Document:

exv4w2

 

Exhibit
4.2

Execution Version

EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

AMONG

PLAINS ALL AMERICAN PIPELINE, L.P.,

PAA FINANCE CORP.,

THE GUARANTORS

AND

THE INITIAL PURCHASERS

Dated
as of April 23, 2008

 

 

PLAINS ALL AMERICAN PIPELINE, L.P.

PAA FINANCE CORP.

6.50% Senior Notes due 2018

EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

April 23,
2008

	 
	Banc of America Securities LLC

	BNP Paribas Securities Corp.

	J.P. Morgan Securities Inc.

	DnB NOR Markets, Inc.

	Fortis Securities LLC

	Mizuho Securities USA Inc.

	Scotia Capital (USA) Inc.

	ING Financial Markets LLC

	SG Americas Securities, LLC

	SunTrust Robinson Humphrey, Inc.

	Wells Fargo Securities, LLC

	BMO Capital Markets Corp.

	The Williams Capital Group, L.P.

c/o Banc of America Securities LLC

9 West 57th Street

New York, NY 10019

Ladies and Gentlemen:

          Plains All American Pipeline, L.P., a Delaware limited partnership (the “Partnership”), PAA
Finance Corp., a Delaware corporation (“PAA Finance,” and together with the Partnership, the
“Issuers”) and the Guarantors listed on Schedule 1 hereto (the “Guarantors”), propose to issue and
sell to the initial purchasers listed on Schedule 2 hereto (the “Initial Purchasers”), upon the
terms set forth in a purchase agreement dated April 18, 2008 (the “Purchase Agreement”),
$600,000,000 principal amount of 6.50% Senior Notes due 2018 (the “Securities”) relating to the
initial placement of the Securities (the “Initial Placement”). To induce the Initial Purchasers to
enter into the Purchase Agreement and to satisfy a condition of your obligations thereunder, the
Issuers and the Guarantors agree with you for your benefit and the benefit of the other holders
from time to time of the Securities (including the Initial Purchasers) (each a “Holder” and,
together, the “Holders”), as follows:

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          1. Definitions. Capitalized terms used herein without definition shall have their
respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

          “Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder.

          “Affiliate” of any specified Person shall mean any other Person that, directly or indirectly,
is in control of, is controlled by, or is under common control with, such specified Person. For
purposes of this definition, control of a Person shall mean the power, direct or indirect, to
direct or cause the direction of the management and policies of such Person whether by contract or
otherwise; and the terms “controlling” and “controlled” shall have meanings correlative to the
foregoing.

          “Broker-Dealer” shall mean any broker or dealer registered as such under the Exchange Act.

          “Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day
on which banking institutions or trust companies are authorized or obligated by law to close in New
York City.

          “Commission” shall mean the Securities and Exchange Commission.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.

          “Exchange Offer Registration Period” shall mean the one-year period following the consummation
of the Registered Exchange Offer, exclusive of any period during which any stop order shall be in
effect suspending the effectiveness of the Exchange Offer Registration Statement.

          “Exchange Offer Registration Statement” shall mean a registration statement of the Issuers and
the Guarantors on an appropriate form under the Act with respect to the Registered Exchange Offer,
all amendments and supplements to such registration statement, including post-effective amendments
thereto, in each case including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

          “Exchanging Dealer” shall mean any Holder (which may include any Initial Purchaser) that is a
Broker-Dealer and elects to exchange for New Securities any Securities that it acquired for its
own account as a result of market-making activities or other trading activities (but not directly
from the Issuers and the Guarantors or any Affiliate of the Issuers and the Guarantors) for New
Securities.

          “Final Offering Memorandum” shall have the meaning set forth in the Purchase Agreement.

          “Guarantors” shall have the meaning set forth in the preamble hereto and shall also include
any Guarantor’s successor.

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          “Holder” shall have the meaning set forth in the preamble hereto.

          “Indenture” shall mean the Indenture relating to the Securities and the New Securities, dated
as of September 25, 2002, among the Issuers and U.S. Bank National Association, as successor
trustee, as amended by the Thirteenth Supplemental Indenture, dated as of April 23, 2008, among the
Issuers, the Guarantors and the Trustee, as the same may be amended from time to time in accordance
with the terms thereof.

          “Initial Placement” shall have the meaning set forth in the preamble hereto.

          “Initial Purchasers” shall have the meaning set forth in the preamble hereto.

          “Losses” shall have the meaning set forth in Section 7(d) hereof.

          “Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
Securities registered under a Registration Statement.

          “Managing Underwriters” shall mean the investment banker or investment bankers and manager or
managers that shall administer an underwritten offering.

          “New Securities” shall mean debt securities of the Issuers identical in all material respects
to the Securities (except that the interest rate step-up provisions and the transfer restrictions
shall be eliminated) and to be issued under the Indenture.

          “Prospectus” shall mean the prospectus included in any Registration Statement (including,
without limitation, a prospectus that discloses information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as
amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Securities or the New Securities covered by such Registration Statement, and all
amendments and supplements thereto and all material incorporated by reference therein.

          “Purchase Agreement” shall have the meaning set forth in the preamble hereto.

          “Registered Exchange Offer” shall mean the proposed offer of the Issuers and the Guarantors to
issue and deliver to the Holders of the Securities that are not prohibited by any law or policy of
the Commission from participating in such offer, in exchange for the Securities, a like aggregate
principal amount of the New Securities.

          “Registration Default” shall have the meaning set forth in Section 4(a) hereof.

          “Registration Statement” shall mean any Exchange Offer Registration Statement or Shelf
Registration Statement that covers any of the Securities or the New Securities pursuant to the
provisions of this Agreement, any amendments and supplements to such registration
statement, including post-effective amendments (in each case including the Prospectus
contained therein), all exhibits thereto and all material incorporated by reference therein.

          “Securities” shall have the meaning set forth in the preamble hereto.

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          “Shelf Registration” shall mean a registration effected pursuant to Section 3 hereof.

          “Shelf Registration Period” has the meaning set forth in Section 3(b) hereof.

          “Shelf Registration Statement” shall mean a “shelf” registration statement of the Issuers and
the Guarantors pursuant to the provisions of Section 3 hereof which covers some or all of the
Securities or New Securities, as applicable, on an appropriate form under Rule 415 under the Act,
or any similar rule that may be adopted by the Commission, amendments and supplements to such
registration statement, including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all material incorporated by reference therein.

          “Trustee” shall mean the trustee with respect to the Securities and the New Securities under
the Indenture.

          “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.

          “underwriter” shall mean any underwriter of Securities in connection with an offering thereof
under a Shelf Registration Statement.

          2. Registered Exchange Offer. (a) Except as set forth in Section 3, the Issuers and the
Guarantors shall prepare and shall use their reasonable best efforts to file with the Commission
the Exchange Offer Registration Statement with respect to the Registered Exchange Offer, not later
than 180 days following the date of the original issuance of the Securities (or if such 180th day
is not a Business Day, the next succeeding Business Day). The Issuers and the Guarantors shall use
their reasonable best efforts to cause the Exchange Offer Registration Statement to become
effective under the Act within 270 days of the date of the original issuance of the Securities and
to consummate the Registered Exchange Offer within 300 days of the date of the original issuance of
the Securities (if such 270th or 300th day is not a Business Day, the next succeeding Business Day,
as applicable).

          (a) Upon the effectiveness of the Exchange Offer Registration Statement, the Issuers and the
Guarantors shall promptly commence the Registered Exchange Offer, it being the objective of such
Registered Exchange Offer to enable each Holder electing to exchange Securities for New Securities
(assuming that such Holder is not an Affiliate of the Issuers or the Guarantors, acquires the New
Securities in the ordinary course of such Holder’s business, has no arrangements with any Person to
participate in the distribution of the New Securities and is not prohibited by any law or policy of
the Commission from participating in the Registered Exchange Offer) to trade such New Securities
from and after their receipt without any limitations
or restrictions under the Act and without material restrictions under the securities laws of a
substantial proportion of the several states of the United States.

          (b) In connection with the Registered Exchange Offer, the Issuers and the Guarantors shall:

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          (i) mail to each Holder a copy of the Prospectus forming part of the Exchange Offer
Registration Statement, together with an appropriate letter of transmittal and related
documents;

          (ii) keep the Registered Exchange Offer open for not less than 20 Business Days after
the date the notice thereof is mailed to the Holders (or, in each case, longer if required
by applicable law);

          (iii) use their reasonable best efforts to keep the Exchange Offer Registration
Statement continuously effective under the Act, supplemented and amended as required under
the Act to ensure that it is available for sales of New Securities by Exchanging Dealers
during the Exchange Offer Registration Period;

          (iv) utilize the services of a bank depositary for the Registered Exchange Offer with
an address in the Borough of Manhattan in New York City, which may be the Trustee or an
Affiliate of the Trustee;

          (v) permit Holders to withdraw tendered Securities at any time prior to the close of
business, New York time, on the last Business Day on which the Registered Exchange Offer is
open;

          (vi) prior to effectiveness of the Exchange Offer Registration Statement, provide a
supplemental letter to the Commission (A) stating that the Issuers and the Guarantors are
conducting the Registered Exchange Offer in reliance on the position of the Commission in
Exxon Capital Holdings Corporation (pub. avail. May 13, 1988) and Morgan Stanley
and Co., Inc. (pub. avail. June 5, 1991) and (B) including a representation that the
Issuers and the Guarantors have not entered into any arrangement or understanding with any
Person to distribute the New Securities to be received in the Registered Exchange Offer and
that, to the best of the Issuers’ and the Guarantors’ information and belief, each Holder
participating in the Registered Exchange Offer is acquiring the New Securities in the
ordinary course of business and has no arrangement or understanding with any Person to
participate in the distribution of the New Securities; and

          (vii) comply in all material respects with all applicable laws.

          (c) As soon as practicable after the close of the Registered Exchange Offer, the Issuers and
the Guarantors shall:

          (i) accept for exchange all Securities tendered and not validly withdrawn pursuant to
the Registered Exchange Offer; and

          (ii) issue and cause the Trustee promptly to authenticate a global certificate
representing New Securities exchanged for Securities and to deliver to each Holder of
Securities a principal amount of New Securities equal to the principal amount of the
Securities of such Holder so accepted for exchange.

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          (d) Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder
using the Registered Exchange Offer to participate in a distribution of the New Securities (x)
could not under Commission policy as in effect on the date of this Agreement rely on the position
of the Commission in Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991) and Exxon
Capital Holdings Corporation (pub. avail. May 13, 1988), as interpreted in the Commission’s
letter to Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply
with the registration and prospectus delivery requirements of the Act in connection with any
secondary resale transaction and must be covered by an effective registration statement containing
the selling security holder information required by Item 507 or 508, as applicable, of Regulation
S-K under the Act if the resales are of New Securities obtained by such Holder in exchange for
Securities acquired by such Holder directly from the Issuers or the Guarantors or one of their
Affiliates. Accordingly, each Holder participating in the Registered Exchange Offer shall be
required to represent to the Issuers and the Guarantors that, at the time of the consummation of
the Registered Exchange Offer:

          (i) any New Securities received by such Holder will be acquired in the ordinary course
of business;

          (ii) such Holder will have no arrangement or understanding with any Person to
participate in the distribution of the Securities or the New Securities within the meaning
of the Act; and

          (iii) such Holder is not an Affiliate of the Issuers or the Guarantors.

          3. Shelf Registration. (a) If (i) due to any change in law or applicable interpretations
thereof by the Commission’s staff, the Issuers and the Guarantors determine upon advice of their
outside counsel that they are not permitted to effect the Registered Exchange Offer as contemplated
by Section 2 hereof; (ii) for any other reason the Registered Exchange Offer is not consummated
within 300 days of the date hereof; (iii) any Initial Purchaser so requests with respect to
Securities that are not eligible to be exchanged for New Securities in the Registered Exchange
Offer and that are held by it following consummation of the Registered Exchange Offer, or (iv) any
Holder (other than an Initial Purchaser) is not eligible to participate in the Registered Exchange
Offer, the Issuers and the Guarantors shall effect a Shelf Registration Statement in accordance
with subsection (b) below.

          (b) (i) The Issuers and the Guarantors shall as promptly as practicable (but in no event more
than 180 days after so required or requested pursuant to this Section 3), file with the Commission
and thereafter shall use their reasonable best efforts to cause to be declared effective under the
Act, within 270 days after so required or requested pursuant to this Section 3, a Shelf
Registration Statement relating to the offer and sale of the Securities or the New
Securities, as applicable, by the Holders thereof from time to time in accordance with the
methods of distribution elected by such Holders and set forth in such Shelf Registration Statement;
provided, however, that no Holder (other than an Initial Purchaser) shall be
entitled to have the Securities held by it covered by such Shelf Registration Statement unless such
Holder agrees in writing to be bound by all of the provisions of this Agreement applicable to such
Holder; and provided further, that with respect to New Securities received by an
Initial Purchaser in exchange for Securities constituting any portion of an unsold allotment, the
Issuers and the

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Guarantors may, if permitted by current interpretations by the Commission’s staff,
file a post-effective amendment to the Exchange Offer Registration Statement containing the
information required by Item 507 or 508 of Regulation S-K, as applicable, in satisfaction of their
obligations under this subsection with respect thereto, and any such Exchange Offer Registration
Statement, as so amended, shall be referred to herein as, and governed by the provisions herein
applicable to, a Shelf Registration Statement.

          (ii) The Issuers and the Guarantors shall use their reasonable best efforts to keep the
Shelf Registration Statement continuously effective, supplemented and amended as required by
the Act, in order to permit the Prospectus forming part thereof to be usable by Holders for
a period of two years from the date the Shelf Registration Statement is declared effective
by the Commission or such shorter period that will terminate when all the Securities or New
Securities, as applicable, covered by the Shelf Registration Statement have been sold
pursuant to the Shelf Registration Statement under the Act (in any such case, such period
being called the “Shelf Registration Period”). The Issuers and the Guarantors shall be
deemed not to have used their reasonable best efforts to keep the Shelf Registration
Statement effective during the requisite period if either Issuer or any Guarantor
voluntarily takes any action that would result in Holders of Securities covered thereby not
being able to offer and sell such Securities during that period, unless (A) such action is
required by applicable law; or (B) such action is taken by such Issuer or such Guarantor in
good faith and for valid business reasons (not including avoidance of the Issuers’ or the
Guarantors’ obligations hereunder), including the acquisition or divestiture of assets, so
long as the Issuers and the Guarantors promptly thereafter comply with the requirements of
Section 5(k) hereof, if applicable.

          (iii) The Issuers and the Guarantors shall cause the Shelf Registration Statement and
the related Prospectus and any amendment or supplement thereto, as of the effective date of
the Shelf Registration Statement or such amendment or supplement, (A) to comply in all
material respects with the applicable requirements of the Act and the rules and regulations
of the Commission; and (B) not to contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading.

          4. Additional Interest. 

          (a) In the event that (i) the Issuers and the Guarantors have not filed the Exchange Offer
Registration Statement or the Shelf Registration Statement with the Commission on or before the
date on which such Registration Statement is required to be so filed pursuant to Section 2(a) and
3(b), respectively, or (ii) such Exchange Offer Registration Statement or Shelf
Registration Statement has not been declared effective by the Commission under the Act on or
before the date on which such Registration Statement is required to be declared effective under the
Act pursuant to Section 2(a) or 3(b), respectively, or (iii) the Exchange Offer has not been
consummated within 300 days after the date of issuance of the Securities, or (iv) the Exchange
Offer Registration Statement or Shelf Registration Statement required by Section 2(a) or 3(b)
hereof is filed and declared effective by the Commission under the Act but shall thereafter cease
to be effective (except as specifically permitted herein) without being succeeded immediately by

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an
additional Registration Statement filed and declared effective by the Commission under the Act
(each such event referred to in clauses (i) through (iv) is referred to herein as a “Registration
Default”), then the interest rate on the Securities will be increased, for the period from the
occurrence of the Registration Default until such time as all Registration Defaults are cured (at
which time the interest rate will be reduced to its initial rate) by 0.25% per annum during the
first 90-day period following the occurrence and during the continuation of the Registration
Default, and by 0.25% per annum for each subsequent 90-day period during which such Registration
Default continues. The interest rate will not at any time be increased by greater than 0.50% per
annum.

          (b) Without limiting the remedies available to the Initial Purchasers and the Holders, the
Issuers and the Guarantors acknowledge that any failure by the Issuers or the Guarantors to comply
with their obligations under Section 2(a) or 3(b) hereof may result in material irreparable injury
to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it will
not be possible to measure damages for such injuries precisely and that, in the event of any such
failure, the Initial Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Issuers’ and the Guarantors’ obligations under Section 2(a) or Section
3(b) hereof.

          5. Additional Registration Procedures. In connection with any Shelf Registration Statement
and, to the extent applicable, any Exchange Offer Registration Statement, the following provisions
shall apply.

          (a) The Issuers and the Guarantors shall:

          (i) furnish to you, not less than five Business Days prior to the filing thereof with
the Commission, a copy of any Exchange Offer Registration Statement and any Shelf
Registration Statement, and each amendment thereof and each amendment or supplement, if any,
to the Prospectus included therein (including all documents incorporated by reference
therein after the initial filing) and shall use their reasonable best efforts to reflect in
each such document, when so filed with the Commission, such comments as you reasonably
propose;

          (ii) include the information set forth in Annex A hereto on the facing page of the
Exchange Offer Registration Statement, in Annex B hereto in the forepart of the Exchange
Offer Registration Statement in a section setting forth details of the Exchange Offer, in
Annex C hereto in the underwriting or plan of distribution section of the Prospectus
contained in the Exchange Offer Registration Statement, and in Annex D hereto in the letter
of transmittal delivered pursuant to the Registered Exchange Offer;

          (iii) if requested by an Initial Purchaser, include the information required by Item
507 or 508 of Regulation S-K, as applicable, in the Prospectus contained in the Shelf
Registration Statement; and

          (iv) in the case of a Shelf Registration Statement, include the names of the Holders
that propose to sell Securities pursuant to the Shelf Registration Statement as selling
security holders.

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          (b) The Issuers and the Guarantors shall ensure that:

          (i) any Registration Statement and any amendment thereto and any Prospectus forming
part thereof and any amendment or supplement thereto comply in all material respects with
the Act and the rules and regulations thereunder; and

          (ii) any Registration Statement and any amendment thereto do not, when they become
effective, contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading.

          (c) The Issuers and the Guarantors shall advise you, the Holders of Securities covered by any
Shelf Registration Statement and any Exchanging Dealer under any Exchange Offer Registration
Statement that has provided in writing to the Issuers and the Guarantors a telephone or facsimile
number and address for notices, and, if requested in writing by you or any such Holder or
Exchanging Dealer, shall confirm such advice in writing (which notice pursuant to clauses (ii)-(v)
hereof shall be accompanied by an instruction to suspend the use of the Prospectus until the
Issuers and the Guarantors shall have remedied the basis for such suspension):

          (i) when a Registration Statement and any amendment thereto have been filed with the
Commission and when the Registration Statement or any post-effective amendment thereto has
become effective;

          (ii) of any request by the Commission for any amendment or supplement to the
Registration Statement or the Prospectus or for additional information;

          (iii) of the issuance by the Commission of any stop order suspending the effectiveness
of the Registration Statement or the initiation of any proceedings for that purpose;

          (iv) of the receipt by the Issuers and the Guarantors of any notification with respect
to the suspension of the qualification of the Securities included therein for sale in any
jurisdiction or the initiation of any proceeding for such purpose; and

          (v) of the happening of any event that requires any change in the Registration
Statement or the Prospectus so that, as of such date, the statements therein are not
misleading and do not omit to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of the Prospectus, in the light of the
circumstances under which they were made) not misleading.

          (d) The Issuers and the Guarantors shall use their reasonable best efforts to obtain the
withdrawal of any order suspending the effectiveness of any Registration Statement or the
qualification of the Securities therein for sale in any jurisdiction at the earliest possible time.

          (e) The Issuers and the Guarantors shall furnish to each Holder of Securities covered by any
Shelf Registration Statement, without charge, at least one copy of such Shelf Registration
Statement and any post-effective amendment thereto, including all material

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incorporated therein by
reference, and, if the Holder so requests in writing, all exhibits thereto (including exhibits
incorporated by reference therein).

          (f) The Issuers and the Guarantors shall, during the Shelf Registration Period, deliver to
each Holder of Securities covered by any Shelf Registration Statement, without charge, as many
copies of the Prospectus (including each preliminary Prospectus) included in such Shelf
Registration Statement and any amendment or supplement thereto as such Holder may reasonably
request. The Issuers and the Guarantors consent to the use of the Prospectus or any amendment or
supplement thereto by each of the selling Holders of Securities in connection with the offering and
sale of the Securities covered by the Prospectus, or any amendment or supplement thereto, included
in the Shelf Registration Statement.

          (g) The Issuers and the Guarantors shall furnish to each Exchanging Dealer which so requests,
without charge, at least one copy of the Exchange Offer Registration Statement and any
post-effective amendment thereto, including all material incorporated by reference therein, and, if
the Exchanging Dealer so requests in writing, all exhibits thereto (including exhibits incorporated
by reference therein).

          (h) The Issuers and the Guarantors shall promptly deliver to each Initial Purchaser, each
Exchanging Dealer and each other Person required to deliver a Prospectus during the effectiveness
of the Exchange Offer Registration Statement, without charge, as many copies of the Prospectus
included in such Exchange Offer Registration Statement and any amendment or supplement thereto as
any such Person may reasonably request. The Issuers and the Guarantors consent to the use of the
Prospectus or any amendment or supplement thereto by any Initial Purchaser, any Exchanging Dealer
and any such other Person that may be required to deliver a Prospectus following the Registered
Exchange Offer in connection with the offering and sale of the New Securities covered by the
Prospectus, or any amendment or supplement thereto, included in the Exchange Offer Registration
Statement.

