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SEC Filings
10-Q
NUSTAR ENERGY L.P. filed this Form 10-Q on 05/15/2002
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o    revenues  for the  Ringgold  to Wasson and the Wasson to Ardmore  crude oil
     pipelines and the Ardmore to Wynnewood  refined product pipeline  decreased
     $559,000 due to a combined 27% decrease in  throughput  barrels,  resulting
     from  reduced  production  at the  Ardmore  refinery.  During  January  and
     February  of  2002,   Valero  Energy  initiated   economic-based   refinery
     production  cuts  as a  result  of  significantly  lower  refining  margins
     industry-wide;

o    revenues  for the  Corpus  Christi  to  Three  Rivers  crude  oil  pipeline
     decreased $696,000 due to a 30% decrease in throughput barrels, as a result
     of reduced  production  at the Three Rivers  refinery.  During  January and
     February of 2002,  Valero  Energy also  initiated  economic-based  refinery
     production cuts at the Three Rivers refinery. In addition, during the first
     quarter of 2002,  Valero Energy  accelerated  certain refinery  maintenance
     turnaround  work  scheduled  for  later in 2002  resulting  in the  partial
     shutdown  of  the   refinery   and  reduced   throughput   barrels  in  the
     Partnership's pipelines;

o    revenues  for the McKee to  Colorado  Springs  to  Denver  and the McKee to
     Amarillo to Abernathy refined product pipelines decreased $1,051,000 due to
     a combined  21%  decrease in  throughput  barrels,  resulting  from reduced
     production at the McKee refinery.  During the first quarter of 2002, Valero
     Energy began several planned refinery  maintenance  turnaround  projects at
     the McKee refinery which significantly  reduced production and thus reduced
     throughput barrels in the Partnership's pipelines;

o    revenues  for the Three  Rivers to Corpus  Christi and the Three  Rivers to
     Pettus refined product pipelines  decreased  $354,000 due to a combined 67%
     decrease in throughput  barrels,  as a result of reduced  production at the
     Three Rivers refinery.  During the refinery turnaround and economic-induced
     production  cutbacks,  the Three Rivers  refinery  curtailed  production of
     benzene,  toluene and xylene,  the primary refined products  transported in
     the refined  product  pipelines  going to Corpus Christi from Three Rivers;
     and

o    revenues for the refined  product  terminals for the first quarter of 2002,
     excluding  the impact of the  Southlake  terminal,  remained  flat with the
     revenues  recognized in the first quarter of 2001 since the  additional fee
     charged  at the  terminal  for  blending  additives  into  certain  refined
     products offset the impact of the lower  throughput  barrels.  Revenues for
     the Southlake refined product terminal, which was acquired on July 1, 2001,
     were  $613,000 and the  throughput  was  2,107,000  barrels for the quarter
     ended March 31, 2002.

Operating  expenses increased  $533,000,  or 6%, for the quarter ended March 31,
2002 as  compared  to the quarter  ended  March 31,  2001 due to  $1,283,000  of
operating  expenses  related to the  Southlake  refined  product  terminal,  the
Ringgold crude oil storage  facility and the Wichita Falls  Business,  partially
offset by lower utility  expenses of $645,000,  or 22%, due to lower natural gas
costs and lower electricity rates negotiated with power suppliers.

General and administrative  expenses increased 53% for the first quarter of 2002
as compared to the first quarter of 2001 due to general and administrative costs
related to being a publicly held entity.  In addition to the  $5,200,000  annual
fee charged by Valero Energy to the Partnership  for general and  administrative
services,  the  Partnership  incurs costs from third parties  (e.g.,  unitholder
annual  reports and K-1s and director fees) as a result of being a publicly held
entity.  For the three months ended March 31, 2002,  general and  administrative
expenses of $1,789,000  reflect $1,300,000 of the annual service fee, $40,000 of
general and  administrative  expenses  related to the Wichita Falls Business for
January 2002,  $605,000 of public entity expenses,  less $156,000  reimbursed by
partners on jointly owned pipelines.  For the three months ended March 31, 2001,
general and  administrative  expenses of  $1,172,000  reflect  $1,300,000 of the
annual  service  fee,  less  $128,000  reimbursed  by partners on jointly  owned
pipelines.

Depreciation and amortization expense increased $1,117,000 for the quarter ended
March 31,  2002 as  compared  to the  quarter  ended  March 31,  2001 due to the
additional  depreciation  related to the  acquisition  of the Southlake  refined
product terminal,  the Ringgold crude oil storage facility and the Wichita Falls
Business,  all  subsequent to the first  quarter of 2001.  Included in the first
quarter of 2002 is $160,000 of depreciation expense related to the Wichita Falls
Business for the month ended January 31, 2002.

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