Document:

Exhibit

Exhibit 10.3

SECOND AMENDED AND RESTATED 
REPRESENTATION AND SERVICES AGREEMENT FOR OIL SPILL CONTINGENCY PLANNING, RESPONSE AND REMEDIATION

This Second Amended and Restated Representation and Services Agreement for Oil Spill Contingency Planning, Response and Remediation (this “Agreement”) is dated this 16th day of September, 2016, by and among Tesoro Companies, Inc. (“TCI”), a Delaware corporation, Tesoro Maritime Company (“TMC”), a Delaware corporation, Tesoro Refining & Marketing Company LLC (“TRMC”), a Delaware limited liability company, Tesoro Alaska Company LLC (“TAC”), a Delaware limited liability company, Kenai Pipe Line Company (“KPL”), a Delaware corporation, Tesoro Alaska Pipeline Company LLC (“TAPL”), a Delaware limited liability company, Carson Cogeneration Company (“CCC”), a Delaware corporation, Tesoro Great Plains Midstream LLC (“TGP”), Tesoro Great Plains Gathering & Marketing LLC (“TGPGM”), BakkenLink Pipeline LLC (“BLP”), ND Land Holdings LLC (“NDLH”), Tesoro Logistics Operations LLC (“TLO”), a Delaware limited liability company, Tesoro High Plains Pipeline Company LLC (“THPP”), a Delaware limited liability company, Tesoro Logistics Pipelines LLC (“TLP”), Tesoro Logistics Northwest Pipeline LLC (“TLNP”), a Delaware limited liability company, Tesoro SoCal Pipeline Company LLC, (“TSCP”), a Delaware limited liability company, QEP Field Services, LLC (“QEPFS”), a Delaware limited liability company, QEPM Gathering I, LLC (“QGI”), a Delaware limited liability company, Green River Processing, LLC (“GRP”), a Delaware limited liability company, Rendezvous Pipeline Company, LLC (“RPL”), a Delaware limited liability company, and Tesoro Alaska Terminals LLC, (“TAT”), a Delaware limited liability company, and each other person who after the date hereof agrees to become a party to, and bound by, this Agreement by executing a Joinder Agreement in substantially the form attached hereto as Exhibit A, each of whom is a “Party” and collectively are the “Parties” to this Agreement; TCI, TRMC, TMC, TAC, KPL, CCC, TGP, TGPGM, BLP and NDLH are each individually, a “Tesoro Party” and collectively, the “Tesoro Parties,” and TLO, TLP, TLNP, TAPL, THPP, QEPFS, TSCP, QGI, GRP, RPL and TAT are each individually, a “TLLP Party” and collectively, the “TLLP Parties”.

RECITALS:
A.    WHEREAS, the Parties, except for TGP, TGPGM, BLP, NDLH, QEPFS, TSCP, QGI, GRP, RPL and TAT, are parties to that certain Amended and Restated Representation and Services Agreement for Oil Spill Contingency Planning, Response and Remediation dated as of December 6, 2013 (the “Existing Agreement”); 

B.    WHEREAS, the Parties desire to amend and restate the Existing Agreement to add TSCP, TGP, TGPGM, BLP, NDLH, QEPFS, TSCP, QGI, GRP, RPL and TAT as Parties, to reassign TAPL as a TLLP Party and to clarify and revise certain issues regarding the obligations of the Parties thereto; 

C.    WHEREAS, the Parties are all affiliated entities, with TCI, TRMC, TMC, TAC and TGP being wholly owned subsidiaries of Tesoro Corporation; KPL being a wholly owned subsidiary of TAC; CCC being a wholly owned subsidiary of TRMC; TGPGM, BLP, NDLH being wholly owned subsidiaries of TGP; TLO and QEPFS being wholly owned subsidiaries of Tesoro Logistics LP (“TLLP”), in which a majority of the partnership interests are owned by Tesoro Corporation and its subsidiaries, and which is solely managed by Tesoro Logistics GP, LLC, a wholly owned subsidiary of Tesoro Corporation (“TLGP”); TLP being a wholly owned subsidiary of TLO; and THPP, TLNP, TAPL and TAT being wholly owned subsidiaries of TLP; and with TSCP, QGI, GRP, RPL being wholly owned subsidiaries of QEPFS;
D.    WHEREAS, in multiple transactions, TLO received contributions of certain logistics assets from TAC and TRMC, which included multiple wharfs, pipelines, terminals, storage tanks and ancillary facilities located in the States of Alaska, California, Idaho, North Dakota, Utah and Washington;
E.    WHEREAS, TLLP has separately acquired QEPFS and its subsidiaries and the assets of TLNP, and Tesoro Corporation has acquired TGP and its subsidiaries;
F.    WHEREAS, TLO has rights of first offer to acquire certain other logistics assets from TRMC and TAC, and the Parties may agree to assign future logistics assets to TLO in the future, which will become part of the TLLP Facilities subject to this Agreement when they are assigned to TLO by any of the TLLP Parties;
G.    WHEREAS, the TLLP Parties have acquired and/or may acquire in the future other logistics facilities that will provide services to the Tesoro Parties, and for which the Parties will agree that the Tesoro Parties should provide oil spill contingency planning and response services, and upon such acquisition and agreement, such logistics facilities will become part of the TLLP Facilities subject to this Agreement; 

H.    WHEREAS, the Tesoro Parties and the TLLP Parties are parties to a Secondment and Logistics Services Agreement dated as of July 1, 2014, as amended, and related Service Orders (collectively the “Secondment Agreement”), pursuant to which employees and contractors of the Tesoro Parties and the TLLP Parties, respectively, may perform services and order supplies and materials as representatives and seconded employees of the other group, and certain Parties indemnified or will indemnify other Parties for certain liabilities;
I.    WHEREAS, the TLLP Parties have entered into operating agreements (collectively, “Operating Agreements”; and each individually, an “Operating Agreement”) with the Tesoro Parties, under which the TLLP Parties provide services to the Tesoro Parties as the operator of certain logistics assets, including wharfs, pipelines, terminals, storage tanks and ancillary facilities in the States of Alaska, California, Washington, Idaho, Utah, Wyoming, Montana and North Dakota; 
J.    WHEREAS, the TLLP Parties may in the future enter into other Operating Agreements under which the TLLP Parties will provide services to the Tesoro Parties as the operator of certain logistics assets, including wharfs, pipelines, terminals, storage tanks and ancillary facilities;
K.    WHEREAS, TRMC and TAC are currently the largest customers using the logistics facilities that have been transferred to TLLP, or for which the TLLP Parties provide operating services under various services agreements with TLO and tariffs are published by THPP, and have contracted with TLO to utilize the majority of the capacity of the TLLP Facilities;
L.    WHEREAS, the Parties intend that the logistics facilities owned or operated by the TLLP Parties which are subject to legal and/or regulatory requirements with respect to oil spill contingency planning and response shall each be a “TLLP Facility” and collectively, the “TLLP Facilities”; 
M.    WHEREAS, the Parties intend that the refining and logistics facilities owned or operated by the Tesoro Parties which are subject to legal and/or regulatory requirements with respect to oil spill contingency planning and response shall each be a “Tesoro Facility” and collectively, the “Tesoro Facilities”;
N.    WHEREAS, the Tesoro Parties and the TLLP Parties each employ personnel who have training and experience in Oil Spill Contingency Planning and Response, and who provide such services in connection with both the TLLP Facilities and the Tesoro Facilities, either as direct employees or seconded employees under the Secondment Agreement;
O.    WHEREAS, the TLLP Parties wish to have personnel and contractors of the Tesoro Parties provide services relating to Oil Spill Contingency Planning and Response for the TLLP Facilities;

P.    WHEREAS, the Tesoro Parties wish to have personnel and contractors of the TLLP Parties provide services relating to Oil Spill Contingency Planning and Response for the Tesoro Facilities;
Q.    WHEREAS, TMC charters vessels that use TLLP Facilities as well as facilities of the Tesoro Parties, and deliver and receive crude oil and refined products from such onshore facilities;
R.    WHEREAS, TCI is a member of the Marine Preservation Association (“MPA”) and has contracted with the Marine Spill Response Corporation (“MSRC”), to provide oil spill response and contingency planning for property owned and operated by TRMC, TAC, KPL, TAPL, CCC, THPP, TLNP and TLO and for vessels charted by TMC; 
S.    WHEREAS, TCI has deemed TRMC, TMC, TAC, KPL, TAPL, CCC, THPP, TLNP and TLO to be covered entities under TCI’s MPA membership, such that TCI acts as a representative of each of these affiliated Parties in connection with its membership rights and responsibilities regarding MPA’s operations and cost structure;
T.    WHEREAS, The Parties desire that TCI shall act as the representative of each of the other TLLP Parties and Tesoro Parties in connection with its membership rights and responsibilities regarding MPA’s operations and cost structure with respect to the TLLP Facilities and Tesoro Facilities;
U.    WHEREAS, TMC is a member in Cook Inlet Spill Response, Inc. (“CISPRI”), which provides oil spill response and contingency planning for the Anchorage Terminals included within the TLLP Facilities, as well as other facilities owned and operated by TAC, KPL, TAT and TAPL in Alaska; 
V.    WHEREAS, some of the Parties are also parties to a certain Marine Services Representation Agreement dated May, 2011, covering joint representation in CISPRI, and this Agreement shall supplement, but not supersede or replace, that Marine Services Representation Agreement; and
W.    WHEREAS, some of the Tesoro Parties are also parties to intercompany service agreements covering services provided by TCI to other Tesoro Parties, and this Agreement shall supplement, but not supersede or replace, those agreements. 
NOW, THEREFORE, in consideration of the foregoing, the receipt and sufficiency of which are hereby acknowledged by the Parties, and for purposes of documenting and memorializing the Parties’ mutual understandings regarding (a) TCI serving as the representative of all Parties through its membership in MPA, and (b) the allocation among the Parties of costs and expenses associated with oil spill contingency planning, response and remediation activities, the Parties do hereby covenant and agree as follows:

1.    TCI Representation in MPA.  TCI will act as the sole representative for all the Parties as a member in MPA, and TCI shall perform the duties and responsibilities of a member in MPA on behalf of all the Parties.  TCI shall use reasonable commercial efforts to perform such duties and responsibilities in accordance with the same standards that it uses for its own business.
2.    MPA Operating Costs.  MPA may allocate to TCI, as a MPA member, a share of MPA’s ongoing operating, maintenance, planning and contingency preparedness costs, expenses and capital contributions related to MPA’s normal operations (“MPA Operating Costs”) not arising from response, remediation, containment or cleanup of actual spills, releases, accidents or similar incidents.  MPA Operating Costs shall include, without limitation, costs associated with contingency planning and preparedness and drills for potential spills, releases, accidents or similar incidents.  TLO shall reimburse TCI for all MPA Operating Costs allocated to TCI by MPA with respect to the TLLP Facilities, and such MPA Operating Costs shall not be further allocated among the Parties.  
3.    Engagement of MSRC.  One or more of the Tesoro Parties may engage MSRC to perform services relating to ongoing operating, maintenance, planning and contingency preparedness, including services relating to the TLLP Facilities.  The Tesoro Parties are authorized to so engage MSRC in the ordinary course of business to perform such services for the TLLP Facilities, under terms and conditions and at rates and fees consistent with those provided for facilities of the Tesoro Parties and in accordance with customary industry terms for similarly situated facilities of third parties.  Costs and overhead fees charged to the Parties by MSRC associated with routine services provided by MSRC (“MSRC Service Fees”) for the TLLP Facilities and not related to Incidents, shall be included within the fees specified in the Third Amended and Restated Omnibus Agreement and the Secondment Agreement and shall not be otherwise charged to the TLLP Parties.
4.    Response Costs.  “Incident Response Costs” shall include MSRC/MPA Response Costs, Tesoro Response Costs, and TLLP Response Costs, as set forth below: 
(a)    MPA and/or MSRC may allocate to TCI or charge TCI for costs (“MSRC/MPA Response Costs”) incurred by MSRC and/or MPA related to response, remediation, containment or cleanup of any actual spills, releases, accidents or similar incidents (each individually an “Incident”, and collectively “Incidents”) associated with facilities or operations of the Parties or third parties, which are not included within the MPA Operating Costs or MSRC Service Fees.  
(b)    The Tesoro Parties may also incur other costs (“Tesoro Response Costs”) related to response, remediation, containment or cleanup of any Incidents associated with the TLLP Facilities, which are not included within the MSRC/MPA Response Costs, the MPA Operating Costs or the MSRC Service Fees.  

