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Exhibit 3.04
                                            SECOND

                             CERTIFICATE OF AMENDMENT

                                              to the

                    RESTATED CERTIFICATE OF INCORPORATION

                                                of

                            VALERO ENERGY CORPORATION

       Valero Energy Corporation (the quot;Corporationquot;), a corporation organized and existing
under and by virtue of the General Corporation Law of the State of Delaware (the quot;DGCLquot;),
hereby adopts this Certificate of Amendment (this quot;Certificate of Amendmentquot;), which amends
its Restated Certificate of Incorporation, as amended by the Certificate of Designation filed
July 31, 1997, the Certificate of Amendment filed July 31, 1997, the Certificate of Merger filed
December 31, 2001 and the Certificate of Designation filed June 30, 2003 (as amended, the
quot;Restated Certificate of Incorporationquot;), as described below, and does hereby further certify that:

       1.      The name of the Corporation is Valero Energy Corporation.

       2.     At a meeting of the Board of Directors of the Corporation resolutions were duly
adopted setting forth a proposed amendment of the Restated Certificate of Incorporation
(the quot;Amendmentquot;), declaring the Amendment to be advisable and calling a meeting of the
stockholders of the Corporation for consideration thereof. The resolution setting forth the
Amendment is as follows:

       NOW THEREFORE, BE IT RESOLVED, that the Board of Directors adopts
       and approves amending and restating the first paragraph of Article IV of the
       Restated Certificate of Incorporation of the Company to read in its entirety as
       follows (the quot;Charter Amendmentquot;):

               quot;The total number of shares of all classes of stock that the
               corporation shall have authority to issue is 620,000,000 shares,
               divided into classes as follows: 600,000,000 shares shall be
               Common Stock, par value $0.01 per share (quot;Common Stockquot;); and
               20,000,000 shares shall be Preferred Stock, par value $0.01 per
               share (quot;Preferred Stockquot;). Shares of any class of stock of the
               corporation may be issued for such consideration and for such
               corporate purposes as the Board of Directors of the corporation
               may from time to time determine.quot;
3.      Pursuant to resolutions of its Board of Directors, a special meeting of the
stockholders of the Corporation was duly called and held, upon notice in accordance with
Section 222 of the DGCL, at which meeting the necessary number of shares as required by
statute and the Restated Certificate of Incorporation were voted in favor of the Amendment.

        4.   The Amendment was duly adopted in accordance with the provisions of Section
242 of the DGCL.

       5.       Pursuant to Section 103(d) of the DGCL, the Amendment will become effective
upon its filing with the Secretary of State of the State of Delaware.

        IN WITNESS WHEREOF, the Corporation has caused this certificate to be executed on
its behalf this 17th day of September, 2004.


                                          VALERO ENERGY CORPORATION

                                          By: /s/ Jay D. Browning
                                             Jay D. Browning
                                             Vice President & Secretary
Exhibit 10.01
                                                           Valero Energy Corporation
Notice of Grant of Stock Option
                                                           ID: 74-1828067
and Option Agreement                                       P.O. Box 696000
                                                           San Antonio, TX 78269-6000


Gregory C. King




Effective October 21, 2004, you have been granted an option to buy 38,000 shares of the common stock of Valero
Energy Corporation (the “Company”) at $42.71 per share.



Your Options will vest on the dates shown below.


                              Shares               Grant Date         Full Vest       Expiration

                              7,600                 10/21/04           10/21/05       10/21/14
                              7,600                 10/21/04           10/21/06       10/21/14
                              7,600                 10/21/04           10/21/07       10/21/14
                              7,600                 10/21/04           10/21/08       10/21/14
                              7,600                 10/21/04           10/21/09       10/21/14




By your signature and the Company's signature below, you and the Company agree that the Option referenced above is
granted under and governed by the terms and conditions of the Company's 2001 Executive Stock Incentive Plan and
the Option Agreement attached hereto, all of which are made a part of this agreement.


VALERO ENERGY CORPORATION

By: /s/ Mike Crownover                                     Oct. 21, 2004
       Mike Crownover                                      Date
       Director - Human Resources

    /s/ Gregory C. King                                    Oct. 21, 2004
                                                           Date
        Gregory C. King
        Employee
OPTION AGREEMENT
                            Valero Energy Corporation 2001 Executive Stock Incentive Plan

        This Option Agreement (“Agreement”) is entered into between Valero Energy Corporation, a Delaware corporation
(“Valero”), and Employee pursuant to the terms of the Valero Energy Corporation 2001 Executive Stock Incentive Plan
(“Plan”). As used herein, Employee means Gregory C. King. Capitalized terms used in this Agreement but not otherwise
defined in this Agreement have the meanings set forth in the Plan.

        1. Grant of Option. Valero grants to Employee the option (“Option”) to purchase up to 38,000 shares of Common
Stock of Valero, $.01 par value per share (“Shares”), in accordance with the terms of this Agreement and the Plan. The Shares,
when issued to Employee upon the exercise of the Option, will be fully paid and non-assessable.

        2.   Purchase Price. The purchase price of the Shares will be $42.71 per Share.

        3. Exercise of Option. The period during which the Option is in effect (“Option Period”) will commence on October
21, 2004. The Option Period will terminate on October 21, 2014 No portion of the Option may be exercised prior to October 21,
2005. Subject to the provisions of the Plan relating to suspension or termination from the Plan, the Option will be available for
exercise in the following increments: 7,600 shares on 10/21/05; 7,600 shares on 10/21/06; 7,600 shares on 10/21/07; 7,600 shares
on 10/21/08; and 7,600 shares on 10/21/09.

        If the Employee desires to exercise the Option, Employee must deliver written notice to Stock Plan Administration of
Valero substantially in the form of the attached Form A (“Exercise Notice”). The Option must be exercised in accordance with
one of the methods for exercise set forth in the attached form of Exercise Notice. The date on which the Exercise Notice is
received by Valero will be the “Exercise Date.” The completed Exercise Notice must include the number of Shares with respect
to which the Option is being exercised. Payment for the Shares will be made at Valero’s San Antonio offices.

        If any law or regulation requires Valero to take any action with respect to the Shares specified in the Exercise Notice, then
the date of delivery of the Shares against payment will be extended for the period necessary to take such action. In the event of
any failure by Employee to pay for the number of Shares specified in the Exercise Notice on the Settlement Date, as the same may
be extended as provided above, the exercise of the Option with respect to such number of Shares will be treated as if it had never
been made.

        4. Plan Incorporated by Reference. The Plan is incorporated herein, and by this reference, is made a part hereof for
all purposes.

        5. Limitation of Rights of Employee. Employee will have no rights with respect to any Shares not expressly
conferred by the Plan or this Agreement.

