<SUBMISSION>
<ACCESSION-NUMBER>0001047469-04-032895
<TYPE>8-A12B/A
<PUBLIC-DOCUMENT-COUNT>2
<FILING-DATE>20041102
<DATE-OF-FILING-DATE-CHANGE>20041102
<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-A12B/A
<ACT>34
<FILE-NUMBER>001-16405
<FILM-NUMBER>041113512
</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-A12B/A
<SEQUENCE>1
<FILENAME>a2145977z8-a12ba.htm
<DESCRIPTION>8-A12B/A
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#04HOU1661_1">QuickLinks</A></FONT>
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<P><FONT SIZE=2>
<hr noshade width=100% align=left size=4>
<hr noshade width=100% align=left size=1> </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>  </B></FONT><FONT SIZE=2><B>Washington, D.C. 20549  </B></FONT></P>

<BR>
<P ALIGN="CENTER"><FONT SIZE=5><B>FORM 8-A/A  </B></FONT></P>

<BR>
<P ALIGN="CENTER"><FONT SIZE=3><B>FOR REGISTRATION OF CERTAIN CLASSES OF SECURITIES<BR>
PURSUANT TO SECTION 12(b) OR 12(g) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934  </B></FONT></P>

<HR NOSHADE ALIGN="CENTER" WIDTH="120">
<P ALIGN="CENTER"><FONT SIZE=5><B>KANEB SERVICES LLC<BR>  </B></FONT><FONT SIZE=2>(Exact name of registrant as specified in its charter) </FONT></P>

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<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>Delaware</B></FONT><FONT SIZE=2><BR>
(State of Incorporation or organization)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>75-2931295</B></FONT><FONT SIZE=2><BR>
(I.R.S. Employer Identification No.)</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=3 ALIGN="CENTER"><BR><FONT SIZE=2><B>2435 North Central Expressway<BR>
Richardson, Texas 75080<BR> </B></FONT><FONT SIZE=2>(Address of principal executive offices, including zip code)</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=3 ALIGN="CENTER"><BR><FONT SIZE=2><B>(972) 699-4062<BR> </B></FONT><FONT SIZE=2>(Registrant's telephone number, including area code)</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE ALIGN="CENTER" WIDTH="120">

<P><FONT SIZE=2>If this form relates to the registration of a class of securities pursuant to Section&nbsp;12(b) of the Exchange Act and is effective pursuant to General instruction A.(c),
check the following box.&nbsp;<FONT FACE="WINGDINGS">&#253;</FONT> </FONT></P>

<P><FONT SIZE=2>If this form relates to the registration of a class of securities pursuant to Section&nbsp;12(g) of the Exchange Act and is effective pursuant to General Instruction A.(d),
check the following box.&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT> </FONT></P>

<P><FONT SIZE=2>Securities Act registration statement file number to which this form relates: (if applicable) </FONT></P>

<P><FONT SIZE=2>Securities
to be registered pursuant to Section&nbsp;12(b) of the Act: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="49%" ALIGN="CENTER"><FONT SIZE=1><B>Title of Each Class<BR>
to be so Registered</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="49%" ALIGN="CENTER"><FONT SIZE=1><B>Name of Each Exchange on Which<BR>
Each Class is to be Registered</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>Rights to Purchase Common Shares</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>New York Stock Exchange</B></FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>Securities
to be registered pursuant to Section&nbsp;12(g) of the Act:<BR></FONT> <FONT SIZE=2><B>None  </B></FONT></P>

<P><FONT SIZE=2><B> <hr noshade width=100% align=left size=1>
<hr noshade width=100% align=left size=4>  </B></FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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NAME="page_de1661_1_2"> </A> </FONT></P>

