PRESS RELEASE
NuStar

SAN ANTONIO, TEXAS (November 7, 2007) - NuStar Energy L.P. (formerly Valero L.P.) separated from Valero Energy Corporation at the end of 2006 to enable both companies to continue growing. And, NuStar is off to a great start with its proposed acquisition of CITGO Asphalt Refining Company (CARCO)!

NuStar is acquiring two asphalt refineries with a combined throughout capacity of 104,000 barrels per day (BPD) for approximately 50 percent of their combined replacement value.

This acquisition will make NuStar a major player in the asphalt business as CARCO is currently the largest asphalt refiner on the U.S. East Coast, one of the most attractive asphalt markets in the country. At an expected rate of 27 million barrels of asphalt annually, NuStar's soon-to-be acquired assets would account for roughly 15 percent of the nation's total asphalt market, or around 500,000 barrels per day of asphalt production.

With this new strategy, NuStar is taking a contrarian view of the asphalt business, as asphalt assets have been largely overlooked by other MLPs and refiners, representing one of the few areas where assets are priced below their replacement values. Asphalt supply and demand fundamentals are expected to tighten as refiners continue to invest in coker projects. In fact, there is a significant number of coker projects coming online that allow refiners to process cheaper crude oil grades. Since coker units process more of the byproducts that were formerly used to produce asphalt, the supply of asphalt is expected to be squeezed and asphalt margins are expected to surge.

It's kind of strategic thinking that has contributed to the company's record-breaking success over the past few years. Since the L.P. was formed in 2001 through the expected closing of the CARCO acquisition at the start of 2008, NuStar will have grown from 160 employees to approximately 1,600 with the CARCO workforce; from $387 million in assets to nearly $4.4 billion; and from $99 million in revenues to an expected $5.8 billion. And, because of the jump in revenues, NuStar will earn a spot on the Fortune 500 list for the first time.

The CARCO transaction includes:

* 74,000 BPD asphalt refinery in Paulsboro, New Jersey;
* 30,000 BPD asphalt refinery in Savannah, Georgia; and
* three asphalt terminals located in Paulsboro; Savannah; and Wilmington, North Carolina.

This acquisition contributes an additional 4.8 million barrels of storage capacity. With this added capacity and the completion of several internal expansion projects, NuStar's storage capacity is expected to jump to almost 93 million barrels at the end of 2008, solidifying the company's position of having the second largest amount of petroleum liquids storage capacity in the world.

With the addition of the new terminals, NuStar will have a total of 88 facilities, maintaining its rank as the second largest independent liquids terminal operator in the world.

NuStar's projected revenues of $5.8 billion in 2008 should earn the company its first-ever Fortune 500 ranking. It's estimated that the company will be ranked #393 based on the 2007 Fortune 500 list.

The CARCO acquisition is expected to be accretive to unitholders, providing an increase in earnings and cash flow in 2008.

This acquisition will further diversify NuStar's customer base and expand its geographic presence. And, it will provide NuStar with leverage to continue its heavy fuel oil strategy of acquiring additional asphalt and fuel oil assets.