        6. No Assignment. This Agreement and the Option granted hereunder are of a personal nature and Employee’s rights
with respect hereto and thereto may not be sold, mortgaged, pledged, assigned, transferred, conveyed or disposed of in any
manner by Employee, and may not be exercised by any person, other than Employee, except as expressly permitted under the
Plan. Any such attempted sale, mortgage, pledge, assignment, transfer, conveyance, disposition or exercise will be void, and
Valero will not be bound thereby.

        7. Successors. This Agreement is binding upon any successors of Valero and the heirs, successors and legal
representatives of Employee.

        8. Direct Registration. Employee agrees that in lieu of stock certificates, any Shares issuable in connection with the
exercise of the Options may be issued in uncertificated form pursuant to the Direct Registration Service of Valero’s stock transfer
agent.
EXHIBIT 10.02

                          SCHEDULE OF STOCK OPTION AGREEMENTS
                                    dated October 21, 2004

The following have executed Stock Option Agreements substantially in the form of the agreement
attached as Exhibit 10.01 (the “Exhibit”) to the Valero Energy Corporation Form 10-Q for the quarter
ended September 30, 2004.

Keith D. Booke
Michael S. Ciskowski
William R. Klesse

The following information sets forth the material details in which the Stock Option Agreements described
in this Schedule differ from the Exhibit.

        Named Executive Officer                         Number of Options
        Keith D. Booke                                          23,000
        Michael S. Ciskowski                                    23,000
        William R. Klesse                                       34,000
Exhibit 10.03
                                       RESTRICTED STOCK AGREEMENT
                            Valero Energy Corporation 2001 Executive Stock Incentive Plan

        This Restricted Stock Agreement (“Agreement”) is between Valero Energy Corporation, a Delaware corporation (“Valero”), and
Gregory C. King, an employee of Valero Energy Corporation or one of its Affiliates (“Employee”), who agree as follows:

         1.        Introduction. Pursuant to the Valero Energy Corporation 2001 Executive Stock Incentive Plan (the “Plan”), on
October 21, 2004, Employee was awarded 15,000 shares of Common Stock of Valero (“Restricted Stock”) under the Plan to Employee as
“Restricted Stock” (as defined in the Plan). The parties hereby enter into this Agreement to evidence the terms, conditions and restrictions
applicable to the Restricted Stock.

         2.      The Plan, Restrictions, Vesting. The Plan is incorporated herein by reference for all purposes, and Employee hereby
agrees to the terms and conditions stated therein applicable to the Restricted Stock and the rights and powers of Valero and the
Compensation Committee as provided therein. In addition, Employee agrees as follows:

                 2.01 Except to the extent otherwise provided in the Plan or this Agreement, shares of Restricted Stock issued to
        Employee under the Plan may not be sold, exchanged, pledged, hypothecated, transferred, garnished or otherwise disposed of or
        alienated prior to vesting.

                 2.02 Employee's rights to and interest in the shares of Restricted Stock described herein shall vest and accrue to
        Employee in the following increments: 3,000 shares on 10/21/05; 3,000 shares on 10/21/06; 3,000 shares on 10/21/07; 3,000 shares
        on 10/21/08; and 3,000 shares on 10/21/09. The restrictions described in Section 2 of this Agreement shall terminate prior to the
        expiration of such five-year period (i) upon the retirement, death or total and permanent disability of Employee, or (ii) if a Change
        of Control with respect to Valero should occur, as set forth in Section 8 of the Plan. In the event Employee's employment with
        Valero is terminated, the provisions set forth in Section 6(h)(vii) of the Plan shall apply.

                  2.03 Employee agrees that in lieu of certificates representing Employee's shares of Restricted Stock, the Restricted Stock
        and any Shares issuable in connection with their vesting may be issued in uncertificated form pursuant to the Direct Registration
        Service of Valero’s stock transfer agent.
                  2.04 If, as the result of a stock split, stock dividend, combination of shares or any other change, including an exchange of
        securities for any reason, the Employee shall be entitled to new or additional or different shares of stock or securities, such stock or
        securities shall be subject to the terms and conditions of the Plan and this Agreement.

         3.       Limitation. The Employee shall have no rights with respect to any shares of Restricted Stock not expressly conferred by
the Plan or this Agreement.

        4.         Miscellaneous. All capitalized terms contained in this Agreement shall have the definitions set forth in the Plan unless
otherwise defined herein. This Agreement shall be binding upon the parties hereto and their respective beneficiaries, heirs, administrators,
executors, legal representatives, and successors.

        EFFECTIVE as of the 21st day of October, 2004.

                                                               VALERO ENERGY CORPORATION

                                                                /s/ Mike Crownover______________________
                                                               Mike Crownover
                                                               Director-Human Resources

                                                                 /s/ Gregory C. King_______________________
                                                               Gregory C. King
                                                               Employee
EXHIBIT 10.04

                       SCHEDULE OF RESTRICTED STOCK AGREEMENTS
                                   dated October 21, 2004

The following have executed Restricted Stock Agreements substantially in the form of the agreement
attached as Exhibit 10.03 (the “Exhibit”) to the Valero Energy Corporation Form 10-Q for the quarter
ended September 30, 2004.

Keith D. Booke
Michael S. Ciskowski
William R. Klesse

The following information sets forth the material details in which the Restricted Stock Agreements
described in this Schedule differ from the Exhibit.

        Named Executive Officer                         Number of Shares of Restricted Stock
        Keith D. Booke                                           9,000
        Michael S. Ciskowski                                     9,000
        William R. Klesse                                       14,000
Exhibit 10.05

                               RESTRICTED UNIT AGREEMENT

This Restricted Unit Agreement (the “Agreement”) dated October 21, 2004 is by and between
Valero Energy Corporation, a Delaware corporation (“Valero”), and William E. Greehey, Chief
Executive Officer of Valero (“Greehey”).

1.     Grant of Restricted Units. Valero hereby grants to Greehey 138,350 “Restricted Units”
       representing the right to receive certain cash payments from Valero on the Vesting Dates set
       forth below. The amount of cash payable to Greehey on each Vesting Date will be equal to
       the product of: (a) the number of Restricted Units vesting on that date, multiplied by (b) the
       fair market value on that date of one share of Valero common stock, $.01 par value
       (“Common Stock”). For purposes of this Agreement, “fair market value” means the average
       of the “high” and “low” reported sales price per share of Common Stock as reported on the
       New York Stock Exchange as of the relevant measuring date, or if there are no sales on the
       NYSE on that measuring date, then as of the next following day on which there were sales.

