Pacific Energy Partners, L.P. Announces Approval of the Sale of Its Ge

    Business Editors/Energy Editors

    LONG BEACH, Calif.--(BUSINESS WIRE)--Feb. 24, 2005--Pacific Energy Partners, L.P. (NYSE:PPX) today announced that the California Public Utilities Commission ("CPUC") has approved the previously announced sale of its General Partner, by The Anschutz Corporation, to LB Pacific, LP, formed by Lehman Brothers Merchant Banking Group.
    The acquisition by LB Pacific, LP will include (i) a 100% ownership interest in Pacific Energy GP, Inc. (the "General Partner"), which owns a 2% general partner interest in Pacific Energy and the incentive distribution rights, and (ii) 10,465,000 subordinated units of Pacific Energy representing a 34.6% limited partner interest in Pacific Energy. The transaction is expected to close on March 3, 2005.
    Pacific Energy Partners, L.P. is a master limited partnership headquartered in Long Beach, California. Pacific Energy is engaged principally in the business of gathering, transporting, storing and distributing crude oil and other related products in California and the Rocky Mountain region, including Alberta, Canada. Pacific Energy generates revenues primarily by transporting crude oil on its pipelines and by leasing capacity in its storage facilities. Pacific Energy also buys, blends and sells crude oil, activities that are complementary to its pipeline transportation business.

    This news release may include "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included or incorporated herein may constitute forward-looking statements. Although Pacific Energy believes that the forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that may affect Pacific Energy's operations and financial performance. Among the factors that could cause results to differ materially are those risks discussed in Pacific Energy's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2003.

    For additional information on the partnership, please visit the Pacific Energy Partners, L.P. website at www.PacificEnergy.com.

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CONTACT: Pacific Energy Partners, L.P. Aubrye Harris, 562-728-2871 fax: 562-728-2881 email: aharris@PacificEnergy.com

KEYWORD: CALIFORNIA INTERNATIONAL CANADA INDUSTRY KEYWORD: OIL/GAS ENERGY MERGERS/ACQ SOURCE: Pacific Energy Partners, L.P.

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