Valero L.P. Unitholders Approve Proposal of Amendments to Valero GP, LLC 2000 Long-Term Incentive Plan

Valero L.P. (NYSE:VLI) today announced that its
unitholders have approved its proposal to amend certain provisions of
the Amended and Restated 2000 Long-Term Incentive Plan (the "Plan") of
Valero GP, LLC, and, accordingly, the Plan is amended and restated
effective October 1, 2006. The amendments, among other things,
increased the number of Units authorized for issuance under the Plan
from the current 250,000 Units to 1,500,000 Units.
   Of the 46,809,749 units representing limited partner interests in
Valero L.P. ("Units") outstanding as of the record date, 26,445,782
Units, or 56.5%, were voted. Holders of 23,968,943 Units, or 51.2% of
the total Units outstanding, voted in favor of the amendments. Holders
of 2,141,205, or 4.6% of the total Units outstanding voted against the
amendments, and holders of 335,634, or 0.7% of the total Units
outstanding abstained.
   Valero L.P. is a publicly traded, limited partnership based in San
Antonio, with 9,243 miles of pipeline, 88 terminal facilities and four
crude oil storage facilities. One of the largest independent terminal
and petroleum liquids pipeline operators in the nation, the
partnership has operations in the United States, the Netherlands
Antilles, Canada, Mexico, the Netherlands and the United Kingdom. The
partnership's combined system has approximately 77 million barrels of
storage capacity, and includes crude oil and refined product
pipelines, refined product terminals, a petroleum and specialty
liquids storage and terminaling business, as well as crude oil storage
tank facilities. For more information, visit Valero L.P.'s website at
www.valerolp.com.

   Cautionary Statement Regarding Forward-Looking Statements

   This press release includes forward-looking statements within the
meaning of the Securities Litigation Reform Act of 1995 regarding
future events and the future financial performance of Valero L.P. All
forward-looking statements are based on the partnership's beliefs as
well as assumptions made by and information currently available to the
partnership. These statements reflect the partnership's current views
with respect to future events and are subject to various risks,
uncertainties and assumptions. These risks, uncertainties and
assumptions are discussed in Valero L.P.'s 2005 annual report on Form
10-K and subsequent filings with the Securities and Exchange
Commission.