Blueknight Energy Partners (BKEP) 10-Q 3 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 28, 2016	Dec. 31, 2015
Entity Information [Line Items]
Series A Preferred unitholders, units outstandingutstanding	30,147,624		30,158,619
Entity Registrant Name	Blueknight Energy Partners, L.P.
Entity Central Index Key	1,392,091
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Entity Common Stock, Shares Outstanding		37,049,876
Subsequent Event [Member]
Entity Information [Line Items]
Series A Preferred unitholders, units outstandingutstanding		30,147,624

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 3,034	$ 3,038
Accounts receivable, net of allowance for doubtful accounts of $38 and $17 at December 31, 2015 and June 30, 2016, respectively	10,664	8,697
Receivables from related parties, net of allowance for doubtful accounts of $225 and $0 at December 31, 2015 and June 30, 2016, respectively	1,563	1,844
Prepaid insurance	2,685	1,397
Assets held for sale, net of accumulated depreciation of $1,442 at June 30, 2016	1,375	0
Other current assets	8,312	4,384
Total current assets	27,633	19,360
Property, plant and equipment, net of accumulated depreciation of $205,967 and $216,792 at December 31, 2015 and June 30, 2016, respectively	289,733	312,934
Investment in unconsolidated affiliate	19,859	19,078
Goodwill	4,746	4,387
Debt issuance costs, net	1,778	2,201
Intangibles and other assets, net	14,625	6,786
Total assets	358,374	364,746
Current liabilities:
Accounts payable	4,847	5,236
Accrued interest payable	199	191
Accrued property taxes payable	3,350	2,773
Unearned revenue	3,698	4,299
Unearned revenue with related parties	59	756
Accrued payroll	4,560	7,263
Other current liabilities	6,084	6,358
Total current liabilities	22,797	26,876
Unearned revenue with related parties, noncurrent	61	80
Other long-term liabilities	2,416	2,468
Interest rate swap liabilities	5,297	3,103
Long-term debt	279,000	245,000
Commitments and contingencies (Note 14)
Partners’ capital:
Series A Preferred Units (30,158,619 and 30,147,624 units issued and outstanding at December 31, 2015 and June 30, 2016, respectively)	204,599	204,599
Common unitholders (33,039,818 and 33,213,513 units issued and outstanding at December 31, 2015 and June 30, 2016, respectively)	456,272	493,824
General partner interest (1.8% interest with 1,127,755 general partner units outstanding at both dates)	(612,068)	(611,204)
Total Partners’ capital	48,803	87,219
Total liabilities and Partners’ capital	$ 358,374	$ 364,746

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Accounts receivable, allowance for doubtful accounts	$ 17	$ 38
Receivables from related parties, allowance for doubtful accounts	0	225
Accumulated Depreciation, Assets held for sale	(1,442)	0
Accumulated depreciation	$ 216,792	$ 205,967
Partners’ capital:
Common unitholders, units issued	33,213,513	33,039,818
Common unitholders, units outstanding	33,213,513	33,039,818
Series A Preferred unitholders, units issued	30,147,624	30,158,619
Series A Preferred unitholders, units outstandingutstanding	30,147,624	30,158,619
General partner interest, units outstanding	1,127,755	1,127,755
General partner percentage interest	1.80%	1.80%

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Service revenue:
Third party revenue	$ 30,854	$ 36,389	$ 61,110	$ 68,512
Related party revenue	5,862	10,185	12,871	20,418
Product sales revenue:
Third party revenue	6,709	0	10,454	0
Total revenue	43,425	46,574	84,435	88,930
Costs and expenses:
Operating	27,290	33,383	55,050	65,768
Cost of product sales	4,089	0	7,276	0
General and administrative	4,834	4,667	9,579	9,644
Asset impairment expense	22,574	0	22,845	0
Total costs and expenses	58,787	38,050	94,750	75,412
Gain (loss) on sale of assets	14	(40)	(19)	264
Operating income (loss)	(15,348)	8,484	(10,334)	13,782
Other income (expense):
Equity earnings in unconsolidated affiliate	157	1,283	781	1,939
Interest expense (net of capitalized interest of $50, $7, $73 and $41, respectively)	(3,697)	(1,951)	(8,567)	(6,234)
Income (loss) before income taxes	(18,888)	7,816	(18,120)	9,487
Provision for income taxes	48	106	90	198
Net income (loss)	(18,936)	7,710	(18,210)	9,289
Allocation of net income (loss) for calculation of earnings per unit:
General partner interest in net income (loss)	(195)	241	(51)	344
Preferred interest in net income	5,389	5,391	10,780	10,782
Income (loss) available to limited partners	$ (24,130)	$ 2,078	$ (28,939)	$ (1,837)
Basic and diluted net income (loss) per common unit	$ (0.71)	$ 0.06	$ (0.85)	$ (0.05)
Weighted average common units outstanding - basic and diluted	33,206	32,915	33,191	32,905

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED STATEMENT OF OPERATIONS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Capitalized interest	$ 100	$ 50	$ 41	$ 73
Diluted net income per common unit	$ (0.71)	$ 0.06	$ (0.85)	$ (0.05)
Weighted average common units outstanding - diluted	33,206	32,915	33,191	32,905

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Total	Common Unitholders [Member]	Preferred Partner [Member]	General Partner Interest [Member]
Balance at Dec. 31, 2015	$ 87,219	$ 493,824	$ 204,599	$ (611,204)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(18,210)	(28,674)	10,782	(318)
Equity-based incentive compensation	815	801		14
Profits interest contribution	75			75
Distributions	(21,250)	(9,833)	(10,782)	(635)
Proceeds from sale of 30,444 common units pursuant to the Employee Unit Purchase Plan	154	154
Balance at Jun. 30, 2016	$ 48,803	$ 456,272	$ 204,599	$ (612,068)

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (PARENTHETICAL) - shares	Jun. 30, 2016	Sep. 22, 2014
Changes in Partners Capital [Abstract]
Limited Partners' Capital Account, Units Issued	30,444	9,775,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ (18,210)	$ 9,289
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for uncollectible receivables from third parties	(17)	(200)
Provision for uncollectible receivables from related parties	(229)	0
Depreciation and amortization	14,823	13,384
Amortization of debt issuance costs	440	437
Unrealized loss related to interest rate swaps	2,194	1,029
Asset impairment expense	22,845	0
Loss (gain) on sale of assets	(19)	264
Equity-based incentive compensation	815	732
Equity earnings in unconsolidated affiliate	781	1,939
Distributions from unconsolidated affiliate	0	2,321
Gain related to investments	0	(267)
Changes in assets and liabilities
Increase in accounts receivable	(1,950)	(5,336)
Decrease (increase) in receivables from related parties	510	(352)
Decrease in prepaid insurance	1,181	1,295
Increase in other current assets	(123)	(290)
Decrease (increase) in other assets	37	(1,720)
Increase in accounts payable	1,043	1,586
Increase (decrease) in accrued interest payable	8	(44)
Increase in accrued property taxes	577	440
Increase (decrease) in unearned revenue	(823)	1,465
Decrease in unearned revenue from related parties	(716)	(162)
Decrease in accrued payroll	(2,703)	(1,699)
Increase (decrease) in other accrued liabilities	39	(481)
Net cash provided by operating activities	18,979	19,224
Cash flows from investing activities:
Acquisitions	(18,989)	(13,895)
Capital expenditures	(11,577)	(14,516)
Proceeds from sale of assets	1,233	864
Distributions from unconsolidated affiliate	0	538
Proceeds from sale of investments	0	2,346
Net cash used in investing activities	(29,333)	(24,663)
Cash flows from financing activities:
Payment on insurance premium financing agreement	(2,612)	(1,445)
Debt issuance costs	(17)	0
Borrowings under credit facility	65,000	65,000
Payments under credit facility	(31,000)	(38,000)
Proceeds from equity issuance, net of offering costs	154	0
Capital contribution related to profits interest	75	74
Distributions	(21,250)	(20,497)
Net cash provided by financing activities	10,350	5,132
Net decrease in cash and cash equivalents	(4)	(307)
Cash and cash equivalents at beginning of period	3,038	2,661
Cash and cash equivalents at end of period	3,034	2,354
Supplemental disclosure of cash flow information:
Increase (decrease) in accounts payable related to purchase of property, plant and equipment	(1,432)	2,925
Increase in accrued liabilities related to insurance premium financing agreement	$ 2,469	$ 3,439

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	6 Months Ended
	Jun. 30, 2016
ORGANIZATION AND NATURE OF BUSINESS [Abstract]
ORGANIZATION AND NATURE OF BUSINESS	ORGANIZATION AND NATURE OF BUSINESS Blueknight Energy Partners, L.P. and subsidiaries (collectively, the “Partnership”) is a publicly traded master limited partnership with operations in twenty-four states. The Partnership provides integrated terminalling, storage, processing, gathering, transportation and marketing services for companies engaged in the production, distribution and marketing of crude oil and asphalt products. The Partnership manages its operations through four operating segments: (i) asphalt terminalling services, (ii) crude oil terminalling and storage services, (iii) crude oil pipeline services and (iv) crude oil trucking and producer field services. The Partnership’s common units and preferred units, which represent limited partnership interests in the Partnership, are listed on the NASDAQ Global Market under the symbols “BKEP” and “BKEPP,” respectively. The Partnership was formed in February 2007 as a Delaware master limited partnership initially to own, operate and develop a diversified portfolio of complementary midstream energy assets.

BASIS OF CONSOLIDATION AND PRES

BASIS OF CONSOLIDATION AND PRESENTATION	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF CONSOLIDATION AND PRESENTATION	BASIS OF CONSOLIDATION AND PRESENTATION The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated statements of operations for the three and six months ended June 30, 2015 and 2016 , the condensed consolidated statement of changes in partners’ capital for the six months ended June 30, 2016 , the condensed consolidated statements of cash flows for the six months ended June 30, 2015 and 2016 , and the condensed consolidated balance sheet as of June 30, 2016 , are unaudited. In the opinion of management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments necessary to state fairly the financial position and results of operations for the respective interim periods. All adjustments are of a recurring nature unless otherwise disclosed herein. The 2015 year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission (the “SEC”) on March 9, 2016 (the “2015 Form 10-K”). Interim financial results are not necessarily indicative of the results to be expected for an annual period. The Partnership’s significant accounting policies are consistent with those disclosed in Note 3 of the Notes to Consolidated Financial Statements in its 2015 Form 10-K. The Partnership’s investment in Advantage Pipeline, L.L.C. (“Advantage Pipeline”), over which the Partnership has significant influence but not control, is accounted for by the equity method. The Partnership does not consolidate any part of the assets or liabilities of its equity investee. The Partnership’s share of net income or loss is reflected as one line item on the Partnership’s unaudited condensed consolidated statements of operations entitled “Equity earnings in unconsolidated affiliate” and will increase or decrease, as applicable, the carrying value of the Partnership’s “Investment in unconsolidated affiliate” on the unaudited condensed consolidated balance sheets. Distributions to the Partnership reduce the carrying value of its investment and are reflected in the Partnership’s unaudited condensed consolidated statements of cash flows in the line item “Distributions from unconsolidated affiliate.” Contributions will increase the carrying value of the Partnership’s investment and will be reflected in the Partnership’s unaudited condensed consolidated statements of cash flows in investing activities.