Tesoro Response Costs may include, without limitation, (i) costs of time and expenses of personnel of the Tesoro Parties, (ii) fees and costs for use of materials and equipment provided by the Tesoro Parties, (iii) fees and costs for services, materials equipment, vessels and vehicles provided by third parties and charged to the Tesoro Parties, (iv) fees and costs charged to the Tesoro Parties by governmental agencies with respect to remediation, containment or cleanup of any Incidents and (v) fees and costs incurred by third parties with respect to remediation, containment or cleanup of any Incidents for which a Tesoro Party is legally responsible for providing indemnity or contribution to such third party by reason of the Tesoro Party being an owner of a TLLP Facility operated by a TLLP Party.  
(c)    The TLLP Parties may also incur other costs (“TLLP Response Costs”) related to response, remediation, containment or cleanup of any Incidents associated with facilities or operations of the Tesoro Parties, which are not included within the MSRC/MPA Response Costs, the MPA Operating Costs or the MSRC Service Fees.  TLLP Response Costs may include, without limitation, (i) costs of time and expenses of personnel of the TLLP Parties, (ii) fees and costs for use of materials and equipment provided by the TLLP Parties, (iii) fees and costs for services, materials equipment, vessels and vehicles provided by third parties and charged to the TLLP Parties, (iv) fees and costs charged to the TLLP Parties by governmental agencies with respect to remediation, containment or cleanup of any Incidents, and (v) fees and costs incurred by third parties with respect to remediation, containment or cleanup of any Incidents for which a TLLP Party is legally responsible for providing indemnity or contribution to such third party by reason of the TLLP Party being an owner, operator, lessee or sublessee of a TLLP Facility.  
(d)    In the event that there is an Incident involving a TLLP Facility, which results in MSRC and/or MPA incurring MSRC/MPA Response Costs that are charged to TCI as a member of MPA or otherwise charged to TCI or another Tesoro Party as a responsible party under environmental laws, regulations, and permits, or as an owner or lessee of a TLLP Facility operated or subleased by a TLLP Party, then the TLLP Party operating or subleasing the TLLP Facility for which such costs are incurred shall reimburse and indemnify the affected Tesoro Parties for the MSRC/MPA Response Costs associated with such TLLP Facility; provided however, that such TLLP Party shall not be responsible for reimbursing or indemnifying a Tesoro Party for any Incident Response Costs to the extent that the Incident was attributable to the negligent or wrongful actions or omissions of such Tesoro Party for which the TLLP Party would have a right of recovery against such Tesoro Party under law, regulation, equity or contract.  
(e)    In the event that there is an Incident involving a TLLP Facility, which results in one or more of the Tesoro Parties incurring Tesoro Response Costs, then the TLLP Party operating, leasing or subleasing the TLLP Facility for which such costs are incurred shall reimburse and indemnify the Tesoro Parties for the 

Tesoro Response Costs associated with such Incident; provided however, that such TLLP Party shall not be responsible for reimbursing or indemnifying the Tesoro Parties for any Tesoro Response Costs to the extent that the Incident was attributable to the negligent or wrongful actions or omission of such Tesoro Party for which the TLLP Party would have a right of recovery against such Tesoro Party under law, regulation, equity or contract.  
(f)    In the event that there is an Incident involving a facility owned or leased (but not leased or subleased to a TLLP Party) or operated by one of the Tesoro Parties, which results in one or more of the TLLP Parties incurring TLLP Response Costs, then the Tesoro Party owning, leasing, or operating (but not leasing or subleasing to a TLLP Party) the facility for which such costs are incurred shall reimburse and indemnify the TLLP Parties for the TLLP Response Costs associated with such Incident; provided however, that such Tesoro Party shall not be responsible for reimbursing or indemnifying the TLLP Parties for any TLLP Response Costs to the extent that the Incident was attributable to the negligent or wrongful actions or omissions of such TLLP Party for which the Tesoro Party would have a right of recovery against such TLLP Party under law, regulation, equity or contract.  
(g)    In the event that the Incident Response Costs relating to Incidents that are associated with both a facility operated, leased or subleased by a TLLP Party or a Tesoro Party and a vessel chartered by TMC, then the Parties shall negotiate a fair and equitable allocation of costs among TCI, TMC and the Party operating, leasing or subleasing such facility, based upon the nature of the costs and the Incidents that resulted in the Incident Response Costs and the respective culpability of the Parties with regard to such Incident.  TMC shall be responsible for reimbursing the appropriate Parties for such Incident Response Costs to the extent that law, regulation, equity or contract would impose such liability upon TMC as a charterer of the vessel.  If the Incident involves a TLLP Facility, the TLLP Parties shall be subrogated to the rights of TMC to recover from the vessel or its insurers the Incident Response Costs incurred by TLLP, either directly or by reason of a reimbursement of the Tesoro Parties pursuant to this Agreement.
(h)    In the event that TCI is charged for MSRC/MPA Response Costs relating to Incidents associated with facilities or operations of third parties that are unrelated to any facilities or operations of any of the Parties or vessels chartered or otherwise utilized by TCI, then the Parties shall negotiate a fair and equitable allocation of costs among themselves, based upon the nature of the costs and the Incident that resulted in the MSRC/MPA Response Costs and the respective relationships of the Parties with regard to such Incident.  
(i)    In no event shall any allocation of Incident Response Costs be made or required hereunder that would cause the Incident to be regarded as more than one occurrence with respect to all of the Parties’ 

collective insurance coverages or that would expose the Parties to multiple insurance deductibles or self-insured retentions or otherwise limit or exclude insurance coverage with respect to such Incident, nor shall any provision of this agreement or any condition of TCI’s representation of the Parties as a member in MPA be construed to provide such a result.  If any Party recovers any MSRC/MPA Response Costs from the owner, operator, charterer or insurer of a vessel or any other third party or any insurer, then such recovery shall be credited against and reduce and/or provide reimbursement for any Incident Response Costs that otherwise might be owed or have been paid by the other Parties hereto.
(j)    This Agreement does not supersede or control over any allocation of Incident Response Costs that may be set forth in specific Operating Agreements, use and throughput agreements or other service agreements between the TLLP Parties and the Tesoro Parties regarding operation and use of the TLLP Facilities.  The provisions of these agreements shall be harmonized with the provisions of this Agreement to the maximum extent possible.  In the event of any conflict between the various terms, the provisions of the applicable Operating Agreement, use and throughput agreement or service agreement shall control over the terms of this Agreement.  
5.    Additions to TLLP Facilities.  The Parties anticipate that in the future, TLLP will acquire, lease or sublease additional logistics facilities from the Tesoro Parties or from third parties or may develop or construct new or expanded logistics facilities, and that the Parties may agree that the Tesoro Parties should provide oil spill contingency planning and response services for those additional facilities.  Upon such acquisition and agreement, each such facility will automatically become a TLLP Facility, subject to this Agreement. 
6.    Term and Termination.  This Agreement shall continue until December 31, 2016 and shall renew for successive periods of one year thereafter, unless terminated by any Party upon sixty (60) days advance written notice.  The Parties shall periodically evaluate whether the allocation of MPA Operating Costs set forth herein and the agreement not to include such MPA Operating Costs or MSRC Service Fees as components of tariffs and fees remains appropriate under conditions as they may exist from time to time.  At any time after December 31, 2016, any Party may request renegotiation of all or any part of this Agreement, and the Parties shall then negotiate in good faith to make reasonable arrangements regarding future allocations of MPA Operating Costs, MSRC Service Fees and related adjustments of tariff and fee structures.  In the event the Parties are unable to reach a consensus on any appropriate adjustments, then any Party may terminate this Agreement upon ten (10) days advance written notice as to subsequent costs incurred by TCI, but such termination shall not invalidate this Agreement as to costs incurred by TCI prior to the effective date of such termination.  Upon termination of this Agreement, TCI may rescind its designation of the other Parties as covered entities with respect to TCI’s membership in MPA.

7.    Parent Guaranties and COFRs.  For TLLP Facilities that are operated, leased or subleased by a TLLP Party, but are owned or leased by a Tesoro Party, then the Tesoro Party or its parent, Tesoro Corporation, may be required to post or provide a parent guaranty or a Certificate of Financial Responsibility (“COFR”) to demonstrate adequate financial ability to pay for any Incident Response Costs that might be associated with Incidents at such TLLP Facility.  The TLLP Party operating, leasing or subleasing the TLLP Facility shall release, defend, indemnify and hold harmless the Tesoro Party owning or leasing such TLLP Facility from and against any such Incident Response Costs as provided herein and any other damages, losses, expenses or fees which the Tesoro Party may incur under the Tesoro Party’s parent guaranty or COFR resulting from the TLLP Party’s operation leasing or subleasing of the TLLP Facility prior to acceptance by the California Department of Fish and Game of TLO’s COFR.  Tesoro Corporation shall be (i) subrogated to the rights of such Tesoro Party to receive such reimbursement to the extent that Tesoro Corporation is obligated to pay or guarantee payment of such Incident Response Costs pursuant to any such parent guaranty or COFR, and (ii) entitled to receive reimbursement from TLLP for any incremental costs or expenses incurred by it or a Tesoro Party in connection with the posting of a COFR for a TLLP Facility. In the event of a conflict of provisions of this Agreement and the provisions of the Carson Asset Indemnity Agreement dated as of the date hereof, by and among TLGP, TLLP, TLO, Tesoro Corporation, and TRMC, the provisions of the Carson Asset Indemnity Agreement shall prevail with respect to issues related to the contribution of the assets described therein, but not with respect to the ordinary operations of such assets.

8.    Responsible Party.  It may be required, or deemed advantageous that Tesoro Facilities and TLLP Facilities be covered by a single oil spill response plan or permit approved by federal, state or local agencies.  In such instances, either a Tesoro Party or a TLLP Party may be listed in the plan or permit as the responsible party for such facility or facilities, and the applicable Party listed as the responsible party in such permit or approved plan may act as the representative of the other Parties subject to such permits or plans in dealings with the appropriate agencies and governmental authorities charged with approving and administering such plans and permits.  In such instances the Party acting as such representative shall act pursuant to the provisions of this Agreement, and each of the other Parties covered by such plan or permit shall be responsible for reimbursements and indemnities for associated costs and liabilities pursuant to the terms of this Agreement.

9.    Miscellaneous.
(a)    Assignment.  This Agreement shall be binding upon the Parties and their respective successors and assigns, provided however, that no Party may assign its interests under this Agreement without the consent of all the Parties hereto.
(b)    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.
(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 state or federal district court of competent jurisdiction in Bexar County, Texas.  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)    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.  
(e)    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; provided however, that Tesoro Corporation shall be a third party beneficiary of all indemnities and 

reimbursement rights provided to the Tesoro Parties hereunder as provided in Section 7 above.  No insurer or third party other than Tesoro Corporation or TLLP shall be entitled to assert subrogation, indemnity or contribution rights against any Party with respect to any Incident or as a result of the provisions of this Agreement or TCI acting as the representative of the other Parties as a member in MPA or a party to agreements with MSRC.
(f)    Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be valid and effective under applicable law, but if any provision of this Agreement or the application of any such provision to any person or circumstance will be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision hereof, and the Parties will negotiate in good faith with a view to substitute for such provision a suitable and equitable solution in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid, illegal or unenforceable provision.
(g)    Counterparts.  This Agreement may be executed in one or more counterparts 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. This Agreement shall be binding upon a Party at the time such Party and TCI have executed a counterpart of this Agreement.
[Signature Page Follows]

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the date first written above. 
	
		
	TESORO PARTIES:
	 

	TESORO COMPANIES, INC.