2.     Dividend Rights. In addition to the right to receive cash on each Vesting Date as described
       in Section 1 above, Greehey will be entitled to receive periodic cash payments in relation to
       dividends that are paid on Valero’s common stock (the “Dividend Rights”). For purposes of
       the settlement of Greehey’s Dividend Rights under this Agreement, Greehey will be deemed
       to be a holder of one share of Valero Common Stock for each unvested Restricted Unit held
       by Greehey. As and when dividends are declared on Valero’s Common Stock, in settlement
       of the Dividend Rights granted hereunder Greehey will be entitled to receive a cash
       payment equal to the product of: (a) the declared dividend per share on Valero’s Common
       Stock, multiplied by (b) the number of unvested Restricted Units held by Greehey on the
       dividend record date.

3.     Vesting. The Restricted Units will vest in the following increments on the following dates:
       46,117 on October 21, 2005; 46,117 on October 21, 2006; and 46,116 on October 21, 2007
       (each a “Vesting Date”).

4.     Termination of Employment. If Greehey’s employment with Valero is terminated by
       Greehey (whether through retirement, death, disability or otherwise), or is terminated by
       Valero without “cause” (as defined per the Employment Agreement then in effect between
       Valero and Greehey, or if none, then the Employment Agreement presently in effect on the
       date hereof, as amended) (hereafter, as applicable, the “Employment Agreement”), then any
       Restricted Units that have not vested as of the date of termination of Greehey’s employment
       shall not be forfeited and shall continue to vest in accordance with the vesting schedule set
       forth in Section 3 above. If, however, Greehey’s employment is terminated by Valero for
       “cause” (as defined per the Employment Agreement), then those Restricted Units that have
       not yet vested on the date of termination of Greehey’s employment shall be forfeited as of
       that date and Greehey shall not be entitled to Dividend Rights or any other payments with
       respect thereto.
5.   Withholding. Valero is hereby authorized to withhold from any settlement of the Restricted
     Units or Dividend Rights the amount of any applicable withholding taxes with respect to
     such settlement, and to take any other action necessary to satisfy all obligations for the
     payment of the taxes.

6.   Reorganization Event. In the event of any stock dividend, rights distribution, split-up,
     recapitalization, share exchange, merger, consolidation, stock acquisition, spin-off,
     separation, reorganization, liquidation or other similar event (any one of which being
     hereafter referred to as a “Reorganization Event”), as a result of which (i) shares or other
     securities of any class or rights shall be issued in respect of outstanding shares of Common
     Stock, or (ii) shares of Common Stock shall be changed into the same or a different number
     of shares of the same or another class or classes or other securities, then the Restricted Units
     granted under this Agreement shall be affected as follows. Upon the closing of the
     Reorganization Event, each unvested Restricted Unit shall be treated as one share of
     Common Stock for purposes of determining the number of unvested Restricted Units owned
     by Greehey immediately following the Reorganization Event.

7.   Change of Control. Defined. A “Change of Control” shall be deemed to occur when:

     (a)     the stockholders of Valero approve any agreement or transaction pursuant to which:
              (i) Valero will merge or consolidate with any other entity (other than a wholly
             owned subsidiary of Valero) and will not be the surviving entity (or in which Valero
             survives only as the subsidiary of another entity); (ii) Valero will sell all or
             substantially all of its assets to any other person or entity (other than a wholly
             owned subsidiary of Valero); or (iii) Valero will be liquidated or dissolved;

     (b)     any quot;personquot; or quot;groupquot; (as these terms are used in Section 13(d) and 14(d) of the
             Securities Exchange Act of 1934) other than Valero, any subsidiary of Valero, any
             employee benefit plan of Valero or its subsidiaries, or any entity holding shares of
             Common Stock for or pursuant to the terms of such employee benefit plans, is or
             becomes an quot;Acquiring Personquot; as defined in the Rights Agreement dated June 18,
             1997 between Valero and Computershare Investor Services, L.L.C., as successor
             Rights Agent to Harris Trust and Savings Bank, as amended (or any successor Rights
             Agreement), or, if no Rights Agreement is then in effect, such person or group
             acquires or holds such number of shares as, under the terms and conditions of the
             most recent such Rights Agreement to be in force and effect, would have caused
             such person or group to be an quot;Acquiring Personquot; thereunder;

     (c)     any quot;personquot; or quot;groupquot; shall commence a tender offer or exchange offer for 15% or
             more of the shares of Common Stock then outstanding, or for any number or amount
             of shares of Common Stock which, if the tender or exchange offer were to be fully
             subscribed and all shares of Common Stock for which the tender or exchange offer is
             made were to be purchased or exchanged pursuant to the offer, would result in the
             acquiring person or group directly or indirectly beneficially owning 50% or more of
             the shares of Common Stock then outstanding;
(d)     individuals who, as of any date, constitute Valero’s Board of Directors (the
              quot;Incumbent Boardquot;) thereafter cease for any reason to constitute at least a majority of
              the Board of Directors; provided, however, that any individual becoming a director
              whose election, or nomination for election by Valero's stockholders, was approved
              by a vote of at least a majority of the directors then comprising the Incumbent Board
              shall be considered as though such individual were a member of the Incumbent
              Board, but excluding, for this purpose, any such individual whose initial assumption
              of office occurs as a result of an actual or threatened election contest with respect to
              the election or removal of directors or other actual or threatened solicitation of
              proxies or consents by or on behalf of a person or group other than the Board of
              Directors;

      (e)     the occurrence of the Distribution Date (as defined in the Rights Agreement dated
              June 18, 1997 between Valero and Computershare Investor Services, L.L.C., as
              successor Rights Agent to Harris Trust and Savings Bank, as amended); or

      (f)     any other event determined by Valero’s Board of Directors or the Compensation
              Committee thereof to constitute a quot;Change of Controlquot; hereunder.

8.    Actions of Compensation Committee. The Compensation Committee, as constituted before
      a Change of Control, is hereby authorized, and has sole discretion to take any one or more of
      the following actions, whether in connection with a Change of Control or otherwise:

      (a)     provide for the acceleration of any vesting periods relating to the Restricted Units to
              a date or dates determined by the Compensation Committee;

      (b)     adjust any unvested Restricted Units as the Compensation Committee deems
              appropriate to reflect a Change of Control; or

      (c)     cause any unvested Restricted Units to be assumed, or new rights substituted
              therefor, by the acquiring or surviving corporation after a Change of Control. The
              Compensation Committee may in its discretion include other provisions and
              limitations in any amended Restricted Unit Agreement as it may deem equitable and
              in the best interests of Valero.

9.    Rights as Stockholder. Except for the Dividend Rights described above, neither Greehey
      nor any person claiming by, through or under Greehey with respect to the Restricted Units
      shall have any rights as a stockholder of Valero (including, without limitation, voting rights).