RESTRUCTURING CHARGES (Notes)

RESTRUCTURING CHARGES (Notes)	6 Months Ended
	Jun. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure [Text Block]	RESTRUCTURING CHARGES During the fourth quarter of 2015, the Partnership recognized certain restructuring charges in our crude oil trucking and producer field services segment pursuant to an approved plan to exit the trucking market in West Texas. Changes in the accrued amounts pertaining to the restructuring charges are summarized as follows: Three Months ended Six Months ended 2016 2016 (in thousands) Beginning Balance $ 1,003 $ 1,565 Charged to expense — — Cash Payments 208 770 Ending Balance $ 795 $ 795 The remaining accrual relates to lease payments that will be paid over the remaining lease terms, which extend through July 2019.

EQUITY METHOD INVESTMENT (Notes

EQUITY METHOD INVESTMENT (Notes)	6 Months Ended
	Jun. 30, 2016
Schedule of Equity Method Investments [Line Items]
Equity Method Investments and Joint Ventures Disclosure [Text Block]	EQUITY METHOD INVESTMENT The Partnership’s investment in Advantage Pipeline, over which the Partnership has significant influence but not control, is accounted for by the equity method. As of June 30, 2016 , the Partnership’s investment represents a 30% ownership interest in Advantage Pipeline. Summarized financial information for Advantage Pipeline is set forth in the tables below for the periods indicated (in thousands). December 31, 2015 June 30, 2016 Balance sheets Current assets $ 2,496 $ 1,812 Noncurrent assets 86,702 90,089 Total assets $ 89,198 $ 91,901 Current liabilities 2,534 2,158 Long-term liabilities 23,194 23,263 Member’s equity 63,470 66,480 Total liabilities and member’s equity $ 89,198 $ 91,901 Three Months ended Six Months ended 2015 2016 2015 2016 Income statements Operating revenues $ 7,547 $ 3,370 $ 12,800 $ 8,475 Net income $ 4,895 $ 607 $ 7,224 $ 3,011

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	PROPERTY, PLANT AND EQUIPMENT Estimated Useful Lives (Years) December 31, 2015 June 30, 2016 (dollars in thousands) Land N/A $ 19,680 $ 23,234 Land improvements 10-20 6,382 6,663 Pipelines and facilities 5-30 165,497 166,813 Storage and terminal facilities 10-35 251,051 260,705 Transportation equipment 3-10 13,728 11,981 Office property and equipment and other 3-20 28,453 29,232 Pipeline linefill and tank bottoms N/A 3,474 3,425 Construction-in-progress N/A 30,636 4,472 Property, plant and equipment, gross 518,901 506,525 Accumulated depreciation (205,967 ) (216,792 ) Property, plant and equipment, net $ 312,934 $ 289,733 Depreciation expense for the three months ended June 30, 2015 and 2016 was $6.7 million and $7.4 million , respectively. and depreciation expense for the six months ended June 30, 2015 and 2016 was $13.4 million and $14.3 million , respectively. For the three and six months ended June 30, 2016 , the Partnership recorded asset impairment expense of $22.6 million and $22.8 million , respectively. This is primarily due to an impairment recognized on the Knight Warrior pipeline project, a previously announced East Texas Eaglebine/Woodbine crude oil pipeline project. The Knight Warrior pipeline project is being canceled due to continued low rig counts in the Eaglebine/Woodbine area coupled with lower production volumes, competing projects and the overall impact of the decreased market price of crude oil. Consequently, shipper commitments related to the project, one of which is a transportation agreement with Eaglebine Crude Oil Marketing LLC, which is 50% owned by Vitol (who also owns 50% of BKEP’s general partner), have been canceled. In connection with the cancellation of the shipper commitments, the Partnership evaluated the Knight Warrior project for impairment and recognized an impairment expense of $22.6 million during the three months ended June 30, 2016.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
DEBT	DEBT On June 28, 2013, the Partnership entered into an amended and restated credit agreement that consists of a $400.0 million revolving loan facility. On September 15, 2014, the Partnership amended its credit facility to, among other things, amend the maximum permitted consolidated total leverage ratio as discussed below and to increase the limit on material project adjustments to EBITDA (as defined in the credit agreement). On July 20, 2016, the Partnership amended its credit agreement. See Note 17 Subsequent Events for additional description of the amendment of the Partnership’s credit agreement. As of July 28, 2016 , approximately $251.0 million of revolver borrowings and $1.3 million of letters of credit were outstanding under the credit facility, leaving the Partnership with approximately $147.7 million available capacity for additional revolver borrowings and letters of credit under the credit facility, although the Partnership’s ability to borrow such funds may be limited by the financial covenants in the credit facility. The proceeds of loans made under the amended and restated credit agreement may be used for working capital and other general corporate purposes of the Partnership. All references herein to the credit agreement on or after June 28, 2013, refer to the amended and restated credit agreement, as amended on September 15, 2014. The credit agreement is guaranteed by all of the Partnership’s existing subsidiaries. Obligations under the credit agreement are secured by first priority liens on substantially all of the Partnership’s assets and those of the guarantors. The credit agreement includes procedures for additional financial institutions to become revolving lenders, or for any existing lender to increase its revolving commitment thereunder, subject to an aggregate maximum of $500.0 million for all revolving loan commitments under the credit agreement. The credit agreement will mature on June 28, 2018 , and all amounts outstanding under the credit agreement will become due and payable on such date. The Partnership may prepay all loans under the credit agreement at any time without premium or penalty (other than customary LIBOR breakage costs), subject to certain notice requirements. The credit agreement requires mandatory prepayments of amounts outstanding thereunder with the net proceeds of certain asset sales, property or casualty insurance claims, and condemnation proceedings, unless the Partnership reinvests such proceeds in accordance with the credit agreement, but these mandatory prepayments will not require any reduction of the lenders’ commitments under the credit agreement. Borrowings under the credit agreement bear interest, at the Partnership’s option, at either the reserve-adjusted eurodollar rate (as defined in the credit agreement) plus an applicable margin that ranges from 2.0% to 3.0% or the alternate base rate (the highest of the agent bank’s prime rate, the federal funds effective rate plus 0.5% , and the 30-day eurodollar rate plus 1.0% ) plus an applicable margin that ranges from 1.0% to 2.0% . The Partnership pays a per annum fee on all letters of credit issued under the credit agreement, which fee equals the applicable margin for loans accruing interest based on the eurodollar rate, and the Partnership pays a commitment fee ranging from 0.375% to 0.5% on the unused commitments under the credit agreement. The credit agreement does not have a floor for the alternate base rate or the eurodollar rate. The applicable margins for the Partnership’s interest rate, the letter of credit fee and the commitment fee vary quarterly based on the Partnership’s consolidated total leverage ratio (as defined in the credit agreement, being generally computed as the ratio of consolidated total debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges). The credit agreement includes financial covenants that are tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. Prior to the date on which the Partnership issues qualified senior notes in an aggregate principal amount (when combined with all other qualified senior notes previously or concurrently issued) that equals or exceeds $200.0 million , the maximum permitted consolidated total leverage ratio is 4.50 to 1.00; provided that: • the maximum permitted consolidated total leverage ratio is 5.00 to 1.00 for the fiscal quarters ending March 31, 2016 through September 30, 2016, 4.75 to 1.00 for the fiscal quarter ending December 31, 2016, and 4.50 to 1.00 for each fiscal quarter thereafter; • the Partnership may elect to increase the maximum permitted consolidated total leverage ratio to 5.50 to 1.00 for two consecutive fiscal quarters ending on or before September 30, 2016; and • if the Partnership makes a specified acquisition (as defined in the credit agreement, but generally being an acquisition with consideration in excess of $10.0 million ), the Partnership may elect to increase the maximum permitted consolidated total leverage ratio to 5.00 to 1.00 from and after the last day of the fiscal quarter immediately preceding the fiscal quarter in which such acquisition occurs to and including the last day of the second full fiscal quarter following the fiscal quarter in which such acquisition occurred. From and after the date on which the Partnership issues qualified senior notes in an aggregate principal amount (when combined with all other qualified senior notes previously or concurrently issued) that equals or exceeds $200.0 million , the maximum permitted consolidated total leverage ratio is 5.00 to 1.00; provided that after the maximum permitted consolidated total leverage ratio is 5.50 to 1.00 for the fiscal quarters ending March 31, 2016 through September 30, 2016, and 5.00 to 1.00 for each fiscal quarter thereafter. The maximum permitted consolidated senior secured leverage ratio (as defined in the credit agreement, but generally computed as the ratio of consolidated total secured debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) is 3.50 to 1.00, but this covenant is only tested from and after the date on which the Partnership issues qualified senior notes in an aggregate principal amount (when combined with all other qualified senior notes previously or concurrently issued) that equals or exceeds $200.0 million . The minimum permitted consolidated interest coverage ratio (as defined in the credit agreement, but generally computed as the ratio of consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges to consolidated interest expense) is 2.50 to 1.00. In addition, the credit agreement contains various covenants that, among other restrictions, limit the Partnership’s ability to: • create, issue, incur or assume indebtedness; • create, incur or assume liens; • engage in mergers or acquisitions; • sell, transfer, assign or convey assets; • repurchase the Partnership’s equity, make distributions to unitholders and make certain other restricted payments; • make investments; • modify the terms of certain indebtedness, or prepay certain indebtedness; • engage in transactions with affiliates; • enter into certain hedging contracts; • enter into certain burdensome agreements; • change the nature of the Partnership’s business; • enter into operating leases; and • make certain amendments to the Partnership’s partnership agreement. At June 30, 2016 , the Partnership’s consolidated total leverage ratio was 4.42 to 1.00 and the consolidated interest coverage ratio was 5.66 to 1.00. The Partnership was in compliance with all covenants of its credit agreement as of June 30, 2016 . The credit agreement permits the Partnership to make quarterly distributions of available cash (as defined in the Partnership’s partnership agreement) to unitholders so long as no default or event of default exists under the credit agreement on a pro forma basis after giving effect to such distribution. The Partnership is currently allowed to make distributions to its unitholders in accordance with this covenant; however, the Partnership will only make distributions to the extent it has sufficient cash from operations after establishment of cash reserves as determined by the Board of Directors (the “Board”) of Blueknight Energy Partners G.P., L.L.C. (the “General Partner”) in accordance with the Partnership’s cash distribution policy, including the establishment of any reserves for the proper conduct of the Partnership’s business. See Note 8 for additional information regarding distributions. In addition to other customary events of default, the credit agreement includes an event of default if (i) the General Partner ceases to own 100% of the Partnership’s general partner interest or ceases to control the Partnership or (ii) Vitol Holding B.V. (together with its affiliates, “Vitol”) and Charlesbank Capital Partners, LLC cease to collectively own and control 50.0% or more of the membership interests of the General Partner. If an event of default relating to bankruptcy or other insolvency events occurs with respect to the General Partner or the Partnership, all indebtedness under the credit agreement will immediately become due and payable. If any other event of default exists under the credit agreement, the lenders may accelerate the maturity of the obligations outstanding under the credit agreement and exercise other rights and remedies. In addition, if any event of default exists under the credit agreement, the lenders may commence foreclosure or other actions against the collateral. If any default occurs under the credit agreement, or if the Partnership is unable to make any of the representations and warranties in the credit agreement, the Partnership will be unable to borrow funds or to have letters of credit issued under the credit agreement. The Partnership capitalized no debt issuance costs during either of the three and six months ended June 30, 2015 . The Partnership capitalized less than $0.1 million of debt issuance costs during three and six months ended June 30, 2016 . Debt issuance costs are being amortized over the term of the amended and restated credit agreement. Interest expense related to debt issuance cost amortization for both three months ended June 30, 2015 and 2016 , was $0.2 million . Interest expense related to debt issuance cost amortization for both the six months ended June 30, 2015 and 2016 was $0.4 million . During the three months ended June 30, 2015 and 2016 , the weighted average interest rate under the Partnership’s credit agreement was 3.38% and 3.89% , respectively, resulting in interest expense of approximately $2.0 million and $2.7 million , respectively. During the six months ended June 30, 2015 and 2016 , the weighted average interest rate under the Partnership’s credit agreement was 3.40% and 3.75% , respectively, resulting in interest expense of approximately $3.9 million and $5.1 million , respectively. As of June 30, 2016 , borrowings under the Partnership’s amended and restated credit agreement bore interest at a weighted average interest rate of 4.03% . During each of the three months ended June 30, 2015 and 2016 , the Partnership capitalized interest of less than $0.1 million . During each of the six months ended June 30, 2015 and 2016 , the Partnership capitalized interest of less than $0.1 million . The Partnership is exposed to market risk for changes in interest rates related to its credit facility. Interest rate swap agreements are used to manage a portion of the exposure related to changing interest rates by converting floating-rate debt to fixed-rate debt. In March 2014, the Partnership entered into two interest rate swap agreements with an aggregate notional amount of $200.0 million . The first agreement has a notional amount of $100.0 million , became effective June 28, 2014, and matures on June 28, 2018. Under the terms of the first interest rate swap agreement, the Partnership pays a fixed rate of 1.45% and receives one-month LIBOR with monthly settlement. The second agreement has a notional amount of $100.0 million , became effective January 28, 2015, and matures on January 28, 2019. Under the terms of the second interest rate swap agreement, the Partnership pays a fixed rate of 1.97% and receives one-month LIBOR with monthly settlement. During the three months ended June 30, 2015 and 2016 , the Partnership recorded swap interest expense of $0.8 million and $0.6 million , respectively. During the six months ended June 30, 2015 and 2016 , the Partnership recorded swap interest expense of $1.4 million and $1.3 million , respectively. The fair market value of the interest rate swaps at December 31, 2015 and June 30, 2016 is a liability of $3.1 million and $5.3 million , respectively, and is recorded in long-term interest rate swap liabilities on the unaudited condensed consolidated balance sheets. The interest rate swaps do not receive hedge accounting treatment under ASC 815 - Derivatives and Hedging . Changes in the fair value of the interest rate swaps are recorded in interest expense in the unaudited condensed consolidated statements of operations.

