(a) In the event that TRMC decides to permanently or indefinitely suspend refining operations at the Wilmington Refinery
for a period that shall continue for at least twelve (12) consecutive Months, TRMC may provide written notice to TLO of TRMC’s intent to terminate this Agreement (the “Suspension Notice”). Such Suspension Notice shall be
sent at any time after TRMC has publicly announced such suspension and, upon the expiration of the twelve (12) Month period following the date such notice is sent (the “Notice Period”), this Agreement shall terminate and TRMC
shall not be required to approve any third party use of the LAR Short Haul Pipelines. If TRMC publicly announces, more than two (2) Months prior to the expiration of the Notice Period, its intent to resume operations at the Wilmington Refinery,
then the Suspension Notice shall be deemed revoked and the applicable portion of this Agreement shall continue in full force and effect as if such Suspension Notice had never been delivered. 

(b) TRMC shall provide at least thirty (30) days’ prior written notice of any suspension of operations at the
Wilmington Refinery due to a planned turnaround or scheduled maintenance. During the Notice Period, TLO shall allow TRMC to use the LAR Short Haul Pipelines on a priority basis and TLO shall not dedicate the LAR Short Haul Pipelines to third party
use without the prior written approval of TRMC. 
  

	16.	 INDEMNITIES 

 (a) Notwithstanding anything else contained in this Agreement, TLO shall release, defend, protect, indemnify, and hold harmless TRMC and each of its respective affiliates, officers, directors,
shareholders, agents, employees, successors-in-interest and assignees (each individually, a “TRMC Indemnitee”, and collectively, the “TRMC Indemnitees”), from and against any and all demands, claims (including
third-party claims), losses, costs, suits, or causes of action (including, but not limited to, any judgments, losses, liabilities, fines, penalties, expenses, interest, reasonable legal fees, costs of suit, and damages, whether in law or equity and
whether in contract, tort, or otherwise) for or relating to (i) personal or bodily injury to, or death of the employees of any TRMC Indemnitee and, as applicable, its customers, representatives, and agents; (ii) loss of or damage to any
property, products, material, and/or equipment belonging to any TRMC Indemnitee and, as applicable, its customers, representatives, and agents, and each of their respective affiliates, contractors, and subcontractors (except for those volume losses
provided for in Section 7 and any losses or damages caused by TRMC’s violation of Section 8(d) except to the extent such violation is the result of acts or omissions of TLO); (iii) loss of or damage to any other property,
products, material, and/or equipment of any other description (except for those volume 

  
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losses provided for in Section 7 and any losses or damages caused by TRMC’s violation of Section 8(d) except to the extent such violation is the result of acts or omissions of
TLO), and/or personal or bodily injury to, or death of any other person or persons; and with respect to clauses (i) through (iii) above, which is caused by or resulting in whole or in part from the wrongful acts or omissions of TLO in
connection with the ownership or operation of the LAR Short Haul Pipelines and the services provided hereunder, and, as applicable, its carriers, customers (other than the TRMC Indemnitees), representatives, and agents, or those of their respective
employees with respect to such matters; and (iv) any losses incurred by any TRMC Indemnitee due to violations of this Agreement by TLO, or, as applicable, its customers (other than TRMC), representatives, and agents; PROVIDED THAT TLO SHALL
NOT BE OBLIGATED TO INDEMNIFY OR HOLD HARMLESS ANY TRMC INDEMNITEE FROM AND AGAINST ANY CLAIMS TO THE EXTENT THEY RESULT FROM THE BREACH OF CONTRACT, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH TRMC INDEMNITEE. 

