10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 _________________________________________

FORM 10-Q

 _________________________________________

(Mark One)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2014

OR

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _______ to _______

Commission File Number 1-32940

_________________________________________

NUSTAR GP HOLDINGS, LLC

(Exact name of registrant as specified in its charter)

_________________________________________

Delaware	85-0470977
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
19003 IH-10 West San Antonio, Texas	78257
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (210) 918-2000

 _________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule12b-2 of the Exchange Act:

Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o  (Do not check if a smaller reporting company)	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o   No  x

The number of common units outstanding as of July 31, 2014 was 42,707,607.

NUSTAR GP HOLDINGS, LLC AND SUBSIDIARIES

FORM 10-Q

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Consolidated Balance Sheets as of June 30, 2014 and December 31, 2013	3
	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2014 and 2013	4
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2014 and 2013	5
	Condensed Notes to Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 4.	Controls and Procedures	21
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	22
Item 6.	Exhibits	22
SIGNATURES		23

2

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

NUSTAR GP HOLDINGS, LLC

CONSOLIDATED BALANCE SHEETS

(Thousands of Dollars)

	June 30, 2014		December 31, 2013
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,527	$	1,603
Receivable from related parties	14,588		9,617
Income tax receivable	1,198		1,198
Other receivables	615		77
Deferred income tax assets, net	—		1,047
Other current assets	217		245
Total current assets	18,145		13,787
Investment in NuStar Energy L.P.	343,243		357,456
Long-term receivable from related party	40,432		41,139
Total assets	$	401,820	$	412,382
Liabilities and Members’ Equity
Current liabilities:
Short-term debt	$	26,000	$	26,000
Accounts payable	351		324
Accrued compensation expense	18,013		12,318
Accrued liabilities	362		536
Deferred income tax liabilities, net	1,222		—
Taxes other than income tax	570		1,240
Total current liabilities	46,518		40,418
Deferred income tax liabilities, net	1,125		3,671
Long-term liabilities	22,076		18,307
Commitments and contingencies (Note 8)
Members’ equity	324,090		341,045
Accumulated other comprehensive income	8,011		8,941
Total members’ equity	332,101		349,986
Total liabilities and members’ equity	$	401,820	$	412,382

See Condensed Notes to Consolidated Financial Statements.

3

NUSTAR GP HOLDINGS, LLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited, Thousands of Dollars, Except Unit and Per Unit Data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Equity in earnings of NuStar Energy L.P.	$	16,739		$	13,417		$	31,129		$	25,561
General and administrative expenses	(880		)	(618		)	(1,752		)	(1,418		)
Other income, net	196			18			213			99
Interest expense, net	(231		)	(170		)	(453		)	(343		)
Income before income tax (expense) benefit	15,824			12,647			29,137			23,899
Income tax (expense) benefit	(56		)	(88		)	277			(265		)
Net income	$	15,768		$	12,559		$	29,414		$	23,634
Comprehensive income	$	15,786		$	12,648		$	28,484		$	23,920
Basic and diluted net income per unit	$	0.37		$	0.29		$	0.69		$	0.55
Weighted-average number of basic units outstanding	42,658,178			42,618,376			42,657,235			42,612,057
Weighted-average number of diluted units outstanding	42,687,795			42,618,376			42,672,125			42,612,057

See Condensed Notes to Consolidated Financial Statements.

4

NUSTAR GP HOLDINGS, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, Thousands of Dollars)

	Six Months Ended June 30,
	2014			2013
Cash Flows from Operating Activities:
Net income	$	29,414		$	23,634
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of NuStar Energy L.P.	(31,129		)	(25,561		)
Distributions of equity in earnings from NuStar Energy L.P.	31,129			25,561
Gain on sale of NuStar Energy L.P. limited partner units in connection with unit-based compensation	(213		)	(99		)
(Benefit) provision for deferred income tax	(277		)	294
Changes in current assets and liabilities (Note 6)	(1,244		)	49
Increase in long-term receivable from related party	(653		)	(8,623		)
Increase in long-term liabilities	3,769			8,249
Other, net	152			91
Net cash provided by operating activities	30,948			23,595
Cash Flows from Investing Activities:
Distributions in excess of equity in earnings from NuStar Energy L.P.	16,805			22,544
Investment in NuStar Energy L.P.	(3,484		)	—
Proceeds from sale of NuStar Energy L.P. units in connection with unit-based compensation	2,152			1,262
Net cash provided by investing activities	15,473			23,806
Cash Flows from Financing Activities:
Proceeds from short-term debt borrowings	26,000			18,500
Repayment of short-term debt	(26,000		)	(20,000		)
Distributions to unitholders	(46,497		)	(46,445		)
Net cash used in financing activities	(46,497		)	(47,945		)
Net decrease in cash and cash equivalents	(76		)	(544		)
Cash and cash equivalents as of the beginning of the period	1,603			2,597
Cash and cash equivalents as of the end of the period	$	1,527		$	2,053

See Condensed Notes to Consolidated Financial Statements.

5

NUSTAR GP HOLDINGS, LLC

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization

NuStar GP Holdings, LLC (NuStar GP Holdings) (NYSE: NSH) is a publicly held Delaware limited liability company. Unless otherwise indicated, the terms “NuStar GP Holdings,” “we,” “our” and “us” are used in this report to refer to NuStar GP Holdings, LLC, to one or more of our consolidated subsidiaries or to all of them taken as a whole.

We have no operations or sources of income or cash flows other than our investment in NuStar Energy L.P. (NuStar Energy) (NYSE: NS). As of June 30, 2014, we owned approximately 14.9% of NuStar Energy, consisting of the following:

• the 2% general partner interest;

• 100% of the incentive distribution rights (IDR) issued by NuStar Energy, which entitle us to receive increasing percentages of the cash distributed by NuStar Energy, currently at the maximum percentage of 23%; and

• 10,253,584 common units of NuStar Energy representing a 12.9% limited partner interest.

NuStar Energy is a publicly held Delaware limited partnership engaged in the transportation of petroleum products and anhydrous ammonia, the terminalling and storage of petroleum products and the marketing of petroleum products. NuStar Energy has terminal and storage facilities in the United States, Canada, Mexico, the Netherlands, including St. Eustatius in the Caribbean, the United Kingdom and Turkey.

Basis of Presentation

These unaudited condensed consolidated financial statements include the accounts of NuStar GP Holdings and subsidiaries in which it has a controlling interest. Intercompany balances and transactions have been eliminated in consolidation.

We account for our ownership interest in NuStar Energy using the equity method. Therefore, our financial results reflect a portion of NuStar Energy’s net income based on our ownership interest in NuStar Energy. We have no separate operating activities apart from those conducted by NuStar Energy and therefore generate no revenues from operations.

These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature unless otherwise indicated. Financial information for the three and six months ended June 30, 2014 and 2013 included in these Condensed Notes to Consolidated Financial Statements is derived from our unaudited condensed consolidated financial statements. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The consolidated balance sheet as of December 31, 2013 has been derived from the audited consolidated financial statements as of that date. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013.

New Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016, using one of two retrospective application methods. Early adoption is not permitted for public entities. We are currently assessing the impact of this new guidance on our financial statements and disclosures.

6

NUSTAR GP HOLDINGS, LLC

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

2. INVESTMENT IN NUSTAR ENERGY

Summary Financial Information

Condensed consolidated financial information reported by NuStar Energy is presented below (in thousands of dollars):

	June 30, 2014		December 31, 2013
	(Unaudited)
Balance Sheet Information:
Current assets	$	468,118	$	633,549
Property, plant and equipment, net	3,345,136		3,310,653
Goodwill	617,429		617,429
Other non-current assets	465,096		470,555
Total assets	$	4,895,779	$	5,032,186
Current liabilities	$	271,748	$	392,572
Long-term debt	2,726,629		2,655,553
Other non-current liabilities	88,043		80,267
Total liabilities	3,086,420		3,128,392
NuStar Energy partners’ equity	1,808,370		1,902,136
Noncontrolling interest	989		1,658
Total liabilities and partners’ equity	$	4,895,779	$	5,032,186

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(Thousands of Dollars)
Statement of Comprehensive Income Information:
Revenues	$	749,745		$	902,014		$	1,598,958		$	1,900,200
Operating income	$	89,354		$	76,972		$	170,457		$	140,330
Income from continuing operations	$	57,187		$	34,712		$	100,183		$	54,311
(Loss) income from discontinued operations, net of tax	(1,788		)	(1,743		)	(5,147		)	3,062
Net income	$	55,399		$	32,969		$	95,036		$	57,373

Other

Our investment in NuStar Energy reconciles to NuStar Energy’s partners’ equity as follows:

	June 30, 2014			December 31, 2013
	(Thousands of Dollars)
NuStar Energy’s partners’ equity	$	1,808,370		$	1,902,136
NuStar GP Holdings’ ownership interest in NuStar Energy	14.9		%	14.9		%
NuStar GP Holdings’ share of NuStar Energy’s partners’ equity	269,447			283,418
Step-up in basis related to NuStar Energy’s assets and liabilities, including equity method goodwill, and other	73,796			74,038
Investment in NuStar Energy	$	343,243		$	357,456

7

NUSTAR GP HOLDINGS, LLC

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

3. RELATED PARTY TRANSACTIONS

We had a receivable from related parties of $14.6 million and $9.6 million as of June 30, 2014 and December 31, 2013, respectively, mainly relating to payroll, employee benefit plans and unit-based compensation for our employees providing services to NuStar Energy and NuStar Energy’s joint ventures. We also had a long-term receivable from related party of $40.4 million and $41.1 million as of June 30, 2014 and December 31, 2013, respectively, related to amounts payable for retiree medical benefits and other post-employment benefits. The following table summarizes information pertaining to related party transactions:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Thousands of Dollars)
Expenses for payroll, employee benefit plans and unit-      based compensation	$	50,016	$	46,292	$	94,353	$	99,197
Other expenses	$	86	$	84	$	180	$	177

NuStar Energy

GP Services Agreement. NuStar Energy and NuStar GP, LLC, our wholly owned subsidiary, entered into a services agreement, effective January 1, 2008 (the GP Services Agreement). The GP Services Agreement provides that NuStar GP, LLC will furnish administrative and certain operating services necessary to conduct the business of NuStar Energy. All employees providing services to both NuStar GP Holdings and NuStar Energy are employed by NuStar GP, LLC; therefore, NuStar Energy reimburses NuStar GP, LLC for all employee costs, other than the expenses allocated to NuStar GP Holdings (the Holdco Administrative Services Expense). The GP Services Agreement will terminate on December 31, 2014, renewing automatically every two years unless terminated by either party upon six months’ prior written notice. The aggregate amounts of Holdco Administrative Services Expense that we incurred were $0.4 million and $0.2 millionfor the three months ended June 30, 2014 and 2013, respectively, and $0.9 million and $0.6 millionfor the six months ended June 30, 2014 and 2013, respectively.

Asphalt JV

On February 26, 2014, NuStar Energy sold its remaining 50% ownership interest in NuStar Asphalt LLC (Asphalt JV) to Lindsay Goldberg LLC (Lindsay Goldberg), a private investment firm (the Asphalt JV Sale). Lindsay Goldberg now owns 100% of Asphalt JV. Effective February 27, 2014, NuStar Asphalt LLC changed its name to Axeon Specialty Products LLC. As a result of the Asphalt JV Sale, we ceased reporting transactions between us and Asphalt JV as related party transactions in consolidated financial statements on February 26, 2014.