NET INCOME PER LIMITED PARTNER

NET INCOME PER LIMITED PARTNER UNIT	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
NET INCOME PER LIMITED PARTNER UNIT	NET INCOME PER LIMITED PARTNER UNIT For purposes of calculating earnings per unit, the excess of distributions over earnings or excess of earnings over distributions for each period are allocated to the Partnership’s General Partner based on the General Partner’s ownership interest at the time. The following sets forth the computation of basic and diluted net income per common unit (in thousands, except per unit data): Three Months ended Six Months ended 2015 2016 2015 2016 Net income (loss) $ 7,710 $ (18,936 ) $ 9,289 $ (18,210 ) General partner interest in net income (loss) 241 (195 ) 344 (51 ) Preferred interest in net income 5,391 5,389 10,782 10,780 Income (loss) available to limited partners $ 2,078 $ (24,130 ) $ (1,837 ) $ (28,939 ) Basic and diluted weighted average number of units: Common units 32,915 33,206 32,905 33,191 Restricted and phantom units 741 906 652 761 Basic and diluted net income (loss) per common unit $ 0.06 $ (0.71 ) $ (0.05 ) $ (0.85 )

PARTNERS' CAPITAL AND DISTRIBUT

PARTNERS' CAPITAL AND DISTRIBUTIONS	6 Months Ended
	Jun. 30, 2016
Partners' Capital Account, Distributions [Abstract]
PARTNERS' CAPITAL AND DISTRIBUTIONS	PARTNERS’ CAPITAL AND DISTRIBUTIONS On September 22, 2014, the Partnership issued and sold 9,775,000 common units for a public offering price of $7.61 per unit, resulting in proceeds of approximately $71.2 million , net of underwriters’ discount and offering expenses of $3.2 million . On July 26, 2016, the Partnership issued and sold 3,795,000 common units for a public offering price of $5.90 per unit, resulting in proceeds of approximately $21.2 million , net of underwriters’ discount and offering expenses of $1.2 million . On July 18, 2016 , the Board approved a distribution of $0.17875 per preferred unit, or a total distribution of $5.4 million , for the quarter ending June 30, 2016 . The Partnership will pay this distribution on the preferred units on August 12, 2016 , to unitholders of record as of August 2, 2016 . In addition, on July 18, 2016 , the Board declared a cash distribution of $0.1450 per unit on its outstanding common units. The distribution will be paid on August 12, 2016 , to unitholders of record on August 2, 2016 . The distribution is for the three months ended June 30, 2016 . The total distribution will be approximately $5.8 million (inclusive of $0.6 million attributable to the July 26, 2016 offering), with approximately $5.4 million and $0.3 million to be paid to the Partnership’s common unitholders and general partner, respectively, and $0.1 million to be paid to holders of phantom and restricted units pursuant to awards granted under the Partnership’s long-term incentive plan.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Partnership provides crude oil gathering, transportation, terminalling and storage services to Vitol. For the three months ended June 30, 2015 and 2016 , the Partnership recognized revenues of $9.9 million and $5.5 million , respectively, for services provided to Vitol. For the six months ended June 30, 2015 and 2016 , the Partnership recognized revenues of $19.8 million and $12.2 million , respectively, for services provided to Vitol. As of December 31, 2015 and June 30, 2016 , the Partnership had receivables from Vitol of $1.8 million and $1.4 million , net of allowance for doubtful accounts. As of December 31, 2015 and June 30, 2016 , the Partnership had unearned revenues from Vitol of $0.8 million and $0.1 million , respectively. The Partnership also provides operating and administrative services to Advantage Pipeline. For each of the three months ended June 30, 2015 and 2016 , the Partnership earned revenues of $0.3 million for services provided to Advantage Pipeline. For the six months ended June 30, 2015 and 2016 , the Partnership earned revenues of $0.6 million and $0.7 million , respectively, for services provided to Advantage Pipeline. As of December 31, 2015 and June 30, 2016 , the Partnership had receivables from Advantage Pipeline of $0.1 million and $0.2 million , respectively.

LONG-TERM INCENTIVE PLAN

LONG-TERM INCENTIVE PLAN	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
LONG-TERM INCENTIVE PLAN	LONG-TERM INCENTIVE PLAN In July 2007, the General Partner adopted the Long-Term Incentive Plan (the “LTIP”). The compensation committee of the Board administers the LTIP. Effective April 29, 2014, the Partnership’s unitholders approved an amendment to the LTIP to increase the number of common units reserved for issuance under the incentive plan by 1,500,000 common units from 2,600,000 common units to 4,100,000 common units. The common units are deliverable upon vesting. Although other types of awards are contemplated under the LTIP, currently outstanding awards include “phantom” units, which convey the right to receive common units upon vesting, and “restricted” units, which are grants of common units restricted until the time of vesting. Certain of the phantom unit awards also include distribution equivalent rights (“DERs”). Subject to applicable earning criteria, a DER entitles the grantee to a cash payment equal to the cash distribution paid on an outstanding common unit prior to the vesting date of the underlying award. Recipients of restricted units are entitled to receive cash distributions paid on common units during the vesting period which distributions are reflected initially as a reduction of partners’ capital. Distributions paid on units which ultimately do not vest are reclassified as compensation expense. Awards granted to date are equity awards and, accordingly, the fair value of the awards as of the grant date is expensed over the vesting period. In connection with each anniversary of joining the Board, restricted common units are granted to the independent directors. The units vest in one-third increments over three years. The following table includes information on grants made to the directors under the LTIP: Grant Date Number of Units Weighted Average Grant Date Fair Value (1) Grant Date Total Fair Value (in thousands) December 2013 7,500 $ 8.62 $ 65 December 2014 7,500 6.43 48 December 2015 15,120 5.06 77 _________________ (1) Fair value is the closing market price on the grant date of the awards. The Partnership also grants phantom units to employees. These grants are equity awards under ASC 718 – Stock Compensation , and, accordingly, the fair value of the awards as of the grant date is expensed over the vesting period. The following table includes information on the outstanding grants: Grant Date Number of Units Weighted Average Grant Date Fair Value (1) Grant Date Total Fair Value (in thousands) March 2014 276,773 $ 9.06 $ 2,508 March 2015 266,076 7.74 2,059 March 2016 416,131 4.77 1,985 _________________ (1) Fair value is the closing market price on the grant date of the awards. The unrecognized estimated compensation cost of outstanding phantom units at June 30, 2016 , was $2.8 million , which will be recognized over the remaining vesting period. In September 2012 , Mr. Mark Hurley was granted 500,000 phantom units under the LTIP upon his employment as the Chief Executive Officer of the General Partner. These grants are equity awards under ASC 718 – Stock Compensation , and, accordingly, the fair value of the awards as of the grant date is expensed over the vesting period. These units vest ratably over five years pursuant to the Employee Phantom Unit Agreement between Mr. Hurley and the General Partner and do not include DERs. The weighted average grant date fair value for the units of $5.62 was determined based on the closing market price of the Partnership’s common units on the grant date of the award, less the present value of the estimated distributions to be paid to holders of an outstanding common unit prior to the vesting of the underlying award. The value of this award grant was approximately $2.8 million on the grant date, and the unrecognized estimated compensation cost at June 30, 2016 , was $0.7 million and will be expensed over the remaining vesting period. The Partnership’s equity-based incentive compensation expense for the three months ended June 30, 2015 and 2016 , was $0.7 million and $0.6 million , respectively. The Partnership’s equity-based incentive compensation expense for both the six months ended June 30, 2015 and 2016 , was $1.2 million . Activity pertaining to phantom common units and restricted common unit awards granted under the Plan is as follows: Number of Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2015 915,541 $ 7.81 Granted 416,131 4.77 Vested 203,183 8.73 Forfeited 30,571 6.82 Nonvested at June 30, 2016 1,097,918 $ 6.51