(b) Notwithstanding anything else contained in this Agreement, TRMC shall release, defend, protect, indemnify, and hold
harmless TLO and each of its respective affiliates, officers, directors, members, managers, managing members, agents, employees, successors-in-interest and assignees (each individually, a “TLO Indemnitee”, and collectively, the
“TLO Indemnitees”) from and against any and all demands, claims (including third-party claims), losses, costs, suits, or causes of action (including, but not limited to, any judgments, losses, liabilities, fines, penalties,
expenses, interest, reasonable legal fees, costs of suit, and damages, whether in law or equity and whether in contract, tort, or otherwise) for or relating to (i) personal or bodily injury to, or death of the employees of any TLO Indemnitee
and, as applicable, its carriers, customers, representatives, and agents; (ii) loss of or damage to any property, products, material, and/or equipment belonging to any TLO Indemnitee and, as applicable, its carriers, customers, representatives,
and agents, and each of their respective affiliates, contractors, and subcontractors (including any loss or damage resulting from TRMC’s violation of Section 8(d) except to the extent such violation is the result of acts or omissions of
TLO, but excluding those volume losses provided for in Section 7); (iii) loss of or damage to any other property, products, material, and/or equipment of any other description (including any loss or damage resulting from TRMC’s
violation of Section 8(d) except to the extent such violation is the result of acts or omissions of TLO, but excluding those volume losses provided for in Section 7) and/or personal or bodily injury to, or death of any other person or
persons; and with respect to clauses (i) through (iii) above, which is caused by or resulting in whole or in part from the wrongful acts and omissions of TRMC, in connection with TRMC’s and its customers’ use of the LAR Short
Haul Pipelines and the services provided hereunder, and, as applicable, its customers, representatives, and agents, or those of their respective employees with respect to such matters; and (iv) any losses incurred by any TLO Indemnitee due to
violations of this Agreement by TRMC, or, as applicable, its Carriers, customers, representatives, and agents; PROVIDED THAT TRMC SHALL NOT BE OBLIGATED TO INDEMNIFY OR HOLD HARMLESS ANY TLO INDEMNITEE FROM AND AGAINST ANY CLAIMS TO THE EXTENT
THEY RESULT FROM THE BREACH OF CONTRACT, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH TLO INDEMNITEE. For the avoidance of doubt, nothing herein shall constitute a release by TRMC of any volume losses that are caused by a TLO Indemnitee’s
gross negligence, breach of this Agreement or willful misconduct. 
 (c) THE INDEMNIFICATION PROVISIONS PROVIDED
FOR IN THIS AGREEMENT HAVE BEEN EXPRESSLY NEGOTIATED IN EVERY DETAIL, ARE INTENDED TO BE GIVEN FULL AND LITERAL EFFECT, AND SHALL BE APPLICABLE WHETHER OR NOT THE LIABILITIES, OBLIGATIONS, CLAIMS, JUDGMENTS, LOSSES, COSTS, EXPENSES OR DAMAGES IN
QUESTION ARISE OR AROSE SOLELY OR IN PART FROM THE GROSS, ACTIVE, PASSIVE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, OR OTHER FAULT OF ANY INDEMNIFIED PARTY. EACH PARTY ACKNOWLEDGES THAT THIS STATEMENT

  
 - 14 -

 
COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND CONSTITUTES CONSPICUOUS NOTICE. NOTICE IN THIS CONSPICUOUS NOTICE IS NOT INTENDED TO PROVIDE OR ALTER THE RIGHTS AND OBLIGATIONS OF THE PARTIES, ALL
OF WHICH ARE SPECIFIED ELSEWHERE IN THIS AGREEMENT. 
  

	17.	 ASSIGNMENT; PARTNERSHIP CHANGE OF CONTROL 

(a) As of the Execution Date, the General Partner shall assign all of its rights and obligations under this Agreement to
the Partnership. The Partnership shall immediately assign its rights and obligations hereunder to TLO. Upon such assignment to TLO, TLO shall have all of the respective rights and obligations set forth herein during the Term. 

(b) TRMC shall not assign any of its rights or obligations under this Agreement without TLO’s prior written consent,
which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that TRMC may assign this Agreement without TLO’s consent in connection with a sale by TRMC of the Wilmington Refinery so long as the transferee:
(i) agrees to assume all of TRMC’s obligations under this Agreement and (ii) is financially and operationally capable of fulfilling the terms of this Agreement, which determination shall be made by TRMC in its reasonable judgment.

