1. Effective Risk Management INTERTANKO Tokyo May 15, 2009 Charles W. Parks Vice President - Marine Tesoro Corporation

2. 1 Anacortes, Wa 120 mbpd Key product: Gasoline Mandan, ND 58 mbpd Key products: Gasoline & Diesel Salt Lake City, Utah 58 mbpd Key products: Gasoline & Diesel Kapolei, Hawaii 93 mbpd Key product: Jet The Tesoro System Corporate Office Singapore Office Auburn Office Long Beach Office Martinez, Ca 166 mbpd Key products: CARB Gasoline & CARB Diesel Los Angeles, Ca 97 mbpd Key products: CARB Gasoline & CARB Diesel Calgary Office Tesoro System Highlights 7 Refineries 664 mbpd total crude capacity Retail network of over 870 sites 5,600 Employees RETAIL BRANDS Kenai, Alaska 72 mbpd Key product: Jet

3. 2 Tesoro Today 2008 Fortune “150”# 91 Global “500”# 388 Revenues $ 28 billion Operating Income$ 471 million Refining & Marketing 100%

4. 3 Tesoro Marine – 2008 Statistics # of cargo transfers 4,400 Total barrels moved 315 million Vessels vetted 740 Rejection rate 4.1% –Poor SIRE reports –Past experience with vessel/owner –Inadequate mooring system Spills 3 –Volume spilled Trace

5. 4 Tesoro Time Chartered Fleet 2 – Suezmax 3 – Aframax 5 – MR’s 10 – Barges (U.S. West Coast & Hawaii) - All are double hull -

6. 5 Vetting Importance Protection of people Protection of the environment Financial exposure Business disruption Our relationship with stakeholders Our reputation as a publicly owned company In Alaska we are the oil spill plan holder

7. 6 Vetting Importance We don’t think we know how to operate your tankers better than you do, BUT, –Not all tankers are the same –Not all crews are the same –Not all operators/managers are the same –Not all owners are the same

8. 7 Vetting Infrastructure Two tiered vetting system –Corporate level –Local level Experienced mariners –Captain Tim Plummer – Head of Operations & Vetting –Vetting Superintendent based at Tesoro headquarters (Captain Debra Cobb) –Tesoro Marine Superintendent at each waterborne refinery location Tesoro Assessment & Ship Clearance (TASC) system –Centralized data capture –Links to SIRE, Q88, LMIU, industry databases Vessel performance feedback OCIMF member and SIRE submitting participant

9. 8 Vetting Process Vetting requests are submitted in TASC Detailed review of: –Tesoro Vessel Questionnaire - owners submit questionnaires via Q-88 (www.Q88.com)www.Q88.com –Lloyd’s MIU –SIRE –U.S. Coast Guard PSIX –Equasis & Tokyo MOU –Internal Facility Feedback & Facility specific acceptability Draft, mooring, KTM, DWT, LOA, Beam, etc.

10. 9 Vetting Process Facility specific recommendation is made to approve or reject Final determination to approve or reject is made and sent to requestor

11. 10 General Criteria Key criteria in Tesoro system –Hawaii SPM (official dwt, BMA, draft) –Alaska (draft, cargo volume, mooring) –Puget Sound (dwt) –San Francisco (draft, KTM)

12. 11 Summary “ We really don’t think we know how to operate your tankers better than you do, but we have a lot on the line as well.”