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLAN	EMPLOYEE BENEFIT PLANS Under the Partnership’s 401(k) Plan, which was instituted in 2009 , employees who meet specified service requirements may contribute a percentage of their total compensation, up to a specified maximum, to the 401(k) Plan. The Partnership may match each employee’s contribution, up to a specified maximum, in full or on a partial basis. The Partnership recognized expense of $0.4 million and $0.3 million , respectively, for the three months ended June 30, 2015 and 2016 , for discretionary contributions under the 401(k) Plan. The Partnership recognized expense of $0.8 million and $0.6 million , respectively, for the six months ended June 30, 2015 and 2016 , for discretionary contributions under the 401(k) Plan. The Partnership may also make annual lump-sum contributions to the 401(k) Plan irrespective of the employee’s contribution match. The Partnership may make a discretionary annual contribution in the form of profit sharing calculated as a percentage of an employee’s eligible compensation. This contribution is retirement income under the qualified 401(k) Plan. Annual profit sharing contributions to the 401(k) Plan are submitted to and approved by the Board. The Partnership recognized expense of $0.1 million and $0.2 million , respectively, for the three months ended June 30, 2015 and 2016 , for discretionary profit sharing contributions under the 401(k) Plan. The Partnership recognized expense of $0.3 million and $0.4 million , respectively, for the six months ended June 30, 2015 and 2016 , for discretionary profit sharing contributions under the 401(k) Plan. Under the Partnership’s Employee Unit Purchase Plan (the “Unit Purchase Plan”), which was instituted in January 2015, employees have the opportunity to acquire or increase their ownership of common units representing limited partner interests in the Partnership. Eligible employees who enroll in the Unit Purchase Plan may elect to have a designated whole percentage, up to a specified maximum, of their eligible compensation for each pay period withheld for the purchase of common units at a discount to the then current market value. A maximum of 1,000,000 common units may be delivered under the Unit Purchase Plan, subject to adjustment for a recapitalization, split, reorganization, or similar event pursuant to the terms of the Unit Purchase Plan. The Partnership recognized compensation expense of less than $0.1 million for both the three months ended June 30, 2015 and 2016 , in connection with the Unit Purchase Plan. The Partnership recognized compensation expense of less than $0.1 million for both the six months ended June 30, 2015 and 2016 , in connection with the Unit Purchase Plan.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The Partnership uses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost) to value assets and liabilities required to be measured at fair value, as appropriate. The Partnership uses an exit price when determining the fair value. The exit price represents amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Partnership utilizes a three-tier fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1 Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Inputs other than quoted prices that are observable for these assets or liabilities, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 Unobservable inputs in which there is little market data, which requires the reporting entity to develop its own assumptions. This hierarchy requires the use of observable market data, when available, to minimize the use of unobservable inputs when determining fair value. In periods in which they occur, the Partnership recognizes transfers into and out of Level 3 as of the end of the reporting period. Transfers out of Level 3 represent existing assets and liabilities that were classified previously as Level 3 for which the observable inputs became a more significant portion of the fair value estimates. Determining the appropriate classification of the Partnership’s fair value measurements within the fair value hierarchy requires management’s judgment regarding the degree to which market data is observable or corroborated by observable market data. The Partnership’s recurring financial assets and liabilities subject to fair value measurements and the necessary disclosures are as follows (in thousands): Fair Value Measurements as of December 31, 2015 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Interest rate swap liabilities $ 3,103 $ — $ 3,103 $ — Total $ 3,103 $ — $ 3,103 $ — Fair Value Measurements as of June 30, 2016 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Interest rate swap liabilities $ 5,297 $ — $ 5,297 $ — Total $ 5,297 $ — $ 5,297 $ — Fair Value of Other Financial Instruments The following disclosure of the estimated fair value of financial instruments is made in accordance with accounting guidance for financial instruments. The Partnership has determined the estimated fair values by using available market information and valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. At June 30, 2016 , the carrying values on the unaudited condensed consolidated balance sheets for cash and cash equivalents (classified as Level 1), accounts receivable, and accounts payable approximate their fair value because of their short-term nature. Based on the borrowing rates currently available to the Partnership for credit agreement debt with similar terms and maturities and consideration of the Partnership’s non-performance risk, long-term debt associated with the Partnership’s credit agreement at June 30, 2016 approximates its fair value. The fair value of the Partnership’s long-term debt was calculated using observable inputs (LIBOR for the risk free component) and unobservable company-specific credit spread information. As such, the Partnership considers this debt to be Level 3.

OPERATING SEGMENTS

OPERATING SEGMENTS	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
OPERATING SEGMENTS	OPERATING SEGMENTS The Partnership’s operations consist of four operating segments: (i) asphalt terminalling services, (ii) crude oil terminalling and storage services, (iii) crude oil pipeline services, and (iv) crude oil trucking and producer field services. ASPHALT TERMINALLING SERVICES —The Partnership provides asphalt product and residual fuel terminalling, storage and blending services at its 45 terminalling and storage facilities located in 23 states. CRUDE OIL TERMINALLING AND STORAGE SERVICES —The Partnership provides crude oil terminalling and storage services at its terminalling and storage facilities located in Oklahoma and Texas. CRUDE OIL PIPELINE SERVICES —The Partnership owns and operates three pipeline systems, the Mid-Continent system, the East Texas system and the Eagle North System, that gather crude oil purchased by its customers and transports it to refiners, to common carrier pipelines for ultimate delivery to refiners or to terminalling and storage facilities owned by the Partnership and others. The Partnership also engages in marketing crude oil that is purchased at production leases and transported on its pipelines. The Partnership refers to its pipeline system located in Oklahoma and the Texas Panhandle as the Mid-Continent system. It refers to its second pipeline system, which is located in Texas, as the East Texas system. The Partnership refers to its third system, originating in Cushing, Oklahoma, and terminating in Ardmore, Oklahoma, as the Eagle North system. CRUDE OIL TRUCKING AND PRODUCER FIELD SERVICES — The Partnership uses its owned and leased tanker trucks to gather crude oil for its customers at remote wellhead locations generally not covered by pipeline and gathering systems and to transport the crude oil to aggregation points and storage facilities located along pipeline gathering and transportation systems. Crude oil producer field services consist of a number of producer field services, ranging from gathering condensates from natural gas companies to hauling produced water to disposal wells. The Partnership’s management evaluates performance based upon segment operating margin, which includes revenues from related parties and external customers less operating expenses excluding depreciation and amortization. The non-GAAP measure of operating margin, excluding depreciation and amortization, (in the aggregate and by segment) is presented in the following table. The Partnership computes the components of operating margin by using amounts that are determined in accordance with GAAP. A reconciliation of operating margin, excluding depreciation and amortization, to income before income taxes, which is its nearest comparable GAAP financial measure, is included in the following table. The Partnership believes that investors benefit from having access to the same financial measures being utilized by management. Operating margin, excluding depreciation and amortization, is an important measure of the economic performance of the Partnership’s core operations. This measure forms the basis of the Partnership’s internal financial reporting and is used by its management in deciding how to allocate capital resources among segments. Income before income taxes, alternatively, includes expense items, such as depreciation and amortization, general and administrative expenses and interest expense, which management does not consider when evaluating the core profitability of the Partnership’s operations. The following table reflects certain financial data for each segment for the periods indicated (in thousands): Three Months ended Six Months ended 2015 2016 2015 2016 Asphalt Terminalling Services Service revenue Third party revenue $ 19,016 $ 18,132 $ 33,628 $ 35,438 Related party revenue 253 256 405 558 Total revenue for reportable segments 19,269 18,388 34,033 35,996 Operating expense (excluding depreciation and amortization) 6,607 6,839 12,758 13,271 Operating margin (excluding depreciation and amortization) 12,662 11,549 21,275 22,725 Total assets (end of period) $ 108,426 $ 117,096 $ 108,426 $ 117,096 Crude Oil Terminalling and Storage Services Service revenue Third party revenue $ 3,643 $ 3,626 $ 6,197 $ 7,187 Related party revenue 2,934 2,645 6,010 5,404 Total revenue for reportable segments 6,577 6,271 12,207 12,591 Operating expense (excluding depreciation and amortization) 1,695 1,134 3,257 2,295 Operating margin (excluding depreciation and amortization) 4,882 5,137 8,950 10,296 Total assets (end of period) $ 68,814 $ 74,072 $ 68,814 $ 74,072 Crude Oil Pipeline Services Service revenue Third party revenue $ 4,238 $ 2,702 $ 8,513 $ 4,954 Related party revenue 2,607 985 4,990 3,305 Product sales revenue Third party revenue — 6,709 — 10,454 Total revenue for reportable segments 6,845 10,396 13,503 18,713 Operating expense (excluding depreciation and amortization) 4,825 3,711 8,733 7,939 Operating expense (intersegment) — 235 — 495 Cost of product sales — 4,089 — 7,276 Cost of product sales (intersegment) — 426 — 426 Operating margin (excluding depreciation and amortization) 2,020 1,935 4,770 2,577 Total assets (end of period) $ 194,293 $ 153,706 $ 194,293 $ 153,706 Crude Oil Trucking and Producer Field Services Service revenue Third party revenue $ 9,492 $ 6,394 $ 20,174 $ 13,531 Related party revenue 4,391 1,976 9,013 3,604 Intersegment revenue — 235 — 495 Product sales revenue Intersegment revenue — 426 — 426 Total revenue for reportable segments 13,883 9,031 29,187 18,056 Operating expense (excluding depreciation and amortization) 13,518 7,918 27,636 16,722 Operating margin (excluding depreciation and amortization) 365 1,113 1,551 1,334 Total assets (end of period) $ 16,513 $ 13,503 $ 16,513 $ 13,503 Total operating margin (excluding depreciation and amortization) (1) $ 19,929 $ 19,734 $ 36,546 $ 36,932 Total Segment Revenues $ 46,574 $ 44,086 $ 88,930 $ 85,356 Elimination of Intersegment Revenues $ — $ (661 ) $ — $ (921 ) Consolidated Revenues $ 46,574 $ 43,425 $ 88,930 $ 84,435 ____________________ (1) The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): Three Months ended Six Months ended 2015 2016 2015 2016 Operating margin (excluding depreciation and amortization) $ 19,929 $ 19,734 $ 36,546 $ 36,932 Depreciation and amortization (6,738 ) (7,688 ) (13,384 ) (14,823 ) General and administrative expenses (4,667 ) (4,834 ) (9,644 ) (9,579 ) Asset impairment expense — (22,574 ) — (22,845 ) Gain (loss) on sale of assets (40 ) 14 264 (19 ) Interest expense (1,951 ) (3,697 ) (6,234 ) (8,567 ) Equity earnings in unconsolidated affiliate 1,283 157 1,939 781 Income (loss) before income taxes $ 7,816 $ (18,888 ) $ 9,487 $ (18,120 )