Asphalt JV Services Agreement. NuStar GP, LLC and Asphalt JV were a party to a services agreement, which provided that NuStar GP, LLC furnish certain administrative and other operating services necessary to conduct the business of Asphalt JV for an annual fee totaling $10.0 million, subject to adjustment (the Asphalt JV Services Agreement). The Asphalt JV Services Agreement terminated on June 30, 2014. The aggregate amounts charged under the Asphalt JV Services Agreement were $1.5 million and $2.2 millionfor the three months ended June 30, 2014 and 2013, respectively, and $3.1 million and $4.7 millionfor the six months ended June 30, 2014 and 2013, respectively.

8

NUSTAR GP HOLDINGS, LLC

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

4. DISTRIBUTIONS FROM NUSTAR ENERGY

The following table reflects the allocation of NuStar Energy’s cash distributions earned for the periods indicated among its general and limited partners:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Thousands of Dollars, Except Per Unit Data)
General partner interest	$	1,961	$	1,961	$	3,922	$	3,922
General partner incentive distribution	10,805		10,805		21,610		21,610
Total general partner distribution	12,766		12,766		25,532		25,532
Limited partner distribution	11,223		11,272		22,434		22,552
Total distributions to NuStar GP Holdings	23,989		24,038		47,966		48,084
Public unitholders’ distributions	74,062		74,013		148,136		148,018
Total cash distributions	$	98,051	$	98,051	$	196,102	$	196,102
Cash distributions per unit applicable to limited partners	$	1.095	$	1.095	$	2.190	$	2.190

The following table summarizes information related to NuStar Energy’s quarterly cash distributions:

Quarter Ended	Cash Distributions Per Unit		Total Cash Distributions (Thousands of Dollars)		Record Date	Payment Date
June 30, 2014 (a)	$	1.095	$	98,051	August 6, 2014	August 11, 2014
March 31, 2014	$	1.095	$	98,051	May 7, 2014	May 12, 2014
December 31, 2013	$	1.095	$	98,051	February 10, 2014	February 14, 2014

(a) The distribution was announced on July 25, 2014.

5. FAIR VALUE MEASUREMENTS

We segregate the inputs used in measuring fair value into three levels: Level 1, defined as observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active; and Level 3, defined as unobservable inputs in which little or no market data exists.

The following liabilities are measured at fair value on a recurring basis:

	June 30, 2014
	Level 1		Level 2		Level 3		Total
	(Thousands of Dollars)
Accrued compensation expense:
NuStar Energy restricted units and performance awards	$	11,899	$	—	$	—	$	11,899
NuStar Energy unit options	—		1,198		—		1,198
Total	$	11,899	$	1,198	$	—	$	13,097
	December 31, 2013
	Level 1		Level 2		Level 3		Total
	(Thousands of Dollars)
Accrued compensation expense:
NuStar Energy restricted units and performance awards	$	6,224	$	—	$	—	$	6,224
NuStar Energy unit options	—		29		—		29
Total	$	6,224	$	29	$	—	$	6,253

9

NUSTAR GP HOLDINGS, LLC

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The fair value of our accrued compensation expense for NuStar Energy restricted units and performance awards is determined using the NuStar Energy unit price at the reporting date. The fair value of our accrued compensation expense for NuStar Energy unit options is determined using the Black-Scholes option-pricing model on the reporting date based on the following weighted average assumptions:

	June 30, 2014		December 31, 2013
Expected life in years	5.9		5.8
Expected volatility	26.7	%	26.4	%
Expected distribution yield	7.1	%	8.6	%
Risk-free interest rate	0.1	%	0.1	%

Fair Value of Financial Instruments

We recognize cash equivalents, receivables, payables and short-term debt in our consolidated balance sheets at their carrying amounts. The fair values of these financial instruments approximate their carrying amounts. The fair value of our short-term debt would fall in Level 2 of the fair value hierarchy.

6. STATEMENTS OF CASH FLOWS

Changes in current assets and current liabilities were as follows:

	Six Months Ended June 30,
	2014			2013
	(Thousands of Dollars)
Decrease (increase) in current assets:
Receivable from related parties	$	(5,522	)	$	(2,011	)
Income tax receivable	—			6
Other receivables	(538		)	147
Other current assets	(62		)	(110		)
Increase (decrease) in current liabilities:
Accounts payable	27			(626		)
Accrued compensation expense	5,695			3,593
Accrued liabilities	(174		)	(77		)
Taxes other than income tax	(670		)	(873		)
Changes in current assets and current liabilities	$	(1,244	)	$	49

Cash flows related to interest and income tax were as follows:

	Six Months Ended June 30,
	2014		2013
	(Thousands of Dollars)
Cash paid for interest	$	326	$	246
Cash paid (refunded) for income tax	$	1	$	(35	)

7. CREDIT FACILITY

Our revolving credit agreement dated June 28, 2013, as amended on June 17, 2014, will mature on June 27, 2015 and has a borrowing capacity of up to $40.0 million, of which, up to $10.0 million may be available for letters of credit (the 2013 Credit Facility). Our obligations under the 2013 Credit Facility are guaranteed by Riverwalk Holdings, LLC (Riverwalk), a wholly owned subsidiary. Riverwalk pledged 1,792,918 NuStar Energy units that it owns to secure its guarantee.

As of June 30, 2014, we had outstanding borrowings of $26.0 million and availability of $14.0 million for borrowings under the 2013 Credit Facility. Interest on the 2013 Credit Facility is based upon, at our option, either an alternative base rate or a LIBOR-based rate. As of June 30, 2014, the weighted-average interest rate was 2.2%.

10

NUSTAR GP HOLDINGS, LLC

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The terms of the 2013 Credit Facility require NuStar Energy to maintain, as of the end of each rolling period, which consists of any period of four consecutive fiscal quarters, a consolidated debt coverage ratio not to exceed 5.0-to-1.0. As of June 30, 2014, NuStar Energy’s consolidated debt coverage ratio was 4.0x. We are also required to receive cash distributions of at least $12.5 million in respect of our ownership interests in NuStar Energy each fiscal quarter. Our management believes that we are in compliance with the covenants of the 2013 Credit Facility as of June 30, 2014.

8. COMMITMENTS AND CONTINGENCIES

Contingencies

We are not currently a party to any material legal proceedings and have not recorded any accruals for loss contingencies. NuStar Energy is a party to claims and legal proceedings arising in the ordinary course of its business, which it believes are not material to its financial position or results of operations. However, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on NuStar Energy’s results of operations and ability to pay distributions, which would impact our results of operations and ability to pay distributions.

9. MEMBERS’ EQUITY

The following table presents changes to our members’ equity (in thousands of dollars):

Balance as of December 31, 2013	$	349,986
Net income	29,414
Distributions to unitholders	(46,497		)
Other comprehensive loss	(930		)
Unit-based compensation	128
Balance as of June 30, 2014	$	332,101

Accumulated Other Comprehensive Income

The following table presents balances of and changes in accumulated other comprehensive income by component:

	Share of NuStar Energy’s Other Comprehensive Loss			Pension and Other Postretirement Benefit Plan Adjustments			Total
	(Thousands of Dollars)
Balance as of January 1, 2014	$	(9,417	)	$	18,358		$	8,941
Other comprehensive income (loss) before reclassification adjustments	1,047			—			1,047
Amounts reclassified from accumulated other comprehensive loss (a)	—			(1,977		)	(1,977		)
Other comprehensive income (loss)	1,047			(1,977		)	(930		)
Balance as of June 30, 2014	$	(8,370	)	$	16,381		$	8,011

(a) We recognized the net loss reclassified into income as general and administrative expenses. These amounts are components of net periodic pension cost and NuStar Energy reimburses us for these employee costs. See Note 11 for details of our net periodic pension cost.

11

NUSTAR GP HOLDINGS, LLC

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Cash Distributions

The following table summarizes our cash distributions applicable to the period in which the distributions were earned:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Thousands of Dollars, Except Per Unit Data)
Cash distributions per unit	$	0.545	$	0.545	$	1.090	$	1.090
Total cash distributions	$	23,250	$	23,236	$	46,498	$	46,458

The following table summarizes information related to our quarterly cash distributions:

Quarter Ended	Cash Distributions Per Unit		Total Cash Distributions (Thousands of Dollars)		Record Date	Payment Date
June 30, 2014 (a)	$	0.545	$	23,250	August 6, 2014	August 14, 2014
March 31, 2014	$	0.545	$	23,248	May 7, 2014	May 15, 2014
December 31, 2013	$	0.545	$	23,249	February 10, 2014	February 18, 2014

(a) The distribution was announced on July 25, 2014.

10. NET INCOME PER UNIT

We treat restricted units granted under our long-term incentive plan as participating securities in computing net income per unit pursuant to the two-class method. The computation of diluted net income per unit for the three and six months ended June 30, 2013 excludes 289,100 outstanding options to purchase NuStar GP Holdings units, as the exercise price exceeded the average market price and their effect would have been anti-dilutive. Unit amounts used in the computation of basic and diluted net income per unit were as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2014	2013	2014	2013
Basic units outstanding:
Weighted-average number of basic units outstanding	42,658,178	42,618,376	42,657,235	42,612,057
Diluted units outstanding:
Weighted-average number of basic units outstanding	42,658,178	42,618,376	42,657,235	42,612,057
Effect of dilutive securities	29,617	—	14,890	—
Weighted-average number of diluted units outstanding	42,687,795	42,618,376	42,672,125	42,612,057

12

NUSTAR GP HOLDINGS, LLC

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

11. EMPLOYEE BENEFIT PLANS

The components of net periodic benefit cost related to our defined benefit plans were as follows:

	Pension Plans (a)						Other Postretirement Benefit Plans
	2014			2013			2014			2013
	(Thousands of Dollars)
For the three months ended June 30:
Service cost	$	2,012		$	4,080		$	94		$	293
Interest cost	1,056			1,259			93			235
Expected return on assets	(1,144		)	(1,134		)	—			—
Amortization of prior service credit	(516		)	(10		)	(286		)	(50		)
Amortization of net (gain) loss	(260		)	518			28			52
Other (b)	(214		)	—			—			—
Net periodic benefit cost	$	934		$	4,713		$	(71	)	$	530
For the six months ended June 30:
Service cost	$	4,024		$	8,160		$	188		$	586
Interest cost	2,113			2,518			186			470
Expected return on assets	(2,288		)	(2,268		)	—			—
Amortization of prior service credit	(1,032		)	(20		)	(572		)	(100		)
Amortization of net (gain) loss	(215		)	1,036			56			104
Other (b)	(214		)	180			—			—
Net periodic benefit cost	$	2,388		$	9,606		$	(142	)	$	1,060

(a) Includes amounts related to the pension plan, the excess pension plan and the supplemental executive retirement plan (the SERP).

(b) In 2014, other relates to a settlement credit associated with the SERP and in 2013 includes charges related to NuStar Energy’s sale of its fuels refinery in San Antonio, Texas and related assets on January 1, 2013.

13

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

This Form 10-Q contains certain estimates, predictions, projections, assumptions and other forward-looking statements that involve various risks and uncertainties. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report. These forward-looking statements can generally be identified by the words “anticipates,” “believes,” “expects,” “plans,” “intends,” “estimates,” “forecasts,” “budgets,” “projects,” “will,” “could,” “should,” “may” and similar expressions. These statements reflect our current views with regard to future events and are subject to various risks, uncertainties and assumptions. Please read our Annual Report on Form 10-K for the year ended December 31, 2013, Part I, Item 1A “Risk Factors,” as well as our subsequent current and quarterly reports, for a discussion of certain of those risks, uncertainties and assumptions.