CARSON COGENERATION COMPANY

By:  /s/ Gregory J. Goff                                     
Name: Gregory J. Goff
Title:   Chairman of the Board of Directors and President
	TESORO MARITIME COMPANY

By: /s/ Mark D. Wilson                                
Name: Mark D. Wilson
Title:   Chairman of the Board of Directors and President

	

TESORO REFINING & MARKETING COMPANY LLC

TESORO ALASKA COMPANY LLC

TESORO GREAT PLAINS MIDSTREAM LLC

TESORO GREAT PLAINS GATHERING & MARKETING LLC

BAKKENLINK PIPELINE LLC

ND LAND HOLDINGS LLC

TESORO ALASKA TERMINALS LLC

By:  /s/ Gregory J. Goff                                        
Name: Gregory J. Goff
Title:   Chairman of the Board of Managers and President
	

KENAI PIPE LINE COMPANY

By:  /s/ Cynthia J. Warner                            
Name: Cynthia J. Warner
Title:    President 

 

Signature Page to Second Amended and Restated Representation and Services Agreement

	
		
	TLLP PARTIES:
	 

	TESORO ALASKA PIPELINE COMPANY LLC

TESORO LOGISTICS OPERATIONS LLC

TESORO HIGH PLAINS PIPELINE COMPANY LLC

TESORO LOGISTICS PIPELINES LLC

TESORO LOGISTICS NORTHWEST PIPELINE LLC

TESORO SOCAL PIPELINE COMPANY LLC

QEP FIELD SERVICES, LLC

QEPM GATHERING I, LLC

GREEN RIVER PROCESSING, LLC

RENDEZVOUS PIPELINE COMPANY, LLC

By: /s/ Phillip M. Anderson                             
Name: Phillip M. Anderson
Title:   President
	 

 Signature Page to Second Amended and Restated Representation and Services Agreement

 
Exhibit A

JOINDER AGREEMENT
TO THE SECOND AMENDED AND RESTATED 
REPRESENTATION AND SERVICES AGREEMENT FOR OIL SPILL CONTINGENCY PLANNING, RESPONSE AND REMEDIATION

The undersigned hereby executes the Second Amended and Restated Representation and Services Agreement for Oil Spill Contingency Planning, Response and Remediation (the “Agreement”), authorizes this signature page to be attached as a counterpart of the Agreement, and hereby agrees to become a party to, to be bound by and to comply with the terms and provisions of the Agreement (which it represents it has reviewed and understands) as [**a “Tesoro Party”**] [**“TLLP Party”**](as defined in the Agreement) and this signature page shall constitute a counterpart copy of the Agreement.

__________________________________

By:       ____________________________

Name:    ____________________________

Title:    ____________________________

AGREED AND ACCEPTED:

TESORO COMPANIES INC.

By:      ____________________________

Name:    ____________________________

Title:    ____________________________Exhibit

Exhibit 10.4

THIRD AMENDED AND RESTATED SCHEDULES
TO THIRD AMENDED AND RESTATED OMNIBUS AGREEMENT
A Third Amended and Restated Omnibus Agreement was executed as of July 1, 2014, and amended as of December 31, 2014 and July 1, 2015 (collectively, the “Third Amended and Restated Omnibus Agreement”), among Tesoro Corporation, on behalf of itself and the other Tesoro Entities, Tesoro Refining & Marketing Company LLC, Tesoro Companies, Inc., Tesoro Alaska Company LLC, Tesoro Logistics LP and Tesoro Logistics GP, LLC, as amended by the First Amended and Restated Schedules to Third Amended and Restated Omnibus Agreement, executed November 12, 2015 and the Second Amended and Restated Schedules to Third Amended and Restated Omnibus Agreement, executed July 1, 2016.  Capitalized terms not otherwise defined in this document shall have the terms set forth in the Third Amended and Restated Omnibus Agreement. 
The Parties agree that the Schedules are hereby amended and restated in their entirety as of the date hereof to be as attached hereto.  Pursuant to Section 9.12 of the Third Amended and Restated Omnibus Agreement, such amended and restated Schedules shall replace the prior Second Amended and Restated Schedules as of the date hereof and shall be incorporated by reference into the Third Amended and Restated Omnibus Agreement for all purposes.
Executed effective as of September 16, 2016.

TESORO CORPORATION

By:      /s/ Gregory J. Goff                                                     
Gregory J. Goff
President and Chief Executive Officer

TESORO REFINING & MARKETING COMPANY LLC
TESORO COMPANIES, INC.
TESORO ALASKA COMPANY LLC

By:      /s/ Gregory J. Goff                                                    
Gregory J. Goff
President

TESORO LOGISTICS LP

By:    Tesoro Logistics GP, LLC, its
general partner

		
	By:  
	/s/ Phillip M. Anderson                                              

Phillip M. Anderson 
President 

TESORO LOGISTICS GP, LLC

		
	By:  
	/s/ Phillip M. Anderson                                              

Phillip M. Anderson 
President 

Signature Page to Third Amended and Restated 
Schedules to Third Amended and Restated Omnibus Agreement

Schedule I
Pending Environmental Litigation 
For Initial Contribution Agreement listed on Schedule VII:

None.  

For Amorco Contribution Agreement listed on Schedule VII:

None.

For Long Beach Contribution Agreement listed on Schedule VII:

The soil and groundwater on the southern central portion of the site near the 24 inch crude oil line have been impacted with hydrocarbons from a release from the line first observed in September 2011. The California Regional Water Quality Control Board issued an Investigative Order dated September 30, 2011 and to date all requirements of the order have been met.  Additional investigative or remedial activities may be required.

For Anacortes Rail Facility Contribution Agreement listed on Schedule VII:

None.

For BP Carson Tranche 1 Contribution Agreement listed on Schedule VII:

The environmental indemnification provisions of the Carson Assets Indemnity Agreement dated as of December 6, 2013 (“Carson Assets Indemnity Agreement”), among the Partnership, the General Partner, Tesoro Logistics Operations LLC (the “Operating Company”) and TRMC, supersede in their entirety the environmental indemnification provisions of Article III of the Third Amended and Restated Omnibus Agreement, except as otherwise expressly provided in the Carson Assets Indemnity Agreement.

For BP Carson Tranche 2 Contribution Agreement listed on Schedule VII:

The environmental indemnification provisions of the Carson Assets Indemnity Agreement supersede in their entirety the environmental indemnification provisions of Article III of the Third Amended and Restated Omnibus Agreement, except as otherwise expressly provided in the Carson Assets Indemnity Agreement.

For West Coast Assets Contribution Agreement listed on Schedule VII:

None.

For 2015 Line 88 and Carson Tankage Contribution Agreement listed on Schedule VII:

None.

Page 1/2 of Schedule I to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

For 2016 Alaska Assets Contribution Agreement listed on Schedule VII:

KENAI TANKAGE:  Tesoro, Tesoro Alaska, TRMC, the Partnership and the General Partner are subject to a pending consent decree with the United States Environmental Protection Agency and the Department of Justice pursuant to which injunctive relief will be ordered with respect a number of refineries (the “2016 Environmental Consent Decree”).

ANCHORAGE AND FAIRBANKS TERMINALS:  Tesoro, Tesoro Alaska, TRMC, the Partnership and the General Partner are subject to the pending 2016 Environmental Consent Decree pursuant to which injunctive relief will be ordered with respect a number of refineries.

The indemnification obligations of the Tesoro Entities under Section 3.1(a) of the Third Amended and Restated Omnibus Agreement with regard to the 2016 Environmental Consent Decree are limited as provided in Schedule IX.

Page 2/2 of Schedule I to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Schedule II

Environmental Matters 

For Initial Contribution Agreement set forth on Schedule VII:

1.  Anchorage #1 Terminal soil and groundwater have been impacted by gasoline and diesel releases from previously buried pipelines.  The site is considered characterized and is currently undergoing removal of product from the water table, groundwater treatment, and long-term monitoring.  

2.  Anchorage #2 Terminal soil and groundwater have been impacted by gasoline releases occurring prior to Tesoro’s purchase of the facility.  The site is considered characterized and is currently undergoing groundwater monitoring and treatment.  Off-site groundwater investigations are scheduled for 2012.  

3.  Stockton Terminal soil and groundwater have been impacted by gasoline and diesel releases from pipelines and/or product storage tanks.  The site is considered substantially characterized and is undergoing groundwater treatment and groundwater monitoring.  Off-site groundwater impacts are commingled with neighboring petroleum storage terminals.  

4.  Burley Terminal groundwater was impacted by gasoline releases occurring prior to Tesoro’s purchase of the facility.  Groundwater impacts were commingled with neighboring petroleum storage terminals.  Hydrocarbon concentrations in groundwater samples do not exceed previously established target levels for groundwater and surface water protection.  Regulatory closure is pending.  

5.  Wilmington Sales Terminal soil and groundwater have been impacted by gasoline releases occurring prior to Tesoro’s purchase of the facility.  Groundwater investigation and monitoring is on-going.  Tesoro is indemnified by the previous owner for Investigation and remediation obligations.  

6.  Salt Lake City Terminal soil and groundwater have been impacted by gasoline and diesel releases from pipelines and/or product storage tanks occurring prior to Tesoro’s purchase of the facility.  The site is considered characterized and is currently undergoing removal of product from the water table and long-term monitoring.  There are no known soil or groundwater impacts at the Northwest Crude Oil tank farm.  

7.  The Stockton Terminal emits volatile organic compounds (VOCs) below “major source” emission criteria.  In 2010, the San Joaquin Air Quality Management District announced it is reducing its major source threshold.  When the Stockton Terminal expands its operations or increases throughput, the potential to emit VOC will increase and the Stockton terminal will become subject to regulation as a major source.  This will require a Title V Air Operating Permit.  In addition, the Stockton facility will be required to install an automated continuous emission monitor at a cost of approximately $75,000.

Page 1/7 of Schedule II to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

For Amorco Contribution Agreement set forth on Schedule VII:

1.     The soil and groundwater on the site of the Tankage, as defined in the Amorco Contribution Agreement, have been impacted by methyl tertiary butyl ether releases from previously buried pipelines.  The site is considered characterized and is currently undergoing removal of methyl tertiary butyl ether from the water table, groundwater treatment, and long-term monitoring.  

2.     Any environmental violation or contamination due to SHPL, as defined in the Amorco Contribution Agreement, being underground prior to the Closing Date.

For Long Beach Contribution Agreement listed on Schedule VII:

1.     Any environmental violation or contamination, as defined in the Long Beach Contribution Agreement, prior to the Closing Date. 

2.     Any anomalies in the Pipeline System that require repair as discovered by the first internal line inspection of any portion of the Pipeline System for which TRMC is notified in writing prior to the First Deadline Date.

For Anacortes Rail Facility Contribution Agreement listed on Schedule VII:

None.

For BP Carson Tranche 1 Contribution Agreement listed on Schedule VII:

The environmental indemnification provisions of the Carson Assets Indemnity Agreement supersede in their entirety the environmental indemnification provisions of Article III of the Third Amended and Restated Omnibus Agreement, except as otherwise expressly provided in the Carson Assets Indemnity Agreement.

For BP Carson Tranche 2 Contribution Agreement listed on Schedule VII:

The environmental indemnification provisions of the Carson Assets Indemnity Agreement supersede in their entirety the environmental indemnification provisions of Article III of the Third Amended and Restated Omnibus Agreement, except as otherwise expressly provided in the Carson Assets Indemnity Agreement.

Page 2/7 of Schedule II to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

For West Coast Assets Contribution Agreement listed on Schedule VII:

1.    Nikiski Terminal. Subsurface soil and groundwater has not been assessed at this facility.  There have been no historic releases that have prompted a soil and groundwater investigations.   The area within the tank containment berms was lined with low-permeability soils in the early 1990s. The loading rack, fuel filters and piping manifolds are above concrete secondary containment.    

2.      Anacortes Light Ends Rail Facility and planned diesel truck rack areas.  Subsurface soil and groundwater has not been assessed at this area of the Anacortes refinery.  There have been no historic releases that have prompted a soil and groundwater investigation.