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<P><FONT SIZE=2><A
NAME="de1661_item_1._description_of_registr__ite02477"> </A>
<A NAME="toc_de1661_1"> </A>
<BR></FONT><FONT SIZE=2><B>ITEM 1. DESCRIPTION OF REGISTRANT'S SECURITIES TO BE REGISTERED    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is hereby made to the Registration Statement filed with the Securities and Exchange Commission (the "Commission") on Form&nbsp;8-A, dated
June&nbsp;27, 2001, by Kaneb Services LLC, a Delaware limited liability company (the "Company"), relating to the rights distributed to the shareholders of the Company (the "Rights") in connection
with the Rights Agreement, dated as of June&nbsp;27, 2001 (the "Rights Agreement"), between the Company and JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank, National Association, as
Rights Agent (the "Rights Agent"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October&nbsp;28, 2004, the Company and the Rights Agent executed the First Amendment to Rights Agreement, dated as of October&nbsp;28, 2004 (the "Rights Agreement Amendment"). The
Rights Agreement Amendment amends the Rights Agreement to generally provide that (i)&nbsp;no Section&nbsp;11(a)(ii)&nbsp;Event, Section&nbsp;13 Event, Share Acquisition Date or Distribution
Date shall be deemed to have occurred under the Rights Agreement, and (ii)&nbsp;neither Valero L.P., a Delaware limited partnership ("VLI"), nor any Affiliate or Associate of VLI, including, but not
limited to, VLI Sub A, a Delaware limited liability company and a wholly-owned subsidiary of VLI ("VLI Sub A"), shall be, become or be deemed an Acquiring Person under the Rights Agreement, in each
case solely by reason of (a)&nbsp;the approval, execution, delivery, announcement or performance of the proposed Agreement and Plan of Merger (the "Merger Agreement") by and among VLI, River
Logistics, L.P., Valero GP, LLC, VLI Sub A, and the Company; or (b)&nbsp;the consummation of any of the transactions contemplated by the Merger Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Rights Agreement Amendment is filed as Exhibit&nbsp;1 to this Form&nbsp;8-A/A. The foregoing summary description of the Rights Agreement Amendment does not purport to
be complete and is qualified in its entirety by reference to the exhibit hereto, which is incorporated herein by reference. </FONT></P>

<P><FONT SIZE=2><A
NAME="de1661_item_2._exhibits"> </A>
<A NAME="toc_de1661_2"> </A>
<BR></FONT><FONT SIZE=2><B>ITEM 2. EXHIBITS    <BR>    </B></FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>First
Amendment to Rights Agreement, dated as of October&nbsp;28, 2004, between Kaneb Services LLC and JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank, National
Association. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_jc1661_1_3"> </A> </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="jc1661_signature"> </A>
<A NAME="toc_jc1661_1"> </A>
<BR></FONT><FONT SIZE=2><B>SIGNATURE    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of Section&nbsp;12 of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed
on its behalf by the undersigned, thereto duly authorized. </FONT></P>

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<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>KANEB SERVICES LLC,</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="54%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>HOWARD C. WADSWORTH</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Howard C. Wadsworth<BR>
Vice President and Treasurer</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>Dated:
November&nbsp;2, 2004 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ka1661_exhibit_index"> </A>
<A NAME="toc_ka1661_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit Index    <BR>    </B></FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>First
Amendment to Rights Agreement, dated as of October&nbsp;28, 2004, between Kaneb Services LLC and JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank, National
Association. </FONT></DD></DL>
<HR NOSHADE>
<P style='page-break-before:always'></p>
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<BR>
<P><br><A NAME="04HOU1661_1">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_de1661_1">ITEM 1. DESCRIPTION OF REGISTRANT'S SECURITIES TO BE REGISTERED</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1661_2">ITEM 2. EXHIBITS</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_jc1661_1">SIGNATURE</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ka1661_1">Exhibit Index</A></FONT><BR>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>2
<FILENAME>a2145977zex-1.htm
<DESCRIPTION>EXHIBIT 1
<TEXT>
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NAME="page_kc1661_1_1"> </A> </FONT></P>

