FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2013

Liabilities measured at fair value on a recurring basis

The following liabilities are measured at fair value on a recurring basis:



	September 30, 2013
	Level 1		Level 2		Level 3		Total
	(Thousands of Dollars)
Accrued compensation expense:
NuStar Energy restricted units	$	12,132	$	—	$	—	$	12,132
NuStar Energy unit options	—		2		—		2
Total	$	12,132	$	2	$	—	$	12,134

	December 31, 2012
	Level 1		Level 2		Level 3		Total
	(Thousands of Dollars)
Accrued compensation expense:
NuStar Energy restricted units	$	10,376	$	—	$	—	$	10,376
NuStar Energy unit options	—		70		—		70
Total	$	10,376	$	70	$	—	$	10,446

Weighted-average assumptions used in Black-Scholes Option-Pricing Model

The fair value of our accrued compensation expense for NuStar Energy unit options is determined using the Black-Scholes option-pricing model on the reporting date based on the following weighted-average assumptions:



	September 30, 2013		December 31, 2012
Expected life in years	5.9		6.5
Expected volatility	24.1	%	22.4	%
Expected distribution yield	10.9	%	10.3	%
Risk-free interest rate	0.1	%	0.2	%

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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