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENT AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Partnership is from time to time subject to various legal actions and claims incidental to its business. Management believes that these legal proceedings will not have a material adverse effect on the financial position, results of operations or cash flows of the Partnership. Once management determines that information pertaining to a legal proceeding indicates that it is probable that a liability has been incurred and the amount of such liability can be reasonably estimated, an accrual is established equal to its estimate of the likely exposure. The Partnership may become the subject of additional private or government actions regarding these matters in the future. Litigation may be time-consuming, expensive and disruptive to normal business operations, and the outcome of litigation is difficult to predict. The defense of these lawsuits may result in the incurrence of significant legal expense, both directly and as the result of the Partnership’s indemnification obligations. The litigation may also divert management’s attention from the Partnership’s operations which may cause its business to suffer. An unfavorable outcome in any of these matters may have a material adverse effect on the Partnership’s business, financial condition, results of operations, cash flows, ability to make distributions to its unitholders, the trading price of the Partnership’s common units and its ability to conduct its business. All or a portion of the defense costs and any amount the Partnership may be required to pay to satisfy a judgment or settlement of these claims may or may not be covered by insurance. The Partnership has contractual obligations to perform dismantlement and removal activities in the event that some of its asphalt product and residual fuel oil terminalling and storage assets are abandoned. These obligations include varying levels of activity including completely removing the assets and returning the land to its original state. The Partnership has determined that the settlement dates related to the retirement obligations are indeterminate. The assets with indeterminate settlement dates have been in existence for many years and with regular maintenance will continue to be in service for many years to come. Also, it is not possible to predict when demands for the Partnership’s terminalling and storage services will cease, and the Partnership does not believe that such demand will cease for the foreseeable future. Accordingly, the Partnership believes the date when these assets will be abandoned is indeterminate. With no reasonably determinable abandonment date, the Partnership cannot reasonably estimate the fair value of the associated asset retirement obligations. Management believes that if the Partnership’s asset retirement obligations were settled in the foreseeable future the present value of potential cash flows that would be required to settle the obligations based on current costs are not material. The Partnership will record asset retirement obligations for these assets in the period in which sufficient information becomes available for it to reasonably determine the settlement dates.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The anticipated after-tax economic benefit of an investment in the Partnership’s units depends largely on the Partnership being treated as a partnership for federal income tax purposes. If less than 90% of the gross income of a publicly traded partnership, such as the Partnership, for any taxable year is “qualifying income” from sources such as the transportation, storage, marketing (other than to end users), or processing of crude oil, natural gas or products thereof, rents from real property leased to unrelated parties, interest, dividends or certain other specified sources, that partnership will be taxable as a corporation under Section 7704 of the Internal Revenue Code for federal income tax purposes for that taxable year and all subsequent years. If the Partnership were treated as a corporation for federal income tax purposes, then it would pay federal income tax on its income at the corporate tax rate, which is currently a maximum of 35% , and would likely pay state income tax at varying rates. Distributions would generally be taxed again to unitholders as corporate distributions and none of the Partnership’s income, gains, losses, deductions or credits would flow through to its unitholders. Because a tax would be imposed upon the Partnership as an entity, cash available for distribution to its unitholders would be substantially reduced. Treatment of the Partnership as a corporation would result in a material reduction in the anticipated cash flow and after-tax return to unitholders and thus would likely result in a substantial reduction in the value of the Partnership’s units. The Partnership has entered into storage contracts with third party customers and leases with third party lessees with respect to all of its asphalt facilities. In the second quarter of 2009 , the Partnership submitted a request for a ruling from the IRS that rental income from the leases constitutes “qualifying income.” In October 2009 , the Partnership received a favorable ruling from the IRS to the effect that rental income received under the leases with third party lessees constitutes qualifying income. As part of this ruling, however, the Partnership agreed to transfer, and has transferred, certain of its asphalt processing assets and related fee income to a subsidiary taxed as a corporation. This transfer occurred in the first quarter of 2010. Such subsidiary’s income is subject to tax at the applicable federal, state and local income tax rates. Distributions from this subsidiary generally are taxed again to the Partnership’s unitholders as corporate distributions and none of the income, gains, losses, deductions or credits of this subsidiary will flow through to the Partnership’s unitholders. In relation to the Partnership’s taxable subsidiary, the tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts at June 30, 2016 , are presented below (dollars in thousands): Deferred tax assets Difference in bases of property, plant and equipment $ 871 Deferred tax asset 871 Less: valuation allowance 871 Net deferred tax asset $ — The Partnership has considered the taxable income projections in future years, whether the carryforward period is so brief that it would limit realization of tax benefits, whether future revenue and operating cost projections will produce enough taxable income to realize the deferred tax asset based on existing service rates and cost structures, and the Partnership’s earnings history exclusive of the loss that created the future deductible amount for the Partnership’s subsidiary that is taxed as a corporation for purposes of determining the likelihood of realizing the benefits of the deferred tax assets. As a result of the Partnership’s consideration of these factors, the Partnership has provided a full valuation allowance against its deferred tax asset as of June 30, 2016 .

RECENTLY ISSUED ACCOUNTING STAN

RECENTLY ISSUED ACCOUNTING STANDARDS	6 Months Ended
	Jun. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENTLY ISSUED ACCOUNTING STANDARDS	RECENTLY ISSUED ACCOUNTING STANDARDS Except as discussed below and in our 2015 Annual Report on Form 10-K, there have been no new accounting pronouncements that have become effective or have been issued during the six months ended June 30, 2016 that are of significance or potential significance to us In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The amendments in this Update create Topic 606, Revenue from Contracts with Customers, and supersede the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments supersede the cost guidance in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts, and create new Subtopic 340-40, Other Assets and Deferred Costs-Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued Accounting Standards Update No. 2015-14, “Revenue from Contracts with Customers.” The amendment in this update deferred the effective date of ASU 2014-09 by one year to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606) Principal versus Agent Considerations.” This update offers guidance on principal versus agent considerations in relation to ASU 2014-09, “Revenue from Contracts with Customers.” The effective date for the amendments in this update are the same as the effective date of ASU 2014-09. In March 2016, the FASB also issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606) Identifying Performance Obligations and Licensing.” This update offers guidance on identifying performance obligations and licensing in relation to ASU 2014-09, “Revenue from Contracts with Customers.” The effective date for the amendments in this update are the same as the effective date of ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients.” This update is issued in relation to ASU 2014-09, “Revenue from Contracts with Customers” and is intended to reduce the potential for diversity if practice at initial application and also to reduce the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The effective date for the amendments in this update are the same as the effective date of ASU 2014-09. The Partnership is evaluating the impact of this guidance, which will be adopted beginning with the Partnership’s quarterly report for the period ending March 31, 2018. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718).” This update is intended to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those fiscal years. The Partnership is evaluating the impact of this guidance, which will be adopted beginning with the Partnership’s quarterly report for the period ending March 31, 2017. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments.” This update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for financial statements issued for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. The Partnership is evaluating the impact of this guidance, which will be adopted beginning with the Partnership’s quarterly report for the period ending March 31, 2020.

SUBSEQUENT EVENTS (Notes)

SUBSEQUENT EVENTS (Notes)	6 Months Ended
	Jun. 30, 2016
Subsequent Event [Line Items]
Subsequent Events [Text Block]	SUBSEQUENT EVENTS Ergon Transactions Membership Interest Purchase Agreement On July 19, 2016, the Partnership announced that Ergon, Inc. (“Ergon”) has agreed to purchase 100% of the outstanding voting stock of Blueknight GP Holding, L.L.C., which owns 100% of the capital stock of the Partnership’s general partner, pursuant to a Membership Interest Purchase Agreement dated July 19, 2016 among CB-Blueknight, LLC (“CBB”), an indirect wholly-owned subsidiary of Charlesbank, Blueknight Energy Holding, Inc. (“BEHI”), an indirect wholly-owned subsidiary of Vitol, and Ergon Asphalt Holdings, LLC, a wholly owned subsidiary of Ergon. Contribution Agreement In addition, Ergon has agreed (i) to contribute nine asphalt terminals it currently owns plus $22.1 million in cash to the Partnership in return for total consideration of approximately $130.9 million , which consists of the issuance of 18,312,968 of the Partnership’s Series A preferred units in a private placement, and (ii) to acquire an aggregate of $5.0 million of common units for cash in a private placement, pursuant to a Contribution Agreement between the Partnership, Blueknight Terminal Holding, L.L.C., and three indirect wholly-owned subsidiaries of Ergon. The asphalt terminals are located in (i) Wolcott, Kansas, (ii) Ennis, Texas, (iii) Chandler, Arizona, (iv) Mt. Pleasant, Texas, (v) Pleasanton, Texas, (vi) Birmingport, Alabama, (vii) Memphis, Tennessee, (viii) Nashville, Tennessee and (ix) Yellow Creek, Mississippi and include approximately 2.0 million barrels of storage capacity. Upon closing of the transactions contemplated by the Contribution Agreement, the Partnership will own a network of 54 asphalt terminals in 26 states with a combined capacity of 10.2 million barrels of asphalt and residual fuel oil storage. Preferred Unit Purchase Agreement Pursuant to a Preferred Unit Purchase Agreement dated July 19, 2016 among the Partnership, CBB and BEHI, the Partnership has agreed to purchase 6,667,695 Series A preferred units from each of Vitol and Charlesbank in a private placement for an aggregate purchase price of approximately $95.3 million . Vitol and Charlesbank will each retain 2,488,789 Series A preferred units upon completion of these transactions. Ergon’s purchase of Blueknight GP Holding, L.L.C., Ergon’s contribution of the asphalt terminals and cash to the Partnership and the Partnership’s repurchase of Series A preferred units from Vitol and Charlesbank (collectively, the “Transactions”) are each conditioned upon the simultaneous closing of the other transactions, and a number of other closing conditions, including expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other regulatory approvals and the distribution to holders of Series A preferred units of an information statement on Schedule 14C. The Transactions are expected to close on or before September 30, 2016. Credit Facility Amendment On July 19, 2016, the Partnership entered into a Second Amendment to Amended and Restated Credit Agreement (the “Credit Agreement Amendment”), which amended the Amended and Restated Credit Agreement, dated as of June 28, 2013, with Wells Fargo Bank, National Association as administrative agent and the several lenders from time to time party thereto, as amended. The Credit Agreement Amendment amends the Partnership’s credit agreement to, among other things: • permit the Transactions by amending (i) the definition of Change of Control (as defined in the Credit Agreement) to permit Ergon to purchase all of the membership interests of the Partnership’s general partner and, after such purchase, require Ergon to retain at least 50% of the issued and outstanding voting equity interests of the Partnership’s general partner and (ii) the negative covenant contained in the Partnership’s credit agreement that restricts the Partnership from repurchasing the Partnership’s outstanding partnership interests, such that the Partnership may repurchase approximately 13,335,390 of the Partnership’s outstanding Series A preferred units simultaneously with the closing of the Transactions; • amend the maximum permitted consolidated total leverage ratio such that • prior to the date on which the Partnership issues qualified senior notes (as defined in the Partnership’s credit agreement, but generally being unsecured indebtedness with no required principal payments prior to June 28, 2019) in an aggregate principal amount (when combined with all other qualified senior notes previously or concurrently issued) that equals or exceeds $200.0 million (the “Qualified Senior Notes Date”), the maximum permitted consolidated total leverage ratio will be 5.00 to 1.00 for the fiscal quarters ending June 30, 2016 and September 30, 2016 and 4.75 to 1.00 for each fiscal quarter ending thereafter; provided, that, the maximum permitted consolidated total leverage ratio will be 5.25 to 1.00 for certain quarters based on the occurrence of a specified acquisition (as defined in the Partnership’s credit agreement, but generally being an acquisition for which the aggregate consideration is $15.0 million or more, which will include the acquisition of the nine asphalt terminals from Ergon); • from and after the Qualified Senior Notes Date, the maximum permitted consolidated total leverage ratio will be 5.00 to 1.00; provided, that, the maximum permitted consolidated total leverage ratio will be 5.50 to 1.00 for certain quarters based on the occurrence of a specified acquisition; • require that the Partnership and its subsidiaries execute certain account control agreements; • require that, to the extent (i) the Partnership’s consolidated total leverage ratio as of the end of the prior fiscal quarter was greater than 4.75 to 1.00 and (ii) the Partnership and its subsidiaries have cash and cash equivalents (subject to certain exceptions) exceeding $20.0 million for four consecutive business days, the Partnership prepay the Partnership’s outstanding obligations under the Partnership’s credit agreement in the amount of such excess; and • restrict the Partnership from borrowing funds under the Partnership’s credit agreement if, after giving effect to such borrowing and the prompt use of the proceeds thereof, the Partnership and its subsidiaries would have cash and cash equivalents (subject to certain exceptions) exceeding $20.0 million . The Partnership was in compliance with all covenants of its credit agreement as of June 30, 2016.