          (i) Prior to the Registered Exchange Offer or any other offering of Securities pursuant to any
Registration Statement, the Issuers and the Guarantors shall arrange, if necessary, for the
qualification of the Securities or the New Securities for sale under the laws of such jurisdiction
as any Holder shall reasonably request and will maintain such qualification in effect so long as
required; provided that in no event shall either Issuer or any Guarantor be obligated to
qualify to do business in any jurisdiction where it is not then so qualified or to take any action
that would subject it to service of process in suits, other than those arising out of the Initial
Placement, the Registered Exchange Offer or any offering pursuant to a Shelf Registration
Statement, in any such jurisdiction where it is not then so subject.

          (j) If any of the Securities or the New Securities are not issued in global form, then the
Issuers and the Guarantors shall cooperate with the Holders of Securities to facilitate the timely
preparation and delivery of certificates representing New Securities or Securities to be issued or
sold pursuant to any Registration Statement free of any restrictive legends and in such
denominations and registered in such names as Holders may request.

          (k) Upon the occurrence of any event contemplated by subsections (c)(ii) or (v) above, the
Issuers and the Guarantors shall promptly prepare a post-effective amendment to

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the applicable
Registration Statement or an amendment or supplement to the related Prospectus or file any other
required document so that, as thereafter delivered to Initial Purchasers of the securities included
therein, the Prospectus will not include an untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading. In such circumstances, the period of effectiveness of the
Exchange Offer Registration Statement provided for in Section 2 and the Shelf Registration
Statement provided for in Section 3(b) shall each be extended by the number of days from and
including the date of the giving of a notice of suspension pursuant to Section 5(c) to and
including the date when the Initial Purchasers, the Holders of the Securities and any known
Exchanging Dealer shall have received such amended or supplemented Prospectus pursuant to this
Section.

          (l) Not later than the effective date of any Registration Statement, the Issuers and the
Guarantors shall provide a CUSIP number for the Securities or the New Securities, as the case may
be, registered under such Registration Statement and provide the Trustee with certificates for such
Securities or New Securities, in a form eligible for deposit with The Depository Trust Company.

          (m) The Issuers and the Guarantors shall comply with all applicable rules and regulations of
the Commission and shall make generally available to the Issuers’ security holders as soon as
practicable after the effective date of the applicable Registration Statement an earnings statement
satisfying the provisions of Section 11(a) of the Act.

          (n) The Issuers and the Guarantors shall cause the Indenture to be qualified under the Trust
Indenture Act in a timely manner.

          (o) The Issuers and the Guarantors may require each Holder of Securities to be sold pursuant
to any Shelf Registration Statement to furnish to the Issuers and the Guarantors such information
regarding the Holder and the distribution of such Securities as the Issuers and the Guarantors may
from time to time reasonably require for inclusion in such Registration Statement. The Issuers and
the Guarantors may exclude from such Shelf Registration Statement the Securities of any Holder that
unreasonably fails to furnish such information within a reasonable time after receiving such
request.

          (p) In the case of any Shelf Registration Statement, the Issuers and the Guarantors shall
enter into such agreements and take all other appropriate actions (including, if requested, an
underwriting agreement in customary form) in order to expedite or facilitate the registration or
the disposition of the Securities, and in connection therewith, if an underwriting agreement is
entered into, cause the same to contain indemnification provisions and procedures
no less favorable than those set forth in Section 7 (or such other provisions and procedures
acceptable to the Majority Holders and the Managing Underwriters, if any, with respect to all
parties to be indemnified pursuant to Section 7).

          (q) In the case of any Shelf Registration Statement, the Issuers and the Guarantors shall:

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          (i) make reasonably available for inspection by the Holders of Securities to be
registered thereunder, any underwriter participating in any disposition pursuant to such
Registration Statement, and any attorney, accountant or other agent retained by the Holders
or any such underwriter all relevant financial and other records, pertinent partnership,
corporate or limited liability company documents and properties of the Issuers and the
Guarantors and their respective subsidiaries;

          (ii) cause the Issuers’ and the Guarantors’ respective officers, directors and
employees to supply all relevant information reasonably requested by the Holders or any such
underwriter, attorney, accountant or agent in connection with any such Registration
Statement as is customary for similar due diligence examinations; provided,
however, that any information that is designated in writing by the Issuers or the
Guarantors, in good faith, as confidential at the time of delivery of such information shall
be kept confidential by the Holders or any such underwriter, attorney, accountant or agent,
unless such disclosure is made in connection with a court proceeding or required by law, or
such information becomes available to the public generally or through a third party without
an accompanying obligation of confidentiality;

          (iii) make such representations and warranties to the Holders of Securities registered
thereunder and the underwriters, if any, in form, substance and scope as are customarily
made by issuers to underwriters in primary underwritten offerings and covering matters
including, but not limited to, those set forth in the Purchase Agreement;

          (iv) obtain opinions of counsel to the Issuers and the Guarantors and updates thereof
(which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory
to the Managing Underwriters, if any) addressed to each selling Holder and the underwriters,
if any, covering such matters as are customarily covered in opinions requested in
underwritten offerings and such other matters as may be reasonably requested by such Holders
and underwriters;

          (v) obtain “cold comfort” letters and updates thereof from the independent certified
public accountants of the Issuers and the Guarantors (and, if necessary, any other
independent certified public accountants of any subsidiary of the Issuers and the Guarantors
or of any business acquired by the Issuers and the Guarantors for which financial statements
and financial data are, or are required to be, included in the Registration Statement),
addressed to each selling Holder of Securities registered thereunder and the underwriters,
if any, in customary form and covering matters of the type customarily covered in “cold
comfort” letters in connection with primary underwritten offerings; and

          (vi) deliver such documents and certificates as may be reasonably requested by the
Majority Holders and the Managing Underwriters, if any, including those to evidence
compliance with Section 5(k) and with any customary conditions contained in the underwriting
agreement or other agreement entered into by the Issuers or the Guarantors.

12

 

The actions set forth in clauses (iii), (iv), (v) and (vi) of this Section shall be performed at
(A) the effectiveness of such Registration Statement and each post-effective amendment thereto; and
(B) each closing under any underwriting or similar agreement as and to the extent required
thereunder.

          (r) [omitted]

          (s) [omitted]

          (t) [omitted]

          (u) In the event that any Broker-Dealer shall underwrite any Securities or participate as a
member of an underwriting syndicate or selling group or “assist in the distribution” (within the
meaning of the Conduct Rules and the By-Laws of the National Association of Securities Dealers,
Inc.) thereof, whether as a Holder of such Securities or as an underwriter, a placement or sales
agent or a broker or dealer in respect thereof, or otherwise, assist such Broker-Dealer in
complying with the requirements of such Rules and By-Laws, including, without limitation, by:

          (i) if such Rules or By-Laws shall so require, engaging a “qualified independent
underwriter” (as defined in such Rules) to participate in the preparation of the
Registration Statement, to exercise usual standards of due diligence with respect thereto
and, if any portion of the offering contemplated by such Registration Statement is an
underwritten offering or is made through a placement or sales agent, to recommend the yield
of such Securities;

          (ii) indemnifying any such qualified independent underwriter to the extent of the
indemnification of underwriters provided in Section 7 hereof; and

          (iii) providing such information to such Broker-Dealer as may be required in order for
such Broker-Dealer to comply with the requirements of such Rules.

          (iv) The Issuers and the Guarantors shall use their reasonable best efforts to take all
other steps necessary to effect the registration of the Securities or the New Securities, as
the case may be, covered by a Registration Statement.

          6. Registration Expenses. The Issuers and the Guarantors bear all expenses incurred in
connection with the performance of their obligations under Sections 2, 3 and 5 hereof and, in the
event of any Shelf Registration Statement, will reimburse the Holders for the reasonable fees and
disbursements of one firm or counsel designated by the Majority Holders to act as counsel for the
Holders in connection
therewith, and, in the case of any Exchange Offer Registration Statement, will reimburse the
Initial Purchasers for the reasonable fees and disbursements of counsel acting in connection
therewith.

          7. Indemnification and Contribution. (a) The Issuers and each Guarantor agree to
indemnify and hold harmless each Holder of Securities or New Securities, as the case may be,
covered by any Registration Statement (including each Initial Purchaser and, with respect to any
Prospectus delivery as contemplated in Section 5(h) hereof, each Exchanging

13

 

Dealer), the directors,
officers, employees and agents of each such Holder and each Person who controls any such Holder
within the meaning of either the Act or the Exchange Act against any and all losses, claims,
damages or liabilities, joint or several, to which they or any of them may become subject under the
Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement as originally filed or in any amendment thereof, or in any
preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or
arise out of or are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, and agree
to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that (i) the Issuers and the Guarantors
will not be liable in any case to the extent that any such loss, claim, damage or liability arises
out of or is based upon any such untrue statement or alleged untrue statement or omission or
alleged omission made therein in reliance upon and in conformity with written information furnished
to the Issuers or the Guarantors by or on behalf of any such Holder specifically for inclusion
therein. This indemnity agreement will be in addition to any liability which the Issuers or the
Guarantors may otherwise have.

          The Issuers and each Guarantor also agree to indemnify or contribute as provided in Section
7(d) to Losses of any underwriter of Securities or New Securities, as the case may be, registered
under a Shelf Registration Statement, their directors, officers, employees or agents and each
Person who controls such underwriter on substantially the same basis as that of the indemnification
of the Initial Purchasers and the selling Holders provided in this Section 7(a). The Issuers and
each Guarantor shall, if requested by any Holder, enter into an underwriting agreement reflecting
such agreement, as provided in Section 5(p) hereof.

          (b) Each Holder of securities covered by a Registration Statement (including each Initial
Purchaser and, with respect to any Prospectus delivery as contemplated in Section 5(h) hereof, each
Exchanging Dealer) severally and not jointly agrees to indemnify and hold harmless the Issuers, the
Guarantors, the directors of the Issuers and the Guarantors, the officers of the Issuers and the
Guarantors who sign such Registration Statement and each Person who controls the Issuers or the
Guarantors within the meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Issuers and the Guarantors to each such Holder, but only with
reference to written information relating to such Holder furnished to the Issuers and the
Guarantors by or on behalf of such Holder specifically for inclusion in the
documents referred to in the foregoing indemnity. This indemnity agreement will be in
addition to any liability which any such Holder may otherwise have.

          (c) Promptly after receipt by an indemnified party under this Section 7 or notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section, notify the indemnifying party in writing of
the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve
it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise
learn of such action and such failure results in the forfeiture by the indemnifying party of
substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying

14

 

party
from any obligations to any indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party
in any action for which indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the fees and expenses of any separate counsel retained by the
indemnified party or parties except as set forth below); provided, however, that such counsel shall
be satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to
appoint counsel to represent the indemnified party in an action, the indemnified party shall have
the right to employ separate counsel (including local counsel), and the indemnifying party shall
bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel
chosen by the indemnifying party to represent the indemnified party would present such counsel with
a conflict of interest; (ii) the actual or potential defendants in, or targets of, any such action
include both the indemnified party and the indemnifying party and the indemnified party shall have
reasonably concluded that there may be legal defenses available to it and/or other indemnified
parties which are different from or additional to those available to the indemnifying party; (iii)
the indemnifying party shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the institution of such
action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate
counsel at the expense of the indemnifying party. An indemnifying party will not, without the
prior written consent of the indemnified parties, settle or compromise or consent to the entry of
any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect
of which indemnification or contribution may be sought hereunder (whether or not the indemnified
parties are actual or potential parties to such claim or action) unless such settlement, compromise
or consent includes an unconditional release of each indemnified party from all liability arising
out of such claim, action, suit or proceeding.

          (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 7 is
unavailable to or insufficient to hold harmless an indemnified party for any reason, then each
applicable indemnifying party shall have a joint and several obligation to contribute to the
aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably
incurred in connection with investigating or defending same) (collectively “Losses”) to which such
indemnified party may be subject in such proportion as is appropriate to reflect the relative
benefits received by such indemnifying party, on the one hand, and such indemnified party, on the
other hand, from the Initial Placement and the Registration Statement which resulted in such
Losses; provided, however, that in no case shall any Initial Purchaser or any
subsequent Holder of any Security or New Security be responsible, in the aggregate, for any amount
in excess of the purchase discount or commission applicable to such Security, or in the
case of a New Security, applicable to the Security that was exchangeable into such New
Security, as set forth on the cover page of the Final Offering Memorandum, nor shall any
underwriter be responsible for any amount in excess of the underwriting discount or commission
applicable to the securities purchased by such underwriter under the Registration Statement which
resulted in such Losses. If the allocation provided by the immediately preceding sentence is
unavailable for any reason, the indemnifying party and the indemnified party shall contribute in
such proportion as is appropriate to reflect not only such relative benefits but also the relative
fault of such indemnifying party, on the one hand, and such indemnified party, on the other hand,
in connection with the statements or omissions which resulted in such Losses as well as any other
relevant equitable considerations. Benefits received by the Issuers or the Guarantors shall

15

 

be
deemed to be equal to the sum of (x) the total net proceeds from the Initial Placement (before
deducting expenses) as set forth on the cover page of the Final Offering Memorandum and (y) the
total amount of additional interest which the Issuers and the Guarantors were not required to pay
as a result of registering the securities covered by the Registration Statement which resulted in
such Losses. Benefits received by the Initial Purchasers shall be deemed to be equal to the total
purchase discounts and commissions as set forth on the cover page of the Final Offering Memorandum,
and benefits received by any other Holders shall be deemed to be equal to the value of receiving
Securities or New Securities, as applicable, registered under the Act. Benefits received by any
underwriter shall be deemed to be equal to the total underwriting discounts and commissions, as set
forth on the cover page of the Prospectus forming a part of the Registration Statement which
resulted in such Losses. Relative fault shall be determined by reference to, among other things,
whether any alleged untrue statement or omission relates to information provided by the
indemnifying party, on the one hand, or by the indemnified party, on the other hand, the intent of
the parties and their relative knowledge, access to information and opportunity to correct or
prevent such untrue statement or omission. The parties agree that it would not be just and
equitable if contribution were determined by pro rata allocation (even if the Holders were treated
as one entity for such purpose) or any other method of allocation which does not take account of
the equitable considerations referred to above. Notwithstanding the provisions of this paragraph
(d), no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. For purposes of this Section 7, each Person who controls a Holder within the
meaning of either the Act or the Exchange Act and each director, officer, employee and agent of
such Holder shall have the same rights to contribution as such Holder, and each Person who controls
the Issuers and the Guarantors within the meaning of either the Act or the Exchange Act, each
officer of the Issuers and the Guarantors who shall have signed the Registration Statement and each
director of the Issuers and the Guarantors shall have the same rights to contribution as the
Issuers and the Guarantors, subject in each case to the applicable terms and conditions of this
paragraph (d).

          (e) The provisions of this Section 7 will remain in full force and effect, regardless of any
investigation made by or on behalf of any Holder or the Issuers and the Guarantors or any of the
officers, directors or controlling Persons referred to in this Section hereof, and will survive the
sale by a Holder of securities covered by a Registration Statement.

          8. Underwritten Registrations. (a) If any of the Securities or New Securities, as the
case may be, covered by any Shelf Registration Statement are to be sold in an underwritten
offering, the Managing Underwriters shall be selected by the Majority Holders and shall be
reasonably satisfactory to the Partnership.

          (b) No Person may participate in any underwritten offering pursuant to any Shelf Registration
Statement, unless such Person (i) agrees to sell such Person’s Securities or New Securities, as the
case may be, on the basis reasonably provided in any underwriting arrangements approved by the
Persons entitled hereunder to approve such arrangements; and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements.

16

 

          9. No Inconsistent Agreements. The Issuers and the Guarantors have not, as of the date
hereof, entered into, nor shall they, on or after the date hereof, enter into, any agreement with
respect to their securities that is inconsistent with the rights granted to the Holders herein or
otherwise conflicts with the provisions hereof.

          10. Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, qualified, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given, unless the Issuers and the Guarantors have
obtained the written consent of the Majority Holders (or, after the consummation of any Registered
Exchange Offer in accordance with Section 2 hereof, of New Securities); provided that, with
respect to any matter that directly or indirectly affects the rights of any Initial Purchaser
hereunder, the Issuers and the Guarantors shall obtain the written consent of each such Initial
Purchaser against which such amendment, qualification, supplement, waiver or consent is to be
effective. Notwithstanding the foregoing (except the foregoing proviso), a waiver or consent to
departure from the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders whose Securities or New Securities, as the case may be, are being sold pursuant
to a Registration Statement and that does not directly or indirectly affect the rights of other
Holders may be given by the Majority Holders, determined on the basis of Securities or New
Securities, as the case may be, being sold rather than registered under such Registration
Statement.

          11. Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand-delivery, first-class mail, telex, telecopier or air courier
guaranteeing overnight delivery:

          (a) if to a Holder, at the most current address given by such Holder to the Issuers in
accordance with the provisions of this Section, which address initially is, with respect to each
Holder, the address of such Holder maintained by the Registrar under the Indenture, with a copy in
like manner to Banc of America Securities LLC;

          (b) if to you, initially at the respective addresses set forth in the Purchase Agreement;

          (c) if to the Issuers, initially at the address set forth in the Purchase Agreement; and

          (d) if to the Guarantors, initially at 333 Clay Street, Suite 1600, Houston, Texas 77002.

          All such notices and communications shall be deemed to have been duly given when received.

          The Initial Purchasers, the Issuers or the Guarantors by notice to the other parties may
designate additional or different addresses for subsequent notices or communications.

          12. Successors and Assigns. This Agreement shall inure to the benefit of and be binding
upon the successors and assigns of each of the parties, including, without the need for an express
assignment or any consent by the Issuers or the Guarantors thereto, subsequent

17

 

Holders of
Securities and the New Securities. The Issuers and the Guarantors hereby agree to extend the
benefits of this Agreement to any Holder of Securities and the New Securities, and any such Holder
may specifically enforce the provisions of this Agreement as if an original party hereto.

          13. Counterparts. This agreement may be in signed counterparts, each of which shall
constitute an original and all of which together shall constitute one and the same agreement.

          14. Purchases and Sales of Securities. The Issuers and the Guarantors shall not, and
shall use their best efforts to cause their affiliates (as defined in Rule 405 under the Act) not
to, purchase and then resell or otherwise transfer any Securities for two (2) years, or if a Shelf
Registration Statement shall become effective during such two (2) year period, for the period of
such effectiveness.

          15. Third Party Beneficiaries. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Issuers and the Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the
extent it deems such enforcement necessary or advisable to protect its rights or the rights of
other Holders hereunder.

          16. Headings. The headings used herein are for convenience only and shall not affect the
construction hereof.

          17. Applicable Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York applicable to contracts made and to be performed in the State of
New York.

          18. Severability. In the event that any one of more of the provisions contained herein, or
the application thereof in any circumstances, is held invalid, illegal or unenforceable in any
respect for any reason, the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties shall be
enforceable to the fullest extent permitted by law.

          19. Securities Held by the Issuers, the Guarantors, etc. Whenever the consent or approval
of Holders of a specified percentage of principal amount of Securities or New Securities is
required hereunder, Securities or New Securities, as applicable, held by the Issuers, the
Guarantors or their Affiliates (other than subsequent Holders of Securities or New Securities if
such subsequent Holders are deemed to be Affiliates solely by reason of their holdings of such
Securities or New Securities) shall not be counted in determining whether such consent or approval
was given by the Holders of such required percentage.

18

 

          If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall
represent a building agreement among the Issuers, the Guarantors and the several Initial
Purchasers.

	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	PLAINS ALL AMERICAN PIPELINE, L.P.
	 
	 	 	 	 	 	 
	 	 	By:	 	PAA GP LLC
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 	 	By:	 	PLAINS AAP, L.P.
	 	 	 	 	its Sole Member
	 
	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN GP LLC
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	PAA FINANCE CORP.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong
	 

	 	 	 	 	 	Title: President

PAA Signature Page to Registration Rights Agreement

1 of 13

 

 

	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING GP INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	PLAINS MARKETING, L.P.
	 
	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.

its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	PLAINS PIPELINE, L.P.
	 