3.    Anacortes Storage Facility.  Historic tank overtopping events and tank bottom corrosion releases have impacted soil and groundwater in the shore tank area of the Anacortes refinery.  Groundwater near the shore tanks is monitored for natural attenuation. Groundwater between the tanks and the nearby shoreline has not been characterized, however the hydrocarbon concentrations in this area is not expected to be a threat to human health or the environment.

4.    Martinez Refinery LPG Loading Area.  Past waste disposal and hydrocarbon releases have impacted areas surrounding the Martinez Refinery LPG loading rack, pad and tanks.  Areas north and northeast of the rack were used for past waste disposal.  There are documented intra-refinery pipeline releases in the north and western boundaries of the LPG rack concrete pad.  The refinery plans to excavate and cap the nearby waste disposal area in 2017.  The pipeline releases are being remediated as part of the overall Martinez refinery cleanup. Soil and groundwater directly beneath the loading rack, propane tanks and truck pad have not been sampled.

5.    Tesoro Alaska Pipeline.

		
	•
	The pump station for the Tesoro Alaska Pipeline is adjacent to the Kenai Refinery Lower Tank Farm.  Multiple historic tank and buried pipeline releases have impacted soil and groundwater in the area; however there are no documented releases from the pipeline pump station. The soil and groundwater surrounding the pump station is considered characterized and undergoing groundwater monitoring and treatment.  

		
	•
	A pipeline release in 2001 resulted in soil, groundwater and surface water impacts in an undeveloped area of the Kenai Peninsula.  The quantity of the release is not known.  Soil surrounding the release was excavated and stockpiled at the Kenai Refinery while groundwater and surface water were remediated on-site.  The Alaska Department of Environmental Conservation issued a No Further Action letter for this cleanup effort in 2008.  There are no other known release sites on the pipeline between the Kenai Refinery and Anchorage.

Page 3/7 of Schedule II to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

		
	•
	Historic spills and releases have impacted the Anchorage #1 terminal, including past releases from the Tesoro Alaska Pipeline receiving station.  Groundwater remediation monitoring is ongoing across the Anchorage #1 terminal.  In addition, a soil vapor venting system is being installed to address a flame suppressant compound detected in soils near the receiving station control room.  

For 2015 Line 88 and Carson Tankage Contribution Agreement listed on Schedule VII:

None

For 2016 Alaska Assets Contribution Agreement listed on Schedule VII:

KENAI TANKAGE:

Area of significant groundwater and soil impacts:  (1) lower tank farm groundwater impact source area including 1988 jet fuel release and unknown light products release in area of Tank 63, (2) process unit historic releases from oily water sewer system including releases from failed grout in subsurface sewer hubs, (3) groundwater issues generally 35 to 40 feet below ground surface and groundwater impacts in three water-bearing zones below refinery and off-site and (4) possible contributor to refinery-wide groundwater impacts. 

ANCHORAGE AND FAIRBANKS TERMINALS:  

Pursuant to the Contribution, Conveyance and Assumption Agreement effective as of July 1, 2016 (the “Alaska Assets Contribution Agreement”), among Tesoro Logistics LP, a Delaware limited partnership (the “Partnership”), Tesoro Logistics GP, LLC, a Delaware limited liability company and the general partner of the Partnership (the “General Partner”), Tesoro Logistics Operations LLC, a Delaware limited liability company (the “Operating Company”), Tesoro Alaska Company LLC, a Delaware limited liability company (“TAC”) and Tesoro Corporation, a Delaware corporation (“Tesoro”), TAC contributed 100% of the limited liability company interests (the “TAT Interests”) in Tesoro Alaska Terminals LLC, a Delaware limited liability company (“TAT”), to the General Partner, the General Partner contributed 100% of the TAT Interests to the Partnership, and the Partnership contributed 100% of the TAT Interests to the Operating Company, all on the terms and conditions set forth in that contribution agreement.

Prior to the date of the Alaska Assets Contribution Agreement, TAT acquired certain assets defined as the “Anchorage and Fairbanks Terminals” in the Alaska Assets Contribution Agreement from Flint Hills Resources Alaska, LLC pursuant to an Asset Purchase Agreement, dated November 20, 2015 (the “Flint Hills APA”), by and between Flint Hills Resources Alaska, LLC and TAC.  As described in the Flint Hills APA, the following liabilities existed at the Anchorage and Fairbanks Terminals prior to the closing of the transactions contemplated under the Flint Hills APA:  

Anchorage Terminal:
		
	1.
	Deviations reported under Anchorage Air Permit No. AQ0235TVP03, Issue Date:  April 2, 2014, Effective Date: May 2, 2014

Page 4/7 of Schedule II to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

		
	•
	Flint Hills Resources Alaska, LLC did not submit a report as required under Condition 68 based upon defects listed in Condition 6.3 discovered during the out of service inspection conducted on T-4216 during July 2014.  The deviation report covering this incident is set out in the Flint Hills Resources Alaska, LLC deviation report dated January 29, 2015.

		
	•
	Flint Hills Resources Alaska, LLC did not report all emissions or operations that exceed or deviate from the requirements of its permit within 30 days of the end of the month in which the excess emission or deviation occurred.  The deviation report covering this incident is set out in the Flint Hills Resources Alaska, LLC deviation report dated January 29, 2015.

		
	•
	Flint Hills Resources Alaska, LLC did not perform preventative maintenance in accordance with 40 CFR Subpart ZZZZ within 365 days of effective date on EU IDs 7, 8, and 9.  The maintenance was performed 2 days after that date.  The deviation report covering this incident is set out in the Flint Hills Resources Alaska, LLC deviation report dated July 30, 2014.

		
	•
	Flint Hills Resources Alaska, LLC did not report all emissions or operations that exceed or deviate from the requirements of this permit within 30 days of the end of the month in which the excess emissions or deviation occurred.  The deviation report covering this incident is set out in the Flint Hills Resources Alaska, LLC deviation report dated January 29, 2015.

		
	•
	On April 10, 2014.  ADEC issued Flint Hills Resources Alaska, LLC a letter of Acceptance of the Anchorage Facility Compliance Certificate, and identified 4 deviations from the air permit.

		
	2.
	In a letter dated July 22, 2015, the ADEC indicated that the Anchorage Terminal Oil Discharge Prevention and Contingency Plan needed the additional information specified in the July 22, 2015 letter to be submitted in order for the plan renewal to be approved.  On September 2, 2015, the facility submitted the requested information and is awaiting ADEC approval.

		
	3.
	On May 15, 2015 Flint Hills Resources Alaska, LLC received a notice of failure to pay Air Quality fees relating to Air Permit No. AQ0235TVP03.  Those fees were paid on June 2, 2015.

		
	4.
	In a letter dated October 1, 2015, ADEC approved the facility’s request for a waiver of secondary containment, subject to the terms of the letter, until March 31, 2016.

		
	5.
	On July 24, 2014 ADEC issued a letter to Flint Hills Resources Alaska, LLC advising that Flint Hills Resources Alaska, LLC is a responsible party under Alaska law for the July 22, 2014 Anchorage Facility Jet Fuel release.

		
	6.
	On April 21, 2014, ADEC issued a letter to Flint Hills Resources Alaska, LLC advising it that Flint Hills Resources Alaska, LLC is a responsible party under Alaska law for the April 20, 2014 gasoline release.

Page 5/7 of Schedule II to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Fairbanks Terminal:
		
	(i)
	In a letter dated May 29, 2015, ADEC detailed items that needed correction related to ADEC’s May 19, 2015 inspection of the terminal and its Oil Discharge Prevention and Contingency Plan.  The facility has submitted a response to ADEC and is working with the agency to correct the identified items.

		
	(ii)
	On April 24, 2014 ADEC advised Flint Hills Resources Alaska, LLC that the Primary Response Action Contractor is no longer an ADEC approved and registered contractor.  Therefore, Flint Hills Resources Alaska, LLC’s Fairbanks Facility Oil Discharge Prevention and Contingency Plan was out of compliance and needed amendment.

		
	(iii)
	Two underground storage tanks are located at the Fairbank Terminal, both of which are used to store heating oil.  One underground storage tank was removed from the Purchased Site prior to Flint Hills Resources Alaska, LLC’s leasehold.

		
	(iv)
	Asbestos materials has been identified and are known to be located at the Anchorage Facility in the following locations:

	
			
	Material Type
	Location(s)
	EPA Category

	Gray Caulk 
(10% Chrysotile)
	Fire Pump Room, Warehouse
	Category II

	Sheetrock 
(4% Chrysotile)
	Boiler Room, Warehouse
	Category II

	Brown Insulation 
(5% Chrysotile)
	Heat Exchanger Building
	Category I

	Window Caulk 
(3% Chrysotile)
	Warehouse
	Category II

	Gray Mastic 
(10% Chrysotile)
	Concrete Pad Near Tank 4136
	Category II

	Black Mastic 
(6% Chrysotile)
	Concrete Pad Near Tank 4136
	Category II

	Black Mastic 
(17% Chrysotile)
	Exchanger on West Side of Asphalt Tank Farm
	Category II

	Black Mastic 
(6% Chrysotile)
	Piping located near railroad tracks on Ocean Dock Road.
	Category II

	Black Mastic 
(20% Chrysotile)
	Piping on side of Tank 4263, East Tank Farm
	Category II

	White Insulation 
(60% Chrysotile)
	Piping on side of Tank 4263, East Tank Farm
	Category I

	Mastic/Insulation 
(20% Chrysotile)
	Top skirt of Tank 4263, East Tank Farm
	Category I

	Mastic 
(15% Chrysotile)
	Sections of buried pipelines
	Category II

In the Flint Hills APA, Flint Hills Resources Alaska, LLC noted that it had no knowledge of other asbestos-containing material currently located at the sites purchased by TAT.  However, Flint Hills Resources Alaska, LLC noted that asbestos material has been removed in the past during renovation and/or demolition work at the purchased sites.
Page 6/7 of Schedule II to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Flint Hills Resources Alaska, LLC stated in the Flint Hills APA that it has no knowledge of polychlorinated biphenyls (“PCB”) material or equipment containing PCBs existing at the purchased sites.  Flint Hills Resources Alaska, LLC, however, noted that it understands that PCBs may have been present under prior lessees operations of the sites but has no direct knowledge of this.
Flint Hills Resources Alaska, LLC stated in the Flint Hills APA that it understands “disposal areas” to include areas where Hazardous Materials have been Released.  See Section 3.11(h) of Seller Disclosure Schedule under the Flint Hills APA for Flint Hills Resources Alaska, LLC’s knowledge regarding disposal areas on the Purchased Sites.  In addition, a significant amount of fill material was used to augment the elevation and stability of the soils beneath the Anchorage facility.  This fill included debris and materials such as such as wood, metal, and concrete.  Flint Hills Resources Alaska LLC stated in the Flint Hills APA that it has no knowledge that the fill material contained Hazardous Materials when it was placed on the site.
Flint Hills Resources Alaska, LLC stated in the Flint Hills APA that:

		
	1.
	On July 24, 2014 ADEC issued a letter to Flint Hills Resources Alaska, LLC advising that Flint Hills Resources Alaska, LLC is a responsible party under Alaska law for the July 22, 2014 Anchorage Facility Jet Fuel release.

		
	2.
	On April 21, 2014, ADEC issued a letter to Flint Hills Resources Alaska, LLC advising it that Flint Hills Resources Alaska, LLC is a responsible party under Alaska law for the April 20, 2014 gasoline release.

		
	3.
	In a letter dated July 22, 2015, ADEC indicated that the Anchorage Terminal Oil Discharge Prevention and Contingency Plan needed the additional information specified in the July 22 letter to be submitted in order for the plan renewal to be approved.  On September 2, 2015, the facility submitted the requested information and is awaiting ADEC approval.

Flint Hills Resources Alaska, LLC assumed all environmental liabilities known at the time the Purchased Facilities were acquired from Williams in 2004.

 

Page 7/7 of Schedule II to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Schedule III

Pending Litigation 

For Initial Contribution Agreement listed on Schedule VII:

None.

For Amorco Contribution Agreement listed on Schedule VII:

None.