If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those described in any forward-looking statement. Other unknown or unpredictable factors could also have material adverse effects on our future results. Readers are cautioned not to place undue reliance on this forward-looking information, which is as of the date of this Form 10-Q. We do not intend to update these statements unless it is required by the securities laws to do so, and we undertake no obligation to publicly release the result of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.

OVERVIEW

NuStar GP Holdings, LLC (NuStar GP Holdings) (NYSE: NSH) is a publicly traded Delaware limited liability company. Unless otherwise indicated, the terms “NuStar GP Holdings,” “we,” “our” and “us” are used in this report to refer to NuStar GP Holdings, LLC, to one or more of our consolidated subsidiaries or to all of them taken as a whole. Our Management’s Discussion and Analysis of Financial Condition and Results of Operations is presented in five sections:

• Overview

• Results of Operations

• Trends and Outlook

• Liquidity and Capital Resources

• Critical Accounting Policies

• New Accounting Pronouncement

Our only cash generating assets are our ownership interests in NuStar Energy L.P. (NuStar Energy), a publicly traded Delaware limited partnership (NYSE: NS). As of June 30, 2014, our aggregate ownership interests in NuStar Energy consisted of the following:

• the 2% general partner interest;

• 100% of the incentive distribution rights (IDR) issued by NuStar Energy, which entitle us to receive increasing percentages of the cash distributed by NuStar Energy, currently at the maximum percentage of 23%; and

• 10,253,584 common units of NuStar Energy representing a 12.9% limited partner interest.

We account for our ownership interest in NuStar Energy using the equity method. Therefore, our financial results reflect a portion of NuStar Energy’s net income based on our ownership interest. We have no separate operating activities apart from those conducted by NuStar Energy and therefore generate no revenues from operations.

NuStar Energy is engaged in the transportation of petroleum products and anhydrous ammonia, the terminalling and storage of petroleum products and the marketing of petroleum products. NuStar Energy has terminal and storage facilities in the United States, Canada, Mexico, the Netherlands, including St. Eustatius in the Caribbean, the United Kingdom and Turkey.

NuStar Energy’s partnership agreement requires that it distributes all “Available Cash” to its partners each quarter, and this term is defined in its partnership agreement as cash on hand at the end of the quarter, plus certain permitted borrowings made subsequent to the end of the quarter, less cash reserves determined by NuStar Energy’s board of directors. Similarly, we are required by our limited liability company agreement to distribute all of our available cash at the end of each quarter, less reserves established by our board of directors.

14

On February 26, 2014, NuStar Energy sold its then remaining 50% ownership interest in NuStar Asphalt LLC (Asphalt JV), which constituted all of NuStar Energy’s equity interest it retained after the first sale in 2012. The purchaser, Lindsay Goldberg LLC (Lindsay Goldberg), a private investment firm, now owns 100% of Asphalt JV. Effective February 27, 2014, NuStar Asphalt LLC changed its name to Axeon Specialty Products LLC.

On January 1, 2013, NuStar Energy sold its fuels refinery in San Antonio, Texas (the San Antonio Refinery) and related assets, which included inventory, a terminal in Elmendorf, Texas and a pipeline connecting the terminal and refinery for approximately $117.0 million (the San Antonio Refinery Sale). NuStar Energy presented the results of operations for the San Antonio Refinery and related assets as discontinued operations for all periods presented.

RESULTS OF OPERATIONS

Three Months Ended June 30, 2014 Compared to Three Months Ended June 30, 2013

Financial Highlights

(Unaudited, Thousands of Dollars, Except Per Unit Data)

	Three Months Ended June 30,
	2014			2013			Change
Equity in earnings of NuStar Energy	$	16,739		$	13,417		$	3,322
General and administrative expenses	(880		)	(618		)	(262		)
Other income, net	196			18			178
Interest expense, net	(231		)	(170		)	(61		)
Income before income tax expense	15,824			12,647			3,177
Income tax expense	(56		)	(88		)	32
Net income	$	15,768		$	12,559		$	3,209
Basic and diluted net income per unit	$	0.37		$	0.29		$	0.08

The following table summarizes NuStar Energy’s statement of comprehensive income data:

	Three Months Ended June 30,
	2014			2013			Change
	(Unaudited, Thousands of Dollars, Except Per Unit Data)
Revenues	$	749,745		$	902,014		$	(152,269	)
Cost of product sales	473,755			648,766			(175,011		)
Operating expenses	115,537			111,315			4,222
Depreciation and amortization expense	45,382			42,709			2,673
Segment operating income	115,071			99,224			15,847
General and administrative expenses	23,163			19,653			3,510
Other depreciation and amortization expense	2,554			2,599			(45		)
Operating income	$	89,354		$	76,972		$	12,382
Income from continuing operations	$	57,187		$	34,712		$	22,475
Loss from discontinued operations, net of tax	(1,788		)	(1,743		)	(45		)
Net income	$	55,399		$	32,969		$	22,430
Net income per unit applicable to limited partners	$	0.56		$	0.28		$	0.28
Cash distributions per unit applicable to limited partners	$	1.095		$	1.095		$	—

15

NuStar Energy’s net income increased $22.4 million for the three months ended June 30, 2014, compared to the three months ended June 30, 2013, mainly due to an increase of $15.8 million in its segment operating income resulting from improvements in all three reportable segments. Additionally, NuStar Energy recorded equity in earnings of joint ventures of $3.3 million for the three months ended June 30, 2014, compared to a loss in equity of joint ventures of $10.1 million for the three months ended June 30, 2013, primarily due to losses from its investment in Asphalt JV for the three months ended June 30, 2013.

Equity in earnings of NuStar Energy

The following table summarizes our equity in earnings of NuStar Energy:

	Three Months Ended June 30,
	2014			2013			Change
	(Thousands of Dollars)
NuStar GP Holdings’ Equity in Earnings of NuStar Energy:
General partner interest	$	894		$	446		$	448
General partner incentive distribution rights (IDR)	10,805			10,805			—
General partner’s interest in earnings and incentive distributions         of NuStar Energy	11,699			11,251			448
Limited partner interest in earnings of NuStar Energy	5,761			2,887			2,874
Amortization of step-up in basis related to NuStar Energy’s assets        and liabilities	(721		)	(721		)	—
Equity in earnings of NuStar Energy	$	16,739		$	13,417		$	3,322

Our equity in earnings related to our general and limited partner interests in NuStar Energy increased for the three months ended June 30, 2014, compared to the three months ended June 30, 2013, due to an increase in NuStar Energy’s net income.

Six Months EndedJune 30, 2014 Compared to Six Months EndedJune 30, 2013

Financial Highlights

(Unaudited, Thousands of Dollars, Except Per Unit Data)

	Six Months Ended June 30,
	2014			2013			Change
Equity in earnings of NuStar Energy	$	31,129		$	25,561		$	5,568
General and administrative expenses	(1,752		)	(1,418		)	(334		)
Other income, net	213			99			114
Interest expense, net	(453		)	(343		)	(110		)
Income before income tax benefit (expense)	29,137			23,899			5,238
Income tax benefit (expense)	277			(265		)	542
Net income	$	29,414		$	23,634		$	5,780
Basic and diluted net income per unit	$	0.69		$	0.55		$	0.14

16

The following table summarizes NuStar Energy’s statement of comprehensive income data:

	Six Months Ended June 30,
	2014			2013		Change
	(Unaudited, Thousands of Dollars, Except Per Unit Data)
Revenues	$	1,598,958		$	1,900,200	$	(301,242	)
Cost of product sales	1,068,714			1,401,020		(332,306		)
Operating expenses	221,602			224,832		(3,230		)
Depreciation and amortization expense	89,033			81,774		7,259
Segment operating income	219,609			192,574		27,035
General and administrative expenses	44,019			47,147		(3,128		)
Other depreciation and amortization expense	5,133			5,097		36
Operating income	$	170,457		$	140,330	$	30,127
Income from continuing operations	$	100,183		$	54,311	$	45,872
(Loss) income from discontinued operations, net of tax	(5,147		)	3,062		(8,209		)
Net income	$	95,036		$	57,373	$	37,663
Net income per unit applicable to limited partners	$	0.92		$	0.45	$	0.47
Cash distributions per unit applicable to limited partners	$	2.190		$	2.190	$	—

NuStar Energy’s net income increased $37.7 million for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, mainly due to an increase in its income from continuing operations, which benefitted from higher segment operating income and a decrease in the equity in loss of joint ventures. NuStar Energy’s segment operating income increased $27.0 million for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, primarily due to increased segment operating income from its pipeline and fuels marketing segments, partially offset by decreased segment operating income from its storage segment.

Partially offsetting the improvements in NuStar Energy’s income from continuing operations, NuStar Energy recorded a loss from discontinued operations for the six months ended June 30, 2014, compared to income from discontinued operations for the six months ended June 30, 2013. NuStar Energy’s discontinued operations include the results of operations of certain storage assets that were classified as “Assets held for sale” on its consolidated balance sheet beginning December 31, 2013, as well as the results of operations of the San Antonio Refinery and related assets, which NuStar Energy sold on January 1, 2013.

Equity in earnings of NuStar Energy

The following table summarizes our equity in earnings of NuStar Energy:

	Six Months Ended June 30,
	2014			2013			Change
	(Thousands of Dollars)
NuStar GP Holdings’ Equity in Earnings of NuStar Energy:
General partner interest	$	1,473		$	722		$	751
General partner incentive distribution rights (IDR)	21,610			21,610			—
General partner’s interest in earnings and incentive distributions         of NuStar Energy	23,083			22,332			751
Limited partner interest in earnings of NuStar Energy	9,488			4,671			4,817
Amortization of step-up in basis related to NuStar Energy’s assets         and liabilities	(1,442		)	(1,442		)	—
Equity in earnings of NuStar Energy	$	31,129		$	25,561		$	5,568

Our equity in earnings related to our general and limited partner interests in NuStar Energy increased for the six months ended June 30, 2014, compared to the six months ended June 30, 2013, due to an increase in NuStar Energy’s net income.

17

TRENDS AND OUTLOOK

We expect our equity in earnings of NuStar Energy to increase or decrease consistent with NuStar Energy’s earnings.

Overall, NuStar Energy expects its earnings for the third quarter of 2014 to be higher than the third quarter of 2013.

NuStar Energy’s Pipeline Segment

NuStar Energy expects that its pipeline segment earnings for the third quarter of 2014 will exceed the comparable period in 2013 and the second quarter of 2014, mainly due to higher throughputs on NuStar Energy’s pipelines serving the Eagle Ford Shale region. This increase in throughputs is due to continued growth in the region and expansion projects NuStar Energy completed in the first half of 2014 and in the third quarter of 2013, which increased its system’s overall capacity. NuStar Energy expects its full-year earnings for 2014 to exceed 2013 mainly due to the benefit of the increased throughputs described above, reduced turnaround activity at its customers’ refineries and the July 1, 2014 tariff increase on pipelines regulated by the Federal Energy Regulatory Commission.

NuStar Energy’s Storage Segment

NuStar Energy expects storage segment earnings for the third quarter of 2014 to be higher than the third quarter of 2013, mainly due to additional storage throughputs at its Corpus Christi North Beach terminal associated with the completion of Eagle Ford Shale projects and the benefit from the fourth quarter of 2013 completion of a second rail-car offloading facility at NuStar Energy’s St. James, Louisiana terminal. However, NuStar Energy expects its third quarter earnings to be lower than the second quarter due to seasonal maintenance expense at certain terminals.

