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SEC Filings
10-Q
NUSTAR ENERGY L.P. filed this Form 10-Q on 05/15/2002
Entire Document
 
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               VALERO L.P. AND VALERO LOGISTICS OPERATIONS, L.P.
      NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS - (Continued)

NOTE 9: Distributions

The  Partnership  makes quarterly  distributions  of 100% of its available cash,
generally  defined as cash  receipts less cash  disbursements  and cash reserves
established  by the  general  partner in its sole  discretion.  Pursuant  to the
partnership   agreement,   the  general   partner  is   entitled  to   incentive
distributions  if the amount the  Partnership  distributes  with  respect to any
quarter exceeds specified target levels shown below:

                                                 Percentage of Distribution
                                                 --------------------------
   Quarterly Distribution Amount per Unit      Unitholders      General Partner
   --------------------------------------      -----------      ---------------

   Up to $0.60                                    98%                 2%
   Above $0.60 up to $0.66                        90%                10%
   Above $0.66 up to $0.90                        75%                25%
   Above $0.90                                    50%                50%

On February 14, 2002, the Partnership paid the fourth quarter cash  distribution
of $0.60 per unit for a total  distribution of $11,788,000,  including  $236,000
paid to the general partner.

On April 19, 2002, the  Partnership  declared a quarterly  distribution of $0.65
per unit payable on May 15, 2002 to unitholders  of record on May 1, 2002.  This
distribution,  related  to the  first  quarter  of 2002,  is  expected  to total
$12,858,000,  of which  $1,070,000  is an  incentive  distribution.  The general
partner's share of the total  distribution is expected to be $343,000,  of which
$107,000 is an incentive distribution.



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