10.   Assignment.
      (a)   This Agreement and Greehey’s interest in the Restricted Units and Dividend Rights
            granted by this Agreement are of a personal nature, and, except as expressly
            provided below, Greehey’s rights with respect thereto may not be sold, mortgaged,
            pledged, assigned, transferred, conveyed or disposed of in any manner by Greehey.
            Any such attempted sale, mortgage, pledge, assignment, transfer, conveyance or
            disposition shall be void, and Valero shall not be bound thereby.
(b)     Cash payments upon settlement of the Restricted Units and Dividend Rights may be
              made only to Greehey, during his lifetime, or to his beneficiary(ies) after his death.
              After Greehey’s death, any cash settlements with respect to Restricted Units or
              Dividend Rights will be made to Greehey’s beneficiary(ies) as designated under
              Greehey’s Valero Energy Corporation Beneficiary Designation Form, or if there is no such
              designation, to the beneficiary(ies) designated in Greehey’s last will and testament.

11.   Successors. This Agreement shall be binding upon any successors of Valero and upon the
      beneficiaries, legatees, heirs, administrators, executors and legal representatives of Greehey.

12.   No Trust Fund. This Agreement shall not create or be construed to create a trust or separate
      fund of any kind or any fiduciary relationship between Valero and Greehey or any other
      person with respect to the Restricted Units and Dividend Rights. To the extent that any
      person acquires a right to receive payments from Valero under this Agreement, such right
      shall be no greater than the right of any unsecured general creditor of Valero.

13.   Governing Law. The validity, construction, and effect of this Agreement shall be
      determined in accordance with the laws of the State of Texas.



                                              VALERO ENERGY CORPORATION

                                              By: /s/ Keith D. Booke
                                                 Keith D. Booke
                                                 Executive Vice President and
                                                 Chief Administrative Officer



                                                 /s/ William E. Greehey
                                              WILLIAM E. GREEHEY
Exhibit 12.01

              VALERO ENERGY CORPORATION AND SUBSIDIARIES
  STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES
 AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
                              (Millions of Dollars)

                                                              Nine Months
                                                                 Ended                       Year Ended December 31,
                                                             September 30,
                                                                  2004           2003      2002         2001      2000          1999
Ratio of Earnings to Fixed Charges:
Earnings:
Income from continuing operations
  before income tax expense,
  minority interest in net income of
  Valero L.P., distributions on preferred
  securities of subsidiary trusts and
  income from equity investees ...............                $ 1,977.1      $ 980.8      $ 191.5    $ 913.0     $ 530.4      $ 17.9
Add:
  Fixed charges ........................................         301.4           395.5     408.9        143.2     114.6         80.2
  Amortization of capitalized interest ......                      5.2             6.2       5.7          5.3       5.1          5.2
  Distributions from equity investees ......                      31.7            26.5       4.8          2.8       9.2          4.0
Less:
  Interest capitalized ................................           (27.0)         (26.3)     (16.2)      (10.6)      (7.4)        (5.8)
  Distributions on preferred securities
     of subsidiary trusts ............................                -          (16.8)     (30.0)      (13.4)      (6.8)           -
  Minority interest in net income of
     Valero L.P.........................................              -           (2.4)     (14.1)           -         -            -
Total earnings ...........................................    $ 2,288.4      $ 1,363.5    $ 550.6    $ 1,040.3   $ 645.1      $ 101.5

Fixed charges:
  Interest expense, net..............................          $ 195.6        $ 261.3     $ 285.7     $ 88.5     $ 76.3        $ 55.4
  Interest capitalized ................................           27.0           26.3        16.2       10.6        7.4           5.8
  Rental expense interest factor (1)..........                    78.8           91.1        77.0       30.7       24.1          19.0
  Distributions on preferred securities
     of subsidiary trusts ............................               -           16.8        30.0        13.4        6.8            -
Total fixed charges ...................................        $ 301.4        $ 395.5     $ 408.9     $ 143.2    $ 114.6       $ 80.2

Ratio of earnings to fixed charges.............                     7.6x           3.4x       1.3x        7.3x         5.6x       1.3x

Ratio of Earnings to Fixed Charges
  and Preferred Stock Dividends:
Total earnings ...........................................    $ 2,288.4      $ 1,363.5    $ 550.6    $ 1,040.3   $ 645.1      $ 101.5

Total fixed charges ...................................        $ 301.4        $ 395.5     $ 408.9     $ 143.2    $ 114.6       $ 80.2
Preferred stock dividends..........................               14.4            6.8           -            -         -            -
Total fixed charges and
  preferred stock dividends......................              $ 315.8        $ 402.3     $ 408.9     $ 143.2    $ 114.6       $ 80.2

Ratio of earnings to fixed charges
  and preferred stock dividends ...............                     7.2x           3.4x       1.3x        7.3x         5.6x       1.3x

(1) The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of
    rental expense.




                                                                             1
Exhibit 31.01

                             CERTIFICATION PURSUANT TO SECTION 302
                               OF THE SARBANES-OXLEY ACT OF 2002

         I, William E. Greehey, the principal executive officer of Valero Energy Corporation, certify that:

         1.       I have reviewed this quarterly report on Form 10-Q of Valero Energy Corporation;

         2.       Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;

         3.         Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this report;

         4.       The registrant's other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
and have:

                  (a)       Designed such disclosure controls and procedures, or caused such disclosure controls and
         procedures to be designed under our supervision, to ensure that material information relating to the
         registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
         particularly during the period in which this report is being prepared;

                  (b)       Evaluated the effectiveness of the registrant's disclosure controls and procedures and
         presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as
         of the end of the period covered by this report based on such evaluation; and

                  (c)        Disclosed in this report any change in the registrant's internal control over financial
         reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter
         in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the
         registrant's internal control over financial reporting; and

         5.       The registrant's other certifying officer and I have disclosed, based on our most recent evaluation
of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent functions):

                  (a)       All significant deficiencies and material weaknesses in the design or operation of internal
         control over financial reporting which are reasonably likely to adversely affect the registrant's ability to
         record, process, summarize and report financial information; and

                  (b)       Any fraud, whether or not material, that involves management or other employees who
         have a significant role in the registrant's internal control over financial reporting.