For Long Beach Contribution Agreement listed on Schedule VII:

None.

For Anacortes Rail Facility Contribution Agreement listed on Schedule VII:

None.

For BP Carson Tranche 1 Contribution Agreement listed on Schedule VII:

None.

For BP Carson Tranche 2 Contribution Agreement listed on Schedule VII:

None.

For West Coast Assets Contribution Agreement listed on Schedule VII:

None.

For 2015 Line 88 and Carson Tankage Contribution Agreement listed on Schedule VII:

None.

For 2016 Alaska Assets Contribution Agreement listed on Schedule VII:

KENAI TANKAGE: None.

ANCHORAGE AND FAIRBANKS TERMINALS:  None.

Page 1/1 of Schedule III to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Schedule IV

Section 4.1(a): General and Administrative Services 

		
	(1)
	Executive management services of Tesoro employees who devote less than 50% of their business time to the business and affairs of the Partnership, including stock based compensation expense

		
	(2)
	Financial and administrative services (including, but not limited to, treasury and accounting)

		
	(3)
	Information technology services 

		
	(4)  
	Legal services

		
	(5)
	Health, safety and environmental services 

		
	(6) 
	Human resources services

 

Section 4.1(c)(vii): Other Reimbursable Expenses

For Initial Contribution Agreement listed on Schedule VII:

None.  

For Amorco Contribution Agreement listed on Schedule VII:

None.

For Long Beach Contribution Agreement listed on Schedule VII:

None.

For Anacortes Rail Facility Contribution Agreement listed on Schedule VII:

None.

For BP Carson Tranche 1 Contribution Agreement listed on Schedule VII:

None.

For BP Carson Tranche 2 Contribution Agreement listed on Schedule VII:

None.

Page 1/2 of Schedule IV to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

For West Coast Assets Contribution Agreement listed on Schedule VII:

None.

For 2015 Line 88 and Carson Tankage Contribution Agreement listed on Schedule VII:

None.

For 2016 Alaska Assets Contribution Agreement listed on Schedule VII:

KENAI TANKAGE:  None.

ANCHORAGE AND FAIRBANKS TERMINALS:  None.

Page 2/2 of Schedule IV to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Schedule V
ROFO Assets 
	
		
	Asset
	Owner

	Golden Eagle Avon Wharf Facility (Martinez, California).  A wharf facility located on the Sacramento River near the Golden Eagle Refinery consisting of a single-berth dock and related pipelines.  The facility does not have crude oil or refined products storage capacity and receives refined products from the Golden Eagle Refinery through interconnecting pipelines for delivery into marine vessels.  The facility can also receive refined products and intermediate feedstocks from marine vessels for delivery to the Golden Eagle Refinery.
	TRMC

	 
	 

	Nikiski Dock and Storage Facility (Nikiski, Alaska).  A single-berth dock and storage facility located at the Kenai Refinery that includes five crude oil storage tanks with a combined capacity of approximately 930,000 barrels, ballast water treatment capability and associated pipelines, pumps and metering stations.  The dock and storage facility receives crude oil from marine tankers and from local production fields via pipeline and truck, and also delivers refined products from the refinery to marine vessels.
	Tesoro Alaska

	 
	 

	Anacortes Marine Terminal (Anacortes, Washington).  A marine terminal located at the Anacortes Refinery consisting of a crude oil and refined products wharf facility.  The marine terminal receives crude oil and other feedstocks from marine vessels and third-party pipelines for delivery to the Anacortes Refinery. The facility also delivers refined products from the Anacortes Refinery to marine vessels.
	TRMC

	 
	 

Page 1/1 of Schedule V to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Schedule VI
Existing Capital and Expense Projects 
For Initial Contribution Agreement listed on Schedule VII:

Expense Projects

None.

Capital Projects

1.      That certain project related to AFE # 102120001, which provides for side stream ethanol blending into all gasoline at the Salt Lake City terminal by adding truck ethanol unloading capability, utilizing the existing premium day tank for ethanol and delivering premium direct from the Salt Lake City refinery tankage.  New ethanol truck unloading facilities will be installed.  New Pumps will also be installed for delivering higher volumes of premium gasoline from the Salt Lake City refinery to the Salt Lake City terminal.  An ethanol injection skid will be installed along with piping changing to the existing Salt Lake City terminal to allow the ethanol to be injected in the gasoline stream.  This project has been completed.

2.     That certain project AFE# 112120005 at the Mandan refinery, to update additive equipment to allow the offering of Shell additized gasoline.  This project has been completed.
3.     That certain project related to AFE # 107120005, which provides for ratio ethanol blending into gasoline on the rack at the Burley, Idaho Terminal by adding truck ethanol unloading capability, adding tankage for ethanol storage and installing new ethanol meters associated with each gasoline loading arm.  New ethanol truck unloading facilities will also be installed.  
4.     That certain project AFE# 104100015-M at the Mandan refinery, to update the truck rack sprinkler system.  This project has been completed.
5.     That certain project number AFE# 122120002 (TCM Idea# 2010113017) at the Mandan refinery, to upgrade the rack blending hydraulic system to reduce/eliminate inaccurate blends at the load rack.
6.     That certain project number TCM Idea # 2011433001 at the Mandan refinery, to move the JP8 to new bay and have three bays for loading product across the rack.  This project has been cancelled.
7.     That certain project number TCM Idea # 2011432602 at the Stockton terminal, install a continuous vapor emission monitor on the vapor recovery unit for compliance with air quality regulations.

Page 1/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

For Amorco Contribution Agreement listed on Schedule VII:
Expense Projects

All major expense projects that are within the scope of open Work Orders as of the applicable Closing Date.

Capital Projects

1.     That certain project related to AFE# 097100014 and AFE# 107100014 at the Amorco terminal, which provide repairs and upgrades to the wharf regarding MOTEMS standards.

2.     That certain project related to AFE# 112100001 at the Amorco terminal, which installs a jet mixer system for crude lab testing.

For Long Beach Contribution Agreement listed on Schedule VII:

Expense Projects

1.    Any cost that may be incurred to adjust diesel fuel tank vents near light fixtures after a review is conducted and if action is deemed necessary.

2.     Costs related to substantial repair or replacement project scheduled for 2012 and 2013 for the pipeline segments in the portion of the Southern California Edison right-of-way area immediately adjacent to the marine terminal to address corrosion, and include IO# 3021407 titled “SCA.Wilmington Edison Reroute” and IO# 3021749 titled “SCA.Edison Reroute 24 inch, 16 inch, 14 inch”. 

Capital Projects

1.      That certain project related to AFE# 072104079LBT titled “UG Piping - LBT” related to underground pipeline repairs at the Terminal. In addition, any subsequent new projects to address the same specific under-ground piping issues per AFE# 072104079LBT (i.e. a second phase UG Piping project) that would occur on or before the end of year 2015.

2.     That certain project related to the TCM Idea# 2012433432 AFE# 125120020 titled “LBT Berth 84a Loading Arm Replacement” which repairs or replaces the loading arms at the Terminal and any related AFE project that will occur upon final project approval to substantially repair or replace the loading arms at the Terminal. 

3.    That certain project related to the TCM Idea# 2012433433 AFE# 125120021 titled “LBT Berth 86 Loading Arm Replacement” which repairs or replaces the loading arms at the Terminal and any related AFE project that will occur upon final project approval to substantially repair or replace the loading arms at the Terminal. 

Page 2/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

4.     Any remaining costs of those certain projects related to the leak detection on the Terminal and Terminal Pipelines which are substantially complete and include AFE# 107110002, AFE# 117110001, AFE# 117110003, AFE# 117110002, and AFE# 125120002.
For Anacortes Rail Facility Contribution Agreement listed on Schedule VII: 

Expense Projects
None.
Capital Projects
Any capital costs or expenses that may be incurred for the installation of a custody transfer meter related to the AFE# 125120017 titled “CROF Custody Transfer Meter and Station”.
For BP Carson Tranche 1 Contribution Agreement listed on Schedule VII:
Expense Projects
Expenses associated with the API 653 internal inspection, the Carson Crude Terminal Tank 401  (AFE# 13E1219120001BP/WBS 19125.E012.975) scheduled to start in November 2013, including without limitation, cleaning of such Tank (including any waste removal) and any repairs to such Tank required as a result of such inspection.
Capital Projects
None. 
For BP Carson Tranche 2 Contribution Agreement listed on Schedule VII:
Expense Projects
1.    All 2013 and 2014 costs related to AFE# 136104215BP-M (PRISM ID 32503) for a partial replacement of Rhodia Sulfuric Acid Line 29 will be reimbursed by TRMC to cover the 2014 expenditure of $1.1 million for line neutralization, the pig run and tie-ins.  Subject to confirmation with the refinery on exact outage dates, the bulk of this cost will be incurred in March and April.
2.    All 2013 costs or 2013 carry-over costs related to AFE# 13E1012000002BP-M12 & 13E1012000002BP-M5 PRISM ID 32518 (under the 2013 AFE # 13E1012000002BP) for the Manual Entry Corrosion Program at Terminal 2 will be reimbursed by TRMC.  All 2014 costs will be covered by the Partnership’s 2013 budget.

Page 3/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

3.    All remaining 2013 inspection and repair costs related to AFE# 13E1012000002BP-M2 (PRISM ID 32549) associated with the Marine Terminal 2 - TK 218 - API 653 Internal Inspection only (not including repairs at this point) will be reimbursed by TRMC.  TRMC shall review and approve the tank repair scope and review inspection reports to prevent unnecessary upgrades or “urban renewal.”
4.    All remaining 2013 inspection and repair costs related to AFE# 13E1212000001-M (PRISM ID 31418) associated with the Marine Terminal 2 - TK 205 - API 653 Internal Inspection only (not including repairs at this point) will be reimbursed by TRMC.  TRMC shall review and approve the tank repair scope and review inspection reports to prevent unnecessary upgrades or “urban renewal.”
5.    Remaining expenses related to AFE# 13E1179000001-M (PRISM ID 32040) to upgrade PLC systems in the LA Basin will be reimbursed by TRMC.
6.    All remaining 2013 inspection and repair costs related to AFE# 13E1212000002-M (PRISM ID 31419) associated with the Marine Terminal 2 - TK 217 - API 653 Internal Inspection only (not including repairs at this point) will be reimbursed by TRMC.  TRMC shall review and approve the tank repair scope and review inspection reports to prevent unnecessary upgrades or “urban renewal.”
7.    All remaining expenses related to AFE# 136104222BP-M (PRISM ID 32556) associated with the Pipeline OQ Verification will be reimbursed by TRMC.
8.    All remaining 2013 inspection and repair costs related to AFE# 13E1012000006-M (PRISM ID 31409) associated with the Carson Products - TK VH1 - API 653 Inspection only (not including repairs at this point) will be reimbursed by TRMC.  TRMC shall review and approve the tank repair scope and review inspection reports to prevent unnecessary upgrades or “urban renewal.

Capital Projects

1.     Maintenance capital expenditures related to that certain AFE# 136104194BP-M (PRISM ID 32480) at Terminal 2 to replace all fire water piping at Berths 76, 77 and 78 areas of Terminal 2 in Long Beach, CA with new piping.  This project will also replace all associated valves, fixtures, monitors, and fire-fighting accessories.
2.    Maintenance capital expenditures related to that certain TCM Idea# 2013434229 (PRISM ID 25829) at Terminal 2 to replace the existing bladder type foam tank with two atmospheric tanks and foam skids located at either end of the facility along with new piping to support the installation.