NuStar Energy’s full-year earnings for 2014 are expected to be comparable to 2013, excluding the non-cash charges in 2013. Higher earnings in 2014 at NuStar Energy’s North Beach terminal and from the second rail-car unloading facility at its St. James terminal discussed above are expected to be offset by weak West Coast storage demand and the narrowing price differential of two widely traded crude oil grades (LLS and WTI), which has a negative impact on NuStar Energy’s profit sharing results, as well as unit train demand at its St. James terminal.

NuStar Energy’s Fuels Marketing Segment

NuStar Energy expects third quarter of 2014 results for its fuels marketing segment to be comparable to the second quarter of 2014 and higher than the third quarter of 2013. NuStar Energy expects the third quarter of 2014 to continue to benefit from improvements in its bunker fuel operations. Although NuStar Energy expects the full-year 2014 results in this segment to exceed 2013 results, earnings in this segment, as in any margin-based business, are subject to many factors that can raise or lower margins, which may cause the segment’s actual results to vary significantly from NuStar Energy’s forecast.

NuStar Energy’s outlook for the partnership, and for any of its segments, may change as it is based on NuStar Energy’s continuing evaluation of a number of factors, including factors outside its control, such as the price of crude oil, the state of the economy, changes to refinery maintenance schedules, demand for crude oil, refined products and ammonia, demand for its transportation and storage services, and changes in laws or regulations affecting NuStar Energy’s assets.

18

LIQUIDITY AND CAPITAL RESOURCES

General

Our cash flows consist of distributions from NuStar Energy on our partnership interests, including the IDR that we own. Due to our ownership of NuStar Energy’s IDR, our portion of NuStar Energy’s total distributions may exceed our ownership interest in NuStar Energy. Our primary cash requirements are for distributions to members, capital contributions to maintain our 2% general partner interest in NuStar Energy in the event that NuStar Energy issues additional units, debt service requirements, if any, benefit plan funding and general and administrative expenses. In addition, because NuStar GP, LLC, a wholly owned subsidiary of NuStar GP Holdings, elected to be treated as a taxable entity in August 2006, we may be required to pay income taxes, which may exceed the amount of tax expense recorded in the consolidated financial statements. We expect to fund our cash requirements primarily with the quarterly cash distributions we receive from NuStar Energy and borrowings under our revolving credit facility, if necessary. Additionally, NuStar Energy reimburses us for all costs incurred on its behalf, which are primarily employee-related costs.

Cash Distributions from NuStar Energy

NuStar Energy distributes all of its available cash within 45 days following the end of each quarter based on the partnership interests outstanding as of a record date that is set after the end of each quarter. The following table reflects the cash distributions earned for the periods shown with respect to our ownership interests in NuStar Energy and the IDR:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(Thousands of Dollars, Except Per Unit Data)
Cash distributions per unit	$	1.095		$	1.095		$	2.190		$	2.190
Total cash distributions by NuStar Energy to all partners	$	98,051		$	98,051		$	196,102		$	196,102
Cash distributions we received from NuStar Energy:
General partner interest	$	1,961		$	1,961		$	3,922		$	3,922
General partner incentive distribution	10,805			10,805			21,610			21,610
Limited partner interest – common units	11,223			11,272			22,434			22,552
Total cash distributions to us	$	23,989		$	24,038		$	47,966		$	48,084
Distributions to us as a percentage of total cash      distributions	24.5		%	24.5		%	24.5		%	24.5		%

Cash Flows for the Six Months Ended June 30, 2014 and June 30, 2013

Cash distributions received from NuStar Energy for the six months ended June 30, 2014 were $47.9 million compared to $48.1 million for the six months ended June 30, 2013. The cash distributions we received were used principally to fund distributions to our unitholders, totaling $46.5 millionfor the six months ended June 30, 2014, compared to $46.4 millionfor the six months ended June 30, 2013.

Credit Facility

Our revolving credit agreement dated June 28, 2013, as amended on June 17, 2014, will mature on June 27, 2015 and has a borrowing capacity of up to $40.0 million, of which, up to $10.0 million may be available for letters of credit (the 2013 Credit Facility). Our obligations under the 2013 Credit Facility are guaranteed by Riverwalk Holdings, LLC (Riverwalk), a wholly owned subsidiary. Riverwalk pledged 1,792,918 NuStar Energy units that it owns to secure its guarantee.

As of June 30, 2014, we had outstanding borrowings of $26.0 million and availability of $14.0 million for borrowings under the 2013 Credit Facility. Interest on the 2013 Credit Facility is based upon, at our option, either an alternative base rate or a LIBOR-based rate. As of June 30, 2014, the weighted-average interest rate was 2.2%.

The terms of the 2013 Credit Facility require NuStar Energy to maintain, as of the end of each rolling period, which consists of any period of four consecutive fiscal quarters, a consolidated debt coverage ratio not to exceed 5.0-to-1.0. As of June 30, 2014, NuStar Energy’s consolidated debt coverage ratio was 4.0x. We are also required to receive cash distributions of at least $12.5 million in respect of our ownership interests in NuStar Energy each fiscal quarter. Our management believes that we are in compliance with the covenants of the 2013 Credit Facility as of June 30, 2014.

19

Cash Distributions to Unitholders

Our limited liability company agreement requires that, within 50 days after the end of each quarter, we distribute all of our available cash to the holders of record of our units on the applicable record date. Available cash is defined as all cash on hand at the end of any calendar quarter less the amount of cash reserves necessary or appropriate, as determined in good faith by our board of directors, to service debt we may incur, if any, and to fund general and administrative expenses, future distributions and other miscellaneous uses of cash. The following table reflects our cash distributions applicable to the period in which the distributions were earned:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Thousands of Dollars, Except Per Unit Data)
Cash distributions per unit	$	0.545	$	0.545	$	1.090	$	1.090
Total cash distributions	$	23,250	$	23,236	$	46,498	$	46,458

Related Party Transactions

Please refer to Note 3 of the Condensed Notes to Consolidated Financial Statements in Item 1. “Financial Statements” for total transactions charged to and amounts due from related parties, and a description of the agreements.

Contingencies

We are not currently a party to any material legal proceedings and have not recorded any accruals for loss contingencies. NuStar Energy is a party to claims and legal proceedings arising in the ordinary course of its business, which it believes are not material to its financial position or results of operations. However, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on NuStar Energy’s results of operations and ability to pay distributions, which would impact our results of operations and ability to pay distributions.

CRITICAL ACCOUNTING POLICIES

The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Our critical accounting policies are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013.

NEW ACCOUNTING PRONOUNCEMENT

Please refer to Note 1 of the Condensed Notes to Consolidated Financial Statements in Item 1. “Financial Statements” for a detailed discussion of the new accounting pronouncement.

20

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

Our management has evaluated, with the participation of our principal executive officer and principal financial officer, the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report, and has concluded that our disclosure controls and procedures were effective as of June 30, 2014.

(b) Changes in internal control over financial reporting.

There has been no change in our internal control over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

21

PART II – OTHER INFORMATION

Item 1.    Legal Proceedings

None.

Item 6. Exhibits

Exhibit Number		Description
10.01		First Amendment to 364-Day Revolving Credit Agreement dated as of June 17, 2014 among NuStar GP Holdings, LLC, Riverwalk Holdings, LLC, JPMorgan Chase Bank, N.A., as Administrative Agent and the lenders party thereto (incorporated by reference to Exhibit 10.01 of NuStar GP Holdings, LLC’s Current Report on Form 8-K filed June 23, 2014)
*31.01		Rule 13a-14(a) Certification (under Section 302 of the Sarbanes-Oxley Act of 2002) of principal executive officer
*31.02		Rule 13a-14(a) Certification (under Section 302 of the Sarbanes-Oxley Act of 2002) of principal financial officer
*32.01		Section 1350 Certification (under Section 906 of the Sarbanes-Oxley Act of 2002) of principal executive officer
*32.02		Section 1350 Certification (under Section 906 of the Sarbanes-Oxley Act of 2002) of principal financial officer
*101.INS		XBRL Instance Document
*101.SCH		XBRL Taxonomy Extension Schema Document
*101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
*101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
*101.LAB		XBRL Taxonomy Extension Label Linkbase Document
*101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document
*	Filed herewith.

22

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NUSTAR GP HOLDINGS, LLC

(Registrant)

By:	/s/ Bradley C. Barron
	Bradley C. Barron
	President and Chief Executive Officer
	August 5, 2014
By:	/s/ Thomas R. Shoaf
	Thomas R. Shoaf
	Executive Vice President and Chief Financial Officer
	August 5, 2014
By:	/s/ Jorge A. del Alamo
	Jorge A. del Alamo
	Senior Vice President and Controller
	August 5, 2014

23

EX-31.01

Exhibit 31.01

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Bradley C. Barron, certify that:

1. I have reviewed this quarterly report on Form 10-Q of NuStar GP Holdings, LLC (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 5, 2014

/s/ Bradley C. Barron

Bradley C. Barron

President and Chief Executive Officer

EX-31.02

Exhibit 31.02

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas R. Shoaf, certify that:

1. I have reviewed this quarterly report on Form 10-Q of NuStar GP Holdings, LLC (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 5, 2014

/s/ Thomas R. Shoaf

Thomas R. Shoaf

Executive Vice President and Chief Financial Officer

EX-32.01

Exhibit 32.01

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of NuStar GP Holdings, LLC (the Company) on Form 10-Q for the quarter ended June 30, 2014, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Bradley C. Barron, President and Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Bradley C. Barron

Bradley C. Barron

President and Chief Executive Officer

August 5, 2014

A signed original of the written statement required by Section 906 has been provided to NuStar GP Holdings, LLC and will be retained by NuStar GP Holdings, LLC and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.02

Exhibit 32.02

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of NuStar GP Holdings, LLC (the Company) on Form 10-Q for the quarter ended June 30, 2014, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Thomas R. Shoaf, Executive Vice President and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Thomas R. Shoaf

Thomas R. Shoaf

Executive Vice President and Chief Financial Officer

August 5, 2014

A signed original of the written statement required by Section 906 has been provided to NuStar GP Holdings, LLC and will be retained by NuStar GP Holdings, LLC and furnished to the Securities and Exchange Commission or its staff upon request.

