<SUBMISSION>
<ACCESSION-NUMBER>0001137154-04-000013
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20040630
<ITEMS>7
<FILING-DATE>20040806
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>KANEB SERVICES LLC
<CIK>0001137154
<ASSIGNED-SIC>5172
<IRS-NUMBER>752931295
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-16405
<FILM-NUMBER>04955806
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2435 N CENTRAL EXPWY SUITE 700
<CITY>RICHARDSON
<STATE>TX
<ZIP>75080
<PHONE>9726994019
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2435 N CENTRAL EXPWY SUITE 700
<CITY>RICHARDSON
<STATE>TX
<ZIP>75080
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>ksl8k2q04.txt
<DESCRIPTION>KSL FORM 8-K EARNINGS RELEASE
<TEXT>
--------------------------------------------------------------------------------


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT



     Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934


        Date of Report (Date of earliest event reported): August 5, 2004

                               KANEB SERVICES LLC

               (Exact name of registrant as specified in charter)


       Delaware                        001-16405                75-2931295
(State of Incorporation)          (Commission File No.)       (I.R.S. Employer
                                                             Identification No.)



                          2435 North Central Expressway
                             Richardson, Texas 75080
               (Address of Principal Executive Offices) (Zip Code)


       Registrant's telephone number, including area code: (972) 699-4062

--------------------------------------------------------------------------------



<PAGE>
Item 7. Financial Statements and Exhibits.

          Exhibit.

          99.1 Press Release dated August 5, 2004,  reporting  financial results
               for the three and six months ended June 30, 2004.


Item 12. Results of Operations and Financial Condition and Exhibit

     A press release issued by Kaneb Services LLC (the  "Registrant")  and Kaneb
Pipe Line Partners,  L.P. ("KPP") on August 5, 2004 regarding  financial results
for the three and six months  ended June 30, 2004 is attached  hereto as Exhibit
99.1,  and excluding the final  paragraph  thereof,  is  incorporated  herein by
reference.  This  information  is not deemed to be "filed"  for the  purposes of
Section 18 of the  Securities  Exchange Act of 1934 and is not  incorporated  by
reference into any Securities Act registration statements.

     The earnings  release of KPP includes  disclosure of EBITDA and  reconciles
EBITDA to income before  cumulative  effect of change in  accounting  principle.
EBITDA is used as a supplemental financial measure to assess: (a) the ability of
assets  to  generate  cash  sufficient  to pay  interest  costs  and  make  cash
distributions  to unitholders,  (b) the financial  performance of assets and (c)
the  appropriateness  of the  purchase  price of  assets  being  considered  for
acquisition.  As such, this supplemental  financial measure provides a basis for
investors  and  management  to assess and measure  performance  over time and in
relation to entities who own similar assets.  Moreover,  KPP's revolving  credit
agreement  requires it to use EBITDA in calculating  financial ratios.  Although
EBITDA is used as a  supplemental  financial  measure to assess KPP's ability to
generate cash  sufficient to pay interest costs and make cash  distributions  to
unitholders  as noted above,  the amount of cash  available for such payments is
also  subject  to KPP's  ability to reserve  cash for other  uses,  such as debt
repayments, capital expenditures and operating activities.



<PAGE>
                                   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 hereunto duly authorized.

                                      KANEB SERVICES LLC



Dated August _____, 2004                   //s//  HOWARD C. WADSWORTH
                                      ------------------------------------------
                                      Howard C. Wadsworth
                                      Vice President, Treasurer and Secretary





</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>kexh9912q04.txt
<DESCRIPTION>EXHIBIT 99.1 EARNINGS PRESS RELEASE
<TEXT>
                                                                    Exhibit 99.1

For immediate release                             For more information, contact:
                                                              Investor Relations
                                                                  (972) 699-4041
                                                       Email: investor@kaneb.com

                      KANEB Reports Second Quarter Results

                                   Highlights

|X|  KPP earnings per unit $0.77 for 2Q04,  compared with $0.73 for 2Q03

|X|  KSL earnings per share $0.62 for 2Q04, compared with $0.47 for 2Q03


DALLAS, TX (August 5, 2004) - KANEB today reported results for the quarter ended
June 30, 2004. The KANEB Companies are Kaneb Services LLC (NYSE:  KSL) and Kaneb
Pipe Line Partners,  L.P. (NYSE: KPP, "the  Partnership").  Kaneb Services LLC's
wholly  owned  subsidiary,  Kaneb Pipe Line  Company  LLC, is the  Partnership's
General Partner.