Page 4/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

3.    Maintenance capital expenditures related to that certain TCM Idea# 2013434243 (PRISM ID 20054) at Terminal 2 to replace the existing loading arms at T2's Berth 77 and 78.  The current parts are so old that they are no longer readily available, so in order to properly maintain this equipment to minimize down-time for repairs, these arms should be replaced with the newest models.
4.    All capital expenditures related to that certain AFE# 136104077BP-M (PRISM ID 32481) for MOTEMS dock side piping upgrades at Terminal 2.
5.    Maintenance capital expenditures related to that certain AFE# 145120008 (PRISM ID 32560) at Terminal 2 to replace the main 12kV electrical switchgear that experienced electrical damage due to several factors: nearing its equipment service life, component degradation, exposure to the elements.  The main copper busbar component of the switchgear was recently replaced and dipped in epoxy coating.  However, during the repairs, cracks on the insulation of the main horizontal operating bus were discovered.  The exterior enclosure is slowly showing signs of corrosion and the glastic insulation materials are degrading.
6.    Upon TRMC’s approval to complete the following projects, all capital costs incurred to connect the Los Angeles Wilmington and Carson refinery systems, as well as the crude and product pipeline systems: TCM Idea# 2013434786, AFE# 132110022-M (TCM Idea# 2013434419), TCM Idea# 2013434788, AFE# 132110023-M (TCM Idea# 2013434417), AFE# 132110025-M (TCM Idea# 2013434418), AFE# 132110030-M (TCM Idea# 2013434420), AFE# 132110031-M (TCM Idea# 2013434784), TCM Idea# 2013434785 and AFE# 132110026  (TCM Idea# 2013434137).
7.    Upon TRMC’s approval to complete the project, all capital costs related to the project at Terminal 2 targeted to reduce Tesoro’s demurrage cost due to barge delivered additive alternative, under AFE# 132110024-M (TCM Idea# 2013434220).
8.    All capital costs related to AFE# 131907046, the implementation of an equivalent solution using Tesoro ECC 6 MOC module, including necessary configuration changes and customization of interfaces to be completed and executed in line with other transformation projects identified as part of integrating other BP assets such as TMS5 to DTN Guardian3, Load Tracker, etc. in the Logistics area.
9.    All capital costs related to AFE# 131907047.  As a part of the BP Carson Tranche 1 Contribution Agreement, Tesoro acquired Maximo, i-Maintain, Maximo Mobile and Primavera.  These applications are used for scheduling and managing routine maintenance tasks and planning capital projects (Primavera).  These business functions will be transitioned to SAP PM (using GWOS) and a TSO instance of Primavera.  This initiative should be performed in line with Maximo to SAP PM transformation project and with other logistics and refining projects.
10.    All capital costs related to AFE# 131907045.  This project, in conjunction with Tesoro's acquisition of the BP Carson City Refinery, is designed to transition and successfully integrate the Southwest's Logistics Mechanical Integrity Inspection System Information Technology assets into the Tesoro Information Technology application landscape.
For West Coast Assets Contribution Agreement listed on Schedule VII:
Page 5/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Expense Projects
1.    Nikiski Terminal. Tesoro Alaska shall reimburse the Partnership Group for any costs or expenses incurred by the Partnership Group to reinstate water supply to the Operating Company’s Nikiski Terminal in connection with the water suppression system. 

2.    Anacortes Light Ends Rail Facility. TRMC shall reimburse the Partnership Group for any costs and expenses incurred by the Partnership Group:
◦to determine the adequacy of fire water at the facility;
◦with respect to any modifications needed to be made to fire water system to provide adequate fire water; and
◦for relocation of the knockout drum, if relocation is required. 

3.    Anacortes Storage Facility

•TRMC shall reimburse the Partnership Group for any costs and expenses incurred by the Partnership Group to restore Tank 135 to API 653 specifications.  TRMC shall be deemed to be the generator of all hazardous waste and other waste removed from Tank 135 in connection with such cleaning and restoration and shall be responsible for all obligations arising as the generator of such hazardous waste and other waste.

•TRMC shall reimburse the Partnership Group for any costs and expenses incurred by the Partnership Group for decommissioning and repair of sewer lines for Tanks 165 and 166.

4.    Martinez Light Ends Rail Facility. TRMC shall reimburse the Partnership Group for any costs and expenses incurred by the Partnership Group:

◦to determine the adequacy of fire water at the facility; and
◦with respect to any modifications needed to be made to fire water system to provide adequate fire water.

5.    Martinez Clean Products Truck Rack. TRMC shall reimburse the Partnership Group for any costs and expenses incurred by the Partnership Group:

◦if required to supplement data currently available in the baseline inspections records in order to properly document corrosion, to carry out new tank corrosion inspections on Tanks 777, 778 and 890, as well as any repairs resulting from such inspections to meet API 653 standards; and
◦with respect to Tank 777, the tank berm size and tank proximity evaluation scheduled to completed by year-end 2014, as well as any required adjustments resulting therefrom.

6.    Martinez Light Ends Storage. If required to supplement data currently available in the baseline inspection records in order to properly document pipe integrity, TRMC shall reimburse the Partnership Group for any costs and expenses incurred by the Partnership Group

Page 6/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

 for inspections and analyses conducted to confirm baseline pipe integrity by year-end 2014, as well as any repairs arising from defects identified through such inspections.

7.    Tesoro Alaska Pipeline

•Tesoro shall reimburse the Partnership Group for any costs or expenses incurred by the Partnership Group to carry out the repairs and tests identified in the Coffman Engineers report dated May 8, 2014, including the planned hydro-test in 2015 and any resulting repairs therefrom. 

•Tesoro shall reimburse the Partnership Group for any costs or expenses incurred by the Partnership Group to carry out repairs identified pursuant to the inspection on the Tesoro Alaska Pipeline as a result of the inspection scheduled to begin June 30, 2014. 

Capital Projects
1.    All capital costs related to AFE# 125100055 - Additive reservoir tank and pumping system for the Nikiski Terminal truck loading rack.
2.    All capital costs related to AFE# 127100012 - Design, procure, and install Biodiesel Blending Facility at existing Martinez Tract 3 Truck Loading Rack.
3.    All capital costs related to AFE# 132100017 - Martinez gasoline loading rack filtration. 
4.    All capital costs related to AFE# 125110005 - Fabrication and installation of a skid-mounted clay treatment system at the Tesoro Alaska Pipeline Port of Anchorage delivery facility.
5.    All capital costs related to AFE# 125110007 - Provision of inline strainers upstream of the Kenai Pump station pipeline pumps and upstream of the Anchorage receiving station control valve. 
6.    All capital costs related to AFE# 124100034 - Purchase and installation of (5) IP CCTV Cameras, and security video monitoring station for Tesoro Alaska Pipeline Anchorage control room (located at the Port of Anchorage  Industrial Park), MLV 7 on Northernlights Blvd, and the  ASIG Filter Building located at Ted Stevens International Airport.
7.    All capital costs related to AFE# 145110002 regarding the installation of semi-deep cathodic protection wells, a new rectifier and electrical service at the Tesoro Alaska Pipeline. 
8.    All capital costs related to AFE# 124100030 regarding new CCTV monitoring system at the Nikiski Terminal.
9.    All capital costs related to AFE# 145120005 regarding a new cathodic protection anode bed and rectifier for the Nikiski Terminal.

Page 7/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

10.    All capital costs related to AFE# TBD regarding Fall Protection for Top Loading Tank Cars and Trucks.
11.    All capital costs related to AFE# 132100017 regarding the installation of a new Tract 3 Gasoline Loading Rack Filtration System to replace the existing rental units.
12.    All capital costs related to AFE# PTS 12475 regarding LPG Tank Car Loading Rack Improvements.
13.    All capital costs related to AFE# TBD regarding the installation of a system to add ExxonMobil additives to gasoline at the Tr. 3 truck loading rack.
14.    All capital costs related to AFE# 145110009 regarding the implementation of Tesoro Alaska Pipeline mainline delivery strainer.  

Page 8/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

For 2015 Line 88 and Carson Tankage Contribution Agreement listed on Schedule VII:

Capital Projects
TRMC shall reimburse the Partnership Group for: 
1.Upon mutual consent on project scope between TRMC and the Partnership, TRMC shall reimburse the Partnership Group for all capital costs incurred for the execution of the following piping systems projects: AFE# 136104160BP (TCM Idea# 2013218160), TCM Idea# 2013212538, TCM idea# 2013212540 and TCM Idea# 2013212539.  For any such projects listed above in this section 1 that are required to maintain safe operation of the Assets, the Partnership shall determine the final project scope in its sole discretion.

2.Upon mutual consent on project scope between TRMC and the Partnership, TRMC shall reimburse the Partnership Group for all capital costs incurred for the execution of the following instrumentation and control projects: AFE# 154100014 (TCM Idea# 2014217001), TCM Idea #2014217008, AFE# 136104169BP (TCM Idea# 2013218169), AFE# 136104190BP (TCM Idea# 2013218190), TCM Idea# 2013212558, and TCM Idea # 2014217023.  For any such projects listed above in this section 2 that are required to maintain safe operation of the Assets, the Partnership shall determine the final project scope in its sole discretion.

3.Upon mutual consent on project scope between TRMC and the Partnership, TRMC shall reimburse the Partnership Group for all capital costs incurred for the execution of the following tank improvements: TCM Idea# 2014217135 (tk 56), TCM Idea# 2013212585 (tk 1), TCM Idea# 2014217132 (tk 90), TCM Idea# 2014217133 (tk 11), TCM Idea# 2013212575 (tk 34),  TCM Idea # 2013212587 (tk 35), TCM Idea# 2013212588 (tk 10), TCM Idea# 2013212589 (tk 58), TCM Idea# 2013212592 (tk 39), TCM Idea# 2013212593 (tk 968), TCM Idea# 2013212595 (tk 60), TCM Idea# 2013212596 (tk 69), TCM Idea # 2013212597 (tk 57), TCM Idea# 2013212599 (tk 51).  For any such projects listed above in this section 3 that are required to maintain safe operation of the Assets, the Partnership shall determine the final project scope in its sole discretion.

4.All capital costs related to the repair or replacement of brick structure piping supports, with the scope of repairs to be developed in 2016 and the execution of such repairs to be completed in 2017. 

5.All capital costs related to the upgrade or replacement of the cathodic protection system for the tanks as identified through a cathodic protection assessment to be completed prior to year end 2016.  An action plan will be developed to address recommendations identified through the assessment.  The program is expected to commence in 2016 and will be executed over a 4-year period.

6.All capital costs related to the multi-phase upgrade or replacement of tank level measurement and transmitter instruments, upon mutual consent of TRMC and the Partnership of the scope for the multi-year project.  Notwithstanding the foregoing, the Partnership in its 

Page 9/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

sole discretion shall determine the final scope of any element of the tank level instrument upgrade project required to maintain safe operation of the Assets. TRMC’s reimbursement to the Partnership Group for capital costs incurred during the Term to complete the tank level instrument upgrade or replacement project shall not exceed $15,000,000 in the aggregate.  

Expense Projects

1.With respect to the Remaining Pipeline 88 Interest (as defined in the 2015 Line 88 and Carson Tankage Contribution Agreement listed on Schedule VII), TRMC shall reimburse the Partnership for any costs and expenses associated with curing any anomalies identified by the August 2015 in-line inspection thereof.  

2.With respect to the Tankage (as defined in the 2015 Line 88 and Carson Tankage Contribution Agreement listed on Schedule VII), as well as the land on which such Tankage is located, TRMC shall reimburse the Partnership for any costs and expenses associated with any liabilities, costs and expenses that might be imposed upon the Partnership as operator of the Tankage and which relate to the environmental condition of the land on which the Tankage is located and surrounding lands, including but not limited to any government-imposed fines or remediation costs and natural resource damages, but excluding (i) any liabilities, costs and expenses that arise from any releases or discharges of hydrocarbons or other substances from the Tankage after the date hereof or (ii) any liabilities, costs and expenses that arise from negligent acts or omissions or willful misconduct of the Partnership and its agents, contractors and representatives.  

3.Until the later of (i) November 12, 2020 or (ii) the completion of any repairs identified by any applicable non-invasive or external inspections that occurred prior to such date, TRMC shall reimburse the Partnership Group for any costs and expenses incurred by the Partnership Group to restore any tank included in the 2015 Line 88 and Carson Tankage Contribution Agreement listed on Schedule VII to API 653 or API 510 specifications that are identified through the Partnership Group’s non-invasive or external inspections.