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MEMBERS' EQUITY Table 2 (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
AccumulatedOtherComprehensiveIncomeLoss [Roll Forward]
Balance as of January 1, 2014	$ 8,941
Other comprehensive income (loss)	(930)
Balance as of June 30, 2014	8,011
Share of NS Energy's OCI [Member]
AccumulatedOtherComprehensiveIncomeLoss [Roll Forward]
Balance as of January 1, 2014	(9,417)
Other comprehensive loss before reclassification adjustments	1,047
Amounts reclassified from accumulated other comprehensive income (loss) (a)	0
Other comprehensive income (loss)	1,047
Balance as of June 30, 2014	(8,370)
Pension and Other Postretirement Benefit Plan Adjustments [Member]
AccumulatedOtherComprehensiveIncomeLoss [Roll Forward]
Balance as of January 1, 2014	18,358
Other comprehensive loss before reclassification adjustments	0
Amounts reclassified from accumulated other comprehensive income (loss) (a)	(1,977)
Other comprehensive income (loss)	(1,977)
Balance as of June 30, 2014	16,381
Accumulated Other Comprehensive Income (Loss) [Member]
AccumulatedOtherComprehensiveIncomeLoss [Roll Forward]
Balance as of January 1, 2014	8,941
Other comprehensive loss before reclassification adjustments	1,047
Amounts reclassified from accumulated other comprehensive income (loss) (a)	(1,977)
Other comprehensive income (loss)	(930)
Balance as of June 30, 2014	$ 8,011

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FAIR VALUE MEASUREMENTS Table 1 (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Accrued compensation expense:
NuStar Energy restricted units and performance awards	$ 11,899	$ 6,224
Deferred Compensation Share Based Arrangements Stock Options Liability Current	1,198	29
Total	13,097	6,253
Level 1 [Member]
Accrued compensation expense:
NuStar Energy restricted units and performance awards	11,899	6,224
Deferred Compensation Share Based Arrangements Stock Options Liability Current	0	0
Total	11,899	6,224
Level 2 [Member]
Accrued compensation expense:
NuStar Energy restricted units and performance awards	0	0
Deferred Compensation Share Based Arrangements Stock Options Liability Current	1,198	29
Total	1,198	29
Level 3 [Member]
Accrued compensation expense:
NuStar Energy restricted units and performance awards	0	0
Deferred Compensation Share Based Arrangements Stock Options Liability Current	0	0
Total	$ 0	$ 0

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INVESTMENT IN NUSTAR ENERGY Table 1 (Details) (NuStar Energy [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
NuStar Energy [Member]
Equity Method Investment, Summarized Financial Information, Assets [Abstract]
Current assets	$ 468,118	$ 633,549
Property, plant and equipment, net	3,345,136	3,310,653
Goodwill	617,429	617,429
Other non-current assets	465,096	470,555
Total assets	4,895,779	5,032,186
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract]
Current liabilities	271,748	392,572
Long-term debt	2,726,629	2,655,553
Other non-current liabilities	88,043	80,267
Total liabilities	3,086,420	3,128,392
NuStar Energy partners' equity	1,808,370	1,902,136
Noncontrolling interest	989	1,658
Total liabilities and partners’ equity	$ 4,895,779	$ 5,032,186

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NET INCOME PER UNIT Narrative (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding options to purchase NuStar GP Holdings units	289,100	289,100

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CREDIT FACILITY Narrative (Details) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 NuStar Energy Consolidated Debt Coverage Ratio [Member]	Jun. 30, 2014 Cash Distributions Covenant [Member]	Jun. 30, 2014 2013 Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit Facility, Borrowing Capacity					$ 40,000,000.0
Credit Facility, Letters of Credit Capacity					10,000,000.0
Line of Credit Facility, Collateral					Our obligations under the 2013 Credit Facility are guaranteed by Riverwalk Holdings, LLC (Riverwalk), a wholly owned subsidiary. Riverwalk pledged 1,792,918 NuStar Energy units that it owns to secure its guarantee.
Outstanding Borrowings Under the Credit Facility	26,000,000	26,000,000
Credit Facility, Borrowing Availability	$ 14,000,000
Credit Facility, Interest Rate Description					Interest on the 2013 Credit Facility is based upon, at our option, either an alternative base rate or a LIBOR-based rate
Credit Facility, Interest Rate	2.20%
Credit Facility, Covenant Terms			The terms of the 2013 Credit Facility require NuStar Energy to maintain, as of the end of each rolling period, which consists of any period of four consecutive fiscal quarters, a consolidated debt coverage ratio not to exceed 5.0-to-1.0.	receive cash distributions of at least $12.5 million in respect of our ownership interests in NuStar Energy each fiscal quarter
NuStar Energy's Consolidated Debt Coverage Ratio	4.0

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

We segregate the inputs used in measuring fair value into three levels: Level 1, defined as observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active; and Level 3, defined as unobservable inputs in which little or no market data exists.

The following liabilities are measured at fair value on a recurring basis:

	June 30, 2014
	Level 1		Level 2		Level 3		Total
	(Thousands of Dollars)
Accrued compensation expense:
NuStar Energy restricted units and performance awards	$	11,899	$	—	$	—	$	11,899
NuStar Energy unit options	—		1,198		—		1,198
Total	$	11,899	$	1,198	$	—	$	13,097
	December 31, 2013
	Level 1		Level 2		Level 3		Total
	(Thousands of Dollars)
Accrued compensation expense:
NuStar Energy restricted units and performance awards	$	6,224	$	—	$	—	$	6,224
NuStar Energy unit options	—		29		—		29
Total	$	6,224	$	29	$	—	$	6,253

The fair value of our accrued compensation expense for NuStar Energy restricted units and performance awards is determined using the NuStar Energy unit price at the reporting date. The fair value of our accrued compensation expense for NuStar Energy unit options is determined using the Black-Scholes option-pricing model on the reporting date based on the following weighted average assumptions:

	June 30, 2014		December 31, 2013
Expected life in years	5.9		5.8
Expected volatility	26.7	%	26.4	%
Expected distribution yield	7.1	%	8.6	%
Risk-free interest rate	0.1	%	0.1	%

Fair Value of Financial Instruments

We recognize cash equivalents, receivables, payables and short-term debt in our consolidated balance sheets at their carrying amounts. The fair values of these financial instruments approximate their carrying amounts. The fair value of our short-term debt would fall in Level 2 of the fair value hierarchy.

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NET INCOME PER UNIT Table (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Weighted-average number of basic units outstanding	42,658,178	42,618,376	42,657,235	42,612,057
Effect of dilutive securities	29,617	0	14,890	0
Weighted-average number of diluted units outstanding	42,687,795	42,618,376	42,672,125	42,612,057

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RELATED PARTY TRANSACTIONS Table (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Related Party Transaction [Line Items]
Expenses for payroll, employee benefit plans and unit-based compensation	$ 50,016	$ 46,292	$ 94,353	$ 99,197
Other expenses	$ 86	$ 84	$ 180	$ 177

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RELATED PARTY TRANSACTIONS Narrative 1 (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]
Receivable from related parties	$ 14,588	$ 9,617
Long-term receivable from related party	$ 40,432	$ 41,139

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EMPLOYEE BENEFIT PLANS Table (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Pension Plans (the pension plan, the excess pension plan and the SERP) [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 2,012	$ 4,080	$ 4,024	$ 8,160
Interest cost	1,056	1,259	2,113	2,518
Expected return on assets	(1,144)	(1,134)	(2,288)	(2,268)
Amortization of prior service credit	(516)	(10)	(1,032)	(20)
Amortization of net loss	(260)	518	(215)	1,036
Other charges (b)	(214)	0	(214)	180
Net periodic benefit cost	934	4,713	2,388	9,606
Other Postretirement Benefit Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	94	293	188	586
Interest cost	93	235	186	470
Expected return on assets	0	0	0	0
Amortization of prior service credit	(286)	(50)	(572)	(100)
Amortization of net loss	28	52	56	104
Other charges (b)	0	0	0	0
Net periodic benefit cost	$ (71)	$ 530	$ (142)	$ 1,060

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RELATED PARTY TRANSACTIONS Narrative 2 (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended
	Jun. 30, 2014 Asphalt JV Services Agreement [Member] Asphalt JV [Member]	Jun. 30, 2013 Asphalt JV Services Agreement [Member] Asphalt JV [Member]	Jun. 30, 2014 Asphalt JV Services Agreement [Member] Asphalt JV [Member]	Jun. 30, 2013 Asphalt JV Services Agreement [Member] Asphalt JV [Member]	Feb. 26, 2014 Asphalt JV [Member] NuStar Energy [Member]	Jun. 30, 2014 GP Services Agreement [Member] NuStar Energy [Member]	Jun. 30, 2013 GP Services Agreement [Member] NuStar Energy [Member]	Jun. 30, 2014 GP Services Agreement [Member] NuStar Energy [Member]	Jun. 30, 2013 GP Services Agreement [Member] NuStar Energy [Member]
Related Party Transaction [Line Items]
Services Agreements, Description			provided that NuStar GP, LLC furnish certain administrative and other operating services necessary to conduct the business of Asphalt JV for an annual fee totaling $10.0 million, subject to adjustment (the Asphalt JV Services Agreement).					The GP Services Agreement provides that NuStar GP, LLC will furnish administrative and certain operating services necessary to conduct the business of NuStar Energy. All employees providing services to both NuStar GP Holdings and NuStar Energy are employed by NuStar GP, LLC; therefore, NuStar Energy reimburses NuStar GP, LLC for all employee costs, other than the expenses allocated to NuStar GP Holdings
Services Agreements, Termination Date								Dec. 31, 2014
Administrative services expense						$ 0.4	$ 0.2	$ 0.9	$ 0.6
Equity Method Investment Percent Voting Interest Sold					50.00%
Ownership Percentage By Acquiring Entity					100.00%
Administrative Agreement, Termination Date			Jun. 30, 2014
Administrative Service Expense	$ 1.5	$ 2.2	$ 3.1	$ 4.7

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DISTRIBUTIONS FROM NUSTAR ENERGY Table 1 (Details) (NuStar Energy [Member], USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
NuStar Energy [Member]
The allocation of NuStar Energy’s cash distributions earned for the periods indicated among its general and limited partners
General partner interest	$ 1,961			$ 1,961	$ 3,922	$ 3,922
General partner incentive distribution	10,805			10,805	21,610	21,610
Total general partner distribution	12,766			12,766	25,532	25,532
Limited partner distribution	11,223			11,272	22,434	22,552
Total distributions to NuStar GP Holdings	23,989			24,038	47,966	48,084
Public unitholders’ distributions	74,062			74,013	148,136	148,018
Total cash distributions	$ 98,051	$ 98,051	$ 98,051	$ 98,051	$ 196,102	$ 196,102
Cash distributions per unit applicable to limited partners	$ 1.095	$ 1.095	$ 1.095	$ 1.095	$ 2.190	$ 2.190

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DISTRIBUTIONS FROM NUSTAR ENERGY

6 Months Ended

Jun. 30, 2014

DISTRIBUTIONS FROM NUSTAR ENERGY [Abstract]

DISTRIBUTIONS FROM NUSTAR ENERGY

DISTRIBUTIONS FROM NUSTAR ENERGY

The following table reflects the allocation of NuStar Energy’s cash distributions earned for the periods indicated among its general and limited partners:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Thousands of Dollars, Except Per Unit Data)
General partner interest	$	1,961	$	1,961	$	3,922	$	3,922
General partner incentive distribution	10,805		10,805		21,610		21,610
Total general partner distribution	12,766		12,766		25,532		25,532
Limited partner distribution	11,223		11,272		22,434		22,552
Total distributions to NuStar GP Holdings	23,989		24,038		47,966		48,084
Public unitholders’ distributions	74,062		74,013		148,136		148,018
Total cash distributions	$	98,051	$	98,051	$	196,102	$	196,102
Cash distributions per unit applicable to limited partners	$	1.095	$	1.095	$	2.190	$	2.190

The following table summarizes information related to NuStar Energy’s quarterly cash distributions:

Quarter Ended	Cash Distributions Per Unit		Total Cash Distributions (Thousands of Dollars)		Record Date	Payment Date
June 30, 2014 (a)	$	1.095	$	98,051	August 6, 2014	August 11, 2014
March 31, 2014	$	1.095	$	98,051	May 7, 2014	May 12, 2014
December 31, 2013	$	1.095	$	98,051	February 10, 2014	February 14, 2014

(a) The distribution was announced on July 25, 2014.