	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.

its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong
	 

	 	 	 	 	 	Title: Chief Executive Officer

PAA Signature Page to Registration Rights Agreement

2 of 13

 

 

	 	 	 	 	 	 	 
	 	 	PACIFIC ENERGY GROUP LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN PIPELINE, L.P.

its Sole Member
	 
	 	 	 	 	 	 
	 	 	By:	 	PAA GP LLC
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 	 	By:	 	PLAINS AAP, L.P.
	 	 	 	 	its Sole Member
	 
	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN GP LLC
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong
	 

	 	 	 	 	 	Title: Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	PACIFIC LA MARINE TERMINAL LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	PACIFIC ENERGY GROUP LLC
	 	 	 	 	its Sole Member
	 
	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN PIPELINE, L.P.
	 	 	 	 	its Sole Member
	 
	 	 	 	 	 	 
	 	 	By:	 	PAA GP LLC
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 	 	By:	 	PLAINS AAP, L.P.
	 	 	 	 	its Sole Member
	 
	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN GP LLC
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong
	 

	 	 	 	 	 	Title: Chief Executive Officer

PAA Signature Page to Registration Rights Agreement

3 of 13

 

 

	 	 	 	 	 	 	 
	 	 	ROCKY MOUNTAIN PIPELINE SYSTEM LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PACIFIC ENERGY GROUP LLC

its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS ALL AMERICAN PIPELINE, L.P.

its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PAA GP LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS AAP, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS ALL AMERICAN GP LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong
	 

	 	 	 	 	 	Title: Chief Executive Officer

PAA Signature Page to Registration Rights Agreement

4 of 13

 

 

	 	 	 	 	 	 	 	 	 
	 	 	PACIFIC ATLANTIC TERMINALS LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PACIFIC ENERGY GROUP LLC	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN PIPELINE, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PAA GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS AAP, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 

PAA Signature Page to Registration Rights Agreement

5 of 13

 

 

	 	 	 	 	 	 	 	 	 
	 	 	RANCH PIPEPLINE LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PACIFIC ENERGY GROUP LLC	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN PIPELINE, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PAA GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS AAP, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS ALL AMERICAN GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PACIFIC ENERGY FINANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING CANADA LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Greg L. Armstrong	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 

PAA Signature Page to Registration Rights Agreement

6 of 13

 

 

	 	 	 	 	 	 	 	 	 
	 	 	PMC (NOVA SCOTIA) COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Phil D. Kramer	 	 
	 

	 	 	 	 	 	 

Name: Phil D. Kramer
	 	 
	 

	 	 	 	 	 	Title: Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING CANADA, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PMC (NOVA SCOTIA) COMPANY	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Phil D. Kramer	 	 
	 

	 	 	 	 	 	 

Name: Phil D. Kramer
	 	 
	 

	 	 	 	 	 	Title: Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS LPG SERVICES GP LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 

Name: Greg L. Armstrong
	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 

PAA Signature Page to Registration Rights Agreement

7 of 13

 

 

	 	 	 	 	 	 	 	 	 
	 	 	PLAINS TOWING LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 

Name: Greg L. Armstrong
	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PICSCO LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 

Name: Greg L. Armstrong
	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 

PAA Signature Page to Registration Rights Agreement

8 of 13

 

 

	 	 	 	 	 	 	 	 	 
	 	 	PLAINS MIDSTREAM GP LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 

Name: Greg L. Armstrong
	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS MIDSTREAM, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MIDSTREAM GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 

Name: Greg L. Armstrong
	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 

PAA Signature Page to Registration Rights Agreement

9 of 13

 

 

	 	 	 	 	 	 	 	 	 
	 	 	PLAINS MIDSTREAM CANADA ULC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Phil D. Kramer	 	 
	 

	 	 	 	 	 	 

Name: Phil D. Kramer
	 	 
	 

	 	 	 	 	 	Title: Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	AURORA PIPELINE COMPANY LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Phil D. Kramer	 	 
	 

	 	 	 	 	 	 

Name: Phil D. Kramer
	 	 
	 

	 	 	 	 	 	Title: Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PLAINS LPG SERVICES, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS LPG SERVICES GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 

Name: Greg L. Armstrong
	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 

PAA Signature Page to Registration Rights Agreement

10 of 13

 

 

	 	 	 	 	 	 	 	 	 
	 	 	BASIN HOLDINGS GP LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS PIPELINE, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 

Name: Greg L. Armstrong
	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BASIN PIPELINE HOLDINGS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	BASIN HOLDINGS GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS PIPELINE, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 

Name: Greg L. Armstrong
	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 

PAA Signature Page to Registration Rights Agreement

11 of 13

 

 

	 	 	 	 	 	 	 	 	 
	 	 	RANCHO HOLDINGS GP LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS PIPELINE, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 

Name: Greg L. Armstrong
	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	RANCHO PIPELINE HOLDINGS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	RANCHO HOLDINGS GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS PIPELINE, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 

Name: Greg L. Armstrong
	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 

PAA Signature Page to Registration Rights Agreement

12 of 13

 

 

	 	 	 	 	 	 	 	 	 
	 	 	LONE STAR TRUCKING, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS LPG SERVICES, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS LPG SERVICES GP LLC	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING, L.P.	 	 
	 	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PLAINS MARKETING GP INC.	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg L. Armstrong	 	 
	 

	 	 	 	 	 	 

Name: Greg L. Armstrong
	 	 
	 

	 	 	 	 	 	Title: Chief Executive Officer	 	 

PAA Signature Page to Registration Rights Agreement

13 of 13

 

 

The foregoing Agreement is hereby

confirmed and accepted as of the

date first above written.

BANC OF AMERICA SECURITIES LLC

BNP PARIBAS SECURITIES CORP.

J.P. MORGAN SECURITIES INC.

FORTIS SECURITIES LLC

DNB NOR MARKETS, INC.

MIZUHO SECURITIES USA INC.

SCOTIA CAPITAL (USA) INC.

SG AMERICAS SECURITIES, LLC

ING FINANCIAL MARKETS LLC

SUNTRUST ROBINSON HUMPHREY, INC.

WELLS FARGO SECURITIES, LLC

BMO CAPITAL MARKETS CORP.

THE WILLIAMS CAPITAL GROUP, L.P.

	 	 	 	 	 
	By:

	 	BANK OF AMERICA SECURITIES LLC	 	 
	 
	 	 	 	 
	By:
	 	/s/ Lily Chang 	 	 
	 

	 	 

Name: Lily Chang
	 	 
	 

	 	Title: Principal	 	 

Initial Purchaser Signature Page to Registration Rights Agreement

 

 

SCHEDULE 1

Plains Marketing GP Inc.

Plains Marketing, L.P.

Plains Pipeline, L.P.

Pacific Energy Group LLC

Pacific Energy Finance Corporation

Pacific LA Marine Terminal LLC

Rocky Mountain Pipeline System LLC

Pacific Atlantic Terminals LLC

Ranch Pipeline LLC

Plains Towing LLC

Plains Marketing Canada LLC

Plains LPG Services GP LLC

PICSCO LLC

Plains LPG Services, L.P.

Plains Midstream GP LLC

Plains Midstream, L.P.

Lone Star Trucking, LLC

Basin Holdings GP LLC

Basin Pipeline Holdings, L.P.

Rancho Holdings GP LLC

Rancho Pipeline Holdings, L.P.

Aurora Pipeline Company Ltd.

Plains Midstream Canada ULC

Plains Marketing Canada, L.P.

PMC (Nova Scotia) Company

 

 

SCHEDULE 2

Banc of America Securities LLC

BNP Paribas Securities Corp.

J.P. Morgan Securities Inc.

Fortis Securities LLC

DnB NOR Markets, Inc.

Mizuho Securities USA Inc.

Scotia Capital (USA) Inc.

SG Americas Securities, LLC

ING Financial Markets LLC

SunTrust Robinson Humphrey, Inc.

Wells Fargo Securities, LLC

BMO Capital Markets Corp.

The Williams Capital Group, L.P.

 

 

ANNEX A

          Each Broker-Dealer that receives New Securities for its own account pursuant to the Exchange
Offer must acknowledge that it will deliver a prospectus in connection with any resale of such New
Securities. The Letter of Transmittal states that by so acknowledging and by delivering a
prospectus, a Broker-Dealer will not be deemed to admit that it is an “underwriter” within the
meaning of the Act. This Prospectus, as it may be amended or supplemented from time to time, may
be used by a Broker-Dealer in connection with resales of New Securities received in exchange for
Securities where such Securities were acquired by such Broker-Dealer as a result of market-making
activities or other trading activities. The Issuers and the Guarantors have agreed that, starting
on the Expiration Date (as defined herein) and ending on the close of business one year after the
Expiration Date, they will make this Prospectus available to any Broker-Dealer for use in
connection with any such resale. See “Plan of Distribution.”

 

 

ANNEX B

          Each Broker-Dealer that receives New Securities for its own account in exchange for
Securities, where such Securities were acquired by such Broker-Dealer as a result of market-making
activities or other trading activities, must acknowledge that it will deliver a prospectus in
connection with any resale of such New Securities. See “Plan of Distribution.”

 

 

ANNEX C

PLAN OF DISTRIBUTION

          Each Broker-Dealer that receives New Securities for its own account pursuant to the Exchange
Offer must acknowledge that it will deliver a prospectus in connection with any resale of such New
Securities. This Prospectus, as it may be amended or supplemented from time to time, may be used
by a Broker-Dealer in connection with resales of New Securities received in exchange for Securities
where such Securities were acquired as a result of market-making activities or other trading
activities. The Issuers and the Guarantors have agreed that, starting on the Expiration Date and
ending on the close of business one year after the Expiration Date, they will make this Prospectus,
as amended or supplemented, available to any Broker-Dealer for use in connection with any such
resale. In addition, until                     , 200___[90 days] after commencement of the offering, all
dealers effecting transactions in the New Securities may be required to deliver a prospectus.

          The Issuers and the Guarantors will not receive any proceeds from any sale of New Securities
by Brokers-Dealers. New Securities received by Broker-Dealers for their own account pursuant to
the Exchange Offer may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of options on the New
Securities or a combination of such methods of resale, at market prices prevailing at the time of
resale, at prices related to such prevailing market prices or negotiated prices. Any such resale
may be made directly to purchasers or to or through brokers or dealers who may receive compensation
in the form of commissions or concessions from any such Broker-Dealer and/or the purchasers of any
such New Securities. Any Broker-Dealer that resells New Securities that were received by it for
its own account pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such New Securities may be deemed to be an “underwriter” within the meaning of the
Act and any profit of any such resale of New Securities and any commissions or concessions received
by any such Persons may be deemed to be underwriting compensation under the Act. The Letter of
Transmittal states that by acknowledging that it will deliver and by delivering a prospectus, a
Broker-Dealer will not be deemed to admit that it is an “underwriter” within the meaning of the
Act.

          For a period of one year after the Expiration Date, the Issuers and the Guarantors will
promptly send additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any Broker-Dealer that requests such documents in the Letter of Transmittal. The
Issuers and the Guarantors have agreed to pay all expenses incident to the Exchange Offer
(including the reasonable expenses of one counsel for the holders of the Securities) other than
commissions or concessions of any brokers or dealers and will indemnify the holders of the
Securities (including any Broker-Dealers) against certain liabilities, including liabilities under
the Act.

          If applicable, add information required by Regulation S-K Items 507 and/or 508.

 

 

ANNEX D

Rider A

	 	 	 	 	 	 	 
	 	 	CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF
THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Address:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 

Rider B

If the undersigned is not a Broker-Dealer, the undersigned represents that it acquired the New
Securities in the ordinary course of its business, it is not engaged in, and does not intend to
engage in, a distribution of New Securities and it has no arrangements or understandings with any
Person to participate in a distribution of the New Securities. If the undersigned is a
Broker-Dealer that will receive New Securities for its own account in exchange for Securities, it
represents that the Securities to be exchange for New Securities were acquired by it as a result of
market-making activities or other trading activities and acknowledges that it will deliver a
prospectus in connection with any resale of such New Securities; however, by so acknowledging and
by delivering a prospectus, the undersigned will not be deemed to admit that it is an “underwriter”
within the meaning of the Act.exv10w1

 

Exhibit 10.1

Execution Version

PLAINS ALL AMERICAN PIPELINE, L.P.

PAA FINANCE CORP.

$600,000,000 6.50% Notes due 2018

Purchase Agreement

April 18, 2008

Banc of America Securities LLC

BNP Paribas Securities Corp.

J.P. Morgan Securities Inc.

DnB NOR Markets, Inc.

Fortis Securities LLC

Mizuho Securities USA Inc.

Scotia Capital (USA) Inc.

ING Financial Markets LLC

SG Americas Securities, LLC

SunTrust Robinson Humphrey, Inc.

Wells Fargo Securities, LLC

BMO Capital Markets Corp.

The Williams Capital Group, L.P.

c/o Banc of America Securities LLC

9 West 57th Street

New York, NY 10019

Ladies and Gentlemen:

          Plains All American Pipeline, L.P., a Delaware limited partnership (the “Partnership”), and
PAA Finance Corp., a Delaware corporation (“PAA Finance,” and together with the Partnership, the
“Issuers”), propose to issue and sell to the several initial purchasers named in Schedule 1 hereto
(the “Initial Purchasers”) $600,000,000 aggregate principal amount of 6.50% Notes due 2018 (the
“Securities”). The Securities are to be issued under an indenture dated as of September 25, 2002
(the “Base Indenture”), among the Issuers and U.S. Bank National Association, as successor trustee
(the “Trustee”), as amended by the Thirteenth Supplemental Indenture, to be dated as of April 23,
2008, among the Issuers, the Subsidiary Guarantors (as defined herein) and the Trustee (the Base
Indenture, as so amended, the “Indenture”), and will be guaranteed on an unsecured basis by each of
the Subsidiary Guarantors (the “Guarantees”). The Securities will have the benefit of a
registration rights agreement (the “Registration Rights Agreement”), to be dated as of the Closing
Date (as defined in Section 3), among the Issuers, the other Plains Parties party thereto and the
Initial

 

 

Purchasers, pursuant to which and subject to the terms and conditions therein, the Issuers
will agree to exchange the Securities with securities (the “Exchange Securities”) that have been
registered under the Act. Certain terms used herein are defined in Section 19 hereof.

          PAA GP LLC, a Delaware limited liability company (the “General Partner”), is the general
partner of the Partnership. Plains AAP, L.P., a Delaware limited partnership (“Plains AAP”), owns
a 100% membership interest in the General Partner. Plains All American GP LLC, a Delaware limited
liability company (“GP LLC”), is the general partner of Plains AAP.

          Plains Marketing GP Inc., a Delaware corporation (“GP Inc.”); Plains Marketing, L.P., a Texas
limited partnership (“Plains Marketing”); Plains Pipeline, L.P., a Texas limited partnership
(“Plains Pipeline”); Pacific Energy Group LLC, a Delaware limited liability company (“Pacific
Energy Group”); Pacific Energy Finance Corporation, a Delaware corporation (“PPX Finance”); Pacific
LA Marine Terminal LLC, a Delaware limited liability company (“Pacific LA”); Rocky Mountain
Pipeline System LLC, a Delaware limited liability company (“Rocky Mountain”); Pacific Atlantic
Terminals LLC, a Delaware limited liability company (“Pacific Atlantic”); Ranch Pipeline LLC, a
Delaware limited liability company (“Ranch Pipeline”); Plains Towing LLC, a Delaware limited
liability company (“Plains Towing”); Plains Marketing Canada LLC, a Delaware limited liability
company (“PMC LLC”); Plains LPG Services GP LLC, a Delaware limited liability company (“LPG LLC”);
PICSCO LLC, a Delaware limited liability company (“PICSCO”); Plains LPG Services, L.P., a Delaware
limited partnership (“LPG Services LP”); Plains Midstream GP LLC, a Delaware limited liability
company (“Plains Midstream GP”); Plains Midstream, L.P., a Delaware limited partnership (“Plains
Midstream LP”); Lone Star Trucking, LLC, a California limited liability company (“Lone Star”);
Basin Holdings GP LLC, a Delaware limited liability company (“Basin LLC”); Basin Pipeline Holdings,
L.P., a Delaware limited partnership (“Basin LP”); Rancho Holdings GP LLC, a Delaware limited
liability company (“Rancho LLC”); and Rancho Pipeline Holdings, L.P., a Delaware limited
partnership (“Rancho LP”), are collectively referred to herein as the “Domestic Subsidiary
Guarantors.”

          Aurora Pipeline Company Ltd., a corporation incorporated under the laws of Canada (“Aurora”);
Plains Midstream Canada ULC, an Alberta unlimited liability company (“Plains Midstream Canada”);
Plains Marketing Canada, L.P., an Alberta limited partnership (“PMC LP”); and PMC (Nova Scotia)
Company, a Nova Scotia unlimited liability company (“PMC NS”), are collectively referred to herein
as the “Canadian Subsidiary Guarantors.”

          Andrews Partners, LLC, a California limited liability company; Pacific Energy GP, LP, a
Delaware limited partnership; Pacific Energy Management LLC, a Delaware limited liability company;
Pacific Pipeline System LLC, a Delaware limited liability company (“Pacific Pipeline”); Pacific
Terminals LLC, a Delaware limited liability company (“Pacific Terminals”); SLC Pipeline LLC, a
Delaware limited liability company; PEG Canada GP LLC, a Delaware limited liability company;
1366390 Alberta ULC, an Alberta unlimited liability company; Rangeland Marketing Company, a Nova
Scotia unlimited liability company; Rangeland Pipeline Company, a Nova Scotia unlimited liability
company; Rangeland Northern Pipeline Company, a Nova Scotia unlimited liability company; and Plains
All American Emergency Relief Fund, a Delaware corporation, are collectively referred to herein as
the “Non-Guarantor Subsidiaries.”

2

 

          The Domestic Subsidiary Guarantors and the Canadian Subsidiary Guarantors are collectively
referred to herein as the “Subsidiary Guarantors.” The Non-Guarantor Subsidiaries, the Subsidiary
Guarantors and PAA Finance are collectively referred to herein as the “Subsidiaries.” The Issuers,
the General Partner, Plains AAP, GP LLC and the Subsidiary Guarantors are collectively referred to
herein as the “Plains Parties.” The Plains Parties, the Non-Guarantor Subsidiaries and PAA/Vulcan
Gas Storage, LLC, a Delaware limited liability company (the “Joint Venture”), are collectively
referred to herein as the “Plains Entities.”

          The sale of the Securities to the Initial Purchasers will be made without registration of the
Securities under the Act in reliance upon exemptions from the registration requirements of the Act.

          In connection with the sale of the Securities, the Issuers have prepared a preliminary
offering memorandum dated April 18, 2008 (the “Preliminary Offering Memorandum”), and have prepared
a pricing supplement (the “Pricing Supplement”), dated April 18, 2008, the form of which is
attached as Exhibit A hereto, describing the terms of the Securities, for use by the Initial
Purchasers in connection with their solicitation of offers to purchase the Securities. The
Preliminary Offering Memorandum, as supplemented by the Pricing Supplement, is herein referred to
as the “Pricing Disclosure Package.” Promptly after the Applicable Time (as defined herein) and in
any event no later than the second business day following the Applicable Time, the Issuers shall
deliver or cause to be delivered copies, in such quantities and at such places as the Initial
Purchasers shall reasonably request, of the Final Offering Memorandum (the “Final Offering
Memorandum”), which will consist of the Preliminary Offering Memorandum with only such changes
thereto as are required to reflect the information contained in the Pricing Supplement and such
other changes as the Partnership reasonably deems appropriate following notice to the Initial
Purchasers or their legal counsel. The Issuers hereby confirm that they have authorized the use of
the Pricing Disclosure Package and the Final Offering Memorandum, and any amendment or supplement
thereto, in connection with the offer and sale of the Securities by the Initial Purchasers.

          All references herein to the terms “Pricing Disclosure Package” and “Final Offering
Memorandum” and all references to “as disclosed in” in either the Pricing Disclosure Package or the
Final Offering Memorandum, shall be deemed to mean and include all information filed under the
Exchange Act prior to the Applicable Time and incorporated by reference in the Pricing Disclosure
Package or the Final Offering Memorandum, as the case may be, and any references herein to the
terms “amend,” “amendment” or “supplement” with respect to the Final Offering Memorandum shall be
deemed to refer to and include any information filed under the Exchange Act after the Applicable
Time and incorporated by reference in the Final Offering Memorandum. As used herein, “Applicable
Time” means 1:25 P.M. (New York City time) on the date of this Agreement.

          1. Representations and Warranties of the Plains Parties. The Plains Parties, jointly
and severally, represent and warrant to the Initial Purchasers as set forth below in this Section
1:

     (a) The Pricing Disclosure Package, as of the Applicable Time, does not contain any
untrue statement of a material fact or omit to state any material fact necessary

3

 

in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided, however, that the Issuers make no
representation or warranty as to the information contained in or omitted from the Pricing
Disclosure Package in reliance upon and in conformity with written information furnished to
the Issuers by or on behalf of the Initial Purchasers specifically for inclusion therein.

     (b) As of its date and on the Closing Date, the Final Offering Memorandum will not (and
any amendment or supplement thereto, at the date thereof and at the Closing Date, will not)
contain any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided, however, that the Issuers make no
representation or warranty as to the information contained in or omitted from the Final
Offering Memorandum, or any amendment or supplement thereto, in reliance upon and in
conformity with information furnished in writing to the Issuers by or on behalf of the
Initial Purchasers specifically for inclusion therein.

     (c) The documents incorporated by reference in the Pricing Disclosure Package and the
Final Offering Memorandum (and any amendment or supplement thereto), when filed with the
Commission, conformed or will conform, as the case may be, in all material respects to the
applicable requirements of the Exchange Act and the rules and regulations of the Commission
thereunder, and did not and will not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading.

     (d) None of the Plains Parties, nor any person acting on its or their behalf has,
directly or indirectly, made offers or sales of any security, or solicited offers to buy any
security, under circumstances that would require the registration of the Securities under
the Act.

     (e) None of the Plains Parties, nor any person acting on its or their behalf, has
engaged in any form of general solicitation or general advertising (within the meaning of
Regulation D) in connection with any offer or sale of the Securities in the United States.

     (f) The Securities satisfy the eligibility requirements of Rule 144A(d)(3) under the
Act.

     (g) None of the Plains Parties, nor any person acting on its or their behalf, has
engaged in any directed selling efforts with respect to the Securities, and each of them has
complied with the offering restrictions requirement of Regulation S. Terms used in this
paragraph have the meanings given to them by Regulation S.

     (h) The Partnership is subject to and in compliance with the reporting requirements of
Section 13 or Section 15(d) of the Exchange Act.

     (i) Subject to compliance by the Initial Purchasers with the procedures set forth in
Section 4 hereof, it is not necessary in connection with the offer, sale and

4

 

delivery of the Securities by the Issuers to the Initial Purchasers and the initial
resale by the Initial Purchasers in the manner contemplated by this Agreement, the Pricing
Disclosure Package and the Final Offering Memorandum (and any amendment or supplement
thereto) to register the Securities under the Act or to qualify the Indenture under the
Trust Indenture Act.

     (j) The Issuers have not paid or agreed to pay to any person any compensation for
soliciting another to purchase any securities of the Issuers (except as contemplated by this
Agreement).

     (k) None of the Plains Parties, nor any person acting on its or their behalf has taken,
directly or indirectly, any action designed to cause or that has constituted or that might
reasonably be expected to cause or result, under the Exchange Act or otherwise, in the
stabilization or manipulation of the price of any security of the Issuers to facilitate the
sale or resale of the Securities.

     (l) Each of the Plains Parties and the Joint Venture has been duly formed or
incorporated and is validly existing in good standing as a limited partnership, limited
liability company, corporation or unlimited liability company under the laws of its
respective jurisdiction of formation or incorporation with full corporate, partnership,
limited liability company or unlimited liability company power and authority, as the case
may be, to own or lease its properties and to conduct its business, in each case in all
material respects. Each of the Plains Parties and the Joint Venture is duly registered or
qualified as a foreign corporation, limited partnership, limited liability company or
unlimited liability company, as the case may be, for the transaction of business under the
laws of each jurisdiction (as set forth on Exhibit C to this Agreement) in which the
character of the business conducted by it or the nature or location of the properties owned
or leased by it makes such registration or qualification necessary, except where the failure
so to register or qualify would not have a material adverse effect on the condition
(financial or other), business, prospects, properties, net worth or results of operations of
the Plains Entities, taken as a whole.