"We are pleased to report our second quarter results for KANEB.  The Partnership
delivered a 7 percent increase in net income over last year's second quarter. In
KSL,  due to its unique  characteristics,  we saw a 13 percent  increase  in its
income from KPP," said John R. Barnes, chairman and CEO of KANEB.

Mr.  Barnes  continued,  "The  second  quarter  was very  active for  KANEB.  We
announced several significant additions to our KANEB management team -- seasoned
leaders  whose  expertise  and  experience  add  strength  and  capacity  to our
organization  going forward.  We again increased our cash  distributions -- from
$3.36 to $3.42 per year, or 1.8 percent,  for each KPP limited partnership unit,
and from $1.90 to $1.98 per year,  or 4.2  percent,  for each KSL common  share.
And,  finally,  we closed a terminaling  acquisition  on the East Coast.  We are
pleased  with the  quarter  and will  continue  to build on our  momentum  going
forward."


2Q 2004 RESULTS FOR KANEB SERVICES LLC

For the quarter ended June 30, 2004, Kaneb Services LLC's distributions received
from KPP, net of general  administrative  expenses and parent  company  interest
expense (see  Supplemental  Information in the attached table) increased to $6.2
million,  compared with $5.6 million for the second  quarter 2003.  KSL reported
net income was $7.4  million for the second  quarter  2004,  compared  with $5.5
million for the second quarter 2003.  Diluted  earnings per share were $0.62 for
the second quarter, compared with $0.47 for the same period last year.

For the six months  ended June 30,  2004,  Kaneb  Services  LLC's  distributions
received  from KPP, net of general  administrative  expenses and parent  company
interest expense (see Supplemental  Information in the attached table) increased
to $12.3  million,  compared  with $10.7  million  for the same  period in 2003.
Revenues for the six months were $487.4  million,  compared with $437.1  million
last year.  For the six month period in 2004,  income before gain on issuance of
units by KPP and  cumulative  effect  of  change in  accounting  principle  (see
Supplemental Information in the attached table) was $13.4 million, compared with
$11.5 million for the six month period in 2003.  Reported net income for the six
months was $13.4 million, compared with $22.0 million in the prior year period.

KSL is a unique  limited  liability  company,  the only  publicly  traded,  cash
distributing  entity  taxed  as a  partnership  that  owns the  general  partner
interest of another  publicly  traded  master  limited  partnership.  Its assets
include the KPP general  partner  interest and  incentive as well as 5.1 million
Partnership units, a wholesale petroleum product marketing company, and a wholly
owned  subsidiary that manages and operates the pipeline and terminaling  assets
of KPP.


2Q 2004 RESULTS FOR KANEB PIPE LINE PARTNERS, L.P.

Kaneb Pipe Line  Partners,  L.P.  reported  revenues  of $154.0  million for the
second  quarter 2004,  compared with $146.9  million for the second quarter last
year. Net income for the second  quarter was $24.3 million,  compared with $22.6
million for the second  quarter  last year.  Net income per unit for the quarter
was  $0.77,  compared  with  $0.73 for the  second  quarter  last  year.  EBITDA
increased (see Supplemental  Information in the attached table) to $49.4 million
for the second  quarter 2004,  compared with $46.6 million in the second quarter
2003.

For the six months  ended June 30,  2004,  KPP  revenues  were  $300.4  million,
compared with $287.7  million last year.  Reported net income for the six months
was $45.1 million, compared with $44.4 million in the prior year period. For the
six month  period in 2004,  net  income  per unit was $1.42  after a  cumulative
increase  of 5 percent  in the  weighted  average  number of  Partnership  units
outstanding,  compared  with  $1.50  for the six month  period  in 2003.  EBITDA
increased (see Supplemental  Information in the attached table) to $95.8 million
for the six month period in 2004, compared with $93.3 million for the prior year
period.

"During  the  second  quarter,  we closed  an  acquisition  of a 600,000  barrel
terminal in Philadelphia,  located next to our existing facility.  This gives us
additional  capacity to serve a strong  market area for the  Partnership,"  said
Edward  D.  Doherty,  chairman  and CEO of Kaneb  Pipe  Line  Company  LLC,  the
Partnership's General Partner.