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DISTRIBUTIONS FROM NUSTAR ENERGY Table 2 (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Distributions from NuStar Energy (dates and totals)
NuStar Energy's Distibution announcement date (distribution earned)	Jul. 25, 2014
NuStar Energy [Member]
Distributions from NuStar Energy (dates and totals)
NuStar Energy's Cash distributions per unit applicable to limited partners (distribution earned)	$ 1.095	$ 1.095	$ 1.095	$ 1.095	$ 2.190	$ 2.190
NuStar Energy's Total cash distributions (distribution earned)	$ 98,051	$ 98,051	$ 98,051	$ 98,051	$ 196,102	$ 196,102
NuStar Energy's Distribution date of record (distribution earned)	Aug. 06, 2014	May 07, 2014	Feb. 10, 2014
NuStar Energy's Distribution payment date (distribution earned)	Aug. 11, 2014	May 12, 2014	Feb. 14, 2014

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MEMBERS' EQUITY Table 3 (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Our cash distributions applicable to the period in which the distributions were earned
Cash distributions per unit	$ 0.545	$ 0.545	$ 0.545	$ 0.545	$ 1.090	$ 1.090
Total cash distributions	$ 23,250	$ 23,248	$ 23,249	$ 23,236	$ 46,498	$ 46,458

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents	$ 1,527	$ 1,603
Receivable from related parties	14,588	9,617
Income tax receivable	1,198	1,198
Other receivables	615	77
Deferred income tax assets, net	0	1,047
Other current assets	217	245
Total current assets	18,145	13,787
Investment in NuStar Energy L.P.	343,243	357,456
Long-term receivable from related party	40,432	41,139
Total assets	401,820	412,382
Liabilities and Members' Equity
Short-term debt	26,000	26,000
Accounts payable	351	324
Accrued compensation expense	18,013	12,318
Accrued liabilities	362	536
Deferred income tax liabilities, net	1,222	0
Taxes other than income tax	570	1,240
Total current liabilities	46,518	40,418
Deferred income tax liabilities, net	1,125	3,671
Long-term liabilities	22,076	18,307
Commitments and contingencies (Note 8)
Members' equity	324,090	341,045
Accumulated other comprehensive income (loss)	8,011	8,941
Total members' equity	332,101	349,986
Total liabilities and members' equity	$ 401,820	$ 412,382

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INVESTMENT IN NUSTAR ENERGY

6 Months Ended

Jun. 30, 2014

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN NUSTAR ENERGY

INVESTMENT IN NUSTAR ENERGY

Summary Financial Information

Condensed consolidated financial information reported by NuStar Energy is presented below (in thousands of dollars):

	June 30, 2014		December 31, 2013
	(Unaudited)
Balance Sheet Information:
Current assets	$	468,118	$	633,549
Property, plant and equipment, net	3,345,136		3,310,653
Goodwill	617,429		617,429
Other non-current assets	465,096		470,555
Total assets	$	4,895,779	$	5,032,186
Current liabilities	$	271,748	$	392,572
Long-term debt	2,726,629		2,655,553
Other non-current liabilities	88,043		80,267
Total liabilities	3,086,420		3,128,392
NuStar Energy partners’ equity	1,808,370		1,902,136
Noncontrolling interest	989		1,658
Total liabilities and partners’ equity	$	4,895,779	$	5,032,186

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(Thousands of Dollars)
Statement of Comprehensive Income Information:
Revenues	$	749,745		$	902,014		$	1,598,958		$	1,900,200
Operating income	$	89,354		$	76,972		$	170,457		$	140,330
Income from continuing operations	$	57,187		$	34,712		$	100,183		$	54,311
(Loss) income from discontinued operations, net of tax	(1,788		)	(1,743		)	(5,147		)	3,062
Net income	$	55,399		$	32,969		$	95,036		$	57,373

Other

Our investment in NuStar Energy reconciles to NuStar Energy’s partners’ equity as follows:

	June 30, 2014			December 31, 2013
	(Thousands of Dollars)
NuStar Energy’s partners’ equity	$	1,808,370		$	1,902,136
NuStar GP Holdings’ ownership interest in NuStar Energy	14.9		%	14.9		%
NuStar GP Holdings’ share of NuStar Energy’s partners’ equity	269,447			283,418
Step-up in basis related to NuStar Energy’s assets and liabilities, including equity method goodwill, and other	73,796			74,038
Investment in NuStar Energy	$	343,243		$	357,456

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STATEMENTS OF CASH FLOWS Table 1 (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Decrease (increase) in current assets:
Receivable from related parties	$ (5,522)	$ (2,011)
Income tax receivable	0	6
Other receivables	(538)	147
Other current assets	(62)	(110)
Increase (decrease) in current liabilities:
Accounts payable	27	(626)
Accrued compensation expense	5,695	3,593
Accrued liabilities	(174)	(77)
Taxes other than income tax	(670)	(873)
Changes in current assets and liabilities	$ (1,244)	$ 49

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NET INCOME PER UNIT (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Unit amounts used in the computation of basic and diluted net (loss) income per unit

Unit amounts used in the computation of basic and diluted net income per unit were as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2014	2013	2014	2013
Basic units outstanding:
Weighted-average number of basic units outstanding	42,658,178	42,618,376	42,657,235	42,612,057
Diluted units outstanding:
Weighted-average number of basic units outstanding	42,658,178	42,618,376	42,657,235	42,612,057
Effect of dilutive securities	29,617	—	14,890	—
Weighted-average number of diluted units outstanding	42,687,795	42,618,376	42,672,125	42,612,057

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STATEMENTS OF CASH FLOWS Table 2 (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows related to interest and income tax
Cash paid for interest	$ 326	$ 246
Cash (refunded) paid for income tax	$ 1	$ (35)

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ORGANIZATION AND BASIS OF PRESENTATION Narrative (Details)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Schedule of Equity Method Investments [Line Items]
Percent ownership in NuStar Energy	14.90%	14.90%
General partner interest percentage	2.00%
Percent of incentive distribution rights (IDR) issued by NuStar Energy	100.00%
Maximum percentage of cash distributed by NuStar Energy	23.00%
Common units of NuStar Energy	10,253,584
Percent of limited partner interest	12.90%

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2014

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

We had a receivable from related parties of $14.6 million and $9.6 million as of June 30, 2014 and December 31, 2013, respectively, mainly relating to payroll, employee benefit plans and unit-based compensation for our employees providing services to NuStar Energy and NuStar Energy’s joint ventures. We also had a long-term receivable from related party of $40.4 million and $41.1 million as of June 30, 2014 and December 31, 2013, respectively, related to amounts payable for retiree medical benefits and other post-employment benefits. The following table summarizes information pertaining to related party transactions:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Thousands of Dollars)
Expenses for payroll, employee benefit plans and unit-      based compensation	$	50,016	$	46,292	$	94,353	$	99,197
Other expenses	$	86	$	84	$	180	$	177

NuStar Energy

GP Services Agreement. NuStar Energy and NuStar GP, LLC, our wholly owned subsidiary, entered into a services agreement, effective January 1, 2008 (the GP Services Agreement). The GP Services Agreement provides that NuStar GP, LLC will furnish administrative and certain operating services necessary to conduct the business of NuStar Energy. All employees providing services to both NuStar GP Holdings and NuStar Energy are employed by NuStar GP, LLC; therefore, NuStar Energy reimburses NuStar GP, LLC for all employee costs, other than the expenses allocated to NuStar GP Holdings (the Holdco Administrative Services Expense). The GP Services Agreement will terminate on December 31, 2014, renewing automatically every two years unless terminated by either party upon six months’ prior written notice. The aggregate amounts of Holdco Administrative Services Expense that we incurred were $0.4 million and $0.2 millionfor the three months ended June 30, 2014 and 2013, respectively, and $0.9 million and $0.6 millionfor the six months ended June 30, 2014 and 2013, respectively.

Asphalt JV

On February 26, 2014, NuStar Energy sold its remaining 50% ownership interest in NuStar Asphalt LLC (Asphalt JV) to Lindsay Goldberg LLC (Lindsay Goldberg), a private investment firm (the Asphalt JV Sale). Lindsay Goldberg now owns 100% of Asphalt JV. Effective February 27, 2014, NuStar Asphalt LLC changed its name to Axeon Specialty Products LLC. As a result of the Asphalt JV Sale, we ceased reporting transactions between us and Asphalt JV as related party transactions in consolidated financial statements on February 26, 2014.

Asphalt JV Services Agreement. NuStar GP, LLC and Asphalt JV were a party to a services agreement, which provided that NuStar GP, LLC furnish certain administrative and other operating services necessary to conduct the business of Asphalt JV for an annual fee totaling $10.0 million, subject to adjustment (the Asphalt JV Services Agreement). The Asphalt JV Services Agreement terminated on June 30, 2014. The aggregate amounts charged under the Asphalt JV Services Agreement were $1.5 million and $2.2 millionfor the three months ended June 30, 2014 and 2013, respectively, and $3.1 million and $4.7 millionfor the six months ended June 30, 2014 and 2013, respectively.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Equity in earnings (loss) of NuStar Energy L.P.	$ 16,739	$ 13,417	$ 31,129	$ 25,561
General and administrative expenses	(880)	(618)	(1,752)	(1,418)
Other income (expense), net	196	18	213	99
Interest expense, net	(231)	(170)	(453)	(343)
Income (loss) before income tax (expense) benefit	15,824	12,647	29,137	23,899
Income tax (expense) benefit	(56)	(88)	277	(265)
Net income (loss)	15,768	12,559	29,414	23,634
Comprehensive income (loss)	$ 15,786	$ 12,648	$ 28,484	$ 23,920
Basic net income (loss) per unit	$ 0.37	$ 0.29	$ 0.69	$ 0.55
Diluted net income (loss) per unit	$ 0.37	$ 0.29	$ 0.69	$ 0.55
Weighted-average number of basic units outstanding	42,658,178	42,618,376	42,657,235	42,612,057
Weighted-average number of diluted units outstanding	42,687,795	42,618,376	42,672,125	42,612,057

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RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2014

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

The following table summarizes information pertaining to related party transactions:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Thousands of Dollars)
Expenses for payroll, employee benefit plans and unit-      based compensation	$	50,016	$	46,292	$	94,353	$	99,197
Other expenses	$	86	$	84	$	180	$	177

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DEI Document	6 Months Ended
	Jun. 30, 2014	Jul. 31, 2014
Document Information [Abstract]
Entity Registrant Name	NuStar GP Holdings, LLC
Entity Central Index Key	0001223786
Trading Symbol	nsh
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		42,707,607

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DISTRIBUTIONS FROM NUSTAR ENERGY (Tables)

6 Months Ended

Jun. 30, 2014

DISTRIBUTIONS FROM NUSTAR ENERGY [Abstract]

Schedule of Distributions To General and Limited Partners [Table Text Block]

The following table reflects the allocation of NuStar Energy’s cash distributions earned for the periods indicated among its general and limited partners:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Thousands of Dollars, Except Per Unit Data)
General partner interest	$	1,961	$	1,961	$	3,922	$	3,922
General partner incentive distribution	10,805		10,805		21,610		21,610
Total general partner distribution	12,766		12,766		25,532		25,532
Limited partner distribution	11,223		11,272		22,434		22,552
Total distributions to NuStar GP Holdings	23,989		24,038		47,966		48,084
Public unitholders’ distributions	74,062		74,013		148,136		148,018
Total cash distributions	$	98,051	$	98,051	$	196,102	$	196,102
Cash distributions per unit applicable to limited partners	$	1.095	$	1.095	$	2.190	$	2.190

