Exhibit 12.01

VALERO L.P.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in thousands, except ratio)

	Years Ended December 31,
	2004			2003			2002			2001			2000
	(in thousands)
Earnings:
Income from continuing operations before provision for income taxes and income from equity investees	$	77,074		$	67,177		$	52,350		$	42,694		$	35,968
Add:
Fixed charges		21,625			16,443			5,492			4,203			5,266
Amortization of capitalized interest		60			55			48			39			34
Distributions from Skelly-Belvieu Pipeline Company		1,373			2,803			3,590			2,874			4,658
Less: Interest capitalized		(192	)		(123	)		(255	)		(298	)		—
Total earnings	$	99,940		$	86,355		$	61,225		$	49,512		$	45,926
Fixed charges:
Interest expense (1)	$	20,630		$	15,291		$	4,968		$	3,721		$	5,181
Amortization of debt issuance costs		407			740			160			90			—
Interest capitalized		192			123			255			298			—
Rental expense interest factor (2)		396			289			109			94			85
Total fixed charges	$	21,625		$	16,443		$	5,492		$	4,203		$	5,266
Ratio of earnings to fixed charges		4.6x			5.3x			11.1x			11.8x			8.7x

(1) The interest and other expense, net reported in Valero L.P.’s consolidated statements of income for the years ended December 31, 2004 and 2003 includes interest income of $221,000 and $171,000 and other expense of ($134,000) and $0, respectively.

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