Related-Party Transactions (Notes)

3 Months Ended

Mar. 31, 2014

Related Party Transactions [Abstract]

Related-Party Transactions

RELATED-PARTY TRANSACTIONS

Affiliate Agreements

The Partnership has various long-term, fee-based commercial agreements with Tesoro under which we provide pipeline transportation, trucking, terminal distribution, storage and petroleum-coke handling services and Tesoro commits to provide us with minimum monthly throughput volumes of crude oil and refined products. We believe the terms and conditions under these agreements are generally no less favorable to either party than those that could have been negotiated with unaffiliated parties with respect to similar services.

Summary of Affiliate Transactions

A summary of revenue and expense transactions with Tesoro is as follows (in thousands):

	Three Months Ended March 31,
	2014		2013
Revenues	$	109,580	$	47,892
Operating and maintenance expenses (a)	10,271		3,397
General and administrative expenses	7,480		2,826

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(a) Operating and maintenance expenses include imbalance settlement gains of $2.4 million for both the three months ended March 31, 2014 and 2013.

In accordance with our partnership agreement, our common, subordinated and general partner interests are entitled to receive quarterly distributions of available cash. In February 2014, we paid a quarterly cash distribution, of which $16.3 million was paid to Tesoro and TLGP, including incentive distribution rights (“IDRs”). On April 23, 2014, we announced the declaration of a quarterly cash distribution of $0.59 per unit which will be paid on May 15, 2014. The distribution will consist of $18.1 million to Tesoro and TLGP, including IDRs.