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	6 Months Ended
	Jun. 30, 2016
Crude Oil Trucking and Producer Field Services [Member] | West Texas Trucking Market Exit Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Costs [Table Text Block]	Changes in the accrued amounts pertaining to the restructuring charges are summarized as follows: Three Months ended Six Months ended 2016 2016 (in thousands) Beginning Balance $ 1,003 $ 1,565 Charged to expense — — Cash Payments 208 770 Ending Balance $ 795 $ 795

EQUITY METHOD INVESTMENT (Table

EQUITY METHOD INVESTMENT (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule of Equity Method Investments [Line Items]
Equity Method Investments [Table Text Block]	Summarized financial information for Advantage Pipeline is set forth in the tables below for the periods indicated (in thousands). December 31, 2015 June 30, 2016 Balance sheets Current assets $ 2,496 $ 1,812 Noncurrent assets 86,702 90,089 Total assets $ 89,198 $ 91,901 Current liabilities 2,534 2,158 Long-term liabilities 23,194 23,263 Member’s equity 63,470 66,480 Total liabilities and member’s equity $ 89,198 $ 91,901 Three Months ended Six Months ended 2015 2016 2015 2016 Income statements Operating revenues $ 7,547 $ 3,370 $ 12,800 $ 8,475 Net income $ 4,895 $ 607 $ 7,224 $ 3,011

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Estimated Useful Lives (Years) December 31, 2015 June 30, 2016 (dollars in thousands) Land N/A $ 19,680 $ 23,234 Land improvements 10-20 6,382 6,663 Pipelines and facilities 5-30 165,497 166,813 Storage and terminal facilities 10-35 251,051 260,705 Transportation equipment 3-10 13,728 11,981 Office property and equipment and other 3-20 28,453 29,232 Pipeline linefill and tank bottoms N/A 3,474 3,425 Construction-in-progress N/A 30,636 4,472 Property, plant and equipment, gross 518,901 506,525 Accumulated depreciation (205,967 ) (216,792 ) Property, plant and equipment, net $ 312,934 $ 289,733

NET INCOME PER LIMITED PARTNE29

NET INCOME PER LIMITED PARTNER UNIT (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income (Loss) Per Common and Subordinated Units	The following sets forth the computation of basic and diluted net income per common unit (in thousands, except per unit data): Three Months ended Six Months ended 2015 2016 2015 2016 Net income (loss) $ 7,710 $ (18,936 ) $ 9,289 $ (18,210 ) General partner interest in net income (loss) 241 (195 ) 344 (51 ) Preferred interest in net income 5,391 5,389 10,782 10,780 Income (loss) available to limited partners $ 2,078 $ (24,130 ) $ (1,837 ) $ (28,939 ) Basic and diluted weighted average number of units: Common units 32,915 33,206 32,905 33,191 Restricted and phantom units 741 906 652 761 Basic and diluted net income (loss) per common unit $ 0.06 $ (0.71 ) $ (0.05 ) $ (0.85 )

LONG-TERM INCENTIVE PLAN (Table

LONG-TERM INCENTIVE PLAN (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest [Table Text Block]	In connection with each anniversary of joining the Board, restricted common units are granted to the independent directors. The units vest in one-third increments over three years. The following table includes information on grants made to the directors under the LTIP: Grant Date Number of Units Weighted Average Grant Date Fair Value (1) Grant Date Total Fair Value (in thousands) December 2013 7,500 $ 8.62 $ 65 December 2014 7,500 6.43 48 December 2015 15,120 5.06 77 _________________ (1) Fair value is the closing market price on the grant date of the awards.
Schedule Of Phantom Common Units And Restricted Common Units Activity	Activity pertaining to phantom common units and restricted common unit awards granted under the Plan is as follows: Number of Units Weighted Average Grant Date Fair Value Nonvested at December 31, 2015 915,541 $ 7.81 Granted 416,131 4.77 Vested 203,183 8.73 Forfeited 30,571 6.82 Nonvested at June 30, 2016 1,097,918 $ 6.51
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	The Partnership also grants phantom units to employees. These grants are equity awards under ASC 718 – Stock Compensation , and, accordingly, the fair value of the awards as of the grant date is expensed over the vesting period. The following table includes information on the outstanding grants: Grant Date Number of Units Weighted Average Grant Date Fair Value (1) Grant Date Total Fair Value (in thousands) March 2014 276,773 $ 9.06 $ 2,508 March 2015 266,076 7.74 2,059 March 2016 416,131 4.77 1,985 _________________ (1) Fair value is the closing market price on the grant date of the awards.

FAIR VALUE MEASUREMENTS Fair Va

FAIR VALUE MEASUREMENTS Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements [Abstract]
Fair Value, by Balance Sheet Grouping [Table Text Block]	The Partnership’s recurring financial assets and liabilities subject to fair value measurements and the necessary disclosures are as follows (in thousands): Fair Value Measurements as of December 31, 2015 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Interest rate swap liabilities $ 3,103 $ — $ 3,103 $ — Total $ 3,103 $ — $ 3,103 $ — Fair Value Measurements as of June 30, 2016 Description Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Interest rate swap liabilities $ 5,297 $ — $ 5,297 $ — Total $ 5,297 $ — $ 5,297 $ —

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following table reflects certain financial data for each segment for the periods indicated (in thousands): Three Months ended Six Months ended 2015 2016 2015 2016 Asphalt Terminalling Services Service revenue Third party revenue $ 19,016 $ 18,132 $ 33,628 $ 35,438 Related party revenue 253 256 405 558 Total revenue for reportable segments 19,269 18,388 34,033 35,996 Operating expense (excluding depreciation and amortization) 6,607 6,839 12,758 13,271 Operating margin (excluding depreciation and amortization) 12,662 11,549 21,275 22,725 Total assets (end of period) $ 108,426 $ 117,096 $ 108,426 $ 117,096 Crude Oil Terminalling and Storage Services Service revenue Third party revenue $ 3,643 $ 3,626 $ 6,197 $ 7,187 Related party revenue 2,934 2,645 6,010 5,404 Total revenue for reportable segments 6,577 6,271 12,207 12,591 Operating expense (excluding depreciation and amortization) 1,695 1,134 3,257 2,295 Operating margin (excluding depreciation and amortization) 4,882 5,137 8,950 10,296 Total assets (end of period) $ 68,814 $ 74,072 $ 68,814 $ 74,072 Crude Oil Pipeline Services Service revenue Third party revenue $ 4,238 $ 2,702 $ 8,513 $ 4,954 Related party revenue 2,607 985 4,990 3,305 Product sales revenue Third party revenue — 6,709 — 10,454 Total revenue for reportable segments 6,845 10,396 13,503 18,713 Operating expense (excluding depreciation and amortization) 4,825 3,711 8,733 7,939 Operating expense (intersegment) — 235 — 495 Cost of product sales — 4,089 — 7,276 Cost of product sales (intersegment) — 426 — 426 Operating margin (excluding depreciation and amortization) 2,020 1,935 4,770 2,577 Total assets (end of period) $ 194,293 $ 153,706 $ 194,293 $ 153,706 Crude Oil Trucking and Producer Field Services Service revenue Third party revenue $ 9,492 $ 6,394 $ 20,174 $ 13,531 Related party revenue 4,391 1,976 9,013 3,604 Intersegment revenue — 235 — 495 Product sales revenue Intersegment revenue — 426 — 426 Total revenue for reportable segments 13,883 9,031 29,187 18,056 Operating expense (excluding depreciation and amortization) 13,518 7,918 27,636 16,722 Operating margin (excluding depreciation and amortization) 365 1,113 1,551 1,334 Total assets (end of period) $ 16,513 $ 13,503 $ 16,513 $ 13,503 Total operating margin (excluding depreciation and amortization) (1) $ 19,929 $ 19,734 $ 36,546 $ 36,932 Total Segment Revenues $ 46,574 $ 44,086 $ 88,930 $ 85,356 Elimination of Intersegment Revenues $ — $ (661 ) $ — $ (921 ) Consolidated Revenues $ 46,574 $ 43,425 $ 88,930 $ 84,435 ____________________ (1) The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): Three Months ended Six Months ended 2015 2016 2015 2016 Operating margin (excluding depreciation and amortization) $ 19,929 $ 19,734 $ 36,546 $ 36,932 Depreciation and amortization (6,738 ) (7,688 ) (13,384 ) (14,823 ) General and administrative expenses (4,667 ) (4,834 ) (9,644 ) (9,579 ) Asset impairment expense — (22,574 ) — (22,845 ) Gain (loss) on sale of assets (40 ) 14 264 (19 ) Interest expense (1,951 ) (3,697 ) (6,234 ) (8,567 ) Equity earnings in unconsolidated affiliate 1,283 157 1,939 781 Income (loss) before income taxes $ 7,816 $ (18,888 ) $ 9,487 $ (18,120 )

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of Deferred Tax Assets	In relation to the Partnership’s taxable subsidiary, the tax effects of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts at June 30, 2016 , are presented below (dollars in thousands): Deferred tax assets Difference in bases of property, plant and equipment $ 871 Deferred tax asset 871 Less: valuation allowance 871 Net deferred tax asset $ —

ORGANIZATION AND NATURE OF BU34

ORGANIZATION AND NATURE OF BUSINESS (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016Operating-segmentsStates
ORGANIZATION AND NATURE OF BUSINESS [Abstract]
Number of states in which entity operates (in states) | States	24
Number of operating segments (in operating segments) | Operating-segments	4

RESTRUCTURING CHARGES (Details)

RESTRUCTURING CHARGES (Details) - West Texas Trucking Market Exit Plan [Member] - Crude Oil Trucking and Producer Field Services [Member] - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 795	$ 795	$ 1,003	$ 1,565
Charged to expense	0	0
Cash Payments	$ 208	$ 770

EQUITY METHOD INVESTMENT (Detai

EQUITY METHOD INVESTMENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Advantage Pipeline, L.L.C. [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Summarized Financial Information, Current Assets	$ 1,812		$ 1,812		$ 2,496
Equity Method Investment, Summarized Financial Information, Noncurrent Assets	90,089		90,089		86,702
Equity Method Investment, Summarized Financial Information, Assets	91,901		91,901		89,198
Equity Method Investment, Summarized Financial Information, Current Liabilities	2,158		2,158		2,534
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities	23,263		23,263		23,194
Equity Method Investment Summarized Financial Information, Equity	66,480		66,480		63,470
Equity Method Investment, Summarized Financial Information, Liabilities and Equity	91,901		91,901		$ 89,198
Equity Method Investment, Summarized Financial Information, Revenue	3,370	$ 7,547	8,475	$ 12,800
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	$ 607	$ 4,895	$ 3,011	$ 7,224
Advantage Pipeline, L.L.C. [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	30.00%		30.00%

