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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT



     Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934


       Date of Report (Date of earliest event reported): December 24, 2002

                         KANEB PIPE LINE PARTNERS, L.P.

               (Exact name of registrant as specified in charter)


       Delaware                         001-5083                 75-2287571
(State of Incorporation)          (Commission File No.)       (I.R.S. Employer
                                                             Identification No.)



                          2435 North Central Expressway
                             Richardson, Texas 75080
               (Address of Principal Executive Offices) (Zip Code)


       Registrant's telephone number, including area code: (972) 699-4062



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Item 2. Acquisition or Disposition of Assets.

     On December 24, 2002, Kaneb Pipe Line Operating Partnership, L.P. ("KPOP"),
a subsidiary of the Registrant,  acquired a 400-mile petroleum products pipeline
system in North Dakota and Minnesota from Tesoro Refining and Marketing  Company
("Tesoro"),  a subsidiary of Tesoro Petroleum  Company,  for approximately  $100
million in cash.  The  acquisition  was financed with a KPOP bridge loan, due in
December  2003,  from a group of commercial  banks  including  SunTrust Bank, as
administrative agent.

     The acquired Tesoro pipeline system originates at the Mandan,  North Dakota
Tesoro  refinery  and  serves  four of its  own  terminals  as  well as  certain
non-owned   destinations  in  North  Dakota  and  Minnesota   through   pipeline
connections.



Item 7. Financial Statements and Exhibits.

         Exhibits.


          10.1 Asset Purchase  Agreement,  dated as of November 21, 2002, by and
               between Tesoro Refining and Marketing Company and Kaneb Pipe Line
               Operating Partnership, L.P., filed herewith.

          10.2 Bridge Loan  Agreement,  dated as of December  23,  2002,  by and
               between  Kaneb  Operating  Partnership,  L.P.,  Kaneb  Pipe  Line
               Partners,  L.P., the Lenders and SunTrust Bank as  Administrative
               Agent, filed herewith.

          10.3 Subsidiary  Guaranty  Agreement,  dated as of December  23, 2002,
               among  each  of  the  Subsidiaries,  Kaneb  Pipe  Line  Operating
               Partnership, L.P. and SunTrust Bank, filed herewith.






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                                   SIGNATURES


     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                               KANEB PIPE LINE PARTNERS, L.P.

                                 By: Kaneb Pipe Line Company LLC,
                                     as General Partner


Dated January 8, 2003                    //s// Howard C. Wadsworth
                                 -----------------------------------------------
                                 Howard C. Wadsworth
                                 Vice President, Treasurer and Secretary