Date: November 8, 2004


         /s/ William E. Greehey
         William E. Greehey
         Chief Executive Officer
CERTIFICATION PURSUANT TO SECTION 302
                               OF THE SARBANES-OXLEY ACT OF 2002

         I, Michael S. Ciskowski, the principal financial officer of Valero Energy Corporation, certify that:

         1.       I have reviewed this quarterly report on Form 10-Q of Valero Energy Corporation;

         2.       Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;

         3.         Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this report;

         4.       The registrant's other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
and have:

                  (a)       Designed such disclosure controls and procedures, or caused such disclosure controls and
         procedures to be designed under our supervision, to ensure that material information relating to the
         registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
         particularly during the period in which this report is being prepared;

                  (b)       Evaluated the effectiveness of the registrant's disclosure controls and procedures and
         presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as
         of the end of the period covered by this report based on such evaluation; and

                  (c)        Disclosed in this report any change in the registrant's internal control over financial
         reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter
         in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the
         registrant's internal control over financial reporting; and

         5.       The registrant's other certifying officer and I have disclosed, based on our most recent evaluation
of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent functions):

                  (a)       All significant deficiencies and material weaknesses in the design or operation of internal
         control over financial reporting which are reasonably likely to adversely affect the registrant's ability to
         record, process, summarize and report financial information; and

                  (b)       Any fraud, whether or not material, that involves management or other employees who
         have a significant role in the registrant's internal control over financial reporting.

Date: November 8, 2004


         /s/ Michael S. Ciskowski
         Michael S. Ciskowski
         Executive Vice President and Chief Financial Officer
Exhibit 32.01

                                CERTIFICATION PURSUANT TO
                                    18 U.S.C. SECTION 1350,
                                  AS ADOPTED PURSUANT TO
                       SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of Valero Energy Corporation (the Company) on Form 10-Q for
the quarter ending September 30, 2004, as filed with the Securities and Exchange Commission on the date
hereof (the Report), I, William E. Greehey, Chief Executive Officer of the Company, hereby certify,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, that:

        1.       The Report fully complies with the requirements of Section 13(a) or 15(d) of the
                 Securities Exchange Act of 1934; and

        2.       The information contained in the Report fairly presents, in all material respects, the
                 financial condition and results of operations of the Company.



/s/ William E. Greehey
William E. Greehey
Chief Executive Officer
November 8, 2004




A signed original of the written statement required by Section 906 has been provided to Valero Energy Corporation
and will be retained by Valero Energy Corporation and furnished to the Securities and Exchange Commission or its
staff upon request.
CERTIFICATION PURSUANT TO
                                    18 U.S.C. SECTION 1350,
                                  AS ADOPTED PURSUANT TO
                       SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of Valero Energy Corporation (the Company) on Form 10-Q for
the quarter ending September 30, 2004, as filed with the Securities and Exchange Commission on the date
hereof (the Report), I, Michael S. Ciskowski, Executive Vice President and Chief Financial Officer of the
Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:

1.      The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities
        Exchange Act of 1934; and

2.      The information contained in the Report fairly presents, in all material respects, the financial
        condition and results of operations of the Company.



/s/ Michael S. Ciskowski
Michael S. Ciskowski
Executive Vice President and Chief Financial Officer
November 8, 2004




A signed original of the written statement required by Section 906 has been provided to Valero Energy Corporation
and will be retained by Valero Energy Corporation and furnished to the Securities and Exchange Commission or its
staff upon request.

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valero energy Quarterly and Other SEC Reports 2004 3rd