Distributions Made to Limited Partner, by Distribution [Table Text Block]

The following table summarizes information related to NuStar Energy’s quarterly cash distributions:

Quarter Ended	Cash Distributions Per Unit		Total Cash Distributions (Thousands of Dollars)		Record Date	Payment Date
June 30, 2014 (a)	$	1.095	$	98,051	August 6, 2014	August 11, 2014
March 31, 2014	$	1.095	$	98,051	May 7, 2014	May 12, 2014
December 31, 2013	$	1.095	$	98,051	February 10, 2014	February 14, 2014

(a) The distribution was announced on July 25, 2014.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities:
Net income (loss)	$ 29,414	$ 23,634
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Equity in loss (earnings) of NuStar Energy L.P.	(31,129)	(25,561)
Distributions of equity in earnings from NuStar Energy L.P.	31,129	25,561
(Gain) loss on sale of NuStar Energy L.P. limited partner units in connection with unit-based compensation	(213)	(99)
Provision (benefit) for deferred income tax	(277)	294
Changes in current assets and liabilities (Note 6)	(1,244)	49
(Increase) decrease in long-term receivable from related party	(653)	(8,623)
Increase in long-term liabilities	3,769	8,249
Other, net	152	91
Net cash provided by (used in) operating activities	30,948	23,595
Cash Flows from Investing Activities:
Distributions in excess of equity in earnings from NuStar Energy L.P.	16,805	22,544
Investment in NuStar Energy L.P.	(3,484)	0
Proceeds from sale of NuStar Energy L.P. units in connection with unit-based compensation	2,152	1,262
Net cash provided by investing activities	15,473	23,806
Cash Flows from Financing Activities:
Proceeds from short-term debt borrowings	26,000	18,500
Repayment of short-term debt	(26,000)	(20,000)
Distributions to unitholders	(46,497)	(46,445)
Net cash used in financing activities	(46,497)	(47,945)
Net increase (decrease) in cash and cash equivalents	(76)	(544)
Cash and cash equivalents as of the beginning of the period	1,603	2,597
Cash and cash equivalents as of the end of the period	$ 1,527	$ 2,053

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Contingencies

We are not currently a party to any material legal proceedings and have not recorded any accruals for loss contingencies. NuStar Energy is a party to claims and legal proceedings arising in the ordinary course of its business, which it believes are not material to its financial position or results of operations. However, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on NuStar Energy’s results of operations and ability to pay distributions, which would impact our results of operations and ability to pay distributions.

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CREDIT FACILITY

6 Months Ended

Jun. 30, 2014

Line of Credit Facility [Abstract]

CREDIT FACILITY

CREDIT FACILITY

Our revolving credit agreement dated June 28, 2013, as amended on June 17, 2014, will mature on June 27, 2015 and has a borrowing capacity of up to $40.0 million, of which, up to $10.0 million may be available for letters of credit (the 2013 Credit Facility). Our obligations under the 2013 Credit Facility are guaranteed by Riverwalk Holdings, LLC (Riverwalk), a wholly owned subsidiary. Riverwalk pledged 1,792,918 NuStar Energy units that it owns to secure its guarantee.

As of June 30, 2014, we had outstanding borrowings of $26.0 million and availability of $14.0 million for borrowings under the 2013 Credit Facility. Interest on the 2013 Credit Facility is based upon, at our option, either an alternative base rate or a LIBOR-based rate. As of June 30, 2014, the weighted-average interest rate was 2.2%.

The terms of the 2013 Credit Facility require NuStar Energy to maintain, as of the end of each rolling period, which consists of any period of four consecutive fiscal quarters, a consolidated debt coverage ratio not to exceed 5.0-to-1.0. As of June 30, 2014, NuStar Energy’s consolidated debt coverage ratio was 4.0x. We are also required to receive cash distributions of at least $12.5 million in respect of our ownership interests in NuStar Energy each fiscal quarter. Our management believes that we are in compliance with the covenants of the 2013 Credit Facility as of June 30, 2014.

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EMPLOYEE BENEFIT PLANS (Tables)

6 Months Ended

Jun. 30, 2014

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

The components of net periodic benefit cost related to our defined benefit plans

The components of net periodic benefit cost related to our defined benefit plans were as follows:

	Pension Plans (a)						Other Postretirement Benefit Plans
	2014			2013			2014			2013
	(Thousands of Dollars)
For the three months ended June 30:
Service cost	$	2,012		$	4,080		$	94		$	293
Interest cost	1,056			1,259			93			235
Expected return on assets	(1,144		)	(1,134		)	—			—
Amortization of prior service credit	(516		)	(10		)	(286		)	(50		)
Amortization of net (gain) loss	(260		)	518			28			52
Other (b)	(214		)	—			—			—
Net periodic benefit cost	$	934		$	4,713		$	(71	)	$	530
For the six months ended June 30:
Service cost	$	4,024		$	8,160		$	188		$	586
Interest cost	2,113			2,518			186			470
Expected return on assets	(2,288		)	(2,268		)	—			—
Amortization of prior service credit	(1,032		)	(20		)	(572		)	(100		)
Amortization of net (gain) loss	(215		)	1,036			56			104
Other (b)	(214		)	180			—			—
Net periodic benefit cost	$	2,388		$	9,606		$	(142	)	$	1,060

(a) Includes amounts related to the pension plan, the excess pension plan and the supplemental executive retirement plan (the SERP).

(b) In 2014, other relates to a settlement credit associated with the SERP and in 2013 includes charges related to NuStar Energy’s sale of its fuels refinery in San Antonio, Texas and related assets on January 1, 2013.

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Liabilities measured at fair value on a recurring basis

The following liabilities are measured at fair value on a recurring basis:

	June 30, 2014
	Level 1		Level 2		Level 3		Total
	(Thousands of Dollars)
Accrued compensation expense:
NuStar Energy restricted units and performance awards	$	11,899	$	—	$	—	$	11,899
NuStar Energy unit options	—		1,198		—		1,198
Total	$	11,899	$	1,198	$	—	$	13,097
	December 31, 2013
	Level 1		Level 2		Level 3		Total
	(Thousands of Dollars)
Accrued compensation expense:
NuStar Energy restricted units and performance awards	$	6,224	$	—	$	—	$	6,224
NuStar Energy unit options	—		29		—		29
Total	$	6,224	$	29	$	—	$	6,253

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

The fair value of our accrued compensation expense for NuStar Energy unit options is determined using the Black-Scholes option-pricing model on the reporting date based on the following weighted average assumptions:

	June 30, 2014		December 31, 2013
Expected life in years	5.9		5.8
Expected volatility	26.7	%	26.4	%
Expected distribution yield	7.1	%	8.6	%
Risk-free interest rate	0.1	%	0.1	%

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EMPLOYEE BENEFIT PLANS

6 Months Ended

Jun. 30, 2014

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

The components of net periodic benefit cost related to our defined benefit plans were as follows:

	Pension Plans (a)						Other Postretirement Benefit Plans
	2014			2013			2014			2013
	(Thousands of Dollars)
For the three months ended June 30:
Service cost	$	2,012		$	4,080		$	94		$	293
Interest cost	1,056			1,259			93			235
Expected return on assets	(1,144		)	(1,134		)	—			—
Amortization of prior service credit	(516		)	(10		)	(286		)	(50		)
Amortization of net (gain) loss	(260		)	518			28			52
Other (b)	(214		)	—			—			—
Net periodic benefit cost	$	934		$	4,713		$	(71	)	$	530
For the six months ended June 30:
Service cost	$	4,024		$	8,160		$	188		$	586
Interest cost	2,113			2,518			186			470
Expected return on assets	(2,288		)	(2,268		)	—			—
Amortization of prior service credit	(1,032		)	(20		)	(572		)	(100		)
Amortization of net (gain) loss	(215		)	1,036			56			104
Other (b)	(214		)	180			—			—
Net periodic benefit cost	$	2,388		$	9,606		$	(142	)	$	1,060

(a) Includes amounts related to the pension plan, the excess pension plan and the supplemental executive retirement plan (the SERP).

(b) In 2014, other relates to a settlement credit associated with the SERP and in 2013 includes charges related to NuStar Energy’s sale of its fuels refinery in San Antonio, Texas and related assets on January 1, 2013.

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MEMBERS' EQUITY

6 Months Ended

Jun. 30, 2014

Members' Equity [Abstract]

MEMBERS' EQUITY

MEMBERS’ EQUITY

The following table presents changes to our members’ equity (in thousands of dollars):

Balance as of December 31, 2013	$	349,986
Net income	29,414
Distributions to unitholders	(46,497		)
Other comprehensive loss	(930		)
Unit-based compensation	128
Balance as of June 30, 2014	$	332,101

Accumulated Other Comprehensive Income

The following table presents balances of and changes in accumulated other comprehensive income by component:

	Share of NuStar Energy’s Other Comprehensive Loss			Pension and Other Postretirement Benefit Plan Adjustments			Total
	(Thousands of Dollars)
Balance as of January 1, 2014	$	(9,417	)	$	18,358		$	8,941
Other comprehensive income (loss) before reclassification adjustments	1,047			—			1,047
Amounts reclassified from accumulated other comprehensive loss (a)	—			(1,977		)	(1,977		)
Other comprehensive income (loss)	1,047			(1,977		)	(930		)
Balance as of June 30, 2014	$	(8,370	)	$	16,381		$	8,011

(a) We recognized the net loss reclassified into income as general and administrative expenses. These amounts are components of net periodic pension cost and NuStar Energy reimburses us for these employee costs. See Note 11 for details of our net periodic pension cost.

Cash Distributions

The following table summarizes our cash distributions applicable to the period in which the distributions were earned:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Thousands of Dollars, Except Per Unit Data)
Cash distributions per unit	$	0.545	$	0.545	$	1.090	$	1.090
Total cash distributions	$	23,250	$	23,236	$	46,498	$	46,458

The following table summarizes information related to our quarterly cash distributions:

Quarter Ended	Cash Distributions Per Unit		Total Cash Distributions (Thousands of Dollars)		Record Date	Payment Date
June 30, 2014 (a)	$	0.545	$	23,250	August 6, 2014	August 14, 2014
March 31, 2014	$	0.545	$	23,248	May 7, 2014	May 15, 2014
December 31, 2013	$	0.545	$	23,249	February 10, 2014	February 18, 2014

(a) The distribution was announced on July 25, 2014.