     (m) GP LLC has full limited liability company power and authority to act as the general
partner of Plains AAP; the General Partner has full limited liability company power and
authority to act as the general partner of the Partnership; GP Inc. has full corporate power
and authority to act as the general partner of Plains Marketing and Plains Pipeline; Basin
LLC has full limited liability company power and authority to act as the general partner of
Basin LP; Rancho LLC has full limited liability company power and authority to act as the
general partner of Rancho LP; PMC NS has full unlimited liability company power and
authority to act as the general partner of PMC LP; LPG LLC has full limited liability
company power and authority to act as the general partner of LPG Services LP; and Plains
Midstream GP has full limited liability company power and authority to act as the general
partner of Plains Midstream LP, in each case in all material respects.

     (n) The General Partner is the sole general partner of the Partnership, with a 2.0%
general partner interest in the Partnership; such general partner interest has been

5

 

duly authorized and validly issued in accordance the Third Amended and Restated
Agreement of Limited Partnership of the Partnership (as the same may be amended or restated
prior to the Closing Date, the “Partnership Agreement”); and the General Partner owns such
general partner interest free and clear of all liens, encumbrances, security interests,
equities, charges or claims.

     (o) Plains AAP is the sole member of the General Partner, with a 100% membership
interest in the General Partner; such membership interest has been duly authorized and
validly issued in accordance with the Limited Liability Company Agreement of the General
Partner (as the same may be amended or restated prior to the Closing Date, such agreement
being referred to herein as the “General Partner LLC Agreement”) and is fully paid (to the
extent required under the General Partner LLC Agreement) and nonassessable (except as such
nonassessability may be affected by matters described in Section 18-607 and 18-804 of the
Delaware Limited Liability Company Act (the “Delaware LLC Act”)); and Plains AAP owns such
membership interest free and clear of all liens, encumbrances, security interests, equities,
charges or claims; except as provided in the Credit Agreement dated January 3, 2008 (as
amended, the “Plains AAP Facility”), by and among Plains AAP, the lenders party thereto and
Citibank, N.A., as Administrative Agent.

     (p) GP LLC is the sole general partner of Plains AAP, with a 1.0% general partner
interest in Plains AAP; such general partner interest has been duly authorized and validly
issued in accordance with the Fourth Amended and Restated Limited Partnership Agreement of
Plains AAP (as the same may be amended or restated prior to the Closing Date, such agreement
being referred to herein as the “Plains AAP Partnership Agreement”); and GP LLC owns such
general partner interest free and clear of all liens, encumbrances, security interests,
equities, charges or claims; except as provided in the Plains AAP Facility.

     (q) GP Inc. is the sole general partner of Plains Marketing, with a .001% general
partner interest in Plains Marketing, and the sole general partner of Plains Pipeline, with
a .001% general partner interest in Plains Pipeline; such general partner interests have
been duly authorized and validly issued in accordance with the agreement of limited
partnership of Plains Marketing and the agreement of limited partnership of Plains Pipeline,
respectively (in each case, as in effect on the date hereof and as the same may be amended
or restated prior to the Closing Date, such agreements being referred to herein as the
“Plains Marketing Partnership Agreement” and the “Plains Pipeline Partnership Agreement,”
respectively); and GP Inc. owns such general partner interests free and clear of all liens,
encumbrances, security interests, equities, charges or claims.

     (r) All of the outstanding shares of capital stock or other equity interests (other
than general partner interests) of each Subsidiary and the Joint Venture (a) have been duly
authorized and validly issued (in the case of an interest in a limited partnership or
limited liability company, in accordance with the Organizational Documents (as defined in
Section 1(aa) below) of such Subsidiary or the Joint Venture), are fully paid (in the case
of an interest in a limited partnership or limited liability company, to the extent required
under the Organizational Documents of such Subsidiary or the Joint

6

 

Venture) and nonassessable (except (i) in the case of an interest in a Delaware limited
partnership or Delaware limited liability company, as such nonassessability may be affected
by Section 17-607 of the Delaware Revised Uniform Limited Partnership Act (the “Delaware LP
Act”) or Section 18-607 and 18-804 of the Delaware LLC Act), as applicable, (ii) in the case
of an interest in a limited partnership or limited liability company formed under the laws
of another domestic state, as such nonassessability may be affected by similar provisions of
such state’s limited partnership or limited liability company statute, as applicable, and
(iii) in the case of an interest in an entity formed under the laws of a foreign
jurisdiction, as such nonassessability may be affected by similar provisions of such
jurisdiction’s corporate, partnership or limited liability company statute, if any, as
applicable) and (b) except for a 50% membership interest in the Joint Venture owned by
Vulcan Gas Storage LLC, are owned, directly or indirectly, by the Partnership, free and
clear of all liens, encumbrances, security interests, equities, charges or claims.

     (s) All outstanding general partner interests in each Subsidiary Guarantor that is a
partnership have been duly authorized and validly issued in accordance with the
Organizational Documents of such Subsidiary Guarantor and are owned, directly or indirectly,
by the Partnership, free and clear of all liens, encumbrances, security interests, equities,
charges or claims.

     (t) The Partnership has no direct or indirect majority-owned subsidiaries other than
those disclosed on Exhibit 21.1 on the Partnership’s Annual Report on Form 10-K filed with
the Commission on February 29, 2008 (the “Form 10-K”). The Issuers have no independent
assets or operations and the Guarantees of the Subsidiary Guarantors are full and
unconditional and joint and several. The footnotes to the Partnership’s financial statements
included or incorporated by reference in the Pricing Disclosure Package and the Final
Offering Memorandum (and any amendment or supplement thereto) include the appropriate
disclosure required by Rule 3-10(f)(4) of Regulation S-X.

     (u) The offering and sale of the Securities as contemplated by this Agreement do not
give rise to any rights for or relating to the registration of any other securities of the
Issuers, except such rights as have been waived or satisfied. The Securities, when issued
and delivered against payment therefor as provided herein, the Exchange Securities, when
issued and delivered as provided in the Registration Rights Agreement, the Guarantees, the
Indenture and the Registration Rights Agreement will conform in all material respects to the
descriptions thereof contained in the Pricing Disclosure Package and the Final Offering
Memorandum (and any amendment or supplement thereto). The Issuers have all requisite power
and authority to issue, sell and deliver the Securities, in accordance with and upon the
terms and conditions set forth in this Agreement, their respective Organizational Documents,
the Indenture, the Pricing Disclosure Package and the Final Offering Memorandum (and any
amendment or supplement thereto) and to issue and deliver the Exchange Securities, in
accordance with and upon the terms and conditions set forth in this Agreement, the
Registration Rights Agreement, their respective Organizational Documents, the Indenture, the
Pricing Disclosure Package and the Final Offering Memorandum (and any amendment or
supplement thereto). At the

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Closing Date, all corporate, partnership and limited liability company action, as the
case may be, required to be taken by the Plains Parties or any of their stockholders,
partners or members for the authorization, issuance, sale and delivery of the Securities
(and the Guarantees) shall have been validly taken.

     (v) The execution and delivery of, and the performance by each of the Plains Parties of
their respective obligations under, this Agreement have been duly and validly authorized by
each of the Plains Parties, and this Agreement has been duly executed and delivered by each
of the Plains Parties, and constitutes the valid and legally binding agreement of each of
the Plains Parties, enforceable against each of the Plains Parties in accordance with its
terms, provided that the enforceability hereof may be limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to or
affecting creditors’ rights generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law) and except as
rights to indemnity and contribution hereunder may be limited by federal or state securities
laws.

     (w) The execution and delivery of, and the performance by each of the Plains Parties of
their respective obligations under, the Indenture have been duly and validly authorized by
each of the Plains Parties, and the Indenture, assuming due authorization, execution and
delivery of the Base Indenture and the Thirteenth Supplemental Indenture thereto by the
Trustee, when such Thirteenth Supplemental Indenture is executed and delivered by each of
the Plains Parties, will constitute the valid and legally binding agreement of each of the
Plains Parties, enforceable against each of the Plains Parties in accordance with its terms;
the Securities have been duly authorized, and, when executed and authenticated in accordance
with the provisions of the Indenture and delivered to and paid for by the Initial
Purchasers, will have been duly executed and delivered by each of the Issuers and will
constitute the valid and legally binding obligations of the Issuers, enforceable against the
Issuers in accordance with their terms and entitled to the benefits of the Indenture; the
Exchange Securities have been duly authorized and, when executed and authenticated in
accordance with the provisions of the Indenture and delivered in accordance with the
Registration Rights Agreement, will have been duly executed and delivered by each of the
Issuers and will constitute the valid and legally binding obligations of the Issuers,
enforceable against the Issuers in accordance with their terms and entitled to the benefits
of the Indenture; and the Registration Rights Agreement has been duly and validly authorized
and, when executed and delivered by each of the Plains Parties, will constitute the valid
and legally binding agreement of each of the Plains Parties, enforceable against each of the
Plains Parties in accordance with its terms; provided that, with respect to each,
the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws relating to or affecting creditors’ rights
generally and by general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and except as rights to indemnity and
contribution hereunder may be limited by federal or state securities laws.

     (x) The Guarantees have been duly authorized by each of the Subsidiary Guarantors and,
when the Securities have been duly executed, authenticated, issued and

8

 

delivered as provided in the Indenture and paid for as provided herein, will be valid
and legally binding obligations of each of the Subsidiary Guarantors, enforceable against
each of the Subsidiary Guarantors in accordance with their terms, provided that the
enforceability thereof may be limited by bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws relating to or affecting creditors’ rights
generally and by general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and except as rights to indemnity and
contribution hereunder may be limited by federal or state securities laws, and will be
entitled to the benefits of the Indenture.

     (y) Each limited liability company agreement or limited partnership agreement, as
applicable, of the Issuers, the General Partner, Plains AAP, GP LLC and each Subsidiary
Guarantor that is a limited liability company or a limited partnership has been duly
authorized, executed and delivered by the parties thereto and is a valid and legally binding
agreement of such parties, enforceable against such parties in accordance with its terms;
provided that, with respect to each such agreement, the enforceability thereof may
be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws relating to or affecting creditors’ rights generally and by general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity
or at law).

     (z) The limited liability company agreement of the Joint Venture has been duly
authorized, executed and delivered by the Partnership and, assuming due authorization,
execution and delivery by the other parties thereto, is a valid and legally binding
agreement of the Partnership, enforceable against it in accordance with its terms;
provided that the enforceability thereof may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting
creditors’ rights generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

     (aa) None of the offering, issuance and sale by the Issuers of the Securities, the
issuance of the Exchange Securities, the execution, delivery and performance of this
Agreement by the Plains Parties, the consummation of the transactions contemplated hereby,
the execution, delivery and performance of the Indenture and the Registration Rights
Agreement by the Plains Parties that are parties thereto or the consummation of the
transactions contemplated thereby (i) conflicts or will conflict with or constitutes or will
constitute a violation of the agreement or certificate of limited partnership, limited
liability company agreement, certificate of formation, certificate or articles of
incorporation, bylaws or other similar organizational documents (in each case as in effect
on the date hereof and as the same may be amended or restated prior to the Closing Date)
(the “Organizational Documents”) of any of the Plains Parties, (ii) conflicts or will
conflict with or constitutes or will constitute a breach or violation of, a change of
control or a default under (or an event which, with notice or lapse of time or both, would
constitute such an event), any indenture, mortgage, deed of trust, loan agreement, lease or
other agreement or instrument to which any of the Plains Parties is a party or by which any
of them or any of their respective properties may be bound, (iii) violates or will violate
any statute, law or regulation or any order, judgment, decree or injunction of any

9

 

court or governmental agency or body directed to any of the Plains Parties or any of
their properties in a proceeding to which any of them or their property is a party or (iv)
will result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of any of the Plains Parties or the Joint Venture, which conflicts,
breaches, violations or defaults, in the case of clauses (ii), (iii) or (iv), would have a
material adverse effect upon the condition (financial or other), business, prospects,
properties, net worth or results of operations of the Plains Entities, taken as a whole.

     (bb) No permit, consent, approval, authorization, order, registration, filing or
qualification of or with any court, governmental agency or body is required in connection
with the offering, issuance and sale by the Issuers of the Securities, the issuance of the
Exchange Securities, the execution, delivery and performance of this Agreement by the Plains
Parties, the consummation of the transactions contemplated hereby, the execution, delivery
and performance of the Indenture and the Registration Rights Agreement by the Plains Parties
that are parties thereto or the consummation of the transactions contemplated thereby,
except for such permits, consents, approvals and similar authorizations as will be obtained
pursuant to the Registration Rights Agreement, under the Act and the Trust Indenture Act,
and as may be required under the Exchange Act and state securities or “Blue Sky” laws.

     (cc) None of the Plains Parties is in (i) violation of its Organizational Documents, or
of any law, statute, ordinance, administrative or governmental rule or regulation applicable
to it or of any decree of any court or governmental agency or body having jurisdiction over
it or (ii) breach, default (or an event which, with notice or lapse of time or both, would
constitute such an event) or violation in the performance of any obligation, agreement or
condition contained in any bond, debenture, note or any other evidence of indebtedness or in
any agreement, indenture, lease or other instrument to which it is a party or by which it or
any of its properties may be bound, which breach, default or violation would, if continued,
have a material adverse effect on the condition (financial or other), business, prospects,
properties, net worth or results of operations of the Plains Entities, taken as a whole, or
could materially impair the ability of any of the Plains Parties to perform its obligations
under this Agreement. To the knowledge of the Plains Parties, no third party to any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which
any of the Plains Parties is a party or by which any of them is bound or to which any of
their properties are subject, is in default under any such agreement, which breach, default
or violation would, if continued, have a material adverse effect on the condition (financial
or other), business, prospects, properties, net worth or results of operations of the Plains
Entities, taken as a whole.

     (dd) The accountants, PricewaterhouseCoopers LLP, who have certified or shall certify
the audited financial statements included or incorporated by reference in the Pricing
Disclosure Package and the Final Offering Memorandum (and any amendment or supplement
thereto), are independent registered public accountants with respect to the Plains Parties
as required by the Act and the applicable published rules and regulations thereunder.

10

 

     (ee) At December 31, 2007, the Partnership would have had, on an as adjusted basis as
indicated in the Pricing Disclosure Package and the Final Offering Memorandum (and any
amendment or supplement thereto), a total capitalization as set forth therein. The
financial statements (including the related notes and supporting schedules) and other
financial information included or incorporated by reference in the Pricing Disclosure
Package and the Final Offering Memorandum (and any amendment or supplement thereto) present
fairly in all material respects the financial position, results of operations and cash flows
of the entities purported to be shown thereby, at the dates and for the periods indicated,
and have been prepared in conformity with generally accepted accounting principles applied
on a consistent basis throughout the periods indicated, except to the extent disclosed
therein. The summary and selected historical financial information included or incorporated
by reference in the Pricing Disclosure Package and the Final Offering Memorandum (and any
amendment or supplement thereto) is accurately presented in all material respects and
prepared on a basis consistent with the audited and unaudited historical consolidated
financial statements from which it has been derived, except as described therein. The pro
forma financial statements and other pro forma financial information included or
incorporated by reference in the Pricing Disclosure Package and the Final Offering
Memorandum (and any amendment or supplement thereto) (i) present fairly in all material
respects the information shown therein, (ii) have been prepared in accordance with the
Commission’s rules and guidelines with respect to pro forma financial statements and
(iii) have been properly computed on the bases described therein. The assumptions used in
the preparation of the pro forma financial statements and other pro forma financial
information included or incorporated by reference in the Pricing Disclosure Package and the
Final Offering Memorandum (and any amendment or supplement thereto) are reasonable, and the
adjustments used therein are appropriate to give effect to the transactions or circumstances
referred to therein.

     (ff) The Partnership’s acquisition, through Plains Midstream Canada, of Rainbow Pipe
Line Company, Ltd. for approximately Can$540 million, as described in the Pricing Disclosure
Package and the Final Offering Memorandum (and any amendment or supplement thereto), will
not require the filing by the Partnership with the Commission of acquisition financial
statements pursuant to Rule 3-05 of Regulation S-X of the Exchange Act.

     (gg) Except as disclosed in the Pricing Disclosure Package and the Final Offering
Memorandum (and any amendment or supplement thereto), subsequent to the respective dates as
of which such information is given in the Pricing Disclosure Package and the Final Offering
Memorandum (and any amendment or supplement thereto), (i) none of the Plains Parties has
incurred any liability or obligation, indirect, direct or contingent, or entered into any
transactions, not in the ordinary course of business, that, singly or in the aggregate, is
material to the Plains Parties, taken as a whole, (ii) there has not been any material
change in the capitalization, or material increase in the short-term debt or long-term debt,
of the Plains Parties and (iii) there has not been any material adverse change, or any
development involving or which may reasonably be expected to involve, singly or in the
aggregate, a prospective material adverse change in the condition

11

 

(financial or other), business, prospects, properties, net worth or results of
operations of the Plains Parties, taken as a whole.

     (hh) The Plains Parties have good and indefeasible title to all real property and good
title to all personal property described in the Pricing Disclosure Package and the Final
Offering Memorandum (and any amendment or supplement thereto) as being owned by them, free
and clear of all liens, claims, security interests or other encumbrances except (i) as
provided in the Restated Credit Agreement (Uncommitted Senior Secured Discretionary Contango
Facility) dated November 19, 2004 (as amended, the “Contango Credit Agreement”) among Plains
Marketing, Bank of America, N.A., as administrative agent thereunder and the lenders from
time to time party thereto, described in the Pricing Disclosure Package and the Final
Offering Memorandum (and any amendment or supplement thereto); (ii) the Plains AAP Facility;
and (iii) such as do not materially interfere with the use of such properties taken as a
whole as described in the Pricing Disclosure Package and the Final Offering Memorandum (and
any amendment or supplement thereto); and all real property and buildings held under lease
by any of the Plains Parties are held under valid and subsisting and enforceable leases with
such exceptions as do not materially interfere with the use of such properties taken as a
whole as described in the Pricing Disclosure Package and the Final Offering Memorandum (and
any amendment or supplement thereto).

     (ii) Each of the Plains Parties has such permits, consents, licenses, franchises,
certificates and authorizations of governmental or regulatory authorities (“permits”) as are
necessary to own its properties and to conduct its business in the manner described in the
Pricing Disclosure Package and the Final Offering Memorandum (and any amendment or
supplement thereto), subject to such qualifications as may be set forth in the Pricing
Disclosure Package and the Final Offering Memorandum (and any amendment or supplement
thereto) and except for such permits the failure of which to have obtained would not have,
individually or in the aggregate, a material adverse effect upon the ability of the Plains
Entities considered as a whole to conduct their businesses in all material respects as
currently conducted and as contemplated by the Pricing Disclosure Package and the Final
Offering Memorandum (and any amendment or supplement thereto) to be conducted; each of the
Plains Parties has fulfilled and performed all of its material obligations with respect to
such permits and no event has occurred which allows, or after notice or lapse of time would
allow, revocation or termination thereof or results in any impairment of the rights of the
holder of any such permit, except for such failures to perform, revocations, terminations
and impairments that would not have a material adverse effect upon the ability of the Plains
Entities considered as a whole to conduct their businesses in all material respects as
currently conducted and as contemplated by the Pricing Disclosure Package and the Final
Offering Memorandum (and any amendment or supplement thereto) to be conducted, subject in
each case to such qualification as may be set forth in the Pricing Disclosure Package and
the Final Offering Memorandum (and any amendment or supplement thereto); and, except as
described in the Pricing Disclosure Package and the Final Offering Memorandum (and any
amendment or supplement thereto), none of such permits contains any restriction that is
materially burdensome to the Plains Parties considered as a whole.

12

 

     (jj) Each of the Plains Parties has such consents, easements, rights-of-way or licenses
from any person (“rights-of-way”) as are necessary to conduct its business in the manner
described in the Pricing Disclosure Package and the Final Offering Memorandum (and any
amendment or supplement thereto), subject to such qualifications as may be set forth in the
Pricing Disclosure Package and the Final Offering Memorandum (and any amendment or
supplement thereto) and except for such rights-of-way the failure of which to have obtained
would not have, individually or in the aggregate, a material adverse effect upon the ability
of the Plains Entities considered as a whole to conduct their businesses in all material
respects as currently conducted and as contemplated by the Pricing Disclosure Package and
the Final Offering Memorandum (and any amendment or supplement thereto) to be conducted;
each of the Plains Parties has fulfilled and performed all its material obligations with
respect to such rights-of-way and no event has occurred which allows, or after notice or
lapse of time would allow, revocation or termination thereof or would result in any
impairment of the rights of the holder of any such rights-of-way, except for such failures
to perform, revocations, terminations and impairments that will not have a material adverse
effect upon the ability of the Plains Entities considered as a whole to conduct their
businesses in all material respects as currently conducted and as contemplated by the
Pricing Disclosure Package and the Final Offering Memorandum (and any amendment or
supplement thereto) to be conducted, subject in each case to such qualification as may be
set forth in the Final Offering Memorandum (and any amendment or supplement thereto); and,
except as described in the Pricing Disclosure Package and the Final Offering Memorandum (and
any amendment or supplement thereto), none of such rights-of-way contains any restriction
that is materially burdensome to the Plains Parties considered as a whole.

     (kk) None of the Plains Parties is now, and after sale of the Securities to be sold by
the Issuers hereunder and application of the net proceeds from such sale as described in the
Pricing Disclosure Package and the Final Offering Memorandum (and any amendment or
supplement thereto) under the caption “Use of Proceeds,” none of the Plains Parties will be,
(i) an “investment company” or a company “controlled by” an “investment company” within the
meaning of the Investment Company Act, (ii)  a “gas utility,” within the meaning of Tex.
Util. Code § 121.001 or (iii) a “public utility” or “utility” within the meaning of the
Public Utility Regulatory Act of Texas or under similar laws of any state in which any such
Plains Party does business; other than in respect of any subsidiary of Pacific Energy Group
that is under the jurisdiction of the California Public Utility Commission.