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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="kc1661_exhibit_1"> </A>
<A NAME="toc_kc1661_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit 1    <BR>    </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>FIRST AMENDMENT TO RIGHTS AGREEMENT  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST AMENDMENT TO RIGHTS AGREEMENT (the "</FONT><FONT SIZE=2><I>First Amendment</I></FONT><FONT SIZE=2>"), dated as of October&nbsp;28, 2004, between Kaneb
Services LLC, a Delaware limited liability company (the "</FONT><FONT SIZE=2><I>Company</I></FONT><FONT SIZE=2>") and JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank, National
Association, a national banking association (the "</FONT><FONT SIZE=2><I>Rights Agent</I></FONT><FONT SIZE=2>"), amending the Rights Agreement, dated as of June&nbsp;27, 2001, between the Company
and the Rights Agent (the "</FONT><FONT SIZE=2><I>Rights Agreement</I></FONT><FONT SIZE=2>"). Capitalized terms used herein without definition shall have the respective meanings ascribed to such
terms in the Rights Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>W I T N E S S E T H  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Board of Directors of the Company has approved an Agreement and Plan of Merger (the "</FONT><FONT SIZE=2><I>Merger
Agreement</I></FONT><FONT SIZE=2>") proposed to be entered into by and among Valero L.P., a Delaware Limited Partnership ("</FONT><FONT SIZE=2><I>VLI</I></FONT><FONT SIZE=2>"), River Logistics, L.P.,
Valero GP, LLC, VLI Sub A, a Delaware limited liability company and a wholly-owned subsidiary of VLI ("</FONT><FONT SIZE=2><I>VLI Sub A</I></FONT><FONT SIZE=2>"), and the Company, pursuant to which
at the KSL Effective Time (as such term is defined in the Merger Agreement), VLI Sub A will be merged with and into the Company (the "</FONT><FONT SIZE=2><I>KSL Merger</I></FONT><FONT SIZE=2>"), with
the Company being, subject to the terms of the Merger Agreement, the surviving entity and surviving as a wholly owned direct or indirect subsidiary of VLI; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Board of Directors of the Company has approved and adopted the Merger Agreement and declared its advisability and approved the KSL Merger and the other transactions
contemplated by the Merger Agreement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
in connection with the KSL Merger and in accordance with Section&nbsp;26 of the Rights Agreement, the Company desires to amend the Rights Agreement as hereinafter set forth
and has
executed and delivered this First Amendment immediately prior to the execution and delivery of the Merger Agreement; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Company has requested that the Rights Agent execute this First Amendment; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, the Company hereby amends the Rights Agreement as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1
of the Rights Agreement is hereby amended by adding the following definitions thereto: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>KSL Effective Time</I></FONT><FONT SIZE=2>" shall have the meaning ascribed to such term in the Merger Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>KSL Merger</I></FONT><FONT SIZE=2>" shall have the meaning ascribed to such term in the Merger Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Merger Agreement</I></FONT><FONT SIZE=2>" shall mean the Agreement and Plan of Merger proposed to be entered into by and among VLI, River Logistics, L.P., Valero
GP, LLC, VLI Sub A and the Company, as the same may be amended in accordance with the terms thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>VLI</I></FONT><FONT SIZE=2>" shall mean Valero L.P., a Delaware Limited Partnership. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>VLI Sub A</I></FONT><FONT SIZE=2>" shall mean VLI Sub A, a Delaware limited liability company and a wholly-owned subsidiary of VLI. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
definition of "</FONT><FONT SIZE=2><I>Acquiring Person</I></FONT><FONT SIZE=2>" in Section&nbsp;1(a) of the Rights Agreement is hereby amended by adding to the end
thereof the following: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Notwithstanding
anything to the contrary contained herein, neither VLI nor any Affiliate or Associate of VLI, including, but not limited to, VLI Sub A, shall be, become or be deemed an </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

