-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0001181431-06-071689.txt : 20061222
<SEC-HEADER>0001181431-06-071689.hdr.sgml : 20061222
<ACCEPTANCE-DATETIME>20061222160808
ACCESSION NUMBER:		0001181431-06-071689
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061222
FILED AS OF DATE:		20061222
DATE AS OF CHANGE:		20061222

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VALERO GP HOLDINGS LLC
		CENTRAL INDEX KEY:			0001223786
		STANDARD INDUSTRIAL CLASSIFICATION:	PIPE LINES (NO NATURAL GAS) [4610]
		IRS NUMBER:				850470977
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		ONE VALERO WAY
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78249
		BUSINESS PHONE:		2103452000

	MAIL ADDRESS:	
		STREET 1:		ONE VALERO WAY
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78249

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	UDS LOGISTICS LLC
		DATE OF NAME CHANGE:	20030319

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Diamond Shamrock Refining & Marketing CO
		CENTRAL INDEX KEY:			0001369157
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32940
		FILM NUMBER:		061297210

	BUSINESS ADDRESS:	
		STREET 1:		ONE VALERO WAY
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78249
		BUSINESS PHONE:		210-345-2000

	MAIL ADDRESS:	
		STREET 1:		ONE VALERO WAY
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78249

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			VALERO ENERGY CORP/TX
		CENTRAL INDEX KEY:			0001035002
		STANDARD INDUSTRIAL CLASSIFICATION:	PETROLEUM REFINING [2911]
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32940
		FILM NUMBER:		061297211

	BUSINESS ADDRESS:	
		STREET 1:		P.O. BOX 696000
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78269-6000
		BUSINESS PHONE:		2103452000

	MAIL ADDRESS:	
		STREET 1:		P.O. BOX 696000
		CITY:			SAN ANTONIO
		STATE:			TX
		ZIP:			78269-6000
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd140490.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-12-22</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0001223786</issuerCik>
        <issuerName>VALERO GP HOLDINGS LLC</issuerName>
        <issuerTradingSymbol>VEH</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001035002</rptOwnerCik>
            <rptOwnerName>VALERO ENERGY CORP/TX</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>ONE VALERO WAY</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SAN ANTONIO</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>78249</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001369157</rptOwnerCik>
            <rptOwnerName>Diamond Shamrock Refining &amp; Marketing CO</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>ONE VALERO WAY</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SAN ANTONIO</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>78249</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Units representing limited liability company interests</value>
            </securityTitle>
            <transactionDate>
                <value>2006-12-22</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>20550000</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>21.62</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>4700000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnotes.</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Units representing limited liability company interests</value>
            </securityTitle>
            <transactionDate>
                <value>2006-12-22</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>4700000</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>21.62</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnotes.</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">As of December 22, 2006, Valero Energy Corporation directly or indirectly owned 100% of each of Diamond Shamrock Refining and Marketing Company (&quot;DSRMC&quot;) and Sigmor Corporation (&quot;Sigmor&quot;).</footnote>
        <footnote id="F2">At the closing of an underwritten public offering of Units pursuant to the registration statement on Form S-1 (File No. 333-1338810) (the &quot;Offering&quot;) on December 22, 2006, the underwriters purchased an aggregate of 20,550,000 Units: 17,226,636 Units from DSRMC and 3,323,364 Units of Sigmor.</footnote>
        <footnote id="F3">Concurrently with the closing of the Offering on December 22, 2006, William E. Greehey purchased 4,700,000 unregistered Units from DSRMC (the &quot;Private Sale&quot;).</footnote>
        <footnote id="F4">After the closing of the Offering and the concurrent Private Sale, DSRMC and Valero Energy Corporation no longer own any of the outstanding Units of Valero GP Holdings, LLC and, therefore, are no longer subject to Section 16.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Jay D. Browning, Senior Vice President and Secretary of Valero Energy Corporation</signatureName>
        <signatureDate>2006-12-22</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Jay D. Browning, Senior Vice President and Secretary of Diamond Shamrock Refining and Marketing Company</signatureName>
        <signatureDate>2006-12-22</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----