     (ll) None of the Plains Parties has sustained since the date of the latest audited
financial statements included in the Pricing Disclosure Package and the Final Offering
Memorandum (and any amendment or supplement thereto) any material loss or interference with
its business from fire, explosion, flood or other calamity whether or not covered by
insurance, or from any labor dispute or court or governmental action, investigation, order
or decree, otherwise than as set forth or contemplated in the Pricing Disclosure Package and
the Final Offering Memorandum (and any amendment or supplement thereto), which in each case
would have a material adverse effect on the condition (financial or other), business,
prospects, properties, net worth or results of operations of the Plains Entities, taken as a
whole.

13

 

     (mm) Except as described in the Pricing Disclosure Package and the Final Offering
Memorandum (and any amendment or supplement thereto), none of the Plains Parties has
violated any environmental, safety, health or similar law or regulation applicable to its
business relating to the protection of human health and safety, the environment or hazardous
or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), or lacks
any permits, licenses or other approvals required of them under applicable Environmental
Laws to own, lease or operate their properties and conduct their business as described in
the Pricing Disclosure Package and the Final Offering Memorandum (and any amendment or
supplement thereto) or is violating any terms and conditions of any such permit, license or
approval, which in each case would have a material adverse effect on the condition
(financial or other), business, prospects, properties, net worth or results of operations of
the Plains Entities, taken as a whole.

     (nn) No labor dispute by the employees of any of the Plains Parties exists or, to the
knowledge of the Plains Parties, is imminent, which might reasonably be expected to have a
material adverse effect on the condition (financial or other), business, prospects,
properties, net worth or results of operations of the Plains Entities, taken as a whole.

     (oo) The Plains Parties maintain insurance covering their properties, operations,
personnel and businesses against such losses and risks as are reasonably adequate to protect
them and their businesses in a manner consistent with other businesses similarly situated.
None of the Plains Parties has received notice from any insurer or agent of such insurer
that substantial capital improvements or other expenditures will have to be made in order to
continue such insurance, and all such insurance is outstanding and duly in force on the date
hereof and will be outstanding and duly in force on the Closing Date.

     (pp) Except as described in the Pricing Disclosure Package and the Final Offering
Memorandum (and any amendment or supplement thereto), there is (i) no action, suit or
proceeding before or by any court, arbitrator or governmental agency, body or official,
domestic or foreign, now pending or, to the knowledge of the Plains Parties, threatened, to
which any of the Plains Parties, or any of their respective subsidiaries, is or may be a
party or to which the business or property of any of the Plains Parties, or any of their
respective subsidiaries, is or may be subject, (ii) no statute, rule, regulation or order
that has been enacted, adopted or issued by any governmental agency or, to the knowledge of
the Plains Parties, that has been proposed by any governmental body and (iii) no injunction,
restraining order or order of any nature issued by a federal or state court or foreign court
of competent jurisdiction to which any of the Plains Parties, or any of their respective
subsidiaries, is or may be subject, that, in the case of clauses (i), (ii) and (iii) above,
is reasonably expected to (A) singly or in the aggregate have a material adverse effect on
the condition (financial or other), business, prospects, properties, net worth or results of
operations of the Plains Entities, taken as a whole, (B) prevent or result in the suspension
of the offering and issuance of the Securities or prevent the issuance of the Exchange
Securities or (C) in any manner draw into question the validity of this Agreement, the
Indenture, the Securities, the Exchange Securities or the Registration Rights Agreement.

14

 

     (qq) No Subsidiary Guarantor is currently prohibited, directly or indirectly, from
paying any dividends to the Partnership, from making any other distribution on such
Subsidiary Guarantor’s capital stock or partnership or limited liability company interests,
from repaying to the Partnership any loans or advances to such Subsidiary Guarantor from the
Partnership or from transferring any of such Subsidiary Guarantor’s property or assets to
the Partnership or any other Subsidiary Guarantor of the Partnership, except as described in
or contemplated by the Pricing Disclosure Package and the Final Offering Memorandum
(exclusive of any amendment or supplement thereto).

     (rr) The Partnership maintains a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorization; (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain accountability for assets; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv)
the recorded accountability for assets is compared with existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

     (ss) The Partnership and, to the knowledge of the Partnership, the directors and
officers of GP LLC in their capacities as such, are in compliance in all material respects
with all applicable and effective provisions of the Sarbanes-Oxley Act of 2002 and the rules
and regulations promulgated thereunder.

          Any certificate signed by any officer of the Plains Parties and delivered to the Initial
Purchasers or counsel for the Initial Purchasers in connection with the offering of the Securities
shall be deemed a representation and warranty by the Plains Parties, as to matters covered thereby,
to the Initial Purchasers.

          2. Purchase and Sale. Subject to the terms and conditions and in reliance upon the
representations and warranties herein set forth, the Issuers agree to sell to each Initial
Purchaser, and each Initial Purchaser severally agrees to purchase from the Issuers the principal
amount of the Securities set forth opposite such Initial Purchaser’s name on Schedule 1 hereto at a
purchase price of 98.774% of the principal amount thereof, plus accrued interest, if any, from
April 23, 2008, if closing occurs after such date.

          3. Delivery and Payment. Delivery of and payment for the Securities shall be made at
10:00 A.M., New York City time, on April 23, 2008, or at such time on such later date as the
Initial Purchasers shall designate, which date and time may be postponed by agreement between the
Initial Purchasers and the Issuers (such date and time of delivery and payment for the Securities
being herein called the “Closing Date”). Delivery of the Securities shall be made to the Initial
Purchasers against payment by the Initial Purchasers of the purchase price thereof to or upon the
order of the Issuers by wire transfer payable in same-day funds to the account specified by the
Issuers. Delivery of the Securities shall be made through the facilities of The Depository Trust
Company (“DTC”) unless the Initial Purchasers shall otherwise instruct.

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          4. Offering by Initial Purchasers. Each Initial Purchaser represents and warrants to
and agrees with the Issuers that:

     (a) It has not offered or sold, and will not offer or sell, any Securities except
(i) to those it reasonably believes to be qualified institutional buyers (as defined in Rule
144A under the Act) and that, in connection with each such sale, it has taken or will take
reasonable steps to ensure that the purchaser of such Securities is aware that such sale is
being made in reliance on Rule 144A or (ii) in accordance with the restrictions set forth in
Exhibit B hereto.

     (b) Neither it nor any person acting on its behalf has made or will make offers or
sales of the Securities in the United States by means of any form of general solicitation or
general advertising (within the meaning of Regulation D) in the United States.

          5. Agreements. Each of the Plains Parties, jointly and severally, acknowledges and
agrees with the Initial Purchasers that:

     (a) The Issuers will furnish to the Initial Purchasers and to counsel for the Initial
Purchasers, without charge, during the period referred to in paragraph (c) below, as many
copies of the Pricing Disclosure Package and the Final Offering Memorandum and any
amendments and supplements thereto as they may reasonably request.

     (b) The Issuers will not amend or supplement the Pricing Disclosure Package, other than
by filing documents under the Exchange Act that are incorporated by reference therein,
without the prior written consent of the Initial Purchasers; provided,
however, that, prior to the completion of the distribution of the Securities by the
Initial Purchasers (as determined by the Initial Purchasers), the Issuers will not file any
document under the Exchange Act that is incorporated by reference in the Pricing Disclosure
Package unless (i) prior to such proposed filing, the Issuers have furnished the Initial
Purchasers with a copy of such document for their review and the Initial Purchasers have not
reasonably objected to the filing of such document or (ii) the Initial Purchasers have
reasonably objected and the Issuers have received advice of counsel that such filing is
necessary and appropriate. The Issuers will promptly advise the Initial Purchasers when any
document filed under the Exchange Act that is incorporated by reference in the Pricing
Disclosure Package shall have been filed with the Commission.

     (c) If at any time prior to the completion of the distribution of the Securities by the
Initial Purchasers (as determined by the Initial Purchasers), any event occurs as a result
of which the Final Offering Memorandum, as then amended or supplemented, would include any
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, or if it should be necessary to amend or supplement the Final Offering
Memorandum to comply with applicable law, the Issuers promptly (i) will notify the Initial
Purchasers of any such event; (ii) subject to the requirements of paragraph (b) of this
Section 5, will prepare an amendment or supplement that will correct such statement or
omission or effect such compliance; and (iii) will supply any supplemented or amended Final
Offering Memorandum to the Initial Purchasers and

16

 

counsel for the Initial Purchasers without charge in such quantities as they may
reasonably request.

     (d) The Issuers will arrange, if necessary, for the qualification of the Securities for
sale by the Initial Purchasers under the laws of such jurisdictions as the Initial
Purchasers may reasonably designate and will maintain such qualifications in effect so long
as reasonably required for the sale of the Securities; provided that in no event
shall either Issuer be obligated to qualify to do business in any jurisdiction where it is
not now so qualified or to take any action that would subject it to service of process in
suits, other than those arising out of the offering or sale of the Securities, in any
jurisdiction where it is not now so subject. The Issuers will promptly advise the Initial
Purchasers of the receipt by the Issuers of any notification with respect to the suspension
of the qualification of the Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose.

     (e) During the period of two years after the Closing Date, none of the Plains Parties
will resell any Securities that have been acquired by any of them.

     (f) None of the Plains Parties, nor any person acting on behalf of any of the Plains
Parties (other than the Initial Purchasers, as to whom the Plains Parties make no
representation), will, directly or indirectly, make offers or sales of any security, or
solicit offers to buy any security, that is or will be integrated with the sale of the
Securities in a manner that would require the registration of the Securities under the Act.

     (g) None of the Plains Parties, nor any person acting on behalf of any of the Plains
Parties (other than the Initial Purchasers, as to whom the Plains Parties make no
representation), will engage in any form of general solicitation or general advertising
(within the meaning of Regulation D) in connection with any offer or sale of the Securities
in the United States.

     (h) So long as any of the Securities are “restricted securities” within the meaning of
Rule 144(a)(3) under the Act, the Issuers will, during any period in which they are not
subject to and in compliance with Section 13 or 15(d) of the Exchange Act or they are not
exempt from such reporting requirements pursuant to and in compliance with Rule 12g3-2(b)
under the Exchange Act, provide to each holder of such restricted securities and to each
prospective purchaser (as designated by such holder) of such restricted securities, upon the
request of such holder or prospective purchaser, any information required to be provided by
Rule 144A(d)(4) under the Act. This covenant is intended to be for the benefit of the
holders, and the prospective purchasers designated by such holders, from time to time of
such restricted securities. The information provided by the Issuers pursuant to this
Section 5(h) will not, at the date thereof, contain any untrue statement of a material fact
or omit to state any material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading.

     (i) None of the Plains Parties, nor any person acting on behalf of any of the Plains
Parties (other than the Initial Purchasers, as to whom the Plains Parties make no

17

 

representation), will engage in any directed selling efforts with respect to the
Securities, and each of them will comply with the offering restrictions requirement of
Regulation S. Terms used in this paragraph have the meanings given to them by Regulation S.

     (j) The Issuers will cooperate with and assist the Initial Purchasers to permit the
Securities to be eligible for clearance and settlement through DTC, Euroclear S.A./N.V.
(“Euroclear”) and Clearstream Banking, société anonyme (“Clearstream”).

     (k) The Plains Parties will not, for a period 60 days following the Applicable Time,
without the prior written consent of the Initial Purchasers, offer, sell or contract to
sell, pledge or otherwise dispose of (or enter into any transaction which is designed to, or
might reasonably be expected to, result in the disposition (whether by actual disposition or
effective economic disposition due to cash settlement or otherwise) by any of the Plains
Parties or any person in privity with the Plains Parties), directly or indirectly, or
announce the offering of, any U.S. dollar-denominated debt securities registered under the
Act or eligible for trading pursuant to Rule 144A issued or guaranteed by the Plains Parties
(other than the Securities), except the issuance of the Exchange Securities and borrowings
under the Second Amended and Restated Credit Agreement [US/Canada Facilities] dated July 31,
2006 (as amended, the “Revolving Agreement”) among the Partnership, PMC NS, PMC LP, Plains
Midstream Canada, as borrowers thereunder, Bank of America, N.A., as administrative agent
thereunder, Bank of America, N.A., acting through its Canada Branch, as Canadian
administrative agent thereunder, and various other agents thereunder and lenders from time
to time party thereto and/or the Contango Credit Agreement and/or the Plains AAP Facility.

     (l) None of the Plains Parties, nor any person acting on its or their behalf, will
take, directly or indirectly, any action designed to or that has constituted or that might
reasonably be expected to cause or result, under the Exchange Act or otherwise, in
stabilization or manipulation of the price of any security of the Issuers to facilitate the
sale or resale of the Securities.

     (m) The Issuers agree to pay the costs and expenses relating to the following matters:
(i) the issuance of the Securities and the fees of the Trustee; (ii) the preparation,
printing or reproduction of the Pricing Disclosure Package and the Final Offering Memorandum
and each amendment or supplement thereto; (iii) the printing (or reproduction) and delivery
(including postage, air freight charges and charges for counting and packaging) of such
copies of the Final Offering Memorandum, and all amendments or supplements thereto, as may
be reasonably requested for use in connection with the offering and sale of the Securities;
(iv) the preparation, printing, authentication, issuance and delivery of certificates for
the Securities, including any stamp or transfer taxes in connection with the original
issuance and sale of the Securities; (v) the printing (or reproduction) and delivery of this
Agreement, any blue sky memorandum and all other agreements or documents printed (or
reproduced) and delivered in connection with the offering of the Securities (including,
without limitation, the Indenture and the Registration Rights Agreement); (vi) any
registration or qualification of the Securities for offer and sale under the securities or
blue sky laws of the several states as provided in Section 5(d) hereof (including filing
fees and the

18

 

reasonable fees and expenses of counsel for the Initial Purchasers relating to such
registration and qualification); (vii) if required, admitting the Securities for trading in
the PORTAL Market; (viii) the transportation and other expenses incurred by or on behalf of
the Issuers’ representatives in connection with presentations to prospective purchasers of
the Securities; (ix) the fees and expenses of the Issuers’ accountants and the fees and
expenses of counsel (including local and special counsel) for the Issuers; and (x) all other
costs and expenses incident to the performance by the Issuers of their obligations
hereunder.

     (n) Without the prior written consent of the Initial Purchasers, the Plains Parties
have not given and will not give to any prospective purchaser of the Securities any written
information relating to the offer and sale of the Securities, other than the Pricing
Disclosure Package and the Final Offering Memorandum (and any amendment or supplement
thereto).

          6. Conditions to the Obligations of the Initial Purchasers. The obligations of the
Initial Purchasers to purchase the Securities shall be subject to the accuracy of the
representations and warranties on the part of the Plains Parties contained herein at the Applicable
Time and the Closing Date, to the accuracy of the statements of the Plains Parties made in any
certificates pursuant to the provisions hereof, to the performance by the Plains Parties of their
obligations hereunder and to the following additional conditions:

     (a) The Issuers shall have requested and caused Vinson & Elkins L.L.P., counsel for the
Issuers, to furnish to the Initial Purchasers its opinion, dated the Closing Date and
addressed to the Initial Purchasers, to the effect that:

     (i) Each of the Plains Parties and the Joint Venture (other than the Canadian
Subsidiary Guarantors) has been duly formed or incorporated and is validly existing
in good standing as a limited partnership, limited liability company or corporation
under the laws of its respective jurisdiction of formation or incorporation with
full corporate, partnership or limited liability company power and authority, as the
case may be, to own or lease its properties and to conduct its business, in each
case in all material respects.

     (ii) GP LLC has full limited liability company power and authority to act as
the general partner of Plains AAP; the General Partner has full limited liability
company power and authority to act as the general partner of the Partnership; GP
Inc. has full corporate power and authority to act as the general partner of Plains
Marketing and Plains Pipeline; Basin LLC has full limited liability company power
and authority to act as the general partner of Basin LP; Rancho LLC has full limited
liability company power and authority to act as the general partner of Rancho LP;
PMC NS has full unlimited liability company power and authority to act as the
general partner of PMC LP; LPG LLC has full limited liability company power and
authority to act as the general partner of LPG Services LP; and Plains Midstream GP
has full limited liability company power and authority to act as the general partner
of Plains Midstream LP, in each case in all material respects.

19

 

     (iii) The General Partner is the sole general partner of the Partnership, with
a 2.0% general partner interest in the Partnership; such general partner interest
has been duly authorized and validly issued in accordance with the Partnership
Agreement; and the General Partner owns such general partner interest free and clear
of all liens, encumbrances, security interests, charges or claims (A) in respect of
which a financing statement under the Uniform Commercial Code of the State of
Delaware or Texas naming the General Partner as debtor is on file in the office of
the Secretary of State of the States of Delaware or Texas or (B) otherwise known to
such counsel, without independent investigation, other than those created by or
arising under the Delaware LP Act.

     (iv) Plains AAP is the sole member of the General Partner, with a 100%
membership interest in the General Partner; such membership interest has been duly
authorized and validly issued in accordance with the General Partner LLC Agreement
and is fully paid (to the extent required under the General Partner LLC Agreement)
and nonassessable (except as such nonassessability may be affected by matters
described in Section 18-607 and 18-804 of the Delaware LLC Act).

     (v) GP LLC is the sole general partner of Plains AAP, with a 1% general partner
interest in Plains AAP; such general partner interest has been duly authorized and
validly issued in accordance with the Plains AAP Partnership Agreement; and GP LLC
owns such general partner interest free and clear of all liens, encumbrances,
security interests, charges or claims, except as provided in the Plains AAP
Facility, (A) in respect of which a financing statement under the Uniform Commercial
Code of the State of Delaware or Texas naming GP LLC as debtor is on file in the
office of the Secretary of State of the States of Delaware or Texas or (B) otherwise
known to such counsel, without independent investigation, other than those created
by or arising under the Delaware LP Act.

     (vi) GP Inc. is the sole general partner of Plains Marketing, with a .001%
general partner interest in Plains Marketing, and the sole general partner of Plains
Pipeline, with a .001% general partner interest in Plains Pipeline; such general
partner interests have been duly authorized and validly issued in accordance with
the Plains Marketing Partnership Agreement and the Plains Pipeline Partnership
Agreement, respectively; and GP Inc. owns such general partner interests free and
clear of all liens, encumbrances, security interests, charges or claims (A) in
respect of which a financing statement under the Uniform Commercial Code of the
States of Delaware or Texas naming GP Inc. as debtor is on file in the office of the
Secretary of State of the States of Delaware or Texas or (B) otherwise known to such
counsel, without independent investigation, other than those created by or arising
under the Delaware LP Act.

     (vii) All of the outstanding shares of capital stock or other equity interests
(other than general partner interests) of each Subsidiary (other than the Canadian
Subsidiary Guarantors, as to which such counsel need not express any opinion) and
the Joint Venture (a) have been duly authorized and validly issued

20

 

(in the case of an interest in a limited partnership or limited liability
company, in accordance with the Organizational Documents of such Subsidiary or the
Joint Venture), are fully paid (in the case of an interest in a limited partnership
or limited liability company, to the extent required under the Organizational
Documents of such Subsidiary or the Joint Venture) and nonassessable (except (i) in
the case of an interest in a Delaware limited partnership or Delaware limited
liability company, as such nonassessability may be affected by Section 17-607 of the
Delaware LP Act or Section 18-607 and 18-804 of the Delaware LLC Act, as applicable,
(ii) in the case of an interest in a limited partnership or limited liability
company formed under the laws of another domestic state, as such nonassessability
may be affected by similar provisions of such state’s limited partnership or limited
liability company statute, as applicable) and (b) except for a 50% membership
interest in the Joint Venture owned by Vulcan Gas Storage LLC, are owned, directly
or indirectly, by the Partnership, free and clear of all liens, encumbrances,
security interests, charges or claims (A) in respect of which a financing statement
under the Uniform Commercial Code of the States of Delaware or Texas naming the
Partnership as debtor or, in the case of capital stock or other equity interests of
a Domestic Subsidiary Guarantor owned directly by one or more other Domestic
Subsidiary Guarantors, naming any such other Domestic Subsidiary Guarantors as
debtor(s), is on file in the office of the Secretary of State of the States of
Delaware or Texas or (B) otherwise known to such counsel, without independent
investigation, other than those created by or arising under the corporate, limited
liability company or partnership laws of the jurisdiction of formation or
incorporation of the respective Domestic Subsidiary Guarantor or the Joint Venture,
as the case may be.

     (viii) All outstanding general partner interests in each Domestic Subsidiary
Guarantor that is a partnership have been duly authorized and validly issued in
accordance with the Organizational Documents of such Domestic Subsidiary Guarantor
and are owned, directly or indirectly, by the Partnership, free and clear of all
liens, encumbrances, security interests, charges or claims (A) in respect of which a
financing statement under the Uniform Commercial Code of the States of Delaware or
Texas naming the Partnership as debtor or, in the case of general partner interests
of a Domestic Subsidiary Guarantor owned directly by one or more other Domestic
Subsidiary Guarantors, naming any such other Domestic Subsidiary Guarantors as
debtor(s), is on file in the office of the Secretary of State of the States of
Delaware or Texas or (B) otherwise known to such counsel, without independent
investigation, other than those created by or arising under the partnership laws of
the jurisdiction of formation of the respective Domestic Subsidiary Guarantor, as
the case may be.

     (ix) To such counsel’s knowledge, the offering or sale of the Securities as
contemplated by this Agreement does not give rise to any rights for or relating to
the registration of any other securities of the Issuers, except such rights as have
been waived or satisfied. The Issuers have all requisite power and authority to
issue, sell and deliver the Securities, in accordance with and upon the terms and
conditions set forth in this Agreement, their respective Organizational

21

 

Documents, the Indenture, the Pricing Disclosure Package and the Final Offering
Memorandum (and any amendment or supplement thereto) and to issue and deliver the
Exchange Securities, in accordance with and upon the terms and conditions set forth
in this Agreement, the Registration Rights Agreement, their respective
Organizational Documents, the Indenture, the Pricing Disclosure Package and the
Final Offering Memorandum (and any amendment or supplement thereto).