Michael L.  Rose,  chief  operating  officer  of Kaneb  Pipe Line  Company  LLC,
commented on KPP's second  quarter  results:  "The  Partnership  achieved a $7.0
million revenue  increase over the second quarter last year, which includes $3.3
million from terminaling  operations,  $1.3 million from pipeline operations and
$2.4 million from product  sales.  Pipeline  operating  income was flat at $12.0
million,  while  terminaling  operating income increased by $3.1 million for the
quarter  to $20.9  million.  We are also  having  a good  year in our  bunkering
business,  growing it through increased sales to overcome most of the anomaly of
unusually high margins and volumes experienced in the first half of last year."

Pipeline revenues for the second quarter 2004 (see  Supplemental  Information in
the attached  table) were $30.6  million,  compared  with $29.4  million for the
second quarter last year. Pipeline operating income was $12.0 million,  compared
with $12.2  million last year.  Petroleum  pipeline  barrel miles shipped in the
second quarter were 5.7 billion, compared with 5.2 billion in the second quarter
last year.

Terminaling  revenues for the second quarter 2004 (see Supplemental  Information
in the attached  table) were $63.4 million,  compared with $60.1 million for the
second  quarter  last year.  Terminaling  operating  income  increased  to $20.9
million,  compared  with $17.8  million last year.  Terminaling  average  annual
barrels of tankage  utilized were 48.1 million in the second  quarter,  compared
with 47.9 million last year, and the average  annualized  revenues per barrel of
tankage  utilized for the second  quarter were $5.31 compared with $5.04 for the
second quarter last year.

Product sales revenues for the second quarter 2004 (see Supplemental Information
in the attached  table) were $59.9 million,  compared with $57.5 million for the
second  quarter last year.  Product  sales  operating  income was $2.8  million,
compared with $3.0 million last year.

ABOUT KANEB

KANEB is a single business  represented by two separate publicly traded entities
on the New York Stock Exchange. KANEB's business is focused on mid-stream energy
assets -- refined  petroleum  product  pipelines,  and  petroleum  and specialty
liquids  storage and  terminaling  facilities.  KANEB is a major  transporter of
refined petroleum  products in the Midwest and is the third largest  independent
liquids  terminaling  company  in  the  world.   Worldwide   operations  include
facilities  in 29 states,  Canada,  the  Netherlands  Antilles,  Australia,  New
Zealand and the United Kingdom.  Its publicly traded entities are Kaneb Services
LLC  (NYSE:  KSL)  and  Kaneb  Pipe  Line  Partners,   L.P.,  (NYSE:  KPP,  "the
Partnership"). For more information, visit www.kaneb.com.

Kaneb Services LLC was formed as a limited liability company in 2001 from assets
previously held by Kaneb Services,  Inc. (now Xanser Corporation).  Those assets
include the KPP general  partner  interest and  incentive as well as 5.1 million
Partnership units, a wholesale petroleum product marketing company, and a wholly
owned  subsidiary,  Kaneb Pipe Line Company  LLC,  that manages and operates the
pipeline  and  terminaling  assets  of KPP.  KSL is a unique  limited  liability
company,  the  only  publicly  traded,  cash  distributing  entity  taxed  as  a
partnership  that owns the general partner  interest of another  publicly traded
master limited partnership.

Kaneb Pipe Line Partners, L.P., a master limited partnership, was formed in 1989
to own a 2,075 mile common carrier  pipeline  system from Kansas to North Dakota
that has been  managed  by Kaneb  Pipe Line  Company  LLC since  1953.  Pipeline
acquisitions  in 1995 and 1998 added 725 miles of  pipeline in  Colorado,  Iowa,
South  Dakota  and  Wyoming.  In 2002,  the  Partnership  acquired  the  largest
fertilizer  pipeline in the country, a 2,000-mile pipeline system that runs from
the Louisiana  Gulf Coast to the upper Midwest  states.  In December  2002,  the
Partnership  acquired a 400 mile products  pipeline and four  terminals in North
Dakota and Minnesota.  The Partnership entered the liquids terminaling  business
with a large  acquisition  in 1993,  and has more than  tripled the size of this
operation through subsequent acquisitions.  In 2001, the Partnership completed a
$165 million  acquisition  of seven West Coast,  U.S.  terminals.  In 2002,  the
Partnership completed a $300 million acquisition of two world-class  terminaling
facilities located in Point Tupper, Nova Scotia, Canada and on the island of St.
Eustatius in the  Netherlands  Antilles and the acquisition of eight bulk liquid
storage terminals in Australia and New Zealand.