 (c) TLO shall not assign any of its rights or obligations under this Agreement without TRMC’s prior
written consent, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that (i) TLO may assign this Agreement without TRMC’s consent in connection with a sale by TLO of the LAR Short Haul Pipelines so
long as the transferee: (A) agrees to assume all of TLO’s obligations under this Agreement; (B) is financially and operationally capable of fulfilling the terms of this Agreement, which determination shall be made by TLO in its
reasonable judgment; and (C) is not a competitor of TRMC; and (ii) TLO shall be permitted to make a collateral assignment of this Agreement solely to secure working capital financing for TLO. 

(d) Any assignment that is not undertaken in accordance with the provisions set forth above shall be null and void ab
initio. A Party making any assignment shall promptly notify the other Party of such assignment, regardless of whether consent is required. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective
successors and permitted assigns. 
 (e) TRMC’s obligations hereunder shall not terminate in connection
with a Partnership Change of Control, provided, however, that in the case of any Partnership Change of Control, TRMC shall have the option to extend the Term of this Agreement as provided in Section 4 or modify the Term based on Wilmington
Refinery requirements. TLO shall provide TRMC with notice of any Partnership Change of Control at least sixty (60) days prior to the effective date thereof. 
  

	18.	 NOTICE 

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

19100 Ridgewood Parkway 
 San Antonio, Texas 78259 

  
 - 15 -

 For legal notices: 

Attention: Charles S. Parrish, General Counsel 

phone: (210) 626-4280 
 fax: (210) 745-4494 
 email: charles.s.parrish@tsocorp.com

 For all other notices and communications: 

Attention: Ricky Weyen, Vice President, Logistics 

phone: (210) 626-4379 
 fax: (210) 745-4433 
 email: Rick.D.Weyen@tsocorp.com

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

 San Antonio, Texas 78259 

For legal notices: 
 Attention: Charles S. Parrish, General Counsel 
 phone:
(210) 626-4280 
 fax: (210) 745-4494 

email: charles.s.parrish@tsocorp.com 

For all other notices and communications: 

Attention: Victoria R. Somers, Contracts Administrator – Logistics 

phone: (210) 626-6390 
 fax: (210) 745-4490 
 email: victoria.r.somers@tsocorp.com

 or to such other address or to such other person as either Party will have last designated by notice to the other Party.

  

	19.	 INSURANCE 

 (a) At all times during the Term of this Agreement and for a period of two (2) years after termination of this Agreement for any coverage maintained on a “claims-made” or
“occurrence” basis, TRMC and TLO shall each maintain at its own expense the below listed insurance in the amounts specified below which are minimum requirements; provided, however, that TLO shall not be required to maintain the Property
Insurance set forth in subsection (vii) below. Such insurance shall provide coverage to the other Party hereunder (TLO or TRMC, as applicable) and such policies, other than Worker’s Compensation Insurance, shall include TLO or TRMC as an
Additional Insured, as applicable. Each policy shall provide that it is primary to and not contributory with any other insurance, including any self-insured retention, maintained by TRMC or TLO (which shall be excess) and each policy shall provide
the full coverage required by this Agreement. All such insurance shall be written with carriers 