     (x) This Agreement has been duly authorized, executed and delivered by each of
the Plains Parties (other than the Canadian Subsidiary Guarantors, as to which such
counsel need not express an opinion).

     (xi) The Base Indenture and the Thirteenth Supplemental Indenture thereto have
been duly authorized, executed and delivered by each of the Plains Parties that are
a party thereto (other than the Canadian Subsidiary Guarantors, as to which such
counsel need not express an opinion), and (assuming the due authorization, execution
and delivery thereof by the Canadian Subsidiary Guarantors and the Trustee) the
Indenture is a valid and legally binding agreement of such Plains Parties,
enforceable against each of them in accordance with its terms; provided that
the enforceability thereof may be limited by (A) applicable bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium or similar laws from time to time in
effect affecting creditors’ rights and remedies generally and by general principles
of equity (regardless of whether such principles are considered in a proceeding in
equity or at law) and (B) public policy, applicable law relating to fiduciary duties
and indemnification and an implied covenant of good faith and fair dealing.

     (xii) The Securities have been duly and validly authorized and, when executed
and authenticated in accordance with the provisions of the Indenture and delivered
to and paid for by the Initial Purchasers under this Agreement, will constitute
legal, valid, binding and enforceable obligations of the Issuers entitled to the
benefits of the Indenture; provided that the enforceability thereof may be
limited by (A) applicable bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or similar laws from time to time in effect affecting
creditors’ rights and remedies generally and by general principles of equity
(regardless of whether such principles are considered in a proceeding in equity or
at law) and (B) public policy, applicable law relating to fiduciary duties and
indemnification and an implied covenant of good faith and fair dealing.

     (xiii) The Exchange Securities have been duly and validly authorized and, when
executed and authenticated in accordance with the provisions of the Indenture and
delivered pursuant to the Registration Rights Agreement, will constitute legal,
valid, binding and enforceable obligations of the Issuers entitled to the benefits
of the Indenture; provided that the enforceability thereof may be limited by
(A) applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or similar laws from time to time in effect affecting creditors’ rights
and remedies generally and by general principles of equity

22

 

(regardless of whether such principles are considered in a proceeding in equity
or at law) and (B) public policy, applicable law relating to fiduciary duties and
indemnification and an implied covenant of good faith and fair dealing.

     (xiv) The Guarantees have been duly authorized by each of the Subsidiary
Guarantors and, when the Securities have been duly executed, authenticated, issued
and delivered as provided in the Indenture and paid for as provided herein, will be
valid and legally binding obligations of each of the Subsidiary Guarantors,
enforceable against each of the Subsidiary Guarantors in accordance with their
terms, provided that the enforceability thereof may be limited by (A)
applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
or similar laws from time to time in effect affecting creditors’ rights and remedies
generally and by general principles of equity (regardless of whether such principles
are considered in a proceeding in equity or at law) and (B) public policy,
applicable law relating to fiduciary duties and indemnification and an implied
covenant of good faith and fair dealing.

     (xv) The Registration Rights Agreement has been duly authorized, executed and
delivered by each of the Plains Parties that are a party thereto (other than the
Canadian Subsidiary Guarantors, as to which such counsel need not express an
opinion), and (assuming the due authorization, execution and delivery thereof by the
Canadian Subsidiary Guarantors and the Initial Purchasers) is a valid and legally
binding agreement of each of such Plains Parties, enforceable against each of them
in accordance with its terms; provided that the enforceability thereof may
be limited by (A) applicable bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or similar laws from time to time in effect affecting
creditors’ rights and remedies generally and by general principles of equity
(regardless of whether such principles are considered in a proceeding in equity or
at law) and (B) public policy, applicable law relating to fiduciary duties and
indemnification and an implied covenant of good faith and fair dealing.

     (xvi) Each limited liability company agreement or limited partnership
agreement, as applicable, of the Issuers, the General Partner, Plains AAP, GP LLC
and each Domestic Subsidiary Guarantor that is a limited liability company or a
limited partnership has been duly authorized, executed and delivered by the parties
thereto and is a valid and legally binding agreement of such parties, enforceable
against such parties in accordance with its terms; provided that, with
respect to each such agreement, the enforceability thereof may be limited by (A)
applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
or similar laws from time to time in effect affecting creditors’ rights and remedies
generally and by general principles of equity (regardless of whether such principles
are considered in a proceeding in equity or at law) and (B) public policy,
applicable law relating to fiduciary duties and indemnification and an implied
covenant of good faith and fair dealing.

     (xvii) None of the offering, issuance and sale by the Issuers of the
Securities, the issuance of the Exchange Securities, the execution, delivery and

23

 

performance of this Agreement by the Plains Parties, the consummation of the
transactions contemplated hereby, the execution, delivery and performance of the
Indenture and the Registration Rights Agreement by the Plains Parties that are
parties thereto or the consummation of the transactions contemplated thereby (A)
constitutes or will constitute a violation of the Organizational Documents (other
than the Organizational Documents of the Canadian Subsidiary Guarantors) of any of
the Plains Parties, (B) conflicts or will conflict with or constitutes or will
constitute a breach or violation of, a change of control or a default under (or an
event which, with notice or lapse of time or both, would constitute such an event),
any agreement filed as an exhibit to any document incorporated by reference into the
Pricing Disclosure Package or the Final Offering Memorandum (including any amendment
or supplement thereto) (other than the Revolving Agreement and the Contango Credit
Agreement, as to which such counsel need not express an opinion), (C) results or
will result in any violation of the Delaware LP Act, the Delaware LLC Act, the
Delaware General Corporation Law (the “DGCL”), the laws of the State of Texas or
federal law, or (D) results or will result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of any of the Plains Parties
(other than the Canadian Subsidiary Guarantors) or the Joint Venture, which in the
case of clauses (B), (C) or (D) would reasonably be expected to have a material
adverse effect on the financial condition, business or results of operations of the
Plains Entities, taken as a whole, it being understood that such counsel need not
express any opinion in clause (C) of this paragraph (xvii) with respect to any
securities or other anti-fraud law.

     (xviii) No permit, consent, approval, authorization, order, registration,
filing or qualification of or with any federal, Delaware or Texas court,
governmental agency or body having jurisdiction over the Plains Parties or any of
their respective properties is required for the offering, issuance and sale by the
Issuers of the Securities, the issuance of the Exchange Securities, the execution,
delivery and performance of this Agreement by the Plains Parties, the consummation
of the transactions contemplated hereby, the execution, delivery and performance of
the Indenture and the Registration Rights Agreement by the Plains Parties that are
parties thereto or the consummation of the transactions contemplated thereby, except
as will be obtained pursuant to the Registration Rights Agreement, under the Act and
the Trust Indenture Act and as may be required under the Exchange Act and state
securities or “Blue Sky” laws, as to which such counsel need not express any
opinion, it being understood that such counsel need not express any opinion pursuant
to this paragraph (xviii) with respect to the matters addressed in its opinion
pursuant to paragraph (xxi) below.

     (xix) The statements in the Pricing Disclosure Package and the Final Offering
Memorandum (and any amendment or supplement thereto) under the caption “Material
U.S. Federal Income Tax Consequences,” insofar as they constitute descriptions of
agreements or refer to statements of law or legal conclusions, are accurate in all
material respects, and the Securities, the Exchange Securities, the Indenture and
the Registration Rights Agreement conform in all

24

 

material respects to the descriptions thereof contained in the Pricing
Disclosure Package and the Final Offering Memorandum (and any amendment or
supplement thereto).

     (xx) None of the Plains Parties is an “investment company” as such term is
defined in the Investment Company Act.

     (xxi) Assuming the accuracy of the representations and warranties and
compliance with the agreements contained herein, no registration of the Securities
under the Act, and no qualification of an indenture under the Trust Indenture Act,
are required for the offer and sale by the Issuers to the Initial Purchasers and the
initial resale by the Initial Purchasers of the Securities in the manner
contemplated by this Agreement.

     (xxii) The documents incorporated by reference in the Pricing Disclosure
Package and the Final Offering Memorandum (including any amendment or supplement
thereto) (except for financial statements and the notes and schedules thereto and
other financial information included in any such incorporated documents, as to which
such counsel need not express any opinion) comply as to form in all material
respects with the requirements of the Exchange Act and the rules and regulations
promulgated thereunder.

     In addition, such counsel shall state that they have participated in conferences with
officers and other representatives of the Plains Parties, representatives of the independent
registered public accountants of the Partnership and your representatives, at which the
contents of the Pricing Disclosure Package and the Final Offering Memorandum and related
matters were discussed, and although such counsel has not independently verified, is not
passing on, and is not assuming any responsibility for the accuracy, completeness or
fairness of the statements contained in the Pricing Disclosure Package and the Final
Offering Memorandum (except to the extent specified in the foregoing opinion), no facts have
come to such counsel’s attention that lead such counsel to believe that the Pricing
Disclosure Package as of the Applicable Time, and the Final Offering Memorandum as of its
date and as of the Closing Date (in each case other than (i) the financial statements
included or incorporated by reference therein, including the notes and schedules thereto and
the auditors’ reports thereon, and (ii) the other financial and statistical information
included or incorporated by reference therein, as to which such counsel need not comment),
contained or contains an untrue statement of a material fact or omitted or omits to state a
material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

     In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of the Plains Parties and upon information obtained
from public officials, (B) assume that all documents submitted to them as originals are
authentic, that all copies submitted to them conform to the originals thereof, and that the
signatures on all documents examined by them are genuine, (C) state that their opinion is
limited to federal laws, the Delaware LP Act, the Delaware LLC Act, the DGCL, the laws of
the State of Texas and the contract laws of the State of New York and

25

 

(D) state that they express no opinion with respect to (i) any permits to own or
operate any real or personal property or (ii) state or local taxes or tax statutes to which
any of the limited partners of the Partnership or any of the Plains Parties may be subject.

     (b) The Initial Purchasers shall have received on the Closing Date, an opinion of
Fulbright & Jaworski L.L.P., special counsel for the Plains Parties, dated the Closing Date
and addressed to the Initial Purchasers, to the effect that none of the offering, issuance
or sale by the Issuers of the Securities, the issuance of the Exchange Securities, the
execution, delivery and performance of this Agreement by the Plains Parties, the
consummation of the transactions contemplated hereby, the execution, delivery and
performance of the Indenture and the Registration Rights Agreement by the Plains Parties
that are parties thereto or the consummation of the transactions contemplated thereby,
result in a breach of, or constitutes a default under (or an event which, with notice or
lapse of time or both, would constitute such an event) the provisions of any Credit Facility
(as defined in Annex A to such opinion, which shall include the Revolving Agreement and the
Contango Credit Agreement).

     In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of the Plains Parties and upon information obtained
from public officials, (B) assume that all documents submitted to them as originals are
authentic, that all copies submitted to them conform to the originals thereof, and that the
signatures on all documents examined by them are genuine and (C) state that such opinions
are limited to the laws of the State of Texas, excepting therefrom municipal and local
ordinances and regulations.

     In rendering such opinion, such counsel shall state that such opinion letter may be
relied upon only by the Initial Purchasers and their counsel in connection with the
transactions contemplated by this Agreement and no other use or distribution of such opinion
letter may be made without such counsel’s prior written consent.

     (c) The Initial Purchasers shall have received on the Closing Date an opinion of Tim
Moore, general counsel for GP LLC, dated the Closing Date and addressed to the Initial
Purchasers, to the effect that:

     (i) To the knowledge of such counsel, none of the Plains Parties is in (A)
breach or violation of the provisions of its Organizational Documents or (B) default
(and no event has occurred which, with notice or lapse of time or both, would
constitute such a default) or violation in the performance of any obligation,
agreement or condition contained in any bond, debenture, note or any other evidence
of indebtedness or in any agreement, indenture, lease or other instrument to which
it is a party or by which it or any of its properties may be bound, which breach,
default or violation, if continued, would reasonably be expected to have a material
adverse effect on the condition, business or operations of the Plains Entities,
taken as a whole, or would reasonably be expected to materially impair the ability
of any of the Plains Parties to perform their obligations under this Agreement.

26

 

     (ii) None of the offering, issuance and sale by the Issuers of the Securities,
the issuance of the Exchange Securities, the execution, delivery and performance by
the Plains Parties of this Agreement, the consummation of the transactions
contemplated hereby, the execution, delivery and performance of the Indenture and
the Registration Rights Agreement by the Plains Parties that are parties thereto or
the consummation of the transactions contemplated thereby (A) constitutes or will
constitute a breach or violation of, a change of control or a default under (or an
event which, with notice or lapse of time or both, would constitute such an event)
any bond, debenture, note or any other evidence of indebtedness, indenture or any
other material agreement or instrument known to such counsel to which a Plains Party
is a party or by which any one of them may be bound (other than any other agreement
filed as an exhibit to any documents incorporated by reference into the Pricing
Disclosure Package and the Final Offering Memorandum (including any amendment or
supplement thereto) or any Credit Agreement (as defined in Annex A to such opinion))
or (B) violates or will violate any statute, law or regulation or any order,
judgment, decree or injunction of any court or governmental agency or body directed
to any of the Plains Parties or any of their properties in a proceeding to which any
of them is a party, which would, in the case of either (A) or (B), reasonably be
expected to have a material adverse effect on the condition, business or operations
of the Plains Entities, taken as a whole.

     (iii) To the knowledge of such counsel, each of the Plains Parties has such
permits, consents, licenses, franchises and authorizations (“permits”) issued by the
appropriate federal, state or local governmental or regulatory authorities as are
necessary to own or lease its properties and to conduct its business in the manner
described in the Pricing Disclosure Package and the Final Offering Memorandum (and
any amendment or supplement thereto), subject to such qualifications as may be set
forth in the Pricing Disclosure Package and the Final Offering Memorandum (and any
amendment or supplement thereto), and except for such permits which, if not
obtained, would not reasonably be expected to have, individually or in the
aggregate, a material adverse effect upon the operations conducted by the Plains
Entities, taken as a whole; and, to the knowledge of such counsel, none of the
Plains Parties has received any notice of proceedings relating to the revocation or
modification of any such permits which, individually or in the aggregate, would
reasonably be expected to have a material adverse effect upon the operations
conducted by the Plains Entities, taken as a whole.

     (iv) Except as described in the Pricing Disclosure Package and the Final
Offering Memorandum (and any amendment or supplement thereto), to the knowledge of
such counsel, there is no litigation proceeding, or governmental investigation
pending or threatened against any of the Plains Parties that would be reasonably
likely to have a material adverse effect on the condition, business, properties, or
operations of the Plains Entities, taken as a whole.

27

 

     In addition, such counsel shall state that he has participated in discussions with
officers and other representatives of the Plains Parties and the independent registered
public accountants of the Partnership and your representatives, at which the contents of the
Pricing Disclosure Package and the Final Offering Memorandum and related matters were
discussed, and although such counsel has not independently verified, is not passing on, and
is not assuming any responsibility for the accuracy, completeness or fairness of the
statements contained in, the Pricing Disclosure Package and the Final Offering Memorandum,
no facts have come to such counsel’s attention that lead such counsel to believe that the
Pricing Disclosure Package as of the Applicable Time, and the Final Offering Memorandum as
of its date and as of the Closing Date (in each case other than (i) the financial statements
included or incorporated by reference therein, including the notes and schedules thereto and
the auditors’ reports thereon, and (ii) the other financial and statistical information
included or incorporated by reference therein, as to which such counsel need not comment),
contained or contains an untrue statement of a material fact or omitted or omits to state a
material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

     In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of the Parties and upon information obtained from
public officials, (B) assume that all documents submitted to him as originals are authentic,
that all copies submitted to him conform to the originals thereof, and that the signatures
on all documents examined by him are genuine, (C) state that such opinions are limited to
federal laws and the Delaware LP Act, the Delaware LLC Act and the DGCL and the laws of the
State of Texas and (D) state that he expresses no opinion with respect to state or local
taxes or tax statutes.

     (d) The Initial Purchasers shall have received on the Closing Date, an opinion of
Bennett Jones LLP with respect to the Province of Alberta, the Province of Nova Scotia and
the federal laws of Canada, dated the Closing Date and addressed to the Initial Purchasers,
to the effect that:

     (i) Each of the Canadian Subsidiary Guarantors has been duly formed and is
validly existing in good standing as a corporation, limited partnership or unlimited
liability company under the laws of its jurisdiction of formation with all necessary
partnership or corporate power and authority to own or lease its properties, as the
case may be, in all material respects as described in the Pricing Disclosure Package
and the Final Offering Memorandum (and any amendment or supplement thereto), and to
conduct its business as currently conducted and as proposed in the Pricing
Disclosure Package and the Final Offering Memorandum (and any amendment or
supplement thereto) to be conducted. PMC NS has all necessary corporate power and
authority to act as general partner of PMC LP in all material respects as described
in the Pricing Disclosure Package and the Final Offering Memorandum (and any
amendment or supplement thereto). Each of the Canadian Subsidiary Guarantors is
duly registered extra-provincially for the transaction of business and is in good
standing under the laws of the jurisdictions set forth on Exhibit C to this
Agreement.

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     (ii) PMC NS is the sole general partner of PMC LP with a 0.01% interest in PMC
LP; such interest has been duly authorized and validly issued in accordance with the
agreement of limited partnership of PMC LP (as in effect on the date hereof and as
the same may be amended or restated prior to the Closing Date, the “PMC LP
Partnership Agreement”); and PMC NS owns such interest free and clear of all liens,
encumbrances, security interests, charges or claims in respect of which a financing
statement under the laws of the Provinces of Nova Scotia or Alberta naming PMC NS as
debtor is on file.

     (iii) Plains Marketing is the sole limited partner of PMC LP with a 99.999%
limited partner interest in PMC LP; such limited partner interest has been duly
authorized and validly issued in accordance with the PMC LP Partnership Agreement
and is fully paid (to the extent required under the PMC LP Partnership Agreement)
and nonassessable (except as such nonassessability may be affected by matters
described in the PMC LP Partnership Agreement).

     (iv) PMC LLC is the registered holder of 100% of the issued and outstanding
capital stock of PMC NS; such share capital has been duly authorized and validly
issued in accordance with the PMC NS Memorandum and Articles of Association, as
fully paid and nonassessable shares (except as such nonassessability may be affected
by the laws of the Province of Nova Scotia).

     (v) Plains Midstream Canada is the registered holder of 100% of the issued and
outstanding capital stock of Aurora; such share capital has been duly authorized and
validly issued in accordance with the Aurora Memorandum and Articles of
Association, as fully paid and nonassessable shares (except as such nonassessability
may be affected by the laws of the Province of Alberta).

     (vi) Plains Midstream LP is the registered holder of 100% of the issued and
outstanding capital stock of Plains Midstream Canada; such share capital has been
duly authorized and validly issued in accordance with the Plains Midstream Canada
Articles of Incorporation, as fully paid and nonassessable shares (except as such
nonassessability may be affected by the laws of the Province of Alberta).

     (vii) This Agreement has been duly authorized and validly executed and
delivered by each of PMC LP, PMC NS, Plains Midstream Canada and Aurora.

     (viii) The Indenture has been duly authorized, executed and delivered by each
of PMC LP, PMC NS, Plains Midstream Canada and Aurora. The laws of the Province of
Alberta would permit an action to be brought against PMC LP, PMC NS, Plains
Midstream Canada or Aurora before a court of competent jurisdiction in the Province
of Alberta to enforce a final and conclusive in personam judgment for a sum certain
obtained in a New York court relating to the Indenture, the Guarantees of the
Canadian Subsidiary Guarantors, or any of them that is not impeachable as void or
voidable under the internal laws of the

29

 

State of New York, which action is predicated solely upon civil liability,
subject to certain exceptions set forth in such opinion.

     (ix) No permit, consent, approval, authorization, order, registration, filing
or qualification of or with any court, governmental agency or body of the federal
government of Canada or the Province of Alberta is required for the offering,
issuance and sale by the Issuers of the Securities, the issuance of the Exchange
Securities, or the execution, delivery and performance of the Indenture by the
Plains Parties.

     (x) Each limited partnership agreement of each Canadian Subsidiary Guarantor
that is a limited partnership has been duly authorized, executed and delivered by
the parties thereto and is a valid and legally binding agreement of such parties,
enforceable against such parties in accordance with its terms; provided
that, with respect to such agreement, the enforceability thereof may be limited by
(A) applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or similar laws from time to time in effect affecting creditors’ rights
and remedies generally and by general principles of equity (regardless of whether
such principles are considered in a proceeding in equity or at law) and (B) public
policy, applicable law relating to fiduciary duties and indemnification and an
implied covenant of good faith and fair dealing.

     (xi) None of the offering, issuance and sale by the Issuers of the Securities,
the issuance of the Exchange Securities, the execution, delivery and performance of
this Agreement by the Plains Parties, the consummation of the transactions
contemplated hereby, the execution, delivery and performance of the Indenture and
the Registration Rights Agreement by the Plains Parties that are parties thereto or
the consummation of the transactions contemplated thereby constitutes or will
constitute a violation of the Organizational Documents of the Canadian Subsidiary
Guarantors.

     (xii) To the knowledge of such counsel, each of the Canadian Subsidiary
Guarantors has such permits, consents, licenses, franchises and authorizations
(“permits”) issued by the appropriate federal or provincial or regulatory
authorities as are necessary to own or lease its properties and to conduct its
business as currently conducted and as proposed in the Final Offering Memorandum
(and any amendment or supplement thereto) to be conducted, subject to such
qualifications as may be set forth in the Pricing Disclosure Package and the Final
Offering Memorandum (and any amendment or supplement thereto), and except for such
permits, consents, licenses, franchises and authorizations which, if not obtained
would not reasonably be expected to have, individually or in the aggregate, a
material adverse effect upon the operations conducted by the Canadian Subsidiary
Guarantors, taken as a whole.