4.During the term (including any extension thereof) of the Carson II Storage Services Agreement, dated as of November 12, 2015, by and among TRMC, the General Partner, the Partnership and the Operating Company (the “Carson II Storage Agreement”), TRMC shall reimburse the Partnership Group for any costs and expenses incurred by the Partnership Group to restore any tank included in the 2015 Line 88 and Carson Tankage Contribution Agreement listed on Schedule VII to API 653 or API 510 specifications, as determined by the results of the first scheduled internal inspection of any such tank after the date hereof (the “First Internal Inspection”).  TRMC shall be deemed to be the generator of all hazardous waste and other waste removed from any such tanks in connection with such cleaning and restoration and shall be responsible for all obligations arising as the generator of such hazardous waste and other waste.

		
	a)
	TRMC and the Operating Company shall mutually agree on the inspection schedule and the duration of such inspections so as to minimize disruption 

Page 10/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

within the Wilmington and Carson refinery systems, with TRMC having the right to approve the final inspection schedule.

		
	b)
	If TRMC fails to renew the Carson II Storage Services Agreement, prior to November 12, 2022, in accordance with the terms thereof, the Partnership Group may elect to accelerate API 653 or API 510 inspections prior to the expiration of the Carson II Storage Agreement.

5.Notwithstanding Sections 3 and 4 above, the parties agree that the following tanks included in the 2015 Line 88 and Carson Tankage Contribution Agreement listed on Schedule VII have been inspected, cleaned, and repaired to ensure compliance with API 653 or API 510 standards within the 24 months prior to the date hereof, and are excluded from the reimbursement requirements listed above unless such actions fail to meet such compliance standards due to the negligence of TRMC:

	
		
	Tank Number
	Year of Last Inspection

	53
	2013

	87
	2013

	41
	2013

	4
	2013

	88
	2013

	5
	2013

	24
	2013

	325
	2013

	326
	2013

	45
	2014

	65
	2014

	89
	2014

	276
	2014

	289
	2014

	303
	2014

	340
	2014

	50
	2014

	302
	2014

	138
	2014

	139
	2014

	289
	2015

	65
	2015

	969
	2015

	40
	2015

	955
	2015

	194
	2015

Page 11/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

For 2016 Alaska Assets Contribution Agreement listed on Schedule VII:

KENAI TANKAGE: 

Capital Projects
TAC shall reimburse the Partnership Group for:
		
	1.
	Upon mutual consent on project scope between TAC and the Partnership, TAC shall reimburse the Partnership Group for all capital costs incurred for the execution of the following instrumentation and control projects: AFE# 2012217023 (TCM Idea# 137100002), TCM Idea# 2014216018, TCM Idea# 2007002425. For any such projects listed above in this section 2 that are required to maintain safe operation of the Assets, the Partnership shall determine the final project scope in its sole discretion.

		
	2.
	Upon mutual consent on project scope between TAC and the Partnership, TAC shall reimburse the Partnership Group for all capital costs incurred for the execution of the following tank improvements: TCM Idea# 2016216002, TCM Idea#2016216001. For any such projects listed above in this section 3 that are required to maintain safe operation of the Assets, the Partnership shall determine the final project scope in its sole discretion.

		
	3.
	All capital costs related to the assessment and upgrade or replacement of tank level measurement and transmitter instruments, upon mutual consent of TAC and the Partnership of the scope for the multi-year project. Notwithstanding the foregoing, the Partnership in its sole discretion shall determine the final scope of any element of the tank level instrument upgrade project required to maintain safe operation of the Assets. 

		
	4.
	All capital costs related to installation of tank liners during first API 653 inspection cycle to bring each tank into conformance with Alaska Department of Environmental Conversation standards.

		
	5.
	All capital costs related to the assessment and necessary upgrades of  cathodic protection system including:

		
	•
	Additional anode ground beds

		
	•
	Additional surface distributed anodes

		
	•
	Additional amperes of cathodic protection for on-grade storage tanks

		
	•
	Under tank monitoring systems

The program is expected to commence in 2016 and will be executed over a 3-year period.

		
	6.
	All capital costs related to internal inspection, assessment and repair of Tank 11 internal floating roof.

Expense Projects
		
	1.
	The parties agree that Tank 37 included in the Alaska Assets Contribution Agreement listed on Schedule VII have been inspected, cleaned, and repaired to ensure compliance 

Page 12/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

with API 653 or API 510 standards within the 24 months prior to the date hereof, and are excluded from the reimbursement requirements listed above unless such actions fail to meet such compliance standards due to the negligence of TAC.

		
	2.
	Any costs or expenses related to: 

		
	•
	Completion of pressure relief documentation, expected to be complete by year-end 2016.

		
	•
	Completion of area classification plans per NEC 500.4, expected to be complete by year-end 2017.

ANCHORAGE AND FAIRBANKS TERMINALS:

Capital Projects
TAC shall reimburse the Partnership Group for:
		
	1.
	All capital costs related to:

		
	a)
	Anchorage Terminal

		
	•
	Installation of permanent fire water pipeline supports with proper coating; expected to be complete by year-end 2017.

		
	•
	Assessment, evaluation and potential replacement of two deep anode ground beds (No. 2 and No. 5); expected to be completed within cathodic protection program by year-end 2018.

		
	•
	Installation of third tank floor on Tank 4236 with either new cathodic protection system or an El Segundo system; expected to be complete by year-end 2020.

		
	•
	Assessment and upgrades to add access platforms and roof protection to east side filter vessels; expected to be complete by year-end 2017.

		
	b)
	Fairbanks Terminal

		
	•
	Assessment, evaluation and potential replacement of two deep anode ground beds and installation of two new rectifiers to allow ground beds to be operated independently; expected to be completed within cathodic protection program by year-end 2018.

Expense Projects
		
	1.
	Any costs or expenses related to:

		
	a.
	Anchorage Terminal 

		
	•
	Inspection and assessment of buried product pipeline; expected to be complete by year-end 2017.

		
	•
	Assessment of manual operation of rail car sump tankage; expected to be complete by year-end 2017.

		
	b.
	Fairbanks Terminal - Any costs or expenses related to:

Page 13/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

		
	•
	Arc flash assessment; expected to be complete by year-end 2017.

Relief valve sizing and selection assessment; expected to be complete by year-end 2017.

Page 14/14 of Schedule VI to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Schedule VII
Contribution Agreements and Applicable Terms
Initial Contribution Agreement
	
								
	Contribution Agreement
	Closing Date
	First Deadline Date
	Second Deadline Date
	Tesoro Indemnifying Parties
	Tesoro Indemnified Parties
	Third Deadline Date
	Omnibus Section 5.1(b) Applies

	Contribution, Conveyance and Assumption Agreement, dated as April 26, 2011, among the Partnership, the General Partner, the Operating Company, Tesoro, Tesoro Alaska, TRMC and Tesoro High Plains Pipeline Company LLC 
	April 26, 2011
	April 26, 2013
	April 26, 2016
	TRMC and Tesoro Alaska
	TRMC
	April 26, 2021
	Yes

Page 1/9 of Schedule VII to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Amorco Contribution Agreement

	
								
	Contribution Agreement
	Closing Date
	First Deadline Date
	Second Deadline Date
	Tesoro Indemnifying Parties
	Tesoro Indemnified Parties
	Third Deadline Date
	Omnibus Section 5.1(b) Applies

	Contribution, Conveyance and Assumption Agreement dated as of April 1, 2012, among the Partnership, the General Partner, the Operating Company, Tesoro and TRMC
	April 1, 2012
	April 1, 2014
	April 1, 2017
	TRMC
	TRMC
	April 1, 2022
	Yes

Page 2/9 of Schedule VII to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Long Beach Contribution Agreement
	
								
	Contribution Agreement
	Closing Date
	First Deadline Date
	Second Deadline Date
	Tesoro Indemnifying Parties
	Tesoro Indemnified Parties
	Third Deadline Date
	Omnibus Section 5.1(b) Applies

	Contribution, Conveyance and Assumption Agreement executed as of September 14, 2012, among the Partnership, the General Partner, the Operating Company, Tesoro and TRMC
	Execution Date is September 14, 2012, and various Effective Times are upon receipt of the Long Beach Approval, the CDFG Approval and the Other Approvals as set forth in the agreement, as applicable
	September 14, 2014
	September 14, 2017
	TRMC
	TRMC
	September 14, 2022
	Yes

Page 3/9 of Schedule VII to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Anacortes Rail Facility Contribution Agreement
	
								
	Contribution Agreement
	Closing Date
	First Deadline Date
	Second Deadline Date
	Tesoro Indemnifying Parties
	Tesoro Indemnified Parties
	Third Deadline Date
	Omnibus Section 5.1(b) Applies

	Contribution, Conveyance and Assumption Agreement executed as of November 15, 2012, among the Partnership, the General Partner, the Operating Company, Tesoro and TRMC
	November 15, 2012
	November 15, 2014
	November 15, 2017
	TRMC
	TRMC
	November 15, 2022
	No

Page 4/9 of Schedule VII to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

BP Carson Tranche 1 Contribution Agreement
	
								
	Contribution Agreement
	Closing Date
	First Deadline Date
	Second Deadline Date
	Tesoro Indemnifying Parties
	Tesoro Indemnified Parties
	Third Deadline Date
	Omnibus Section 5.1(b) Applies

	Contribution, Conveyance and Assumption Agreement executed as of May 17, 2013, among the Partnership, the General Partner, the Operating Company, Tesoro and TRMC
	June 1, 2013
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	No

Page 5/9 of Schedule VII to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

BP Carson Tranche 2 Contribution Agreement
	
								
	Contribution Agreement
	Closing Date
	First Deadline Date
	Second Deadline Date
	Tesoro Indemnifying Parties
	Tesoro Indemnified Parties
	Third Deadline Date
	Omnibus Section 5.1(b) Applies

	Contribution, Conveyance and Assumption Agreement executed as of November 18, 2013, among the Partnership, the General Partner, the Operating Company, Tesoro, TRMC and Carson Cogeneration Company
	December 6, 2013
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	Not Applicable
	No

Page 6/9 of Schedule VII to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

West Coast Assets Contribution Agreement
	
								
	Contribution Agreement
	Closing Date
	First Deadline Date
	Second Deadline Date
	Tesoro Indemnifying Parties
	Tesoro Indemnified Parties
	Third Deadline Date
	Omnibus Section 5.1(b) Applies

	Contribution, Conveyance and Assumption Agreement executed as of June 23, 2014, among the Partnership, the General Partner, the Operating Company, Tesoro Logistics Pipelines LLC, Tesoro, TRMC and Tesoro Alaska
	First Closing Date: July 1, 2014
Second Closing Date has the meaning set forth in this Contribution Agreement
	The second (2nd) anniversary of the First Closing Date or the Second Closing Date, as applicable
	With respect to Section 3.1(a): Not applicable
With respect to Section 3.2: The fifth (5th) anniversary of the First Closing Date or the Second Closing Date, as applicable
	Tesoro, TRMC, Tesoro Alaska
	Tesoro, TRMC, Tesoro Alaska
	The tenth (10th) anniversary of the First Closing Date or the Second Closing Date, as applicable.
	Yes 

Page 7/9 of Schedule VII to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

2015 Line 88 and Carson Tankage Contribution Agreement
	
								
	Contribution Agreement
	Closing Date
	First Deadline Date
	Second Deadline Date
	Tesoro Indemnifying Parties
	Tesoro Indemnified Parties
	Third Deadline Date
	Omnibus Section 5.1(b) Applies

	Contribution, Conveyance and Assumption Agreement effective as of November 12, 2015, among the Partnership, the General Partner, the Operating Company, Tesoro SoCal Pipeline Company LLC, Tesoro, TRMC and Carson Cogeneration Company
	November 12, 2015
	November 12, 2017
	November 12, 2020
	Tesoro, TRMC, Carson Cogen
	Tesoro, TRMC, Carson Cogen
	November 12, 2025
	Yes

Page 8/9 of Schedule VII to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

2016 Alaska Assets Contribution Agreement
	
								
	Contribution Agreement
	Closing Date
	First Deadline Date
	Second Deadline Date
	Tesoro Indemnifying Parties
	Tesoro Indemnified Parties
	Third Deadline Date
	Omnibus Section 5.1(b) Applies

	Contribution, Conveyance and Assumption Agreement effective as of July 1, 2016, among the Partnership, the General Partner, the Operating Company, Tesoro Alaska Company LLC, and Tesoro 
KENAI TANKAGE
	July 1, 2016
	July 1, 2018
	July 1, 2021
	Tesoro Alaska Company LLC
	Not applicable
	July 1, 2026
	Yes

	Contribution, Conveyance and Assumption Agreement effective as of July 1, 2016, among the Partnership, the General Partner, the Operating Company, Tesoro Alaska Company LLC, and Tesoro 
ANCHORAGE AND FAIRBANKS TERMINALS
	The Second Closing Date under the Contribution Agreement (the “Second Closing Date”)
	Two years after the Second Closing Date
	Seven years after the Second Closing Date
	Tesoro Alaska Company LLC
	Not applicable
	Ten years after the Second Closing Date
	Yes

Page 9/9 of Schedule VII to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Schedule VIII
Administrative Fee and Indemnification Deductibles
Monthly Administrative Fee 
$858,333.33
Annual Environmental Deductible 
$800,000

Annual ROW Deductible 
$800,000

Page 1/1 of Schedule VIII to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

Schedule IX
Special Indemnification Provisions
For Initial Contribution Agreement listed on Schedule VII:

None.  