Certain  of the  Company's  statements  in this  press  release  are not  purely
historical,  and as such are "forward-looking  statements" within the meaning of
the Private  Securities  Litigation Reform Act of 1995. These include statements
regarding management's intentions,  plans, beliefs,  expectations or projections
of the  future.  Forward-looking  statements  involve  risks and  uncertainties,
including  without  limitation,  the various  risks  inherent  in the  Company's
business,  and other risks and  uncertainties  detailed from time to time in the
Company's  periodic  reports filed with the Securities and Exchange  Commission.
One or more of these factors have affected,  and could in the future affect, the
Company's  business and  financial  results in future  periods,  and could cause
actual results to differ materially from plans and projections.  There can be no
assurance that the  forward-looking  statements made in this document will prove
to be accurate,  and issuance of such  forward-looking  statements should not be
regarded as a  representation  by the  Company,  or any other  person,  that the
objectives  and  plans of the  Company  will be  achieved.  All  forward-looking
statements  made in this  press  release  are  based  on  information  presently
available to  management,  and the Company  assumes no  obligation to update any
forward-looking statements.
<PAGE>
                               KANEB SERVICES LLC
                       CONSOLIDATED STATEMENTS OF INCOME
                    (In thousands, except per share amounts)
                                  (Unaudited)

<TABLE>
<CAPTION>

                                                                                     Three Months                Six Months
                                                                                    Ended June 30,             Ended June 30,
                                                                                ----------------------    ----------------------
                                                                                  2004          2003         2004         2003
                                                                                ---------    ---------    ---------    ---------
<S>                                                                             <C>          <C>          <C>          <C>
Consolidated revenues:
        Services                                                                $  94,058    $  89,461    $ 184,756    $ 176,155
        Products                                                                  160,144      129,193      302,625      260,968
                                                                                ---------    ---------    ---------    ---------
                Total consolidated revenues                                       254,202      218,654      487,381      437,123
                                                                                ---------    ---------    ---------    ---------

Consolidated costs and expenses:
        Cost of products sold                                                     153,364      122,437      289,795      246,764
        Operating costs                                                            43,371       42,939       86,795       83,613
        Depreciation and amortization                                              13,738       13,615       27,645       26,647
        General and administrative                                                  7,195        6,958       13,697       13,670
                                                                                ---------    ---------    ---------    ---------
                Total consolidated costs and expenses                             217,668      185,949      417,932      370,694
                                                                                ---------    ---------    ---------    ---------

Consolidated operating income                                                      36,534       32,705       69,449       66,429

Consolidated interest and other income                                                 61           30           93          139

Consolidated interest expense                                                     (10,720)      (9,117)     (21,349)     (17,961)
                                                                                ---------    ---------    ---------    ---------
Consolidated income before gain on issuance of units by KPP,  income taxes,
        interest of outside non-controlling partners  in KPP's net income and
        cumulative effect of change in
        accounting principle                                                       25,875       23,618       48,193       48,607

Gain on issuance of units by KPP                                                     --           --           --         10,898

Income tax expense                                                                   (606)      (1,199)      (1,769)      (2,628)
Interest of outside non-controlling partners in KPP's net income                  (17,874)     (16,931)     (33,034)     (34,517)
                                                                                ---------    ---------    ---------    ---------
Income before cumulative effect of change in accounting principle                   7,395        5,488       13,390       22,360

Cumulative effect of change in accounting principle - adoption of
        new accounting standard for asset retirement obligations                     --           --           --           (313)
                                                                                ---------    ---------    ---------    ---------
Net income                                                                      $   7,395    $   5,488    $  13,390    $  22,047
                                                                                =========    =========    =========    =========

Earnings per share:
        Basic:
                Before cumulative effect of change in accounting principle      $    0.63    $    0.48    $    1.15    $    1.95
                Cumulative effect of change in accounting principle                  --           --           --          (0.03)
                                                                                ---------    ---------    ---------    ---------
                                                                                $    0.63    $    0.48    $    1.15    $    1.92
                                                                                =========    =========    =========    =========
        Diluted:
                Before cumulative effect of change in accounting principle      $    0.62    $    0.47    $    1.12    $    1.91
                Cumulative effect of change in accounting principle                  --           --           --          (0.03)
                                                                                ---------    ---------    ---------    ---------
                                                                                $    0.62    $    0.47    $    1.12    $    1.88
                                                                                =========    =========    =========    =========
</TABLE>