  • 1. Exhibit 3.04 SECOND CERTIFICATE OF AMENDMENT to the RESTATED CERTIFICATE OF INCORPORATION of VALERO ENERGY CORPORATION Valero Energy Corporation (the quot;Corporationquot;), a corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware (the quot;DGCLquot;), hereby adopts this Certificate of Amendment (this quot;Certificate of Amendmentquot;), which amends its Restated Certificate of Incorporation, as amended by the Certificate of Designation filed July 31, 1997, the Certificate of Amendment filed July 31, 1997, the Certificate of Merger filed December 31, 2001 and the Certificate of Designation filed June 30, 2003 (as amended, the quot;Restated Certificate of Incorporationquot;), as described below, and does hereby further certify that: 1. The name of the Corporation is Valero Energy Corporation. 2. At a meeting of the Board of Directors of the Corporation resolutions were duly adopted setting forth a proposed amendment of the Restated Certificate of Incorporation (the quot;Amendmentquot;), declaring the Amendment to be advisable and calling a meeting of the stockholders of the Corporation for consideration thereof. The resolution setting forth the Amendment is as follows: NOW THEREFORE, BE IT RESOLVED, that the Board of Directors adopts and approves amending and restating the first paragraph of Article IV of the Restated Certificate of Incorporation of the Company to read in its entirety as follows (the quot;Charter Amendmentquot;): quot;The total number of shares of all classes of stock that the corporation shall have authority to issue is 620,000,000 shares, divided into classes as follows: 600,000,000 shares shall be Common Stock, par value $0.01 per share (quot;Common Stockquot;); and 20,000,000 shares shall be Preferred Stock, par value $0.01 per share (quot;Preferred Stockquot;). Shares of any class of stock of the corporation may be issued for such consideration and for such corporate purposes as the Board of Directors of the corporation may from time to time determine.quot;
  • 2. 3. Pursuant to resolutions of its Board of Directors, a special meeting of the stockholders of the Corporation was duly called and held, upon notice in accordance with Section 222 of the DGCL, at which meeting the necessary number of shares as required by statute and the Restated Certificate of Incorporation were voted in favor of the Amendment. 4. The Amendment was duly adopted in accordance with the provisions of Section 242 of the DGCL. 5. Pursuant to Section 103(d) of the DGCL, the Amendment will become effective upon its filing with the Secretary of State of the State of Delaware. IN WITNESS WHEREOF, the Corporation has caused this certificate to be executed on its behalf this 17th day of September, 2004. VALERO ENERGY CORPORATION By: /s/ Jay D. Browning Jay D. Browning Vice President & Secretary
  • 3. Exhibit 10.01 Valero Energy Corporation Notice of Grant of Stock Option ID: 74-1828067 and Option Agreement P.O. Box 696000 San Antonio, TX 78269-6000 Gregory C. King Effective October 21, 2004, you have been granted an option to buy 38,000 shares of the common stock of Valero Energy Corporation (the “Company”) at $42.71 per share. Your Options will vest on the dates shown below. Shares Grant Date Full Vest Expiration 7,600 10/21/04 10/21/05 10/21/14 7,600 10/21/04 10/21/06 10/21/14 7,600 10/21/04 10/21/07 10/21/14 7,600 10/21/04 10/21/08 10/21/14 7,600 10/21/04 10/21/09 10/21/14 By your signature and the Company's signature below, you and the Company agree that the Option referenced above is granted under and governed by the terms and conditions of the Company's 2001 Executive Stock Incentive Plan and the Option Agreement attached hereto, all of which are made a part of this agreement. VALERO ENERGY CORPORATION By: /s/ Mike Crownover Oct. 21, 2004 Mike Crownover Date Director - Human Resources /s/ Gregory C. King Oct. 21, 2004 Date Gregory C. King Employee
  • 4. OPTION AGREEMENT Valero Energy Corporation 2001 Executive Stock Incentive Plan This Option Agreement (“Agreement”) is entered into between Valero Energy Corporation, a Delaware corporation (“Valero”), and Employee pursuant to the terms of the Valero Energy Corporation 2001 Executive Stock Incentive Plan (“Plan”). As used herein, Employee means Gregory C. King. Capitalized terms used in this Agreement but not otherwise defined in this Agreement have the meanings set forth in the Plan. 1. Grant of Option. Valero grants to Employee the option (“Option”) to purchase up to 38,000 shares of Common Stock of Valero, $.01 par value per share (“Shares”), in accordance with the terms of this Agreement and the Plan. The Shares, when issued to Employee upon the exercise of the Option, will be fully paid and non-assessable. 2. Purchase Price. The purchase price of the Shares will be $42.71 per Share. 3. Exercise of Option. The period during which the Option is in effect (“Option Period”) will commence on October 21, 2004. The Option Period will terminate on October 21, 2014 No portion of the Option may be exercised prior to October 21, 2005. Subject to the provisions of the Plan relating to suspension or termination from the Plan, the Option will be available for exercise in the following increments: 7,600 shares on 10/21/05; 7,600 shares on 10/21/06; 7,600 shares on 10/21/07; 7,600 shares on 10/21/08; and 7,600 shares on 10/21/09. If the Employee desires to exercise the Option, Employee must deliver written notice to Stock Plan Administration of Valero substantially in the form of the attached Form A (“Exercise Notice”). The Option must be exercised in accordance with one of the methods for exercise set forth in the attached form of Exercise Notice. The date on which the Exercise Notice is received by Valero will be the “Exercise Date.” The completed Exercise Notice must include the number of Shares with respect to which the Option is being exercised. Payment for the Shares will be made at Valero’s San Antonio offices. If any law or regulation requires Valero to take any action with respect to the Shares specified in the Exercise Notice, then the date of delivery of the Shares against payment will be extended for the period necessary to take such action. In the event of any failure by Employee to pay for the number of Shares specified in the Exercise Notice on the Settlement Date, as the same may be extended as provided above, the exercise of the Option with respect to such number of Shares will be treated as if it had never been made. 4. Plan Incorporated by Reference. The Plan is incorporated herein, and by this reference, is made a part hereof for all purposes. 5. Limitation of Rights of Employee. Employee will have no rights with respect to any Shares not expressly conferred by the Plan or this Agreement. 6. No Assignment. This Agreement and the Option granted hereunder are of a personal nature and Employee’s rights with respect hereto and thereto may not be sold, mortgaged, pledged, assigned, transferred, conveyed or disposed of in any manner by Employee, and may not be exercised by any person, other than Employee, except as expressly permitted under the Plan. Any such attempted sale, mortgage, pledge, assignment, transfer, conveyance, disposition or exercise will be void, and Valero will not be bound thereby. 7. Successors. This Agreement is binding upon any successors of Valero and the heirs, successors and legal representatives of Employee. 8. Direct Registration. Employee agrees that in lieu of stock certificates, any Shares issuable in connection with the exercise of the Options may be issued in uncertificated form pursuant to the Direct Registration Service of Valero’s stock transfer agent.
  • 5. EXHIBIT 10.02 SCHEDULE OF STOCK OPTION AGREEMENTS dated October 21, 2004 The following have executed Stock Option Agreements substantially in the form of the agreement attached as Exhibit 10.01 (the “Exhibit”) to the Valero Energy Corporation Form 10-Q for the quarter ended September 30, 2004. Keith D. Booke Michael S. Ciskowski William R. Klesse The following information sets forth the material details in which the Stock Option Agreements described in this Schedule differ from the Exhibit. Named Executive Officer Number of Options Keith D. Booke 23,000 Michael S. Ciskowski 23,000 William R. Klesse 34,000