     In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of the Plains Parties and upon information obtained
from public officials, (B) assume that all documents submitted to them as

30

 

originals are authentic, that all copies submitted to them conform to the originals
thereof, and that the signatures on all documents examined by them are genuine, (C) state
that such opinions are limited to federal laws of Canada and the laws of the Provinces of
Alberta and Nova Scotia, excepting therefrom municipal and local ordinances and regulations
and (D) state that they express no opinion with respect to state or local taxes or tax
statutes to which any of the limited partners of the Partnership or any of the Plains
Parties may be subject.

     In rendering such opinion, such counsel shall state that (A) Vinson & Elkins L.L.P. is
thereby authorized to rely upon such opinion letter in connection with the transactions
contemplated by this Agreement as if such opinion letter were addressed and delivered to
them on the date thereof and (B) subject to the foregoing, such opinion letter may be relied
upon only by the Initial Purchasers and their counsel in connection with the transactions
contemplated by this Agreement and no other use or distribution of this opinion letter may
be made without such counsel’s prior written consent.

     (e) The Initial Purchasers shall have received on the Closing Date an opinion of Baker
Botts L.L.P., counsel for the Initial Purchasers, dated the Closing Date and addressed to
the Initial Purchasers, with respect to the issuance and sale of the Securities, the
issuance of the Exchange Securities, the Indenture, the Registration Rights Agreement, the
Pricing Disclosure Package, the Final Offering Memorandum (and any amendment or supplement
thereto) and other related matters the Initial Purchasers may reasonably require.

     (f) The Initial Purchasers shall have received letters addressed to the Initial
Purchasers, dated, respectively, the date of this Agreement, the time of purchase and the
Closing Date from PricewaterhouseCoopers LLP, in form and substance satisfactory to the
Initial Purchasers, containing statements and information of the type ordinarily included in
accountants’ “comfort letters” to initial purchasers, delivered according to Statement of
Auditing Standards Nos. 72, 76 and 100 (or any successor bulletins), with respect to the
audited and unaudited financial statements and certain financial information contained or
incorporated by reference in the Pricing Disclosure Package and the Final Offering
Memorandum (and any amendment or supplement thereto).

     (g) The Plains Parties shall not have failed at or prior to the Closing Date to have
performed or complied in all material respects with any of their agreements herein contained
and required to be performed or complied with by them hereunder at or prior to the Closing
Date.

     (h) The Plains Parties shall have furnished or caused to be furnished to you such
further certificates and documents as you shall have reasonably requested.

     (i) There shall have been furnished to you at the Closing Date a certificate reasonably
satisfactory to you, signed on behalf of the Partnership by the President or any Vice
President and the Chief Financial Officer or Chief Accounting Officer or Treasurer of GP LLC
to the effect that: (A) the representations and warranties of each of the Partnership, the
General Partner, Plains AAP, GP LLC, Pacific Energy Group, PPX

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Finance, Pacific LA, Rocky Mountain, Pacific Atlantic and Ranch Pipeline contained in
this Agreement were true and correct at and as of the Applicable Time and are true and
correct at and as of the Closing Date as though made at and as of the Closing Date; (B) each
of the Partnership, the General Partner, Plains AAP, GP LLC, Pacific Energy Group, PPX
Finance, Pacific LA, Rocky Mountain, Pacific Atlantic and Ranch Pipeline has in all material
respects performed all obligations and satisfied all conditions required to be performed or
satisfied by it pursuant to the terms of this Agreement at or prior to the Closing Date; and
(C) since the date of the most recent financial statements included or incorporated by
reference in the Pricing Disclosure Package and the Final Offering Memorandum (exclusive of
any amendment or supplement thereto), there has been no material adverse change in the
condition (financial or otherwise), business, prospects, properties, net worth or results of
operations of the Issuers and the Subsidiary Guarantors, taken as a whole, whether or not
arising from transactions in the ordinary course of business, except as set forth in or
contemplated by the Pricing Disclosure Package and the Final Offering Memorandum (exclusive
of any amendment or supplement thereto).

     (j) There shall have been furnished to you at the Closing Date a certificate reasonably
satisfactory to you, signed on behalf of GP Inc. by the President or any Vice President of
GP Inc. to the effect that: (A) the representations and warranties of each of GP Inc.,
Plains Marketing, Plains Pipeline, Plains Towing, PMC LLC, Basin LLC, Basin LP, Rancho LLC,
Rancho LP, LPG LLC, LPG Services LP, PICSCO, Lone Star, Plains Midstream GP and Plains
Midstream LP contained in this Agreement were true and correct at and as of the Applicable
Time and are true and correct at and as of the Closing Date as though made at and as of the
Closing Date; (B) each of GP Inc., Plains Marketing, Plains Pipeline, Plains Towing, PMC
LLC, Basin LLC, Basin LP, Rancho LLC, Rancho LP, LPG LLC, LPG Services LP, PICSCO, Lone
Star, Plains Midstream GP and Plains Midstream LP has in all material respects performed all
obligations and satisfied all conditions required to be performed or satisfied by it
pursuant to the terms of this Agreement at or prior to the Closing Date; and (C) since the
date of the most recent financial statements included or incorporated by reference in the
Pricing Disclosure Package and the Final Offering Memorandum (exclusive of any amendment or
supplement thereto), there has been no material adverse change in the condition (financial
or otherwise), business, prospects, properties, net worth or results of operations of the
Issuers and the Subsidiary Guarantors, taken as a whole, whether or not arising from
transactions in the ordinary course of business, except as set forth in or contemplated by
the Pricing Disclosure Package and the Final Offering Memorandum (exclusive of any amendment
or supplement thereto).

     (k) There shall have been furnished to you at the Closing Date a certificate reasonably
satisfactory to you, signed on behalf of PAA Finance by the President or any Vice President
of PAA Finance to the effect that: (A) the representations and warranties of PAA Finance
contained in this Agreement were true and correct at and as of the Applicable Time and are
true and correct at and as of the Closing Date as though made at and as of the Closing Date
and (B) PAA Finance has in all material respects performed all obligations and satisfied all
conditions required to be performed or satisfied by it pursuant to the terms of this
Agreement at or prior to the Closing Date.

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     (l) There shall have been furnished to you at the Closing Date a certificate reasonably
satisfactory to you, signed on behalf of PMC NS by the President or any Vice President of
PMC NS to the effect that: (A) the representations and warranties of each of PMC NS and PMC
LP contained in this Agreement were true and correct at and as of the Applicable Time and
are true and correct at and as of the Closing Date as though made at and as of the Closing
Date and (B) each of PMC NS and PMC LP has in all material respects performed all
obligations and satisfied all conditions required to be performed or satisfied by it
pursuant to the terms of this Agreement at or prior to the Closing Date.

     (m) There shall have been furnished to you at the Closing Date a certificate reasonably
satisfactory to you, signed on behalf of Plains Midstream Canada by the President or any
Vice President of Plains Midstream Canada to the effect that: (A) the representations and
warranties of Plains Midstream Canada contained in this Agreement were true and correct at
and as of the Applicable Time and are true and correct at and as of the Closing Date as
though made at and as of the Closing Date and (B) Plains Midstream Canada has in all
material respects performed all obligations and satisfied all conditions required to be
performed or satisfied by it pursuant to the terms of this Agreement at or prior to the
Closing Date.

     (n) There shall have been furnished to you at the Closing Date a certificate reasonably
satisfactory to you, signed on behalf of Aurora by the President or any Vice President of
Aurora to the effect that: (A) the representations and warranties of Aurora contained in
this Agreement were true and correct at and as of the Applicable Time and are true and
correct at and as of the Closing Date as though made at and as of the Closing Date and (B)
Aurora has in all material respects performed all obligations and satisfied all conditions
required to be performed or satisfied by it pursuant to the terms of this Agreement at or
prior to the Closing Date.

     (o) (i) Subsequent to the date of the initial letter or letters referred to in
paragraph (f) of this Section 6, there shall not have been any change or decrease specified
in such letter or letters; or (ii) subsequent to the Applicable Time or, if earlier, the
dates as of which information is given in the Pricing Disclosure Package and the Final
Offering Memorandum (exclusive of any amendment or supplement thereto), there shall not have
been any change, or any development involving a prospective change, in or affecting the
condition (financial or otherwise), prospects, earnings, business or properties of the
Issuers, the Subsidiary Guarantors and the Joint Venture, taken as a whole, whether or not
arising from transactions in the ordinary course of business, except as set forth in or
contemplated in the Preliminary Offering Memorandum (exclusive of any amendment or
supplement thereto) the effect of which, in any case referred to in clause (i) or (ii)
above, is, in the sole judgment of the Initial Purchasers, so material and adverse as to
make it impractical or inadvisable to market the Securities as contemplated by the Pricing
Disclosure Package and the Final Offering Memorandum (exclusive of any amendment or
supplement thereto).

          All such opinions, certificates, letters and other documents referred to in this Section 6
will be in compliance with the provisions hereof only if they are reasonably satisfactory in form
and substance to you and your counsel. The Issuers shall furnish to the

33

 

Initial Purchasers conformed copies of such opinions, certificates, letters and other
documents in such number as they shall reasonably request.

          If any of the conditions specified in this Section 6 shall not have been fulfilled in all
material respects when and as provided in this Agreement, or if any of the opinions and
certificates mentioned above or elsewhere in this Agreement shall not be in all material respects
reasonably satisfactory in form and substance to the Initial Purchasers and counsel for the Initial
Purchasers, this Agreement and all obligations of the Initial Purchasers hereunder may be cancelled
at, or at any time prior to, the Closing Date by the Initial Purchasers. Notice of such
cancellation shall be given to the Issuers in writing or by telephone or facsimile confirmed in
writing.

          The documents required to be delivered by this Section 6 will be delivered at the office of
counsel for the Partnership, at 1001 Fannin, Houston, Texas 77002, on the Closing Date.

          7. Reimbursement of Expenses. If the sale of the Securities provided for herein is
not consummated because any condition to the obligations of the Initial Purchasers set forth in
Section 6 hereof is not satisfied, because of any termination pursuant to Section 10(i) hereof
based on the suspension of trading in the Partnership’s Common Units by the Commission or the NYSE
or Section 10(iii) or because of any refusal, inability or failure on the part of the Issuers to
perform any agreement herein or comply with any provision hereof other than by reason of a default
by the Initial Purchasers, the Issuers will reimburse the Initial Purchasers on demand for all
out-of-pocket expenses (including reasonable fees and disbursements of counsel) that shall have
been incurred by them in connection with the proposed purchase and sale of the Securities.

          8. Indemnification and Contribution. (a) Each of the Plains Parties, jointly and
severally, agrees to indemnify and hold harmless each Initial Purchaser, the directors, officers,
employees and agents of each Initial Purchaser and each person who controls any Initial Purchaser
within the meaning of either the Act or the Exchange Act against any and all losses, claims,
damages or liabilities, joint or several, to which they or any of them may become subject under the
Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement of a material fact
contained in the Preliminary Offering Memorandum, the Pricing Supplement, the Final Offering
Memorandum (or in any supplement or amendment to the Final Offering Memorandum) or any other
written information used by the Plains Parties in connection with the offer and sale of the
Securities or any information provided by the Issuers to any holder or prospective purchaser of
Securities pursuant to Section 5(h) hereof, or in any amendment thereof or supplement thereto, or
arise out of or are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and agrees to reimburse each such
indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the Plains Parties will not be liable in any such case to
the extent that any such loss, claim, damage or liability arises out of or is based upon any such

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untrue statement or alleged untrue statement or omission or alleged omission made in the
Preliminary Offering Memorandum, the Pricing Supplement or the Final Offering Memorandum, or in any
amendment thereof or supplement thereto, in reliance upon and in conformity with written
information furnished to the Issuers or GP LLC by or on behalf of the Initial Purchasers
specifically for inclusion therein. This indemnity agreement will be in addition to any liability
that any Plains Party may otherwise have.

          (b) The Initial Purchasers, severally and not jointly, agree to indemnify and hold harmless
the Plains Parties, their respective directors and the officers and each person who controls the
Plains Parties within the meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Plains Parties to the Initial Purchasers, but only with reference to
written information relating to the Initial Purchasers furnished to the Issuers or GP LLC by or on
behalf of the Initial Purchasers specifically for inclusion in the Preliminary Offering Memorandum,
the Pricing Supplement or the Final Offering Memorandum (or in any amendment or supplement to the
Final Offering Memorandum). This indemnity agreement will be in addition to any liability that the
Initial Purchasers may otherwise have.

          (c) Promptly after receipt by an indemnified party under this Section 8 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under this Section 8, notify the indemnifying party in writing
of the commencement thereof, but the failure so to notify the indemnifying party (i) will not
relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the indemnifying party
of substantial rights and defenses; and (ii) will not, in any event, relieve the indemnifying party
from any obligations to any indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party
in any action for which indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the fees and expenses of any separate counsel retained by the
indemnified party or parties except as set forth below); provided, however, that
such counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying
party’s election to appoint counsel to represent the indemnified party in an action, the
indemnified party shall have the right to employ separate counsel (including local counsel), and
the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel
if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would
present such counsel with a conflict of interest; (ii) the actual or potential defendants in, or
targets of, any such action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties that are different from or additional to those available to the
indemnifying party; (iii) the indemnifying party shall not have employed counsel satisfactory to
the indemnified party to represent the indemnified party within a reasonable time after notice of
the institution of such action; or (iv) the indemnifying party shall authorize the indemnified
party to employ separate counsel at the expense of the indemnifying party. An indemnifying party
will not, without the prior written consent of the indemnified parties, settle or compromise or
consent to the entry of any judgment with respect to any pending or threatened claim, action, suit
or proceeding in respect of which indemnification or contribution may be sought hereunder (whether
or not the

35

 

indemnified parties are actual or potential parties to such claim or action) unless such
settlement, compromise or consent (i) includes an unconditional release of each indemnified party
from all liability arising out of such claim, action, suit or proceeding and (ii) does not include
a statement as to or an admission of fault, culpability or failure to act by or on behalf of any
indemnified party.

          (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 8 is
unavailable to or insufficient to hold harmless an indemnified party for any reason, the Plains
Parties and the Initial Purchasers agree to contribute to the aggregate losses, claims, damages and
liabilities (including legal or other expenses reasonably incurred in connection with investigating
or defending same) (collectively “Losses”) to which the Plains Parties and the Initial Purchasers
may be subject in such proportion as is appropriate to reflect the relative benefits received by
the Plains Parties on the one hand and by the Initial Purchasers on the other from the offering of
the Securities; provided, however, that in no case shall the Initial Purchaser be
responsible for any amount in excess of the purchase discount or commission applicable to the
Securities purchased by the Initial Purchaser hereunder. If the allocation provided by the
immediately preceding sentence is unavailable for any reason, the Plains Parties and the Initial
Purchasers shall contribute in such proportion as is appropriate to reflect not only such relative
benefits but also the relative fault of the Plains Parties on the one hand and of the Initial
Purchasers on the other in connection with the statements or omissions that resulted in such
Losses, as well as any other relevant equitable considerations. Benefits received by the Plains
Parties shall be deemed to be equal to the total net proceeds from the offering (before deducting
expenses) received by it, and benefits received by the Initial Purchasers shall be deemed to be
equal to the total purchase discounts and commissions in each case set forth on the cover of the
Final Offering Memorandum. Relative fault shall be determined by reference to, among other things,
whether any untrue or any alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information provided by the Plains Parties on the one
hand or the Initial Purchasers on the other, the intent of the parties and their relative
knowledge, information and opportunity to correct or prevent such untrue statement or omission.
The Plains Parties and the Initial Purchasers agree that it would not be just and equitable if
contribution were determined by pro rata allocation or any other method of allocation that does not
take account of the equitable considerations referred to above. Notwithstanding the provisions of
this paragraph (d), no person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation. For purposes of this Section 8, each person who controls the
Initial Purchasers within the meaning of either the Act or the Exchange Act and each director,
officer, employee and agent of the Initial Purchasers shall have the same rights to contribution as
the Initial Purchasers, and any person who controls the Plains Parties within the meaning of either
the Act or the Exchange Act and the respective officers and directors of the Plains Parties shall
have the same rights to contribution as the Plains Parties, subject in each case to the applicable
terms and conditions of this paragraph (d).

          9. Default by an Initial Purchaser. If any one or more of the Initial Purchasers
shall fail or refuse to purchase Securities that it or they are obligated to purchase hereunder on
the Closing Date, and the aggregate principal amount of Securities that such defaulting Initial
Purchaser or Initial Purchasers are obligated but fail or refuse to purchase is not more than one
tenth of the aggregate principal amount of the Securities that the Initial Purchasers

36

 

are obligated to purchase on the Closing Date, each non-defaulting Initial Purchaser shall be
obligated, severally, in the proportion that the principal amount of Securities set forth opposite
its name in Schedule 1 hereto bears to the aggregate principal amount of Securities set forth
opposite the names of all non-defaulting Initial Purchasers, to purchase the Securities that such
defaulting Initial Purchaser or Initial Purchasers are obligated, but fail or refuse, to purchase.
If any one or more of the Initial Purchasers shall fail or refuse to purchase Securities that it or
they are obligated to purchase on the Closing Date and the aggregate principal amount of Securities
with respect to which such default occurs is more than one-tenth of the aggregate principal amount
of Securities that the Initial Purchasers are obligated to purchase on the Closing Date and
arrangements satisfactory to the Initial Purchasers and the Issuers for the purchase of such
Securities by one or more non-defaulting Initial Purchasers or other party or parties approved by
the Initial Purchasers and the Issuers are not made within 36 hours after such default, this
Agreement will terminate without liability on the part of any party hereto (other than any
defaulting Initial Purchaser). In any such case that does not result in termination of this
Agreement, either the Initial Purchasers or the Issuers shall have the right to postpone the
Closing Date, but in no event for longer than seven days, in order that the required changes, if
any, in the Pricing Disclosure Package and the Final Offering Memorandum (and any amendment or
supplement thereto) or any other documents or arrangements may be effected. Any action taken under
this paragraph shall not relieve any defaulting Initial Purchaser from liability in respect of any
such default of any such Initial Purchaser under this Agreement. The term “Initial Purchaser” as
used in this Agreement includes, for all purposes of this Agreement, any party not listed in
Schedule 1 hereto who, with the approval of the Initial Purchasers and the approval of the Issuers,
purchases Securities that a defaulting Initial Purchaser is obligated, but fails or refuses, to
purchase.

          Any notice under this Section 9 may be made by telecopy or telephone but shall be subsequently
confirmed by letter.

          10. Termination of Agreement. This Agreement shall be subject to termination in your
absolute discretion, without liability on the part of any of the Initial Purchasers to any Plains
Party, by notice to the Issuers prior to delivery of and payment for the Securities, if at any time
prior to such time (i) trading in the Partnership’s Common Units shall have been suspended by the
Commission or the NYSE or trading in securities generally on the New York Stock Exchange, the
American Stock Exchange or the Nasdaq National Market shall have been suspended or limited or
minimum prices shall have been established; (ii) a banking moratorium shall have been declared
either by federal or New York or Texas state authorities or a material disruption in commercial
banking or securities settlement or clearance services in the United States or with respect to
Clearstream or Euroclear systems in Europe shall have occurred; (iii) (a) a downgrading shall have
occurred in any rating accorded the Securities or any other debt securities of any Plains Parties
by any “nationally recognized statistical rating organization”, as that term is defined by the
Commission for purposes of Rule 436(g)(2) under the Act, or (b) any such organization shall have
publicly announced that it has under surveillance or review, with possible negative implications,
its rating of the Securities or any other debt securities of any Plains Parties; or (iv) there
shall have occurred any outbreak or escalation of hostilities or acts of terrorism, declaration by
the United States of a national emergency or war or other calamity or crisis or any change in
financial, political or economic conditions in the United States or elsewhere, the effect of which
on financial markets is such as to make it, in the sole judgment of

37

 

the Initial Purchasers, impracticable or inadvisable to proceed with the offering or delivery
of the Securities as contemplated by the Pricing Disclosure Package and the Final Offering
Memorandum (exclusive of any amendment or supplement thereto). Notice of such termination may be
given to the Issuers by telegram, telecopy or telephone and shall be subsequently confirmed by
letter.

          11. Representations and Indemnities to Survive. The respective agreements,
representations, warranties, indemnities and other statements of the Plains Parties or their
respective officers and of the Initial Purchasers set forth in or made pursuant to this Agreement
will remain in full force and effect, regardless of any investigation made by or on behalf of the
Initial Purchasers or the Plains Parties or any of the officers, directors or controlling persons
referred to in Section 8 hereof, and will survive delivery of and payment for the Securities. The
provisions of Sections 7 and 8 hereof shall survive the termination or cancellation of this
Agreement.

          12. Notices. All communications hereunder will be in writing and effective only on
receipt, and, if sent to the Initial Purchasers, will be mailed, delivered or telefaxed to Banc of
America Securities LLC, 40 West 57th Street, New York, NY 10019, fax no.: (212) 901-7881,
Attention: High Grade Debt Capital Markets Transaction Management; or, if sent to any of the
Plains Parties, will be mailed, delivered or telefaxed to the Issuers at 333 Clay, Suite 1600,
Houston, TX 77002, fax no.: (713) 646-4313 and confirmed to it at (713) 646-4100, Attention: Tim
Moore.

          13. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto and their respective successors and the officers and directors and controlling
persons referred to in Section 8 hereof, and, except as expressly set forth in Section 5(h) hereof,
no other person will have any right or obligation hereunder.

          14. Integration. This Agreement supersedes all prior agreements and understandings
(whether written or oral) between the Plains Parties and the Initial Purchasers, or any of them,
with respect to the subject matter hereof.

          15. Applicable Law; Counterparts. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York applicable to contracts made and to be
performed within the State of New York. This Agreement may be signed in various counterparts that
together constitute one and the same instrument. If signed in counterparts, this Agreement shall
not become effective unless at least one counterpart hereof shall have executed and delivered on
behalf of each party hereto.

          16. Headings. The Section headings used herein are for convenience only and shall not
affect the construction hereof.

          17. Effective Date of Agreement. This Agreement shall become effective upon the
execution and delivery hereof by the parties hereto.