<PAGE>
                               KANEB SERVICES LLC
                            SUPPLEMENTAL INFORMATION
                    (In thousands, except per share amounts)
                                  (Unaudited)

<TABLE>
<CAPTION>

                                                                             Three Months             Six Months
                                                                            Ended June 30,          Ended June 30,
                                                                      ----------------------    ----------------------
                                                                         2004         2003         2004         2003
                                                                      ---------    ---------    ---------    ---------

<S>                                                                   <C>          <C>          <C>          <C>
Income before cumulative effect of change in accounting principle     $   7,395    $   5,488    $  13,390    $  22,360
Gain on issuance of units by KPP                                           --           --           --        (10,898)
                                                                      ---------    ---------    ---------    ---------
Income before gain on issuance of units by KPP and cumulative
        effect of change in accounting principle                      $   7,395    $   5,488    $  13,390    $  11,462
                                                                      =========    =========    =========    =========
Diluted earnings per share before gain on issuance of units by
        KPP and cumulative effect of change in accounting principle   $    0.62    $    0.47    $    1.12    $    0.98
                                                                      =========    =========    =========    =========
Weighted average diluted shares outstanding                              11,911       11,747       11,907       11,716
                                                                      =========    =========    =========    =========
Consolidated revenues (including KPP):
        Pipeline                                                      $  30,610    $  29,350    $  58,513    $  57,358
        Terminaling                                                      63,448       60,111      126,243      118,797
        Product Marketing                                               160,144      129,193      302,625      260,968
                                                                      ---------    ---------    ---------    ---------
                                                                      $ 254,202    $ 218,654    $ 487,381    $ 437,123
                                                                      =========    =========    =========    =========
Consolidated operating income (including KPP):
        Pipeline                                                      $  12,024    $  12,220    $  23,234    $  24,197
        Terminaling                                                      20,876       17,795       39,360       35,835
        Product Marketing                                                 4,156        3,210        7,910        7,415
        General and administrative expenses                                (522)        (520)      (1,055)      (1,018)
                                                                      ---------    ---------    ---------    ---------
                                                                      $  36,534    $  32,705    $  69,449    $  66,429
                                                                      =========    =========    =========    =========
Supplemental cash flow information:
        Distributions received from KPP                               $   6,837    $   6,320    $  13,675    $  12,081
        General and administrative expenses                                (522)        (520)      (1,055)      (1,018)
        Parent Company interest expense                                    (137)        (159)        (274)        (327)
                                                                      ---------    ---------    ---------    ---------
                                                                      $   6,178    $   5,641    $  12,346    $  10,736
                                                                      =========    =========    =========    =========
</TABLE>

<PAGE>
                         KANEB PIPE LINE PARTNERS, L.P.
                       CONSOLIDATED STATEMENTS OF INCOME
                    (In thousands, except per unit amounts)
                                  (Unaudited)

<TABLE>
<CAPTION>

                                                                           Three Months               Six Months
                                                                          Ended June 30,            Ended June 30,
                                                                     ----------------------    ----------------------
                                                                        2004         2003         2004         2003
                                                                     ---------    ---------    ---------    ---------
<S>                                                                  <C>          <C>          <C>          <C>
Revenues:
        Services                                                     $  94,058    $  89,461    $ 184,756    $ 176,155
        Products                                                        59,900       57,487      115,615      111,550
                                                                     ---------    ---------    ---------    ---------
                Total revenues                                         153,958      146,948      300,371      287,705
                                                                     ---------    ---------    ---------    ---------
Costs and expenses:
        Cost of products sold                                           55,167       51,314      106,206       99,200
        Operating costs                                                 43,105       42,740       86,315       83,198
        Depreciation and amortization                                   13,729       13,604       27,627       26,626
        General and administrative                                       6,307        6,249       12,011       12,042
                                                                     ---------    ---------    ---------    ---------
                Total costs and expenses                               118,308      113,907      232,159      221,066
                                                                     ---------    ---------    ---------    ---------
Operating income                                                        35,650       33,041       68,212       66,639

Interest and other income                                                   35            1           40           89

Interest expense                                                       (10,512)      (8,903)     (20,948)     (17,518)
                                                                     ---------    ---------    ---------    ---------
Income before minority interest, income taxes and cumulative
        effect of change in accounting principle                        25,173       24,139       47,304       49,210

Minority interest in net income                                           (245)        (229)        (455)        (465)