  • 6. Exhibit 10.03 RESTRICTED STOCK AGREEMENT Valero Energy Corporation 2001 Executive Stock Incentive Plan This Restricted Stock Agreement (“Agreement”) is between Valero Energy Corporation, a Delaware corporation (“Valero”), and Gregory C. King, an employee of Valero Energy Corporation or one of its Affiliates (“Employee”), who agree as follows: 1. Introduction. Pursuant to the Valero Energy Corporation 2001 Executive Stock Incentive Plan (the “Plan”), on October 21, 2004, Employee was awarded 15,000 shares of Common Stock of Valero (“Restricted Stock”) under the Plan to Employee as “Restricted Stock” (as defined in the Plan). The parties hereby enter into this Agreement to evidence the terms, conditions and restrictions applicable to the Restricted Stock. 2. The Plan, Restrictions, Vesting. The Plan is incorporated herein by reference for all purposes, and Employee hereby agrees to the terms and conditions stated therein applicable to the Restricted Stock and the rights and powers of Valero and the Compensation Committee as provided therein. In addition, Employee agrees as follows: 2.01 Except to the extent otherwise provided in the Plan or this Agreement, shares of Restricted Stock issued to Employee under the Plan may not be sold, exchanged, pledged, hypothecated, transferred, garnished or otherwise disposed of or alienated prior to vesting. 2.02 Employee's rights to and interest in the shares of Restricted Stock described herein shall vest and accrue to Employee in the following increments: 3,000 shares on 10/21/05; 3,000 shares on 10/21/06; 3,000 shares on 10/21/07; 3,000 shares on 10/21/08; and 3,000 shares on 10/21/09. The restrictions described in Section 2 of this Agreement shall terminate prior to the expiration of such five-year period (i) upon the retirement, death or total and permanent disability of Employee, or (ii) if a Change of Control with respect to Valero should occur, as set forth in Section 8 of the Plan. In the event Employee's employment with Valero is terminated, the provisions set forth in Section 6(h)(vii) of the Plan shall apply. 2.03 Employee agrees that in lieu of certificates representing Employee's shares of Restricted Stock, the Restricted Stock and any Shares issuable in connection with their vesting may be issued in uncertificated form pursuant to the Direct Registration Service of Valero’s stock transfer agent. 2.04 If, as the result of a stock split, stock dividend, combination of shares or any other change, including an exchange of securities for any reason, the Employee shall be entitled to new or additional or different shares of stock or securities, such stock or securities shall be subject to the terms and conditions of the Plan and this Agreement. 3. Limitation. The Employee shall have no rights with respect to any shares of Restricted Stock not expressly conferred by the Plan or this Agreement. 4. Miscellaneous. All capitalized terms contained in this Agreement shall have the definitions set forth in the Plan unless otherwise defined herein. This Agreement shall be binding upon the parties hereto and their respective beneficiaries, heirs, administrators, executors, legal representatives, and successors. EFFECTIVE as of the 21st day of October, 2004. VALERO ENERGY CORPORATION /s/ Mike Crownover______________________ Mike Crownover Director-Human Resources /s/ Gregory C. King_______________________ Gregory C. King Employee
  • 7. EXHIBIT 10.04 SCHEDULE OF RESTRICTED STOCK AGREEMENTS dated October 21, 2004 The following have executed Restricted Stock Agreements substantially in the form of the agreement attached as Exhibit 10.03 (the “Exhibit”) to the Valero Energy Corporation Form 10-Q for the quarter ended September 30, 2004. Keith D. Booke Michael S. Ciskowski William R. Klesse The following information sets forth the material details in which the Restricted Stock Agreements described in this Schedule differ from the Exhibit. Named Executive Officer Number of Shares of Restricted Stock Keith D. Booke 9,000 Michael S. Ciskowski 9,000 William R. Klesse 14,000
  • 8. Exhibit 10.05 RESTRICTED UNIT AGREEMENT This Restricted Unit Agreement (the “Agreement”) dated October 21, 2004 is by and between Valero Energy Corporation, a Delaware corporation (“Valero”), and William E. Greehey, Chief Executive Officer of Valero (“Greehey”). 1. Grant of Restricted Units. Valero hereby grants to Greehey 138,350 “Restricted Units” representing the right to receive certain cash payments from Valero on the Vesting Dates set forth below. The amount of cash payable to Greehey on each Vesting Date will be equal to the product of: (a) the number of Restricted Units vesting on that date, multiplied by (b) the fair market value on that date of one share of Valero common stock, $.01 par value (“Common Stock”). For purposes of this Agreement, “fair market value” means the average of the “high” and “low” reported sales price per share of Common Stock as reported on the New York Stock Exchange as of the relevant measuring date, or if there are no sales on the NYSE on that measuring date, then as of the next following day on which there were sales. 2. Dividend Rights. In addition to the right to receive cash on each Vesting Date as described in Section 1 above, Greehey will be entitled to receive periodic cash payments in relation to dividends that are paid on Valero’s common stock (the “Dividend Rights”). For purposes of the settlement of Greehey’s Dividend Rights under this Agreement, Greehey will be deemed to be a holder of one share of Valero Common Stock for each unvested Restricted Unit held by Greehey. As and when dividends are declared on Valero’s Common Stock, in settlement of the Dividend Rights granted hereunder Greehey will be entitled to receive a cash payment equal to the product of: (a) the declared dividend per share on Valero’s Common Stock, multiplied by (b) the number of unvested Restricted Units held by Greehey on the dividend record date. 3. Vesting. The Restricted Units will vest in the following increments on the following dates: 46,117 on October 21, 2005; 46,117 on October 21, 2006; and 46,116 on October 21, 2007 (each a “Vesting Date”). 4. Termination of Employment. If Greehey’s employment with Valero is terminated by Greehey (whether through retirement, death, disability or otherwise), or is terminated by Valero without “cause” (as defined per the Employment Agreement then in effect between Valero and Greehey, or if none, then the Employment Agreement presently in effect on the date hereof, as amended) (hereafter, as applicable, the “Employment Agreement”), then any Restricted Units that have not vested as of the date of termination of Greehey’s employment shall not be forfeited and shall continue to vest in accordance with the vesting schedule set forth in Section 3 above. If, however, Greehey’s employment is terminated by Valero for “cause” (as defined per the Employment Agreement), then those Restricted Units that have not yet vested on the date of termination of Greehey’s employment shall be forfeited as of that date and Greehey shall not be entitled to Dividend Rights or any other payments with respect thereto.
  • 9. 5. Withholding. Valero is hereby authorized to withhold from any settlement of the Restricted Units or Dividend Rights the amount of any applicable withholding taxes with respect to such settlement, and to take any other action necessary to satisfy all obligations for the payment of the taxes. 6. Reorganization Event. In the event of any stock dividend, rights distribution, split-up, recapitalization, share exchange, merger, consolidation, stock acquisition, spin-off, separation, reorganization, liquidation or other similar event (any one of which being hereafter referred to as a “Reorganization Event”), as a result of which (i) shares or other securities of any class or rights shall be issued in respect of outstanding shares of Common Stock, or (ii) shares of Common Stock shall be changed into the same or a different number of shares of the same or another class or classes or other securities, then the Restricted Units granted under this Agreement shall be affected as follows. Upon the closing of the Reorganization Event, each unvested Restricted Unit shall be treated as one share of Common Stock for purposes of determining the number of unvested Restricted Units owned by Greehey immediately following the Reorganization Event. 7. Change of Control. Defined. A “Change of Control” shall be deemed to occur when: (a) the stockholders of Valero approve any agreement or transaction pursuant to which: (i) Valero will merge or consolidate with any other entity (other than a wholly owned subsidiary of Valero) and will not be the surviving entity (or in which Valero survives only as the subsidiary of another entity); (ii) Valero will sell all or substantially all of its assets to any other person or entity (other than a wholly owned subsidiary of Valero); or (iii) Valero will be liquidated or dissolved; (b) any quot;personquot; or quot;groupquot; (as these terms are used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934) other than Valero, any subsidiary of Valero, any employee benefit plan of Valero or its subsidiaries, or any entity holding shares of Common Stock for or pursuant to the terms of such employee benefit plans, is or becomes an quot;Acquiring Personquot; as defined in the Rights Agreement dated June 18, 1997 between Valero and Computershare Investor Services, L.L.C., as successor Rights Agent to Harris Trust and Savings Bank, as amended (or any successor Rights Agreement), or, if no Rights Agreement is then in effect, such person or group acquires or holds such number of shares as, under the terms and conditions of the most recent such Rights Agreement to be in force and effect, would have caused such person or group to be an quot;Acquiring Personquot; thereunder; (c) any quot;personquot; or quot;groupquot; shall commence a tender offer or exchange offer for 15% or more of the shares of Common Stock then outstanding, or for any number or amount of shares of Common Stock which, if the tender or exchange offer were to be fully subscribed and all shares of Common Stock for which the tender or exchange offer is made were to be purchased or exchanged pursuant to the offer, would result in the acquiring person or group directly or indirectly beneficially owning 50% or more of the shares of Common Stock then outstanding;
