Without the divestiture, the deal would have given Tesoro ownership of two of the three full service light product terminals in Boise, significantly reducing competition for local terminal services, the FTC said Monday.

Tesoro is required to sell the 252,000-bbl terminal to an FTC-approved buyer within six months of when the proposed order settling the FTC’s charges becomes final. Under the proposed order, Tesoro can complete its acquisition of the Northwest Products System immediately after the order is issued.

The proposed consent order contains a separate order to maintain assets. This is designed to preserve the Tesoro Boise terminal as a viable and ongoing business.

Tesoro and Chevron first announced the Northwest Products System deal in early December 2012; the transaction was originally expected to close in the first quarter of 2013.

The system consists of the Northwest Product Pipeline, a 760-mile Federal Energy Regulatory Commission (FERC)-regulated common carrier products pipeline which extends from Salt Lake City, Utah, to Spokane, Wash., a separate five-mile jet fuel pipeline to the Salt Lake City International Airport and the Northwest Terminalling Company consisting of the Boise and Pocatello, Idaho, and Pasco, Wash., refined products terminals, which are not subject to FERC regulation.

The pipeline receives product from five refineries and one pipeline in the Salt Lake City area and is the primary transportation option from Salt Lake City to Pocatello, Boise, Pasco and Spokane.

Delivery volumes on the system averaged approximately 87,000 b/d in 2012. The terminals have a total storage capacity of 1.3 million bbl and delivered approximately 56,000 b/d last year.

Originally valued at $400 million, Tesoro and Chevron later agreed on a sales price of $355 million, reflecting a renegotiation as a result of a diesel spill that occurred in March.