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NET INCOME PER UNIT

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

NET INCOME (LOSS) PER UNIT

NET INCOME PER UNIT

We treat restricted units granted under our long-term incentive plan as participating securities in computing net income per unit pursuant to the two-class method. The computation of diluted net income per unit for the three and six months ended June 30, 2013 excludes 289,100 outstanding options to purchase NuStar GP Holdings units, as the exercise price exceeded the average market price and their effect would have been anti-dilutive. Unit amounts used in the computation of basic and diluted net income per unit were as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2014	2013	2014	2013
Basic units outstanding:
Weighted-average number of basic units outstanding	42,658,178	42,618,376	42,657,235	42,612,057
Diluted units outstanding:
Weighted-average number of basic units outstanding	42,658,178	42,618,376	42,657,235	42,612,057
Effect of dilutive securities	29,617	—	14,890	—
Weighted-average number of diluted units outstanding	42,687,795	42,618,376	42,672,125	42,612,057

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INVESTMENT IN NUSTAR ENERGY (Tables)

6 Months Ended

Jun. 30, 2014

Equity Method Investments and Joint Ventures [Abstract]

NuStar Energy's Balance Sheet Information

Condensed consolidated financial information reported by NuStar Energy is presented below (in thousands of dollars):

	June 30, 2014		December 31, 2013
	(Unaudited)
Balance Sheet Information:
Current assets	$	468,118	$	633,549
Property, plant and equipment, net	3,345,136		3,310,653
Goodwill	617,429		617,429
Other non-current assets	465,096		470,555
Total assets	$	4,895,779	$	5,032,186
Current liabilities	$	271,748	$	392,572
Long-term debt	2,726,629		2,655,553
Other non-current liabilities	88,043		80,267
Total liabilities	3,086,420		3,128,392
NuStar Energy partners’ equity	1,808,370		1,902,136
Noncontrolling interest	989		1,658
Total liabilities and partners’ equity	$	4,895,779	$	5,032,186

NuStar Energy's Statement of Comprehensive (Loss) Income Information

Condensed consolidated financial information reported by NuStar Energy is presented below (in thousands of dollars):

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(Thousands of Dollars)
Statement of Comprehensive Income Information:
Revenues	$	749,745		$	902,014		$	1,598,958		$	1,900,200
Operating income	$	89,354		$	76,972		$	170,457		$	140,330
Income from continuing operations	$	57,187		$	34,712		$	100,183		$	54,311
(Loss) income from discontinued operations, net of tax	(1,788		)	(1,743		)	(5,147		)	3,062
Net income	$	55,399		$	32,969		$	95,036		$	57,373

Reconcilliation of NuStar Energy’s total partners’ equity to our investment in NuStar Energy

Our investment in NuStar Energy reconciles to NuStar Energy’s partners’ equity as follows:

	June 30, 2014			December 31, 2013
	(Thousands of Dollars)
NuStar Energy’s partners’ equity	$	1,808,370		$	1,902,136
NuStar GP Holdings’ ownership interest in NuStar Energy	14.9		%	14.9		%
NuStar GP Holdings’ share of NuStar Energy’s partners’ equity	269,447			283,418
Step-up in basis related to NuStar Energy’s assets and liabilities, including equity method goodwill, and other	73,796			74,038
Investment in NuStar Energy	$	343,243		$	357,456

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FAIR VALUE MEASUREMENTS Table 2 (Details) (NS unit options [Member])	Jun. 30, 2014	Dec. 31, 2013
NS unit options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life in years	5.9	5.8
Expected volatility	26.70%	26.40%
Expected distribution yield	7.10%	8.60%
Risk-free interest rate	0.10%	0.10%

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MEMBERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2014

Members' Equity [Abstract]

Changes in Members’ Equity

The following table presents changes to our members’ equity (in thousands of dollars):

Balance as of December 31, 2013	$	349,986
Net income	29,414
Distributions to unitholders	(46,497		)
Other comprehensive loss	(930		)
Unit-based compensation	128
Balance as of June 30, 2014	$	332,101

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table presents balances of and changes in accumulated other comprehensive income by component:

	Share of NuStar Energy’s Other Comprehensive Loss			Pension and Other Postretirement Benefit Plan Adjustments			Total
	(Thousands of Dollars)
Balance as of January 1, 2014	$	(9,417	)	$	18,358		$	8,941
Other comprehensive income (loss) before reclassification adjustments	1,047			—			1,047
Amounts reclassified from accumulated other comprehensive loss (a)	—			(1,977		)	(1,977		)
Other comprehensive income (loss)	1,047			(1,977		)	(930		)
Balance as of June 30, 2014	$	(8,370	)	$	16,381		$	8,011

(a) We recognized the net loss reclassified into income as general and administrative expenses. These amounts are components of net periodic pension cost and NuStar Energy reimburses us for these employee costs. See Note 11 for details of our net periodic pension cost.

Our cash distributions applicable to the period in which the distributions were earned

The following table summarizes our cash distributions applicable to the period in which the distributions were earned:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(Thousands of Dollars, Except Per Unit Data)
Cash distributions per unit	$	0.545	$	0.545	$	1.090	$	1.090
Total cash distributions	$	23,250	$	23,236	$	46,498	$	46,458

Distributions Made to Limited Liability Company (LLC) Member, by Distribution [Table Text Block]

The following table summarizes information related to our quarterly cash distributions:

Quarter Ended	Cash Distributions Per Unit		Total Cash Distributions (Thousands of Dollars)		Record Date	Payment Date
June 30, 2014 (a)	$	0.545	$	23,250	August 6, 2014	August 14, 2014
March 31, 2014	$	0.545	$	23,248	May 7, 2014	May 15, 2014
December 31, 2013	$	0.545	$	23,249	February 10, 2014	February 18, 2014

(a) The distribution was announced on July 25, 2014.

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INVESTMENT IN NUSTAR ENERGY Table 2 (Details) (NuStar Energy [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
NuStar Energy [Member]
Statement of Comprehensive Income (Loss) Information:
Revenues	$ 749,745	$ 902,014	$ 1,598,958	$ 1,900,200
Operating income (loss)	89,354	76,972	170,457	140,330
Income (loss) from continuing operations	57,187	34,712	100,183	54,311
Income (loss) from discontinued operations, net of tax	(1,788)	(1,743)	(5,147)	3,062
Net income (loss)	$ 55,399	$ 32,969	$ 95,036	$ 57,373

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MEMBERS' EQUITY Table 4 (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Cash distributions per unit applicable to members (distribution earned)	$ 0.545	$ 0.545	$ 0.545	$ 0.545	$ 1.090	$ 1.090
Total cash distributions (distribution earned)	$ 23,250	$ 23,248	$ 23,249	$ 23,236	$ 46,498	$ 46,458
Distribution date of record (distribution earned)	Aug. 06, 2014	May 07, 2014	Feb. 10, 2014
Distribution payment date (distribution earned)	Aug. 14, 2014	May 15, 2014	Feb. 18, 2014
Distribution announcement date (distribution earned)	Jul. 25, 2014

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ORGANIZATION AND BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND BASIS OF PRESENTATION

ORGANIZATION AND BASIS OF PRESENTATION

Organization

NuStar GP Holdings, LLC (NuStar GP Holdings) (NYSE: NSH) is a publicly held Delaware limited liability company. Unless otherwise indicated, the terms “NuStar GP Holdings,” “we,” “our” and “us” are used in this report to refer to NuStar GP Holdings, LLC, to one or more of our consolidated subsidiaries or to all of them taken as a whole.

We have no operations or sources of income or cash flows other than our investment in NuStar Energy L.P. (NuStar Energy) (NYSE: NS). As of June 30, 2014, we owned approximately 14.9% of NuStar Energy, consisting of the following:

• the 2% general partner interest;

• 100% of the incentive distribution rights (IDR) issued by NuStar Energy, which entitle us to receive increasing percentages of the cash distributed by NuStar Energy, currently at the maximum percentage of 23%; and

• 10,253,584 common units of NuStar Energy representing a 12.9% limited partner interest.

NuStar Energy is a publicly held Delaware limited partnership engaged in the transportation of petroleum products and anhydrous ammonia, the terminalling and storage of petroleum products and the marketing of petroleum products. NuStar Energy has terminal and storage facilities in the United States, Canada, Mexico, the Netherlands, including St. Eustatius in the Caribbean, the United Kingdom and Turkey.

Basis of Presentation

These unaudited condensed consolidated financial statements include the accounts of NuStar GP Holdings and subsidiaries in which it has a controlling interest. Intercompany balances and transactions have been eliminated in consolidation.

We account for our ownership interest in NuStar Energy using the equity method. Therefore, our financial results reflect a portion of NuStar Energy’s net income based on our ownership interest in NuStar Energy. We have no separate operating activities apart from those conducted by NuStar Energy and therefore generate no revenues from operations.

These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature unless otherwise indicated. Financial information for the three and six months ended June 30, 2014 and 2013 included in these Condensed Notes to Consolidated Financial Statements is derived from our unaudited condensed consolidated financial statements. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The consolidated balance sheet as of December 31, 2013 has been derived from the audited consolidated financial statements as of that date. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013.

New Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board and the International Accounting Standards Board jointly issued a comprehensive new revenue recognition standard. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016, using one of two retrospective application methods. Early adoption is not permitted for public entities. We are currently assessing the impact of this new guidance on our financial statements and disclosures.

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STATEMENTS OF CASH FLOWS

6 Months Ended

Jun. 30, 2014

Statement of Cash Flows [Abstract]

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS

Changes in current assets and current liabilities were as follows:

	Six Months Ended June 30,
	2014			2013
	(Thousands of Dollars)
Decrease (increase) in current assets:
Receivable from related parties	$	(5,522	)	$	(2,011	)
Income tax receivable	—			6
Other receivables	(538		)	147
Other current assets	(62		)	(110		)
Increase (decrease) in current liabilities:
Accounts payable	27			(626		)
Accrued compensation expense	5,695			3,593
Accrued liabilities	(174		)	(77		)
Taxes other than income tax	(670		)	(873		)
Changes in current assets and current liabilities	$	(1,244	)	$	49

Cash flows related to interest and income tax were as follows:

	Six Months Ended June 30,
	2014		2013
	(Thousands of Dollars)
Cash paid for interest	$	326	$	246
Cash paid (refunded) for income tax	$	1	$	(35	)

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INVESTMENT IN NUSTAR ENERGY Table 3 (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Reconcilliation of NuStar Energy’s total partners’ equity to our investment in NuStar Energy
NuStar GP Holdings’ ownership interest in NuStar Energy	14.90%	14.90%
NuStar GP Holdings’ share of NuStar Energy’s partners’ equity	$ 269,447	$ 283,418
Step-up in basis related to NuStar Energy’s assets and liabilities, including equity method goodwill, and other	73,796	74,038
Investment in NuStar Energy	343,243	357,456
NuStar Energy [Member]
Reconcilliation of NuStar Energy’s total partners’ equity to our investment in NuStar Energy
NuStar Energy’s partners’ equity	$ 1,808,370	$ 1,902,136

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MEMBERS' EQUITY Table 1 (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Changes in Members' Equity [Roll Forward]
Balance as of December 31, 2013			$ 349,986
Net income (loss)	15,768	12,559	29,414	23,634
Distributions to unitholders			(46,497)	(46,445)
Other comprehensive income (loss)			(930)
Unit-based compensation			128
Balance as of June 30, 2014	$ 332,101		$ 332,101

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STATEMENTS OF CASH FLOWS (Tables)

6 Months Ended

Jun. 30, 2014

Statement of Cash Flows [Abstract]

Changes in current assets and liabilities

Changes in current assets and current liabilities were as follows:

	Six Months Ended June 30,
	2014			2013
	(Thousands of Dollars)
Decrease (increase) in current assets:
Receivable from related parties	$	(5,522	)	$	(2,011	)
Income tax receivable	—			6
Other receivables	(538		)	147
Other current assets	(62		)	(110		)
Increase (decrease) in current liabilities:
Accounts payable	27			(626		)
Accrued compensation expense	5,695			3,593
Accrued liabilities	(174		)	(77		)
Taxes other than income tax	(670		)	(873		)
Changes in current assets and current liabilities	$	(1,244	)	$	49

Cash flows related to interest and income tax

Cash flows related to interest and income tax were as follows:

	Six Months Ended June 30,
	2014		2013
	(Thousands of Dollars)
Cash paid for interest	$	326	$	246
Cash paid (refunded) for income tax	$	1	$	(35	)