  
 - 16 -

 
and underwriters acceptable to the other Party hereunder (TLO or TRMC, as applicable), and eligible to do business in the State of California and having and maintaining an A.M. Best financial
strength rating of no less than “A-” and financial size rating no less than “VII”; provided that TRMC and TLO may procure worker’s compensation insurance from the State of California. All limits listed below are required
MINIMUM LIMITS: 
 (i) Workers Compensation and Occupational Disease Insurance which fully
complies with Applicable Law of the State of California, in limits not less than statutory requirements; 
 (ii) Employers Liability Insurance with a minimum limit of $1,000,000 for each accident, covering injury or death to any employee which may be outside the scope of the worker’s compensation statute
of the jurisdiction in which the worker’s service is performed, and in the aggregate as respects occupational disease; 
 (iii) Commercial General Liability Insurance, including contractual liability insurance covering Carrier’s indemnity obligations under this Agreement, with minimum limits of $1,000,000 combined
single limit per occurrence for bodily injury and property damage liability, or such higher limits as may be required by the other Party hereunder or by Applicable Law from time to time. This policy shall include Broad Form Contractual Liability
insurance coverage which shall specifically apply to the obligations assumed in this Agreement by TRMC or TLO, applicable; 
 (iv) Automobile Liability Insurance covering all owned, non-owned and hired vehicles, with minimum limits of $1,000,000 combined single limit per occurrence for bodily injury and property damage
liability, or such higher limit(s) as may be required by the other Party hereunder or by Applicable Law from time to time. Coverage must assure compliance with Sections 29 and 30 of the Motor Carrier Act of 1980 and all applicable rules and
regulations of the Federal Highway Administration’s Bureau of Motor Carrier Safety and Interstate Commerce Commissioner (Form MCS 90 Endorsement). Limits of liability for this insurance must be in accordance with the financial responsibility
requirement of the Motor Carrier Act, but not less than $1,000,000 per occurrence; 
 (v) Excess
(Umbrella) Liability Insurance with limits not less than $4,000,000 per occurrence. Additional excess limits may be utilized to supplement inadequate limits in the primary policies required in items (ii), (iii), and (iv) above; 

(vi) Pollution Legal Liability with limits not less than $25,000,000 per loss with an annual aggregate of
$25,000,000. Coverage shall apply to bodily injury and property damage including loss of use of damaged property and property that has not been physically injured; clean up costs, defense, including costs and expenses incurred in the investigation,
defense or settlement of claim; and 
 (vii) For TRMC only, Property Insurance, with a limit of
no less than $1,000,000, which property insurance shall be first-party property insurance to adequately cover TRMC’s owned property; including personal property of others. 

(b) All such policies must be endorsed with a Waiver of Subrogation endorsement, effectively waiving rights of recovery
under subrogation or otherwise, against TLO or TRMC, respectively, and shall contain where applicable, a severability of interest clause and a standard cross liability clause. 

  
 - 17 -

 (c) Upon the Execution Date and prior to the operation of any equipment by
either Party, the Party operating such equipment will furnish to the other Party, and at least annually thereafter (or at any other times upon request by the other Party) during the Term of this Agreement (and for any coverage maintained on a
“claims-made” basis, for two (2) years after the termination of this Agreement), insurance certificates and/or certified copies of the original policies to evidence the insurance required herein. Such certificates shall be in the form
of the “Accord” Certificate of Insurance, and reflect that they are for the benefit of TLO or TRMC, as applicable, and shall provide that there will be no material change in or cancellation of the policies unless TLO or TRMC, as
applicable, is given at least thirty (30) days prior written notice. Certificates providing evidence of renewal of coverage shall be furnished to TLO or TRMC, as applicable, prior to policy expiration. 

(d) Each Party shall be solely responsible for any of its deductibles or self-insured retention. 

 

	20.	 CONFIDENTIAL INFORMATION 

 (a) Obligations. Each Party shall use reasonable efforts to retain the other Party’s Confidential Information in confidence and not disclose the same to any third party nor use the same,
except as authorized by the disclosing Party in writing or as expressly permitted in this Section 20. Each Party further agrees to take the same care with the other Party’s Confidential Information as it does with its own, but in no event
less than a reasonable degree of care. Excepted from these obligations of confidence and non-use is that information which: 
 (i) is available, or becomes available, to the general public without fault of the receiving Party; 
 (ii) was in the possession of the receiving Party on a non-confidential basis prior to receipt of the same from the disclosing Party (it being understood, for the avoidance of doubt, that this exception
shall not apply to information of TLO that was in the possession of TRMC or any of its affiliates as a result of their ownership or operation of the LAR Short Haul Pipelines prior to the Commencement Date); 