  • 10. (d) individuals who, as of any date, constitute Valero’s Board of Directors (the quot;Incumbent Boardquot;) thereafter cease for any reason to constitute at least a majority of the Board of Directors; provided, however, that any individual becoming a director whose election, or nomination for election by Valero's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person or group other than the Board of Directors; (e) the occurrence of the Distribution Date (as defined in the Rights Agreement dated June 18, 1997 between Valero and Computershare Investor Services, L.L.C., as successor Rights Agent to Harris Trust and Savings Bank, as amended); or (f) any other event determined by Valero’s Board of Directors or the Compensation Committee thereof to constitute a quot;Change of Controlquot; hereunder. 8. Actions of Compensation Committee. The Compensation Committee, as constituted before a Change of Control, is hereby authorized, and has sole discretion to take any one or more of the following actions, whether in connection with a Change of Control or otherwise: (a) provide for the acceleration of any vesting periods relating to the Restricted Units to a date or dates determined by the Compensation Committee; (b) adjust any unvested Restricted Units as the Compensation Committee deems appropriate to reflect a Change of Control; or (c) cause any unvested Restricted Units to be assumed, or new rights substituted therefor, by the acquiring or surviving corporation after a Change of Control. The Compensation Committee may in its discretion include other provisions and limitations in any amended Restricted Unit Agreement as it may deem equitable and in the best interests of Valero. 9. Rights as Stockholder. Except for the Dividend Rights described above, neither Greehey nor any person claiming by, through or under Greehey with respect to the Restricted Units shall have any rights as a stockholder of Valero (including, without limitation, voting rights). 10. Assignment. (a) This Agreement and Greehey’s interest in the Restricted Units and Dividend Rights granted by this Agreement are of a personal nature, and, except as expressly provided below, Greehey’s rights with respect thereto may not be sold, mortgaged, pledged, assigned, transferred, conveyed or disposed of in any manner by Greehey. Any such attempted sale, mortgage, pledge, assignment, transfer, conveyance or disposition shall be void, and Valero shall not be bound thereby.
  • 11. (b) Cash payments upon settlement of the Restricted Units and Dividend Rights may be made only to Greehey, during his lifetime, or to his beneficiary(ies) after his death. After Greehey’s death, any cash settlements with respect to Restricted Units or Dividend Rights will be made to Greehey’s beneficiary(ies) as designated under Greehey’s Valero Energy Corporation Beneficiary Designation Form, or if there is no such designation, to the beneficiary(ies) designated in Greehey’s last will and testament. 11. Successors. This Agreement shall be binding upon any successors of Valero and upon the beneficiaries, legatees, heirs, administrators, executors and legal representatives of Greehey. 12. No Trust Fund. This Agreement shall not create or be construed to create a trust or separate fund of any kind or any fiduciary relationship between Valero and Greehey or any other person with respect to the Restricted Units and Dividend Rights. To the extent that any person acquires a right to receive payments from Valero under this Agreement, such right shall be no greater than the right of any unsecured general creditor of Valero. 13. Governing Law. The validity, construction, and effect of this Agreement shall be determined in accordance with the laws of the State of Texas. VALERO ENERGY CORPORATION By: /s/ Keith D. Booke Keith D. Booke Executive Vice President and Chief Administrative Officer /s/ William E. Greehey WILLIAM E. GREEHEY
  • 12. Exhibit 12.01 VALERO ENERGY CORPORATION AND SUBSIDIARIES STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Millions of Dollars) Nine Months Ended Year Ended December 31, September 30, 2004 2003 2002 2001 2000 1999 Ratio of Earnings to Fixed Charges: Earnings: Income from continuing operations before income tax expense, minority interest in net income of Valero L.P., distributions on preferred securities of subsidiary trusts and income from equity investees ............... $ 1,977.1 $ 980.8 $ 191.5 $ 913.0 $ 530.4 $ 17.9 Add: Fixed charges ........................................ 301.4 395.5 408.9 143.2 114.6 80.2 Amortization of capitalized interest ...... 5.2 6.2 5.7 5.3 5.1 5.2 Distributions from equity investees ...... 31.7 26.5 4.8 2.8 9.2 4.0 Less: Interest capitalized ................................ (27.0) (26.3) (16.2) (10.6) (7.4) (5.8) Distributions on preferred securities of subsidiary trusts ............................ - (16.8) (30.0) (13.4) (6.8) - Minority interest in net income of Valero L.P......................................... - (2.4) (14.1) - - - Total earnings ........................................... $ 2,288.4 $ 1,363.5 $ 550.6 $ 1,040.3 $ 645.1 $ 101.5 Fixed charges: Interest expense, net.............................. $ 195.6 $ 261.3 $ 285.7 $ 88.5 $ 76.3 $ 55.4 Interest capitalized ................................ 27.0 26.3 16.2 10.6 7.4 5.8 Rental expense interest factor (1).......... 78.8 91.1 77.0 30.7 24.1 19.0 Distributions on preferred securities of subsidiary trusts ............................ - 16.8 30.0 13.4 6.8 - Total fixed charges ................................... $ 301.4 $ 395.5 $ 408.9 $ 143.2 $ 114.6 $ 80.2 Ratio of earnings to fixed charges............. 7.6x 3.4x 1.3x 7.3x 5.6x 1.3x Ratio of Earnings to Fixed Charges and Preferred Stock Dividends: Total earnings ........................................... $ 2,288.4 $ 1,363.5 $ 550.6 $ 1,040.3 $ 645.1 $ 101.5 Total fixed charges ................................... $ 301.4 $ 395.5 $ 408.9 $ 143.2 $ 114.6 $ 80.2 Preferred stock dividends.......................... 14.4 6.8 - - - - Total fixed charges and preferred stock dividends...................... $ 315.8 $ 402.3 $ 408.9 $ 143.2 $ 114.6 $ 80.2 Ratio of earnings to fixed charges and preferred stock dividends ............... 7.2x 3.4x 1.3x 7.3x 5.6x 1.3x (1) The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. 1
  • 13. Exhibit 31.01 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, William E. Greehey, the principal executive officer of Valero Energy Corporation, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Valero Energy Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 8, 2004 /s/ William E. Greehey William E. Greehey Chief Executive Officer
  • 14. CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Michael S. Ciskowski, the principal financial officer of Valero Energy Corporation, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Valero Energy Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: November 8, 2004 /s/ Michael S. Ciskowski Michael S. Ciskowski Executive Vice President and Chief Financial Officer
  • 15. Exhibit 32.01 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Valero Energy Corporation (the Company) on Form 10-Q for the quarter ending September 30, 2004, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, William E. Greehey, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ William E. Greehey William E. Greehey Chief Executive Officer November 8, 2004 A signed original of the written statement required by Section 906 has been provided to Valero Energy Corporation and will be retained by Valero Energy Corporation and furnished to the Securities and Exchange Commission or its staff upon request.
  • 16. CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Valero Energy Corporation (the Company) on Form 10-Q for the quarter ending September 30, 2004, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Michael S. Ciskowski, Executive Vice President and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ Michael S. Ciskowski Michael S. Ciskowski Executive Vice President and Chief Financial Officer November 8, 2004 A signed original of the written statement required by Section 906 has been provided to Valero Energy Corporation and will be retained by Valero Energy Corporation and furnished to the Securities and Exchange Commission or its staff upon request.