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<P><FONT SIZE=2>Acquiring
Person (and no Share Acquisition Date shall occur) as a result of the approval, execution, delivery, announcement or performance of the Merger Agreement or the consummation of the
transactions contemplated thereby." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
definition of </FONT><FONT SIZE=2><I>"Section&nbsp;11(a)(ii)&nbsp;Event"</I></FONT><FONT SIZE=2> in Section&nbsp;1(j) of the Rights Agreement is hereby amended
by adding to the end thereof the following: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Notwithstanding
anything to the contrary contained herein, no Section&nbsp;11(a)(ii)&nbsp;Event shall occur as a result of the approval, execution, delivery, announcement or
performance of the Merger Agreement or the consummation of the transactions contemplated thereby." </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
definition of </FONT><FONT SIZE=2><I>"Section&nbsp;13 Event"</I></FONT><FONT SIZE=2> in Section&nbsp;1(k) of the Rights Agreement is hereby amended by adding to
the end thereof the following: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Notwithstanding
anything to the contrary contained herein, no Section&nbsp;13 Event shall occur as a result of the approval, execution, delivery, announcement or performance of the
Merger Agreement or the consummation of the transactions contemplated thereby." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
definition of "</FONT><FONT SIZE=2><I>Share Acquisition Date</I></FONT><FONT SIZE=2>" in Section&nbsp;1(l) of the Rights Agreement is hereby amended by adding to
the end thereof the following: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Notwithstanding
anything to the contrary contained herein, no Share Acquisition Date shall occur as a result of the approval, execution, delivery, announcement or performance of the
Merger Agreement or the consummation of the transactions contemplated thereby." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3(a)
of the Rights Agreement is hereby amended by adding to the end thereof the following: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Notwithstanding
anything to the contrary contained herein, no Distribution Date shall occur and no provisions of this Section&nbsp;3 shall become applicable as a result of the
approval, execution, delivery, announcement or performance of the Merger Agreement or the consummation of the transactions contemplated thereby." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11(a)(ii)&nbsp;of
the Rights Agreement is hereby amended by adding to the end thereof the following: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Notwithstanding
anything to the contrary contained herein, no provisions of this Section&nbsp;11(a)(ii)&nbsp;shall become applicable as a result of the approval, execution,
delivery, announcement or performance of the Merger Agreement or the consummation of the transactions contemplated thereby." </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;13(a)
of the Rights Agreement is hereby amended by adding to the end thereof the following: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Notwithstanding
anything to the contrary contained herein, no provisions of this Section&nbsp;13(a) shall become applicable as a result of the approval, execution, delivery,
announcement or performance of the Merger Agreement or the consummation of the transactions contemplated thereby." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
term "</FONT><FONT SIZE=2><I>Agreement</I></FONT><FONT SIZE=2>" as used in the Rights Agreement shall be deemed to refer to the Rights Agreement as amended by this
First Amendment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;This
First Amendment shall only become effective upon the execution and delivery of the Merger Agreement by the parties thereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;Except
as set forth herein, the Rights Agreement shall remain in full force and effect and shall be otherwise unaffected hereby. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;This
First Amendment may be executed in two or more counterparts, each of which shall be deemed an original. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><I>[Signatures on Following Page]</I></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the Company has caused this First Amendment to be duly executed as of the day and year first written above. </FONT></P>

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<TD COLSPAN=2><FONT SIZE=2>Attest:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>KANEB SERVICES LLC</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JENETTA S. GRANTHAM</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>HOWARD C. WADSWORTH</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>Jenetta S. Grantham</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>Howard C. Wadsworth</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>Assistant Secretary</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>Vice President</FONT><HR NOSHADE></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the undersigned, JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank, National Association, as Rights Agent under the Rights Agreement, hereby
acknowledges and agrees to this First Amendment. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>Attest:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>JPMORGAN CHASE BANK,<BR></FONT> <FONT SIZE=2>formerly known as<BR></FONT> <FONT SIZE=2>THE CHASE MANHATTAN BANK, NATIONAL ASSOCIATION</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>MAY NG</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>GREG CAMPBELL</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>May Ng</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>Greg Campbell</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>Vice President &amp; Trust Officer</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>Vice President &amp; Trust Officer</FONT><HR NOSHADE></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P><br><A NAME="04HOU1661_2">QuickLinks</A><br></P><!-- TOC_BEGIN -->
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<FONT SIZE=2><A HREF="#toc_kc1661_1">Exhibit 1</A></FONT><BR>
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