NuStar Energy (NS) 10-Q 2011 Q3 Quarterly report

Exhibit 12.01

NUSTAR ENERGY L.P.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Thousands of Dollars, Except Ratio)

	Nine Months			Years Ended December 31,
	Ended
	September 30,
	2011			2010			2009			2008			2007			2006
Earnings:
Income from continuing operations before provision for income taxes and income from equity investees	$	197,716		$	240,211		$	225,791		$	256,994		$	154,913		$	149,885
Add:
Fixed charges	84,282			103,390			102,781			113,959			91,594			75,829
Amortization of capitalized interest	579			642			553			440			255			126
Distributions from joint ventures	9,397			9,625			9,700			2,835			544			5,268
Less: Interest capitalized	(4,103		)	(3,701		)	(1,650		)	(5,108		)	(5,995		)	(1,758		)
Total earnings	$	287,871		$	350,167		$	337,175		$	369,120		$	241,311		$	229,350
Fixed charges:
Interest expense (1)	$	61,945		$	77,343		$	78,622		$	92,971		$	77,584		$	68,241
Amortization of debt issuance costs	1,281			1,118			910			815			1,030			726
Interest capitalized	4,103			3,701			1,650			5,108			5,995			1,758
Rental expense interest factor (2)	16,953			21,228			21,599			15,065			6,985			5,104
Total fixed charges	$	84,282		$	103,390		$	102,781		$	113,959		$	91,594		$	75,829
Ratio of earnings to fixed charges	3.4x			3.4x			3.3x			3.2x			2.6x			3.0x

(1) The “Interest expense, net” reported in NuStar Energy L.P.'s consolidated statement of income for the nine months ended September 30, 2011 includes investment income of $582,000.

(2) The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.