NuStar Energy (NS) 10-Q 2008 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,
	2008			2007			2006			2005			2004			2003
Earnings:
Income from continuing operations before provision for income taxes and income from equity investees	$	226,235		$	154,913		$	149,885		$	110,069		$	77,074		$	67,177
Add:
Fixed charges		83,441			91,594			75,829			46,211			21,625			16,443
Amortization of capitalized Interest		326			255			126			80			60			55
Distributions from joint ventures		500			544			5,268			4,657			1,373			2,803
Less: Interest capitalized		(4,730	)		(5,995	)		(1,758	)		(1,008	)		(192	)		(123	)
Total earnings	$	305,772		$	241,311		$	229,350		$	160,009		$	99,940		$	86,355
Fixed charges:
Interest expense (1)	$	69,142		$	77,584		$	68,241		$	41,616		$	20,630		$	15,291
Amortization of debt issuance costs		593			1,030			726			622			407			740
Interest capitalized		4,730			5,995			1,758			1,008			192			123
Rental expense interest factor (2)		8,976			6,985			5,104			2,965			396			289
Total fixed charges	$	83,441		$	91,594		$	75,829		$	46,211		$	21,625		$	16,443
Ratio of earnings to fixed charges		3.7x			2.6x			3.0x			3.5x			4.6x			5.3x

(1) The “Interest expense, net” reported in NuStar Energy L.P.’s consolidated statement of income for the nine months ended September 30, 2008 includes investment income of $2,708,000.

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