For Amorco Contribution Agreement listed on Schedule VII:

Addition to Right of Way Indemnification.  As of the Closing Date for the Amorco Contribution Agreement, TRMC shall own the leasehold rights in the “Wharf Lease” issued by the California State Lands Commission and the easements, rights of way and permits for the “SHPL,” all as defined in the Amorco Contribution Agreement, and the Partnership Group shall provide operational, maintenance and management services with respect to such Assets pursuant to the MTUTA.  Title to Wharf Lease rights and the SHPL are scheduled to be contributed to the Partnership Group at a later date, as set forth in the Amorco Contribution Agreement.  The Right of Way Indemnification set forth in Section 3.2 herein applies to the extent that a Loss arises with respect to a Partnership Group Member’s interests under the MTUTA before title to such Assets is contributed to the Partnership Group Member or with respect to a Partnership Group Member’s failure to become the owner of such valid and indefeasible easement rights or fee ownership or leasehold interests in such Assets after they are finally contributed to the Partnership Group as contemplated in the Amorco Contribution Agreement.  The Closing Date provided for in this Agreement shall be as set forth above, without regard to when title to these Assets is finally contributed to a Partnership Group Member. 
For Long Beach Contribution Agreement listed on Schedule VII:

Addition to Right of Way Indemnification.  As of the Closing Date for the Long Beach Contribution Agreement, TRMC shall own the leasehold rights in the “Terminal Lease” issued by the Port of Long Beach and the easements, rights of way and permits for the “Terminal Pipelines,” all as defined in the Long Beach Contribution Agreement, and the Partnership Group shall provide operational, maintenance and management services with respect to such Assets pursuant to the Long Beach Operating Agreement, as defined in the Long Beach Contribution Agreement.  Title to Terminal Lease rights and the Terminal Pipelines are scheduled to be contributed to the Partnership Group at a later date, as set forth in the Long Beach Contribution Agreement.  The Right of Way Indemnification set forth in Section 3.2 herein applies to the extent that a Loss arises with respect to a Partnership Group Member’s interests under the BAUTA before title to such Assets is contributed to the Partnership Group Member or with respect to a Partnership Group Member’s failure to become the owner of such valid and indefeasible easement rights or fee ownership or leasehold interests in such Assets after they are finally contributed to the Partnership Group as contemplated in the Long Beach Contribution Agreement.  The Closing Date provided for in this Agreement shall be as set forth above, without regard to when title to these Assets is finally contributed to a Partnership Group Member.

Page 1/5 of Schedule IX to Third Amended and Restated Schedules to 
Third Amended and Restated Omnibus Agreement

 For Anacortes Rail Facility Contribution Agreement listed on Schedule VII:

Other. Notwithstanding any other provisions of (i) the Third Amended and Restated Omnibus Agreement, (ii) the Anacortes Track Use and Throughput Agreement among the General Partner, the Partnership, the Operating Company and TRMC, (iii) the Anacortes Mutual Track Use Agreement among the General Partner, the Partnership, the Operating Company and TRMC, and (iv) the Ground Lease between TRMC and the Operating Company, all dated as of November 15, 2012, the parties hereto agree that the indemnification provisions of any of those agreements shall control over any of the other agreements to the extent the subject matter of the indemnification is specifically referenced or provided for in that agreement.  For the avoidance of doubt, the indemnification provisions of the Third Amended and Restated Omnibus Agreement shall be subordinate to the respective indemnification provisions of each of the other agreements referenced above.

For BP Carson Tranche 1 Contribution Agreement listed on Schedule VII:

Other. Notwithstanding any other provisions of (i) the Third Amended and Restated Omnibus Agreement, (ii) the BP Carson Tranche 1 Contribution Agreement listed on Schedule VII, (iii) the Master Terminalling Services Agreement - Southern California among TRMC, the General Partner, the Partnership and the Operating Company dated as of June 1, 2013, as amended, and (iv) the Carson Storage Services Agreement among TRMC, the General Partner, the Partnership and the Operating Company dated as of June 1, 2013, the parties hereto agree that the indemnification provisions of any of those agreements shall control over any of the other agreements to the extent the subject matter of the indemnification is specifically referenced or provided for in that agreement.  In the event of a conflict of provisions of any of the above-referenced agreements and the Carson Assets Indemnity Agreement, the provisions of the Carson Assets Indemnity Agreement shall prevail with respect to issues related to the contribution of the assets described therein, but not with respect to the ordinary operations of such assets as set forth in the above-referenced agreements.  Notwithstanding anything to the contrary in the Third Amended and Restated Omnibus Agreement, the indemnification provisions of Sections 3.2 and 3.5 thereof shall not apply to the Assets as defined in the BP Carson Tranche 1 Contribution Agreement listed on Schedule VII.

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For BP Carson Tranche 2 Contribution Agreement listed on Schedule VII:

Other. Notwithstanding any other provisions of (i) the Third Amended and Restated Omnibus Agreement, (ii) the BP Carson Tranche 2 Contribution Agreement listed on Schedule VII, (iii) the Amended and Restated Master Terminalling Services Agreement - Southern California among TRMC, the General Partner, the Partnership and the Operating Company dated as of December 6, 2013, (iv) the Long Beach Storage Services Agreement among TRMC, the General Partner, the Partnership and the Operating Company dated as of December 6, 2013, (v) the Berth 121 Operating Agreement between the Operating Company and Carson Cogeneration Company, dated as of December 6, 2013, (vi) the Terminals 2 and 3 Operating Agreement among the Partnership, the General Partner, the Operating Company and TRMC, dated as of December 6, 2013, (vii) the Amended and Restated Long Beach Berth Access Use and Throughput Agreement among the Partnership, the General Partner, the Operating Company and TRMC, dated as of December 6, 2013, (viii) the Long Beach Berth Throughput Agreement among the Partnership, the General Partner, the Operating Company, TRMC and Carson Cogeneration Company, dated as of December 6, 2013, (ix) the SoCal Transportation Services Agreement between TRMC and Tesoro SoCal Pipeline Company LLC, dated as of December 6, 2013, (x) the Long Beach Pipeline Throughput Agreement among the Partnership, the General Partner, the Operating Company and TRMC, dated as of December 6, 2013, (xi) the Carson Coke Handling Services Agreement among the Partnership, the General Partner, the Operating Company and TRMC, dated as of December 6, 2013, (xii) the Coke Barn Lease Agreement between the Operating Company and TRMC, dated as of December 6, 2013 and (xiii) the Terminals 2 and 3 Ground Lease between the Operating Company and TRMC, dated as of December 6, 2013, the parties hereto agree that the indemnification provisions of any of those agreements shall control over any of the other agreements to the extent the subject matter of the indemnification is specifically referenced or provided for in that agreement.  In the event of a conflict of provisions of any of the above-referenced agreements and the Carson Assets Indemnity Agreement, the provisions of the Carson Assets Indemnity Agreement shall prevail with respect to issues related to the contribution of the assets described therein, but not with respect to the ordinary operations of such assets as set forth in the above-referenced agreements.

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For West Coast Assets Contribution Agreement listed on Schedule VII:

Other. Notwithstanding any other provisions of (i) the Third Amended and Restated Omnibus Agreement, (ii) the Terminalling Services Agreement - Nikiski, among the General Partner, the Partnership, the Operating Company and Tesoro Alaska, (iii) the Terminalling Services Agreement - Anacortes, among the General Partner, the Partnership, the Operating Company and TRMC, (iv) the Terminalling Services Agreement - Martinez, among the General Partner, the Partnership, the Operating Company and TRMC, and (v) the Storage Services Agreement - Anacortes, the Terminalling Services Agreement - Anacortes, among the General Partner, the Partnership, the Operating Company and TRMC, the parties hereto agree that the indemnification provisions of any of those agreements shall control over any of the other agreements to the extent the subject matter of the indemnification is specifically referenced or provided for in that agreement. In the event of a conflict of provisions of any of the above-referenced agreements and the Third Amended and Restated Omnibus Agreement, the provisions of the Third Amended and Restated Omnibus Agreement shall prevail with respect to issues related to the contribution of the assets described therein, but not with respect to the ordinary operations of such assets as set forth in the above-referenced agreements.

For 2015 Line 88 and Carson Tankage Contribution Agreement listed on Schedule VII:

Other. Notwithstanding any other provisions of (i) the Third Amended and Restated Omnibus Agreement, (ii) the Carson II Storage Agreement, and (iii) Amendment No. 1 to the (SoCal) Transportation Services Agreement dated November 12, 2015, between TRMC and Tesoro SoCal Pipeline Company LLC, the parties hereto agree that the indemnification provisions of any of those agreements shall control over any of the other agreements to the extent the subject matter of the indemnification is specifically referenced or provided for in that agreement.  In the event of a conflict of provisions of any of the above-referenced agreements and the Third Amended and Restated Omnibus Agreement, the provisions of the Third Amended and Restated Omnibus Agreement shall prevail with respect to issues related to the contribution of the assets described therein, but not with respect to the ordinary operations of such assets as set forth in the above-referenced agreements.

For 2016 Alaska Assets Contribution Agreement listed on Schedule VII:

 Other.  The Partnership Group agree that, after the Effective Date, they shall not knowingly breach any covenants of TAC contained in that certain Asset Purchase Agreement dated as of November 20, 2015 by and between Flint Hills Resources Alaska, LLC and TAC (the “Flint Hills APA”) as if the Partnership Group were parties thereto instead of TAC.  

Notwithstanding any other provisions of (i) the Third Amended and Restated Omnibus Agreement, (ii) the Kenai Storage Services Agreement, and (iii) the Alaska Terminalling Services Agreement, the parties hereto agree that the indemnification provisions of any of those agreements shall control over any of the other agreements to the extent the subject matter of the indemnification is specifically referenced or provided for in that agreement.  In the event of a conflict of provisions of any of the above-referenced agreements and the Third Amended and Restated Omnibus Agreement, the provisions of the Third Amended and Restated Omnibus 

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Agreement shall prevail with respect to issues related to the contribution of the assets described therein, but not with respect to the ordinary operations of such assets as set forth in the above-referenced agreements.

Notwithstanding any other provisions of the Third Amended and Restated Omnibus Agreement, the indemnification obligations of the Tesoro Entities under Section 3.1(a) of the Third Amended and Restated Omnibus Agreement with regard to the 2016 Environmental Consent Decree are limited to reimbursement for any capital expenditures that the Partnership Group may be required to make to comply therewith and any fines or other penalties which may be levied for any failure therewith (except to the extent such fines or other penalties are the result of the failure of the Partnership Group to comply therewith with regard to the contributed assets) and such indemnification obligations shall extend to or cover any increased ongoing operating or maintenance expenses incurred by the Partnership Group in connection with their compliance therewith.

Page 5/5 of Schedule IX to Third Amended and Restated Schedules to 
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