(iii) is obtained by the receiving Party without an obligation of confidence from a third party who is
rightfully in possession of such information and, to the receiving Party’s knowledge, is under no obligation of confidentiality to the disclosing Party; or 

(iv) is independently developed by the receiving Party without reference to or use of the disclosing
Party’s Confidential Information. 
 For the purpose of this Section 20, a specific item of Confidential Information
shall not be deemed to be within the foregoing exceptions merely because it is embraced by, or underlies, more general information in the public domain or in the possession of the receiving Party. 

(b) Required Disclosure. Notwithstanding Section 20(a) above, if the receiving Party becomes legally
compelled to disclose the Confidential Information by a court, Governmental Authority or Applicable Law, or is required to disclose by the listing standards of the New York Stock Exchange, any of the disclosing Party’s Confidential Information,
the receiving Party shall promptly advise the disclosing Party of such requirement to disclose Confidential Information as soon as the receiving Party becomes aware that such a requirement to disclose might become effective, in order that, where
possible, the disclosing Party may seek a protective order or such other remedy as the disclosing Party may 

  
 - 18 -

 
consider appropriate in the circumstances. The receiving Party shall disclose only that portion of the disclosing Party’s Confidential Information that it is required to disclose and shall
cooperate with the disclosing Party in allowing the disclosing Party to obtain such protective order or other relief. 
 (c) Return of Information. Upon written request by the disclosing Party, all of the disclosing Party’s Confidential Information in whatever form shall be returned to the disclosing Party upon
termination of this Agreement or destroyed with destruction certified by the receiving Party, without the receiving Party retaining copies thereof except that one copy of all such Confidential Information may be retained by a Party’s legal
department solely to the extent that such Party is required to keep a copy of such Confidential Information pursuant to Applicable Law and the receiving Party shall be entitled to retain any Confidential Information in the electronic form or stored
on automatic computer back-up archiving systems during the period such backup or archived materials are retained under such Party’s customary procedures and policies; provided, however, that any Confidential Information retained
by the receiving Party shall be maintained subject to confidentiality pursuant to the terms of this Section 20, and such archived or back-up Confidential Information shall not be accessed except as required by Applicable Law. 

(d) Receiving Party Personnel. The receiving Party will limit access to the Confidential Information of the
disclosing Party to those of its employees, attorneys and contractors that have a need to know such information in order for the receiving Party to exercise or perform its rights and obligations under this Agreement (the “Receiving Party
Personnel”). The Receiving Party Personnel who have access to any Confidential Information of the disclosing Party will be made aware of the confidentiality provision of this Agreement, and will be required to abide by the terms thereof.
Any third party contractors that are given access to Confidential Information of a disclosing Party pursuant to the terms hereof shall be required to sign a written agreement pursuant to which such Receiving Party Personnel agree to be bound by the
provisions of this Agreement, which written agreement will expressly state that it is enforceable against such Receiving Party Personnel by the disclosing Party. 

(e) Survival. The obligation of confidentiality under this Section 20 shall survive the termination of this
Agreement for a period of two (2) years. 
  

	21.	 MISCELLANEOUS 

 (a) Modification; Waiver. This Agreement may be terminated, amended or modified only by a written instrument executed by the Parties. Any of the terms and conditions of this Agreement may be waived
in writing at any time by the Party entitled to the benefits thereof. No waiver of any of the terms and conditions of this Agreement, or any breach thereof, will be effective unless in writing signed by a duly authorized individual on behalf of the
Party against which the waiver is sought to be enforced. No waiver of any term or condition or of any breach of this Agreement will be deemed or will constitute a waiver of any other term or condition or of any later breach (whether or not similar),
nor will such waiver constitute a continuing waiver unless otherwise expressly provided. 
 (b) Entire
Agreement. This Agreement, together with the Schedules, constitutes the entire agreement among the Parties pertaining to the subject matter hereof and supersedes all prior agreements and understandings of the Parties in connection therewith.