          18. No Fiduciary Duty. The Plains Parties hereby acknowledge that (a) the purchase
and sale of the Securities pursuant to this Agreement is an arm’s-length commercial transaction
between the Plains Parties, on the one hand, and the Initial Purchasers and any

38

 

affiliate through which it may be acting, on the other, (b) the Initial Purchasers are acting
as principal and not as an agent or fiduciary of the Plains Parties and (c) the Plains Parties’
engagement of the Initial Purchasers in connection with the offering and the process leading up to
the offering is as independent contractors and not in any other capacity. Furthermore, the Plains
Parties agree that they are solely responsible for making their own judgments in connection with
the offering (irrespective of whether any of the Initial Purchasers has advised or is currently
advising the Plains Parties on related or other matters). The Plains Parties agree that they will
not claim that the Initial Purchasers have rendered advisory services of any nature or respect, or
owe an agency, fiduciary or similar duty to the Plains Parties, in connection with such transaction
or the process leading thereto.

          19. Definitions. The terms that follow, when used in this Agreement, shall have the
meanings indicated.

          “Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the
Commission promulgated thereunder.

          “Commission” shall mean the Securities and Exchange Commission.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder.

          “Investment Company Act” shall mean the Investment Company Act of 1940, as amended, and the
rules and regulations of the Commission promulgated thereunder.

          “Regulation D” shall mean Regulation D under the Act.

          “Regulation S” shall mean Regulation S under the Act.

          “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules
and regulations of the Commission promulgated thereunder.

39

 

          If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this Agreement and your acceptance shall
represent a binding agreement among the Plains Parties and the Initial Purchasers.

	 	 	 	 	 
	 	Very truly yours,

PLAINS ALL AMERICAN PIPELINE, L.P.

 	 
	 	By:  	PAA GP LLC
 its General Partner
 	 
	 	 	 	 
	 	By:  	               PLAINS AAP, L.P.
 its Sole Member
 	 
	 	 	 
	 	By:  	               PLAINS ALL AMERICAN GP LLC
 its General Partner
 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                 /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 
	 

	 	 	 	 	 
	 	PAA FINANCE CORP.
 	 

	 	 	 	 	 
	 	By:  	/s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

PAA Signature Page to Purchase Agreement

  1 of 14

 

 

	 	 	 	 	 
	 	PAA GP LLC

 	 
	 	By:  	PLAINS AAP, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	                  PLAINS ALL AMERICAN GP LLC
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                             /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

	 	 	 	 	 
	 	PLAINS AAP, L.P.

 	 
	 	By:  	PLAINS ALL AMERICAN GP LLC
its General Partner
 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                              /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

	 	 	 	 	 

	 	PLAINS ALL AMERICAN GP LLC
 	 

	 	 	 	 	 

	 	By:  	/s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance
and Treasurer 	 

	 	 	 	 	 
	 	PLAINS MARKETING GP INC.
 	 

	 	 	 	 	 

	 	By: 	/s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance
and Treasurer 	 
	 

PAA Signature Page to Purchase Agreement

2 of 14

 

 

	 	 	 	 	 
	 	PLAINS MARKETING, L.P.

 	 
	 	By:  	PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	/s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

	 	 	 	 	 
	 	PLAINS PIPELINE, L.P.

 	 
	 	By:  	PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                               /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance
and Treasurer 	 

	 	 	 	 	 
	 	PACIFIC ENERGY GROUP, LLC

 	 
	 	By:  	PLAINS ALL AMERICAN PIPELINE, L.P.
 its Sole Member
 	 
	 	 	 
	 	By:  	PAA GP LLC
 its General Partner
 	 
	 	 	 
	 	By:  	                   PLAINS AAP, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	PLAINS ALL AMERICAN GP LLC
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                            /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and Treasurer 	 

PAA Signature Page to Purchase Agreement

3 of 14

 

 

	 	 	 	 	 
	 	PACIFIC LA MARINE TERMINAL LLC

 	 
	 	By:  	PACIFIC ENERGY GROUP LLC
its Sole Member
 	 
	 	 	 
	 	By:  	PLAINS ALL AMERICAN PIPELINE, L.P.
 its Sole Member 	 
	 	 	 
	 	By:  	PAA GP LLC
its General Partner
 	 
	 	 	 
	 	By:  	PLAINS AAP, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	PLAINS ALL AMERICAN GP LLC
its General Partner
 	 

	 	 	 	 	 
	 	By:  	/s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

PAA Signature Page to Purchase Agreement

4 of 14

 

 

	 	 	 	 	 
	 	ROCKY MOUNTAIN PIPELINE SYSTEM LLC

 	 
	 	By:  	PACIFIC ENERGY GROUP LLC
its Sole Member
 	 
	 	 	 
	 	By:  	                                              PLAINS ALL AMERICAN PIPELINE, L.P. 
its Sole Member
 	 
	 	 	 
	 	By:  	                   PAA GP LLC
its General Partner
 	 
	 	 	 
	 	By:  	PLAINS AAP, L.P.
its Sole Member
 	 
	 

	 	By:  	PLAINS ALL AMERICAN GP LLC
its General Partner 	 

	 	 	 	 	 
	 	By:  	                            /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

PAA Signature Page to Purchase Agreement

5 of 14

 

 

	 	 	 	 	 
	 	PACIFIC ATLANTIC TERMINALS LLC

 	 
	 	By:  	PACIFIC ENERGY GROUP LLC
its Sole Member
 	 
	 	 	 
	 	By:  	                                              PLAINS ALL AMERICAN PIPELINE, L.P.
 its Sole Member
 	 
	 	 	 
	 	By:  	                   PAA GP LLC
its General Partner
 	 
	 	 	 
	 	By:  	                   PLAINS AAP, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	                   PLAINS ALL AMERICAN GP LLC
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                            /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

PAA Signature Page to Purchase Agreement

6 of 14

 

 

	 	 	 	 	 
	 	RANCH PIPEPLINE LLC

 	 
	 	By:  	PACIFIC ENERGY GROUP LLC
its Sole Member
 	 
	 	 	 
	 	By:  	                                              PLAINS ALL AMERICAN PIPELINE, L.P.
 its Sole Member
 	 
	 	 	 
	 	By:  	                   PAA GP LLC
its General Partner
 	 
	 	 	 
	 	By:  	PLAINS AAP, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	PLAINS ALL AMERICAN GP LLC
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                            /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

	 	 	 	 	 
	 	PACIFIC ENERGY FINANCE CORPORATION

	 

	 	 	 	 	 
	 	By:  	/s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

PAA Signature Page to Purchase Agreement

7 of 14

 

 

	 	 	 	 	 
	 	PLAINS MARKETING CANADA LLC

 	 
	 	By:  	PLAINS MARKETING, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	                    PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                             /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

	 	 	 	 	 
	 	PMC (NOVA SCOTIA) COMPANY

 	 

	 	 	 	 	 
	 	By:  	/s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Vice President and Treasurer 	 

	 	 	 	 	 
	 	PLAINS MARKETING CANADA, L.P.

 	 
	 	By:  	PMC (NOVA SCOTIA) COMPANY
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                     /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Vice President and Treasurer 	 

PAA Signature Page to Purchase Agreement

8 of 14

 

 

	 	 	 	 	 
	 	PLAINS LPG SERVICES GP LLC

 	 
	 	By:  	PLAINS MARKETING, L.P.
its Sole Member
 	 
	 	By:  	PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                             /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

	 	 	 	 	 
	 	PLAINS TOWING LLC

 	 
	 	By:  	PLAINS MARKETING, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                             /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

	 	 	 	 	 
	 	PICSCO LLC

 	 
	 	By:  	PLAINS MARKETING, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                             /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and Treasurer 	 

PAA Signature Page to Purchase Agreement

9 of 14

 

 

	 	 	 	 	 
	 	PLAINS MIDSTREAM GP LLC

 	 
	 	By:  	PLAINS MARKETING, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	                    PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                             /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

	 	 	 	 	 
	 	PLAINS MIDSTREAM, L.P.

 	 
	 	By:  	PLAINS MIDSTREAM GP LLC
its General Partner
 	 
	 	 	 
	 	By:  	                    PLAINS MARKETING, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                             /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

PAA Signature Page to Purchase Agreement

10 of 14

 

 

	 	 	 	 	 
	 	PLAINS MIDSTREAM CANADA ULC

 	 
	 	     By:  	/s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	AURORA PIPELINE COMPANY LTD.

 	 
	 	     By:  	/s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Vice President — Finance and
Treasurer 	 
	 

PAA Signature Page to Purchase Agreement

11 of 14

 

 

	 	 	 	 	 
	 	PLAINS LPG SERVICES, L.P.

 	 
	 	By:  	PLAINS LPG SERVICES GP LLC
its General Partner
 	 
	 	 	 
	 	By:  	                   PLAINS MARKETING, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                            /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

	 	 	 	 	 
	 	BASIN HOLDINGS GP LLC

 	 
	 	By:  	PLAINS PIPELINE, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                             /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

PAA Signature Page to Purchase Agreement

12 of 14

 

 

	 	 	 	 	 
	 	BASIN PIPELINE HOLDINGS, L.P.

 	 
	 	By:  	BASIN HOLDINGS GP LLC
its General Partner
 	 
	 	 	 
	 	By:  	PLAINS PIPELINE, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	                    PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                             /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

	 	 	 	 	 
	 	RANCHO HOLDINGS GP LLC

 	 
	 	By:  	PLAINS PIPELINE, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                             /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

PAA Signature Page to Purchase Agreement

13 of 14

 

 

	 	 	 	 	 
	 	RANCHO PIPELINE HOLDINGS, L.P.

 	 
	 	By:  	RANCHO HOLDINGS GP LLC
its General Partner
 	 
	 	 	 
	 	By:  	                    PLAINS PIPELINE, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	                    PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                             /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

	 	 	 	 	 
	 	LONE STAR TRUCKING, LLC

 	 
	 	By:  	PLAINS LPG SERVICES, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	                   PLAINS LPG SERVICES GP LLC
its General Partner
 	 
	 	 	 
	 	By:  	                   PLAINS MARKETING, L.P.
its Sole Member
 	 
	 	 	 
	 	By:  	                   PLAINS MARKETING GP INC.
its General Partner
 	 

	 	 	 	 	 
	 	By:  	                            /s/ Al Swanson
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President — Finance and
Treasurer 	 

PAA Signature Page to Purchase Agreement

14 of 14

 

 

The foregoing Agreement is hereby

confirmed and accepted by the Initial

Purchasers as of the date first above written.

Banc of America Securities LLC

BNP Paribas Securities Corp.

J.P. Morgan Securities Inc.

DnB NOR Markets, Inc.

Fortis Securities LLC

Mizuho Securities USA Inc.

Scotia Capital (USA) Inc.

ING Financial Markets LLC

SG Americas Securities, LLC

SunTrust Robinson Humphrey, Inc.

Wells Fargo Securities, LLC

BMO Capital Markets Corp.

The Williams Capital Group, L.P.

	 	 	 	 
	 	 
	By:  	                 BANC OF AMERICA SECURITIES LLC
 	 
	 	 	 
	 	 	 
				
	 	 
	By:  	                 /s/ Lily Chang
 	 
	 	Name:  	Lily Chang 	 
	 	Title:  	Principal 	 
				

Initial Purchasers Signature Page to Purchase Agreement

 

 

Schedule 1

	 	 	 	 	 
	 	 	Principal Amount of
	 	 	Securities to be
	Initial Purchasers	 	Purchased
	Banc of America Securities LLC
	 	 	$132,000,000	 
	BNP Paribas Securities Corp.
	 	 	132,000,000	 
	J.P. Morgan Securities Inc.
	 	 	132,000,000	 
	DnB NOR Markets, Inc.
	 	 	30,000,000	 
	Fortis Securities LLC
	 	 	30,000,000	 
	Mizuho Securities USA Inc.
	 	 	24,000,000	 
	Scotia Capital (USA) Inc.
	 	 	24,000,000	 
	ING Financial Markets LLC
	 	 	18,000,000	 
	SG Americas Securities, LLC
	 	 	18,000,000	 
	SunTrust Robinson Humphrey, Inc.
	 	 	18,000,000	 
	Wells Fargo Securities, LLC
	 	 	18,000,000	 
	BMO Capital Markets Corp.
	 	 	12,000,000	 
	The Williams Capital Group, L.P.
	 	 	12,000,000	 
	 
	 	 	 	 
	Total
	 	 	$600,000,000	 

Schedule 1 

 

EXHIBIT A

Form of Pricing Supplement

PRICING SUPPLEMENT DATED APRIL 18, 2008

	 	 	 	 	 
	 

	 	ISSUERS: Plains All American Pipeline, L.P. and PAA Finance Corp.	 	 
	 

	 	SIZE:       US$600,000,000	 	 
	 

	 	MATURITY/MATURITY DATE May 1, 2018	 	 
	 

	 	ISSUE PRICE:      99.424%	 	 
	 

	 	NET PROCEEDS TO ISSUERS:      US $592,644,000	 	 
	 

	 	COUPON:      6.50 %	 	 
	 

	 	YIELD TO MATURITY:         6.579%	 	 
	 

	 	BENCHMARK TREASURY:      3.50% Notes due February 15, 2018	 	 
	 

	 	SPREAD TO BENCHMARK TREASURY:      + 275 bps	 	 
	 

	 	BENCHMARK TREASURY SPOT AND YIELD:      97-10+; 3.829%	 	 
	 

	 	INTEREST PAYMENT DATES: May 1 and November 1	 	 
	 

	 	FIRST INTEREST PAYMENT: November 1, 2008	 	 
	 

	 	MAKE WHOLE CALL:       T + 40 bps	 	 
	 

	 	FORMAT:                       144A and Regulation S	 	 
	 

	 	DAY COUNT CONVENTION:      30/360	 	 
	 

	 	DENOMINATIONS:     US$2,000/$1,000	 	 
	 

	 	CUSIPS:        72650R AS1      (144A)	 	 
	 

	 	                       U72592 AH8    (Reg S)	 	 
	 

	 	ISINS:
           US72650RAS13 (144A)	 	 
	 

	 	 
                     USU72592AH80 (Reg S)	 	 
	 

	 	JOINT BOOK-RUNNING MANAGERS:
	 	Banc of America Securities LLC
	 

	 	 	 	BNP Paribas Securities Corp.
	 

	 	 	 	JPMorgan
	 

	 	CO-MANAGERS:
	 	DnB NOR Markets, Inc.
	 

	 	 	 	Fortis Securities LLC
	 

	 	 	 	Mizuho Securities USA Inc.
	 

	 	 	 	Scotia Capital (USA) Inc.
	 

	 	 	 	ING Financial Markets LLC
	 

	 	 	 	SG Americas Securities, LLC
	 

	 	 	 	SunTrust Robinson Humphrey, Inc.
	 

	 	 	 	Wells Fargo Securities, LLC
	 

	 	 	 	BMO Capital Markets Corp.
	 

	 	 	 	The Williams Capital Group, L.P.
	 

	 	TRADE DATE:  April 18, 2008	 	 
	 

	 	SETTLEMENT DATE:         (T+3)  April 23, 2008	 	 
	 

	 	MARKETING:     Preliminary Offering Memorandum dated April 18, 2008	 	 

The information in this Pricing Supplement supplements the Preliminary Offering Memorandum and
supersedes the information in the Preliminary Offering Memorandum to the extent inconsistent with
the information in the Preliminary Offering Memorandum.

The securities referred to herein have not been registered under the Securities Act of 1933 and may
not be offered or sold in the United States or to US persons other than “qualified institutional
buyers” as defined in Rule 144A under the Securities Act or outside the United States to non-US
persons pursuant to Regulation S under the Securities Act. Nothing in this communication shall
constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction
in which such offer or sale would be unlawful. Offers of these securities are made only by means of
the offering memorandum. You are reminded that this notice has been delivered to you on the basis
that you are a person into whose possession this notice may be lawfully delivered in accordance
with the laws of jurisdiction in

A-1 

 

which you are located and you may not nor are you authorized to deliver this notice to any other
person and you agree not to copy or retransmit this notice. See “Notice to Investors” in the
Preliminary Offering Memorandum.

A-2 

 

EXHIBIT B

Selling Restrictions for Offers and

Sales Outside the United States

          (1)(a) The Securities have not been and will not be registered under the Act and may not be
offered or sold within the United States or to, or for the account or benefit of, U.S. persons
(other than a distributor) except in accordance with Regulation S under the Act or pursuant to an
exemption from the registration requirements of the Act. The Initial Purchasers represent and
agree that, except as otherwise permitted by Section 4(a)(i) of the Agreement to which this is an
exhibit, they have not offered and sold the Securities, and will not offer and sell the Securities,
(i) as part of their distribution at any time; and (ii) otherwise until 40 days after the later of
the commencement of the offering and the Closing Date, except in accordance with Rule 903 of
Regulation S under the Act or another exemption from the registration requirements of the Act. The
Initial Purchasers represent and agree that neither they, nor any of their Affiliates nor any
person acting on their behalf or on behalf of their Affiliates has engaged or will engage in any
directed selling efforts with respect to the Securities, and that they and their Affiliates have
complied and will comply with the offering restrictions requirement of Regulation S. The Initial
Purchasers agree that, at or prior to the confirmation of sale of Securities (other than a sale of
Securities pursuant to Section 4(a)(i) of the Agreement to which this is an exhibit), they shall
have sent to each distributor, dealer or person receiving a selling concession, fee or other
remuneration that purchases Securities from them during the distribution compliance period referred
to in Regulation S under the Act a confirmation or notice to substantially the following effect:

“The Securities covered hereby have not been registered under the
U.S. Securities Act of 1933 (the “Act”) and may not be offered or
sold within the United States or to, or for the account or benefit
of, U.S. persons (i) as part of their distribution at any time or
(ii) otherwise until 40 days after the later of the date of the
Securities were first offered to persons other than “distributors”
(as defined in Regulation S under the Act) in reliance upon
Regulation S under the Act and the Closing Date, except in either
case in accordance with Regulation S or Rule 144A under the Act.
Terms used above have the meanings given to them by Regulation S
under the Act.”

          (b) The Initial Purchasers also represent and agree that they have not entered and will
not enter into any contractual arrangement with any distributor with respect to the
distribution of the Securities, except with their Affiliates or with the prior written
consent of the Partnership.

          (c) Terms used in this Section have the meanings given to them by Regulation S.

          (2) The Initial Purchasers represent and agree that (i) they have not offered or sold and,
prior to the date six months after the date of issuance of the Securities, will not offer or sell
any Securities to persons in the United Kingdom except to persons whose ordinary activities involve
them in acquiring, holding, managing or disposing of investments (as principal or agent)

B-1 

 

for the purposes of their businesses or otherwise in circumstances that have not resulted and
will not result in an offer to the public in the United Kingdom within the meaning of the Public
Offers of Securities Regulations 1995, as amended; (ii) they have complied and will comply with all
applicable provisions of the Financial Services and Markets Act 2000 (the “FSMA”) with respect to
anything done by them in relation to the Securities in, from or otherwise involving the United
Kingdom; and (iii) they have only communicated, or caused to be communicated, and will only
communicate, or cause to be communicated, any invitation or inducement to engage in investment
activity (within the meaning of Section 21 of the FSMA) received by them in connection with the
issue or sale of the Securities in circumstances in which Section 21(1) of the FSMA does not apply
to us.

B-2 

 

EXHIBIT C

Form of Exhibit A to Opinions in Sections 6(a) and (d)

	 	 	 
	Entity	 	Jurisdiction in which registered or qualified
	 
	 	 
	Plains All American Pipeline, L.P.

	 	Texas
	 
	 	 
	PAA Finance Corp.

	 	None
	 
	 	 
	PAA GP LLC

	 	None
	 
	 	 
	Plains AAP, L.P.

	 	Texas
	 
	 	 
	Plains All American GP LLC

	 	California, Illinois, Louisiana, Oklahoma, Texas
	 
	 	 
	Plains Marketing GP Inc.

	 	California, Illinois, Louisiana, Oklahoma, Texas
	 
	 	 
	Plains Marketing, L.P.

	 	California, Illinois, Louisiana, Oklahoma
	 
	 	 
	Plains Pipeline, L.P.

	 	California, Illinois, Louisiana, Oklahoma
	 
	 	 
	Pacific Energy Group, LLC

	 	California
	 
	 	 
	Pacific LA Marine Terminal LLC

	 	None
	 
	 	 
	Rocky Mountain Pipeline System LLC

	 	None
	 
	 	 
	Pacific Atlantic Terminals LLC

	 	California
	 
	 	 
	Ranch Pipeline LLC

	 	None
	 
	 	 
	Pacific Energy Finance Corporation

	 	California
	 
	 	 
	Plains Marketing Canada LLC

	 	None
	 
	 	 
	PMC (Nova Scotia) Company

	 	Alberta, Saskatchewan
	 
	 	 
	Plains Marketing Canada, L.P.

	 	Alberta, Saskatchewan, California, Louisiana, Oklahoma, Texas
	 
	 	 
	Plains LPG Services GP LLC

	 	Illinois, Texas
	 
	 	 
	Plains Towing LLC

	 	None
	 
	 	 
	PICSCO LLC

	 	Louisiana, Texas
	 
	 	 
	Plains Midstream GP LLC

	 	None
	 
	 	 
	Plains Midstream, L.P.

	 	None
	 
	 	 
	Plains Midstream Canada ULC

	 	Alberta
	 
	 	 
	Aurora Pipeline Company Ltd.

	 	Alberta
	 
	 	 
	Plains LPG Services, L.P.

	 	California, Illinois, Oklahoma, Texas
	 
	 	 
	Basin Holdings GP LLC

	 	Oklahoma, Texas
	 
	 	 
	Basin Pipeline Holdings, LP

	 	Oklahoma, Texas
	 
	 	 

C-1 

 

	 	 	 
	Entity	 	Jurisdiction in which registered or qualified
	 

	Rancho Holdings GP LLC

	 	Texas
	 
	 	 
	Rancho Pipeline Holdings, L.P.

	 	Texas
	 
	 	 
	Lone Star Trucking, LLC

	 	None
	 
	 	 
	PAA/Vulcan Gas Storage, LLC

	 	Texas

C-2

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