Income tax expense                                                        (642)      (1,310)      (1,794)      (2,739)
                                                                     ---------    ---------    ---------    ---------
Income before cumulative effect of change in accounting principle       24,286       22,600       45,055       46,006

Cumulative effect of change in accounting principle - adoption of
        new accounting standard for asset retirement obligations          --           --           --         (1,577)
                                                                     ---------    ---------    ---------    ---------
Net income                                                              24,286       22,600       45,055       44,429

General partner's interest in net income                                (2,490)      (1,954)      (4,772)      (3,899)
                                                                     ---------    ---------    ---------    ---------
Limited partners' interest in net income                             $  21,796    $  20,646    $  40,283    $  40,530
                                                                     =========    =========    =========    =========

Allocation of net income per unit:
        Before cumulative effect of change in accounting principle   $    0.77    $    0.73    $    1.42    $    1.56
        Cumulative effect of change in accounting principle               --           --           --          (0.06)
                                                                     ---------    ---------    ---------    ---------
                                                                     $    0.77    $    0.73    $    1.42    $    1.50
                                                                     =========    =========    =========    =========

Weighted average number of Partnership units outstanding                28,318       28,318       28,318       26,937
                                                                     =========    =========    =========    =========

</TABLE>

<PAGE>
                         KANEB PIPE LINE PARTNERS, L.P.
                            SUPPLEMENTAL INFORMATION
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                             Three Months              Six Months
                                                             Ended June 30,          Ended June 30,
                                                       ----------------------    ----------------------
                                                         2004         2003         2004         2003
                                                       ---------    ---------    ---------    ---------
<S>                                                    <C>          <C>          <C>          <C>
Revenues (in 000s):
        Pipeline                                       $  30,610    $  29,350    $  58,513    $  57,358
        Terminaling                                       63,448       60,111      126,243      118,797
        Product sales                                     59,900       57,487      115,615      111,550
                                                       ---------    ---------    ---------    ---------
                                                       $ 153,958    $ 146,948    $ 300,371    $ 287,705
                                                       =========    =========    =========    =========
Operating income (in 000s):
        Pipeline                                       $  12,024    $  12,220    $  23,234    $  24,197
        Terminaling                                       20,876       17,795       39,360       35,835
        Product sales                                      2,750        3,026        5,618        6,607
                                                       ---------    ---------    ---------    ---------
                                                       $  35,650    $  33,041    $  68,212    $  66,639
                                                       =========    =========    =========    =========
Depreciation and amortization (in 000s):
        Pipeline                                       $   3,624    $   3,511    $   7,223    $   7,008
        Terminaling                                        9,896        9,856       19,980       19,100
        Product sales                                        209          237          424          518
                                                       ---------    ---------    ---------    ---------
                                                       $  13,729    $  13,604    $  27,627    $  26,626
                                                       =========    =========    =========    =========
Capital expenditures (in 000s):
        Maintenance and environmental                  $   5,906    $   5,723    $  11,627    $  12,089
        Expansion                                          4,087        5,055        5,713       10,423
                                                       ---------    ---------    ---------    ---------
                                                       $   9,993    $  10,778    $  17,340    $  22,512
                                                       =========    =========    =========    =========
EBITDA (in 000s):
        Income before cumulative effect of change in
                accounting principle                   $  24,286    $  22,600    $  45,055    $  46,006
        Interest expense                                  10,512        8,903       20,948       17,518
        Income tax expense                                   642        1,310        1,794        2,739
        Depreciation and amortization                     13,729       13,604       27,627       26,626
        Interest and other income                            (35)          (1)         (40)         (89)
        Minority interest in net income                      245          229          455          465
                                                       ---------    ---------    ---------    ---------
                                                       $  49,379    $  46,645    $  95,839    $  93,265
                                                       =========    =========    =========    =========
Pipeline operating statistics:
         Barrel miles shipped on petroleum
                pipelines (in billions)                      5.7          5.2         10.8         10.4
                                                       =========    =========    =========    =========
        Volumes shipped on anhydrous ammonia
                pipeline (in thousands of tons)              279          284          576          588
                                                       =========    =========    =========    =========
Terminaling operating statistics:
        Average barrels of tankage
             utilized (in millions)                         48.1         47.9         48.1         47.7
                                                       =========    =========    =========    =========
        Average annualized revenues per barrel
             of tankage utilized                       $    5.31    $    5.04    $    5.28    $    5.02
                                                       =========    =========    =========    =========
</TABLE>

</TEXT>
</DOCUMENT>
</SUBMISSION>