 (c) Governing Law; Jurisdiction. This Agreement shall be governed by the laws of the State of Texas
without giving effect to its conflict of laws principles. Each Party hereby irrevocably submits to the exclusive jurisdiction of any federal court of competent jurisdiction situated in the United States District Court for the Western District of
Texas, San Antonio Division, or if such federal court declines to exercise or does not have jurisdiction, in the district court of Bexar County, Texas. The Parties expressly 

  
 - 19 -

 
and irrevocably submit to the jurisdiction of said Courts and irrevocably waive any objection which they may now or hereafter have to the laying of venue of any action, suit or proceeding arising
out of or relating to this Agreement brought in such Courts, irrevocably waive any claim that any such action, suit or proceeding brought in any such Court has been brought in an inconvenient forum and further irrevocably waive the right to object,
with respect to such claim, action, suit or proceeding brought in any such Court, that such Court does not have jurisdiction over such Party. The Parties hereby irrevocably consent to the service of process by registered mail, postage prepaid, or by
personal service within or without the State of Texas. Nothing contained herein shall affect the right to serve process in any manner permitted by law. 
 (d) Counterparts. This Agreement may be executed in one or more counterparts (including by facsimile or portable document format (pdf)) for the convenience of the Parties hereto, each of which
counterparts will be deemed an original, but all of which counterparts together will constitute one and the same agreement. 
 (e) Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be valid and effective under applicable law, but if any provision of this Agreement or
the application of any such provision to any person or circumstance will be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability will not affect any other
provision hereof, and the Parties will negotiate in good faith with a view to substitute for such provision a suitable and equitable solution in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid,
illegal or unenforceable provision. 
 (f) No Third Party Beneficiaries. It is expressly understood that
the provisions of this Agreement do not impart enforceable rights in anyone who is not a Party or successor or permitted assignee of a Party. 
 (g) WAIVER OF JURY TRIAL. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDINGS RELATING TO THIS AGREEMENT OR
ANY PERFORMANCE OR FAILURE TO PERFORM OF ANY OBLIGATION HEREUNDER. 
 (h) Schedules. Each of the
Schedules attached hereto and referred to herein is hereby incorporated in and made a part of this Agreement as if set forth in full herein. 
 [SIGNATURE PAGES FOLLOW] 

  
 - 20 -

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

			
	 TESORO REFINING AND MARKETING COMPANY

		
	 By:
	 	 /s/ Gregory J. Goff

		 	 Gregory J. Goff

		 	 President

	
	 Solely in respect of Section 17(a) only:

	
	 TESORO LOGISTICS LP

		
	 By:
	 	 TESORO LOGISTICS GP, LLC,

		 	 its general partner

		
	 By:
	 	 /s/ Phillip M. Anderson

		 	 Phillip M. Anderson

		 	 President

	
	 Solely in respect of Section 17(a) only:

	 TESORO LOGISTICS GP, LLC

		
	 By:
	 	 /s/ Phillip M. Anderson

		 	 Phillip M. Anderson

		 	 President

	
	 TESORO LOGISTICS OPERATIONS LLC

		
	 By:
	 	 TESORO LOGISTICS LP,

		 	 its sole member

		
	 By:
	 	 TESORO LOGISTICS GP, LLC,

		 	 its general partner

		
	 By:
	 	 /s/ Phillip M. Anderson

		 	 Phillip M. Anderson

		 	 President

 Signature Page to 
 LAR Short Haul Pipelines 
 Transportation Services Agreement

 SCHEDULE A 
  

 

 SCHEDULE B 
 Products Pipeline Segments: 
 Gasoline/diesel pipeline from
Wilmington Refinery to Shell Carson Terminal and Jet fuel pipeline from Wilmington Refinery to Shell Carson Terminal: 15,000 bpd or 456,250 Barrels/month

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