Attorney General Protects Competition in Fuel Markets
June 21, 2016
(Anchorage, AK) - Alaska Attorney General Craig Richards reached an agreement with Tesoro Alaska Company that requires Tesoro to sell a petroleum fuel terminal at the Port of Anchorage in order to preserve competition in Alaska fuel markets. Tesoro reached an Agreement with Flint Hills Resources (FHR) last year to purchase most of FHR’s Alaska fuel storage assets, including FHR’s storage facility at the Port of Anchorage. This facility contains about 580,000 barrels of useable storage capacity plus a rail loading facility. Tesoro also owns two storage facilities at the Port of Anchorage—Terminal 1 with 220,000 barrels of capacity and Terminal 2 with about 600,000 barrels of capacity.
After a six month investigation, the Department of Law determined that Tesoro’s acquisition of FHR’s tank farm would limit the ability of competitors to import fuel through the Port of Anchorage and impair competition in markets for some fuel products, including gasoline. To address this concern, Tesoro has agreed to sell its Terminal 1 to a qualified buyer.
“Allowing a new competitor into the Port of Anchorage will increase competition in this very constrained market,” said Chief Assistant Attorney General Ed Sniffen.
Tesoro will have one year from the approval of the Consent Decree to sell the terminal. If it cannot find a buyer, it must lease the terminal.
The terms of the state's agreement with Tesoro are set out in a Consent Decree filed today with the Alaska Superior Court, and is subject to the court's approval. Public comments on the consent decree can be made within 60 days of filing the Consent Decree. For more information on how to submit comments see section XII of the Consent Decree (PDF - 149K).
For information and questions, contact Chief Assistant Attorney General Ed Sniffen at 269-5100.
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