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NYSE: NSH

Curt Anastasio - CEO & PresidentFebruary 11, 2009

COVER SLIDE

Looking Beyond Zero – When Zero Is Not Good Enough

April 4, 2013

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NuStar Overview

Looking Beyond Zero – When Zero Isn’t Good

Enough

Safety Performance Measurement and Goals

Culture, Leadership & Employee Involvement

Employee Comments

Closing Remarks

Question & Answers

Agenda

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One of the largest independent petroleum pipeline

and terminal operators in the U.S. 8,417 miles of crude oil and refined product

pipelines 82 terminal facilities and four crude oil storage

facilities Over 90 million barrels of storage capacity

One of the largest asphalt refiners and

marketers in the U.S. Two asphalt refineries capable of

processing 104,000 bpd of crude oil

NuStar Overview

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Employees come first Take care of the employees –

they will take care of the unitholders and communities

No layoffs Best pay & benefits in the

industry All-employee bonus Great employee programs

Recognition programs Wellness programs Employee events

Regular roundtable meetings with executive management

Helps attract and retain industry’sbest workforce

Culture is the Key to NuStar’s Success!

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NuStar Culture In The Spotlight

NuStar prides itself on a strong safety and environmental commitment Received many national safety honors over the last several years with our TRIR and LTIR far better

than industry averages

Presented with the International Liquid Terminal Association’s Platinum Safety Award – the Highest

Safety Award in the Terminal Industry

Continuous Improvement – Health, Safety & Environmental

NuStar Injury Incident Frequency Rates

TRIR – Total Recordable Incidents Rate LTIR – Lost Time Incidents Rate

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2005 2006 2007 2008 2009

4.06

1.491.36

0.760000000000004

0.39

2.24

0.14 0.19 0.160

Employee TRIR Employee LTIR

No LTIR Incidents

NuStar’s Texas City Terminal

Acquired in 2005 54 total employees, 32 customers

~80% Petrochemical / 20% Petroleum

3 Marine docks

52 Truck spots, 78 Rail spots

124 tanks, 1.9MM bbl storage capacity

TRIR – 60…SIXTY!

2012 Status 59 terminal employees, 8 customers

~75% Petroleum / ~25% Petrochemical Products

3 Marine docks

3 Truck spots, 80 Rail spots

93 tanks, 2.9 MM bbl storage capacity

TRIR – Zero!

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NuStar’s Transformation

Massive transformation since acquisition in 2005 Cultural shift from production to employee safety

Establishment of clear safety expectations, which take priority over

production

Employee and leadership collective engagement

Upgrade and modernization of the facilities

Look at ways to utilize Engineering Controls

Consolidate where appropriate – Ask employees for their input

Utilize technology where appropriate to eliminate hazards

Installation of modern fall protection on truck and rail handling facilities

Prioritize action items and allocate resources

TRIR has gone from Sixty to Zero!

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Looking Beyond Zero Looking Beyond Zero – When Zero Is Not Good Enough

Common reportable safety statistics are our universal language, sets minimum for performance measurement

LTIR TRIR DART

Reaching Zero in major statistics Positive internal and external recognition Have we reached optimal safety performance?

“Zero” in major statistics isn’t good enough…..

Zero incidents is the safety goal but to be great you need to look beyond zero!

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Safety Performance Measurement

How you measure performance and set goals may limit opportunity

How do you set the “Safety Performance Bar”? Major safety statistics, number of non-recordable incidents, near

misses?

We must look past recordability when at “Zero” What do you consider a Near Miss? An Incident? When do you employ your tools?

Proactive safety behaviors eliminate incidents Recognize potential hazard and eliminate before an incident

occurs

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Creating a Safety CulturePrior to acquisition, culture focused on production

“Move the juice” was motto, even if meant taking risks Minimal formal safety training and equipment Extensive deferred maintenance Employee concerns not heard No community identification or involvement

NuStar culture focused on employee Take care of the employee – they will take care of the

unitholders and the community Safety – the most important way of taking care of

employees – it truly places employees first!

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Start with Leadership

Safety – Core Value of LeadershipAll incidents are preventableClarify safety expectation and maintain

accountability at all levels Field presence and demonstration – Walk

your talk!Create atmosphere for open discussion –

Create trustNot alone, share with each other

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Start with Leadership

Safety – Core Value of LeadershipApplaud proactive efforts, report

extensively when reactiveEncourage and reward employee

involvement (listen to your people and react appropriately – follow up!)

Begin every meeting with safety discussion

Consistency in message and actions

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Getting Employees Involved

Clarify expectations and empower employees Not OK to have injuries Internalize hazard recognition behaviors Expectation is to stop and talk Communicate effectively

Create opportunities to listen Toolbox meetings Roundtables – formal and informal Field discussion

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Getting Employees Involved

Employee driven safety committees Only effective if real hazards are identified – and

resolved May have to customize per site

Incident investigations Employees participate All incidents must be investigated Identify the rootcause! Fix it!

Stand downs Per event stand downs – region and company wide Weekly ‘Stand Down’ meetings, produced and

hosted by all

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Providing the Safety Tools Expand classroom and field based training

Relevant, interactive exercises and demonstration Minimize computer based training

16 Hour Hazwoper

Critical Life Skills Training Job Safety Analysis PSM / MOC Permitting, LOTO Line Breaks Pre Startup Review

Site specific training Respiratory protection H2S and rescue

Employee Comments Company cares about us

We’re proud of what we do

People listen and respond

Not afraid of change

Focus is on doing the job safely, time is not #1 now

Help each other as opposed to every man for himself

We’ve installed right equipment and now have tools to do

the job

Comments not always positive

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Closing Remarks Leadership and employees must be collectively engaged and work

together

You must be consistent

Adopt a proactive continuous improvement philosophy and develop

processes and tools to support

Recognize that what goals and metrics you use will influence ability

to reach “Zero” incidents

John.roller@NuStarEnergy.com

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NYSE: NSH

Curt Anastasio - CEO & PresidentFebruary 11, 2009

COVER SLIDE

QUESTIONS & ANSWERS