PROPERTY, PLANT AND EQUIPMENT37

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 506,525		$ 506,525		$ 518,901
Accumulated depreciation	216,792		216,792		205,967
Property, plant and equipment, net	289,733		289,733		312,934
Depreciation	7,400	$ 6,700	14,300	$ 13,400
Asset impairment expense	22,574	$ 0	22,845	$ 0
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	23,234		23,234		19,680
Land improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	6,663		$ 6,663		6,382
Land improvements | Min
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)			10 years
Land improvements | Max
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)			20 years
Pipelines and facilities
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	166,813		$ 166,813		165,497
Pipelines and facilities | Min
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)			5 years
Pipelines and facilities | Max
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)			30 years
Storage and terminal facilities
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	260,705		$ 260,705		251,051
Storage and terminal facilities | Min
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)			10 years
Storage and terminal facilities | Max
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)			35 years
Transportation equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	11,981		$ 11,981		13,728
Transportation equipment | Min
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)			3 years
Transportation equipment | Max
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)			10 years
Office property and equipment and other
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	29,232		$ 29,232		28,453
Office property and equipment and other | Min
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)			3 years
Office property and equipment and other | Max
Property, Plant and Equipment [Line Items]
Estimated Useful Lives (Years)			20 years
Pipeline linefill and tank bottoms
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	3,425		$ 3,425		3,474
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	4,472		$ 4,472		$ 30,636
Crude Oil Pipeline Services [Member]
Property, Plant and Equipment [Line Items]
Asset impairment expense	$ 22,600
Vitol [Member]
Property, Plant and Equipment [Line Items]
Ownership Percentage	50.00%		50.00%
Vitol [Member] | Eaglebine Crude Oil Marketing LLC [Member]
Property, Plant and Equipment [Line Items]
Ownership Percentage	50.00%		50.00%

DEBT (Credit Agreements) (Detai

DEBT (Credit Agreements) (Details)	Jul. 19, 2016USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jul. 28, 2016USD ($)	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Debt Instrument, Interest Rate During Period		3.89%	3.38%	3.75%	3.40%
Debt issuance costs				$ 17,000	$ 0
Amortization of debt issuance costs		$ 200,000	$ 200,000	440,000	437,000
Interest expense for long-term debt		2,700,000	2,000,000	5,100,000	3,900,000
Capitalized interest		100,000	50,000	41,000	73,000
Derivative, Notional Amount		200,000,000		200,000,000
Interest rate swap liabilities		5,297,000		5,297,000			$ 3,103,000
Interest Expense, Other		600,000	800,000	$ 1,300,000	1,400,000
Blueknight General Partners G. P., L.L.C. [Member]
Debt Instrument [Line Items]
Credit agreement, Constitute a change of control, if ceases to own, directly or indirectly, exactly 50% of the membership interests of the General Partner or if General Partner ceases to be controlled (as a percent)				100.00%
Vitol or Charlesbank [Member]
Debt Instrument [Line Items]
Credit agreement, Constitute a change of control if Vitol Holding BV and Charlesbank ceasing to collectively own and control 50% of the GP				50.00%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility amount		400,000,000		$ 400,000,000
Maximum borrowing capacity including additional lenders		$ 500,000,000		$ 500,000,000
Debt Instrument Maximum Covenant Consolidated Senior Secured Leverage Ratio		3.50		3.50
Consolidated interest coverage (as a ratio), minimum permitted		2.50		2.50
Consolidated total leverage (as a ratio), actual		4.42		4.42
Consolidated interest coverage (as a ratio), actual		5.66		5.66
Debt issuance costs		$ 100,000	$ 0	$ 100,000	$ 0
Weighted average interest rate (as a percent)		4.03%		4.03%
Revolving Credit Facility [Member] | Min
Debt Instrument [Line Items]
Unused capacity, commitment fee (as a percent)				0.375%
Debt Instrument Covenant, Issued Qualified Senior Notes		$ 200,000,000		$ 200,000,000
Revolving Credit Facility [Member] | Max
Debt Instrument [Line Items]
Unused capacity, commitment fee (as a percent)				0.50%
Revolving Credit Facility [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Revolver borrowings						$ 251,000,000
Debt Instrument, Unused Borrowing Capacity, Amount						147,700,000
Revolving Credit Facility [Member] | Federal funds rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				0.50%
Revolving Credit Facility [Member] | Eurodollar rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				1.00%
Revolving Credit Facility [Member] | Applicable margin based on ABR [Member] | Min
Debt Instrument [Line Items]
Applicable margin interest rate increase (as a percent)				1.00%
Revolving Credit Facility [Member] | Applicable margin based on ABR [Member] | Max
Debt Instrument [Line Items]
Applicable margin interest rate increase (as a percent)				2.00%
Revolving Credit Facility [Member] | Applicable margin based on Eurodollar rate [Member] | Min
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				2.00%
Revolving Credit Facility [Member] | Applicable margin based on Eurodollar rate [Member] | Max
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				3.00%
Letter of Credit [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Letters of credit outstanding, amount						$ 1,300,000
Interest Rate Swap [Member]
Debt Instrument [Line Items]
Derivative, Notional Amount		$ 100,000,000		$ 100,000,000
Derivative, Fixed Interest Rate		1.45%		1.45%
Interest Rate Swap Two [Member]
Debt Instrument [Line Items]
Derivative, Notional Amount		$ 100,000,000		$ 100,000,000
Derivative, Fixed Interest Rate		1.97%		1.97%
Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		4.50		4.50
Minimum Acquisition Costs				$ 10,000,000
Debt Instrument Covenant, Issued Qualified Senior Notes		$ 200,000,000		200,000,000
Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	4.75
Minimum Acquisition Costs	$ 15,000,000
Debt Instrument Covenant, Issued Qualified Senior Notes	$ 200,000,000
Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument Covenant, Issued Qualified Senior Notes		$ 200,000,000		$ 200,000,000
Provision One, Applicable Period One [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		5		5
Provision One, Applicable Period One [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	5
Provision One, Applicable Period One [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		5		5
Provision One, Applicable Period Two [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		4.75		4.75
Provision One, Applicable Period Two [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	4.75
Provision One, Applicable Period Three [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		4.50		4.50
Provision One, Applicable Period Three [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	5.25
Provision Two, Applicable Period One [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		5.50		5.50
Provision Two, Applicable Period One [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		5.50		5.50
Provision Two, Applicable Period One [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	5
Provision Three, Applicable Period One [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		5		5
Provision Two, Applicable Period Two [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		5		5
Provision Two, Applicable Period Two [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	5.50

NET INCOME PER LIMITED PARTNE39

NET INCOME PER LIMITED PARTNER UNIT (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ (18,936)	$ 7,710	$ (18,210)	$ 9,289
General partner interest in net income (loss)	(195)	241	(51)	344
Preferred interest in net income	5,389	5,391	10,780	10,782
Income (loss) available to limited partners	$ (24,130)	$ 2,078	$ (28,939)	$ (1,837)
Basic and diluted weighted average number of units:
Weighted average common units outstanding - basic and diluted	33,206	32,915	33,191	32,905
Restricted and phantom units	906	741	761	652
Weighted average common units outstanding - diluted	33,206	32,915	33,191	32,905
Basic and diluted net income (loss) per common unit	$ (0.71)	$ 0.06	$ (0.85)	$ (0.05)
Diluted net income per common unit	$ (0.71)	$ 0.06	$ (0.85)	$ (0.05)

PARTNERS' CAPITAL AND DISTRIB40

PARTNERS' CAPITAL AND DISTRIBUTIONS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 26, 2016	Jun. 30, 2016
Phantom Share Units and Restricted Units [Member]
Distribution Made to Member or Limited Partner, Cash Distributions Declared		$ 0.1
Common Stock [Member]
Distribution Made to Member or Limited Partner, Cash Distributions Declared		$ 5.4
Limited Partner [Member]
Distribution Made to Member or Limited Partner, Distributions Declared (in dollars per unit)		$ 0.1450
Distribution Made to Member or Limited Partner, Cash Distributions Declared		$ 5.8
General Partner Interest [Member]
Distribution Made to Member or Limited Partner, Cash Distributions Declared		$ 0.3
Preferred Partner [Member]
Distribution Made to Member or Limited Partner, Distributions Declared (in dollars per unit)		$ 0.17875
Distribution Made to Member or Limited Partner, Cash Distributions Declared		$ 5.4
Subsequent Event [Member] | Common Stock [Member]
Distribution Made to Member or Limited Partner, Cash Distributions Declared	$ 0.6

PARTNERS' CAPITAL AND DISTRIB41

PARTNERS' CAPITAL AND DISTRIBUTIONS Issuances Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 26, 2016	Jul. 19, 2016	Jun. 30, 2016	Dec. 31, 2014	Sep. 22, 2014
Capital Unit [Line Items]
Limited Partners' Capital Account, Units Issued			30,444		9,775,000
Sale of Stock, Price Per Share					$ 7.61
Proceeds from equity issuance, net of offering costs			$ 154
Limited Partners' Offering Costs					$ 3,200
Limited Partner [Member]
Capital Unit [Line Items]
Proceeds from equity issuance, net of offering costs			$ 154	$ 71,200
Subsequent Event [Member]
Capital Unit [Line Items]
Limited Partners' Capital Account, Units Issued	3,795,000
Sale of Stock, Price Per Share	$ 5.90
Proceeds from equity issuance, net of offering costs		$ 5,000
Limited Partners' Offering Costs	$ 1,200
Subsequent Event [Member] | Limited Partner [Member]
Capital Unit [Line Items]
Proceeds from equity issuance, net of offering costs	$ 21,200

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Related party revenue	$ 5,862	$ 10,185	$ 12,871	$ 20,418
Receivables from related parties	1,563		1,563		$ 1,844
Vitol [Member]
Related Party Transaction [Line Items]
Related party revenue	5,500	9,900	12,200	19,800
Receivables from related parties	1,400		1,400		1,800
Due to Related Parties	100		100		800
Advantage Pipeline, L.L.C. [Member]
Related Party Transaction [Line Items]
Related party revenue	300	$ 300	700	$ 600
Receivables from related parties	$ 200		$ 200		$ 100

LONG-TERM INCENTIVE PLAN (Detai

LONG-TERM INCENTIVE PLAN (Details) - USD ($) $ / shares in Units, $ in Thousands

1 Months Ended

6 Months Ended

Mar. 31, 2016

Dec. 31, 2015

Mar. 31, 2015

Dec. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2012

Jun. 30, 2016

Jun. 30, 2015

Jun. 30, 2014

Apr. 28, 2014

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Equity-based incentive compensation expense (in dollars)

$ 815

$ 732

Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized

1,500,000

Number of units authorized

4,100,000

2,600,000

Number of Units [Roll Forward]

Number of Units, Nonvested, Beginning balance

915,541

Number of Units, Granted

416,131

Number of Units, Vested

203,183

Number of Units, Forfeited

30,571

Number of Units, Nonvested, Ending balance

915,541

1,097,918

Weighted Average Grant Date Fair Value [Roll Forward]

Weighted Average Grant Date Fair Value, Nonvested, Beginning balance (in dollars per unit)

$ 7.81

Weighted Average Grant Date Fair Value, Granted (in dollars per unit)

4.77

Weighted Average Grant Date Fair Value, Vested (in dollars per unit)

8.73

Weighted Average Grant Date Fair Value, Forfeited (in dollars per unit)

6.82

Weighted Average Grant Date Fair Value, Nonvested, Ending balance (in dollars per unit)

$ 7.81

$ 6.51

Plan [Member] | Phantom common units [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Unrecognized estimated compensation cost (in dollars)

$ 2,800

Equity-based incentive compensation expense (in dollars)

1,200

$ 1,200

Plan [Member] | Phantom common units [Member] | Chief Executive Officer [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period

5 years

Value of award grants (in dollars)

$ 2,800

Unrecognized estimated compensation cost (in dollars)

$ 700

Number of Units [Roll Forward]

