NuStar Energy announced that its board of directors has declared an increase in the quarterly distribution rate to $0.985 per unit, or $3.94 per unit on an annual basis.

This quarterly distribution represents an increase of $0.07 per unit, or 7.7%, over the $0.915 distribution for the third quarter of 2006 and an increase of $0.035 per unit, or 3.7%, over the $0.95 distribution for the second quarter of 2007.

The dividend will be paid on November 14, 2007, to holders of record as of November 8, 2007.