NuStar Energy (NS) 10-Q 2007 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 Ended September 30,			Year Ended December 31,
	2007			2006			2005			2004			2003			2002
Earnings:
Income from continuing operations before provision for income taxes and income from equity investees	$	126,109		$	149,885		$	110,069		$	77,074		$	67,177		$	52,350
Add:
Fixed charges		68,108			75,829			46,211			21,625			16,443			5,492
Amortization of capitalized interest		185			126			80			60			55			48
Distributions from joint ventures		544			5,268			4,657			1,373			2,803			3,590
Less: Interest capitalized		(4,070	)		(1,758	)		(1,008	)		(192	)		(123	)		(255	)
Total earnings	$	190,876		$	229,350		$	160,009		$	99,940		$	86,355		$	61,225
Fixed charges:
Interest expense (1)	$	58,291		$	68,241		$	41,616		$	20,630		$	15,291		$	4,968
Amortization of debt issuance costs		688			726			622			407			740			160
Interest capitalized		4,070			1,758			1,008			192			123			255
Rental expense interest factor (2)		5,059			5,104			2,965			396			289			109
Total fixed charges	$	68,108		$	75,829		$	46,211		$	21,625		$	16,443		$	5,492
Ratio of earnings to fixed charges		2.8x			3.0x			3.5x			4.6x			5.3x			11.1x

(1) The “interest expense, net” reported in NuStar Energy L.P.’s consolidated statement of income for the nine months ended September 30, 2007 includes investment income of $1,292,000.

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