Valero Logistics Operations, L.P. Amends and Extends Solicitation of Consents from Holders of its Senior Notes

Valero Logistics Operations, L.P., a 100 percent-owned
operating subsidiary of Valero L.P. (NYSE:VLI), announced today that
it has extended until 5:00 p.m. New York City time, on May 10, 2006
the Expiration Date of the consent solicitation relating to (i) its
$100.0 million aggregate principal amount of outstanding 6 7/8% Senior
Notes due 2012 and (ii) its $250.0 million aggregate principal amount
of outstanding 6.05% Senior Notes due 2013.
   Valero Logistics Operations also amended the definition of "Change
of Control Triggering Event" as set forth in the Consent Solicitation
Statement dated April 19, 2006. As amended, consent is being sought in
order to amend the change of control covenant and related definitions
set forth in the indenture governing the notes of both such series.
The proposed amendment would provide that Valero Logistics Operations
must make an offer to repurchase the notes only upon the occurrence of
both (a) a change of control and (b) the failure of the notes to have
an investment grade rating during the period that begins on the first
date of public announcement of such change of control and ends on the
180th day after the date of such announcement; provided, however, that
if on such 180th day, the ratings of the notes are on review for
possible downgrade by at least two rating agencies, then such period
shall be extended for so long as such review continues by either of
such rating agencies.
   The revocation date will not be extended past the original
expiration date of 5:00 p.m., New York City time, on May 3, 2006.
   Holders of record as of April 18, 2006 who consent to the proposed
amendment will receive $5.00 per $1,000 principal amount with respect
to 6.05% Senior Notes due 2013 and $2.50 per $1,000 principal amount
with respect to the 6 7/8% Senior Notes due 2012. The consent
solicitation will expire on May 10, 2006, unless further extended.
Holders of the notes are referred to Valero Logistics Operations'
Consent Solicitation Statement dated April 19, 2006, as amended on May
3, 2006, and the related Letter of Consent for the detailed terms and
conditions of the consent solicitation.
   This announcement amends and supplements Valero Logistics
Operations' Consent Solicitation Statement and the related Letter of
Consent with respect to the matters described above. All other terms
and conditions of Valero Logistics Operations' Consent Solicitation
Statement and the related Letter of Consent remain in full force and
effect.
   Valero Logistics Operations has retained Lehman Brothers Inc. to
serve as its solicitation agent, Georgeson Shareholder to serve as the
information agent and Computershare Trust Company of New York to serve
as tabulation and paying agent for the consent solicitation. Questions
concerning the terms of the consent solicitation should be directed to
Lehman Brothers Inc., Collect: 212-528-7581, Toll Free: 800-438-3242,
Attention: Liability Management Group. Requests for documents may be
directed to the information agent. Banks and brokers may call the
information agent at 212-440-9800, and all others may call
866-316-1190.
   This announcement is not an offer to purchase or sell, a
solicitation of an offer to purchase or sell or a solicitation of
consents with respect to any securities. The solicitation is being
made solely pursuant to the above-described Consent Solicitation
Statement dated April 19, 2006, as amended by the Amendment to Consent
Solicitation Statement dated May 3, 2006, and the related Letter of
Consent.

   About Valero Logistics Operations, L.P. and Valero L.P.

   Valero Logistics Operations, L.P. is a 100 percent-owned operating
subsidiary of Valero L.P., a master limited partnership that is owned
approximately 23 percent by subsidiaries of Valero Energy Corporation
(NYSE:VLO).
   Valero L.P. is a master limited partnership based in San Antonio,
with 9,186 miles of pipeline, 89 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 77.7 million barrels of storage
capacity, and includes crude oil and refined product pipelines,
refined product terminals, petroleum and a specialty liquids storage
and terminaling business, as well as crude oil storage tank
facilities. For more information, visit Valero L.P.'s web site at
www.valerolp.com.

   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 Logistics
Operations. 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.