SEC Contract Filing

Filing Date: 2017-11-08

Document Content:
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<TYPE>EX-10.7
<SEQUENCE>10
<FILENAME>d476918dex107.htm
<DESCRIPTION>EX-10.7
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<TITLE>EX-10.7</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.7 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>GROUND LEASE </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>BETWEEN
</B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TESORO REFINING&nbsp;&amp; MARKETING COMPANY LLC, </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AS LANDLORD, </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AND
</B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>TESORO LOGISTICS OPERATIONS LLC, </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AS TENANT </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Anacortes
Products Storage Facility </B></P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>GROUND LEASE </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This Ground Lease (the &#147;<U>Lease</U>&#148;) is entered into as of November&nbsp;8, 2017 (the &#147;<U>Commencement Date</U>&#148;), between TESORO
REFINING&nbsp;&amp; MARKETING COMPANY LLC, a Delaware limited liability company (&#147;<U>Landlord</U>&#148;), and TESORO LOGISTICS OPERATIONS LLC, a Delaware limited liability company (&#147;<U>Tenant</U>&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">A. Landlord is the owner of a petrochemical refinery in Skagit County, Washington, situated upon that certain real property more particularly
described on <U>Exhibit A</U> attached hereto and incorporated herein by reference (the &#147;<U>Refinery</U>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">B. Tenant desires
to lease from Landlord and Landlord desires to lease to Tenant the portion of the Refinery described on <U>Exhibit B</U> attached hereto and incorporated herein by reference (with the exception of the improvements situated thereon, which the parties
acknowledge hereby are owned by Tenant) (the &#147;<U>Premises</U>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">C. Capitalized terms used in this Lease, but not defined
herein, shall have the meanings given to them in the Contribution Agreement (as defined below). </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>ARTICLE 1. DEMISE OF PREMISES AND GRANT OF EASEMENTS
</B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>1.01</B><B> Demise of Premises. </B>In consideration of the mutual covenants and agreements of this Lease, and other good and
valuable consideration, Landlord demises and leases to Tenant, and Tenant leases from Landlord, the Premises. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>1.02 Easements. </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) Tenant is hereby granted a <FONT STYLE="white-space:nowrap">non-exclusive</FONT> easement for ingress and egress to and from the Premises
over and across the Refinery during the term of this Lease, as reasonably needed by Tenant in order to operate the Storage Facility (the &#147;<U>Access Easement</U>&#148;). Landlord shall have the right to designate a reasonable course through
which Tenant and its employees, agents, contractors and invitees must follow across the Refinery in order to access the Premises, and to otherwise establish reasonable restrictions upon Tenant&#146;s use of the Refinery for access to the Premises.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) Tenant is hereby granted <FONT STYLE="white-space:nowrap">non-exclusive</FONT> easements (the &#147;<U>Pipeline
Easements</U>&#148;)<B> </B>over and across the Refinery during the term of this Lease for the installation, maintenance, repair and replacement of pipelines owned by Tenant connecting the Storage Facility to (1)&nbsp;the manifold to the Trans
Mountain Pipeline, (2)&nbsp;the tank car loading rack and the tank truck loading rack, owned by Tenant and located on land leased by Landlord to Tenant pursuant to that certain Ground Lease, dated November&nbsp;15, 2012, as amended by that certain
First Amendment thereto, dated July&nbsp;1, 2014, and as further amended by that certain Second Amendment thereto entered into between Landlord and Tenant concurrently herewith, (3)&nbsp;the Anacortes Marine Terminal operated by Tenant, and
(4)&nbsp;the manifold of the Olympic Pipeline. The Pipeline Easements shall initially cover the existing locations and pipeline slots occupied by pipelines owned by Tenant, but Landlord shall not unreasonably withhold its consent to any request by
Tenant to modify or expand such Pipeline Easements to cover additional or different pipelines owned by Tenant and used by Tenant to provide serv