Number of Units, Granted

500,000

Weighted Average Grant Date Fair Value [Roll Forward]

Weighted Average Grant Date Fair Value, Granted (in dollars per unit)

$ 5.62

Plan [Member] | Restricted common units [Member] | Independent Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Award vesting rights percentage

33.00%

33.00%

33.00%

Value of award grants (in dollars)

$ 77

$ 48

$ 65

Number of Units [Roll Forward]

Number of Units, Granted

15,120

7,500

7,500

Weighted Average Grant Date Fair Value [Roll Forward]

Weighted Average Grant Date Fair Value, Granted (in dollars per unit)

[1]

$ 5.06

$ 6.43

$ 8.62

January 2017 Vesting [Member] | Plan [Member] | Phantom common units [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Value of award grants (in dollars)

$ 2,508

Number of Units [Roll Forward]

Number of Units, Granted

276,773

Weighted Average Grant Date Fair Value [Roll Forward]

Weighted Average Grant Date Fair Value, Granted (in dollars per unit)

[2]

$ 9.06

January 2018 Vesting [Member] | Plan [Member] | Phantom common units [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Value of award grants (in dollars)

$ 2,059

Number of Units [Roll Forward]

Number of Units, Granted

266,076

Weighted Average Grant Date Fair Value [Roll Forward]

Weighted Average Grant Date Fair Value, Granted (in dollars per unit)

[2]

$ 7.74

January 2019 Vesting [Member] | Plan [Member] | Phantom common units [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Value of award grants (in dollars)

$ 1,985

Number of Units [Roll Forward]

Number of Units, Granted

416,131

Weighted Average Grant Date Fair Value [Roll Forward]

Weighted Average Grant Date Fair Value, Granted (in dollars per unit)

[2]

$ 4.77

[1]

Fair value is the closing market price on the grant date of the awards.

[2]

Fair value is the closing market price on the grant date of the awards.

EMPLOYEE BENEFIT PLAN (Details)

EMPLOYEE BENEFIT PLAN (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Defined Contribution Plan Disclosure [Line Items]
Employee Stock Ownership Plan (ESOP), Compensation Expense	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Defined Contribution Pension [Member]
Defined Contribution Plan Disclosure [Line Items]
Employer discretionary contribution amount	0.3	0.4	0.6	0.8
Deferred Profit Sharing [Member]
Defined Contribution Plan Disclosure [Line Items]
Employer discretionary contribution amount	$ 0.2	$ 0.1	$ 0.4	$ 0.3

EMPLOYEE BENEFIT PLAN EUPP (Det

EMPLOYEE BENEFIT PLAN EUPP (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
EUPP [Abstract]
Employee Stock Ownership Plan (ESOP), Shares in ESOP	1,000,000		1,000,000
Employee Stock Ownership Plan (ESOP), Compensation Expense	$ 0.1	$ 0.1	$ 0.1	$ 0.1

FAIR VALUE MEASUREMENTS Fair 46

FAIR VALUE MEASUREMENTS Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liabilities	$ 5,297	$ 3,103
Total	5,297	3,103
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liabilities	0	0
Total	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liabilities	5,297
Total	5,297	3,103
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liabilities	0	0
Total	$ 0	$ 0

OPERATING SEGMENTS (Details)

OPERATING SEGMENTS (Details) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016USD ($)StatesTerminalling_And_Storage_Facilities	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)Operating-segmentsStatesTerminalling_And_Storage_FacilitiesPipeline_Systems	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Segment Reporting Information [Line Items]
Number of operating segments (in operating segments) | Operating-segments				4
Service revenue
Third party revenue		$ 30,854	$ 36,389	$ 61,110	$ 68,512
Related party revenue		5,862	10,185	12,871	20,418
Cost of product sales		4,089	0	7,276	0
Third party revenue		6,709	0	10,454	0
Total revenue for reportable segments		43,425	46,574	84,435	88,930
Operating margin (excluding depreciation and amortization)	[1]	19,734	19,929	36,932	36,546
Total assets (end of period)		358,374		358,374		$ 364,746
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Operating margin (excluding depreciation and amortization)	[1]	19,734	19,929	36,932	36,546
Depreciation and amortization		(7,688)	(6,738)	(14,823)	(13,384)
General and administrative expenses		(4,834)	(4,667)	(9,579)	(9,644)
Asset impairment expense		(22,574)	0	(22,845)	0
Gain (loss) on sale of assets		14	(40)	(19)	264
Interest expense		(3,697)	(1,951)	(8,567)	(6,234)
Equity earnings in unconsolidated affiliate		157	1,283	781	1,939
Income (loss) before income taxes		$ (18,888)	7,816	$ (18,120)	9,487
Asphalt Services [Member]
Segment Reporting Information [Line Items]
Number of terminalling and storage facilities providing asphalt product and residual fuel terminalling storage and blending services (in terminalling and storage facilities) | Terminalling_And_Storage_Facilities		45		45
Number of states where Asphalt terminalling and storage facilities are located | States		23		23
Service revenue
Third party revenue		$ 18,132	19,016	$ 35,438	33,628
Related party revenue		256	253	558	405
Total revenue for reportable segments		18,388	19,269	35,996	34,033
Operating expenses (excluding depreciation and amortization)		6,839	6,607	13,271	12,758
Operating margin (excluding depreciation and amortization)		11,549	12,662	22,725	21,275
Total assets (end of period)		117,096	108,426	117,096	108,426
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Operating margin (excluding depreciation and amortization)		11,549	12,662	22,725	21,275
Crude Oil Terminalling and Storage Services [Member]
Service revenue
Third party revenue		3,626	3,643	7,187	6,197
Related party revenue		2,645	2,934	5,404	6,010
Total revenue for reportable segments		6,271	6,577	12,591	12,207
Operating expenses (excluding depreciation and amortization)		1,134	1,695	2,295	3,257
Operating margin (excluding depreciation and amortization)		5,137	4,882	10,296	8,950
Total assets (end of period)		74,072	68,814	74,072	68,814
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Operating margin (excluding depreciation and amortization)		5,137	4,882	$ 10,296	8,950
Crude Oil Pipeline Services [Member]
Segment Reporting Information [Line Items]
Number of pipelines systems owned and operated (in pipeline systems) | Pipeline_Systems				3
Service revenue
Third party revenue		2,702	4,238	$ 4,954	8,513
Related party revenue		985	2,607	3,305	4,990
Cost of product sales		4,089	0	7,276	0
Third party revenue		6,709	0	10,454	0
Total revenue for reportable segments		10,396	6,845	18,713	13,503
Operating expenses (excluding depreciation and amortization)		3,711	4,825	7,939	8,733
Inter-segment Operating Expenses		235	0	495	0
Operating margin (excluding depreciation and amortization)		1,935	2,020	2,577	4,770
Total assets (end of period)		153,706	194,293	153,706	194,293
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Operating margin (excluding depreciation and amortization)		1,935	2,020	2,577	4,770
Asset impairment expense		(22,600)
Inter-Segment Cost of Purchased Oil and Gas		426	0	426	0
Crude Oil Trucking and Producer Field Services [Member]
Service revenue
Third party revenue		6,394	9,492	13,531	20,174
Related party revenue		1,976	4,391	3,604	9,013
Total revenue for reportable segments		9,031	13,883	18,056	29,187
Operating expenses (excluding depreciation and amortization)		7,918	13,518	16,722	27,636
Operating margin (excluding depreciation and amortization)		1,113	365	1,334	1,551
Total assets (end of period)		13,503	16,513	13,503	16,513
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Operating margin (excluding depreciation and amortization)		1,113	365	1,334	1,551
Intersegment Revenues		235	0	495	0
Inter-Segment Sales Revenue, Goods, Net		426	0	426	0
Operating Segments [Member]
Service revenue
Total revenue for reportable segments		44,086	46,574	85,356	88,930
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Intersegment Revenues		$ (661)	$ 0	$ (921)	$ 0
[1]	The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): Three Months ended June 30, Six Months ended June 30, 2015 2016 2015 2016Operating margin (excluding depreciation and amortization)$19,929 $19,734 $36,546 $36,932Depreciation and amortization(6,738) (7,688) (13,384) (14,823)General and administrative expenses(4,667) (4,834) (9,644) (9,579)Asset impairment expense— (22,574) — (22,845)Gain (loss) on sale of assets(40) 14 264 (19)Interest expense(1,951) (3,697) (6,234) (8,567)Equity earnings in unconsolidated affiliate1,283 157 1,939 781Income (loss) before income taxes$7,816 $(18,888) $9,487 $(18,120)

INCOME TAXES (Details)

INCOME TAXES (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Income Tax Disclosure [Abstract]
Gross income of a partnership, for any taxable year is qualifying income will be taxable as a corporation for federal income tax purposes for that taxable year and all subsequent years, maximum (as a percent)	90.00%
Federal statutory income tax rate (as a percent)	35.00%
Valuation Allowance [Line Items]
Difference in bases of property, plant and equipment	$ 871
Deferred tax asset	871
Less: valuation allowance	(871)
Net deferred tax asset	$ 0

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Thousands, bbl in Millions	Jul. 19, 2016USD ($)StatesTerminalling_And_Storage_Facilitiessharesbbl	Jun. 30, 2016USD ($)StatesTerminalling_And_Storage_Facilities	Jun. 30, 2015USD ($)
Subsequent Event [Line Items]
Proceeds from Partnership Contribution		$ 18,989	$ 13,895
Proceeds from equity issuance, net of offering costs		$ 154
Asphalt Services [Member]
Subsequent Event [Line Items]
Number of terminalling and storage facilities providing asphalt product and residual fuel terminalling storage and blending services (in terminalling and storage facilities) | Terminalling_And_Storage_Facilities		45
Number of states where Asphalt terminalling and storage facilities are located | States		23
Subsequent Event [Member]
Subsequent Event [Line Items]
General Partners' Contributed Capital	$ 130,900
Proceeds from equity issuance, net of offering costs	$ 5,000
Number of Barrels | bbl	10.2
Subsequent Event [Member] | Asphalt Services [Member]
Subsequent Event [Line Items]
Number of terminalling and storage facilities providing asphalt product and residual fuel terminalling storage and blending services (in terminalling and storage facilities) | Terminalling_And_Storage_Facilities	54
Number of states where Asphalt terminalling and storage facilities are located | States	26
Subsequent Event [Member] | Ergon [Member]
Subsequent Event [Line Items]
Proceeds from Partnership Contribution	$ 22,100
Subsequent Event [Member] | Series A Preferred Stock [Member]
Subsequent Event [Line Items]
Partners' Capital Account, Units, Sold in Private Placement | shares	18,312,968
Stock Issued During Period, Shares, New Issues	$ 95,300
Subsequent Event [Member] | Series A Preferred Stock [Member] | Charlesbank [Member]
Subsequent Event [Line Items]
Partners' Capital Account, Units, Sold in Private Placement | shares	6,667,695
Preferred Stock, Shares Outstanding | shares	2,488,789
Subsequent Event [Member] | Series A Preferred Stock [Member] | Vitol [Member]
Subsequent Event [Line Items]
Partners' Capital Account, Units, Sold in Private Placement | shares	6,667,695
Preferred Stock, Shares Outstanding | shares	2,488,789
Subsequent Event [Member] | Blueknight GP Holding, LLC [Member]
Subsequent Event [Line Items]
Business acquisition, percentage of voting interests acquired	100.00%
Number of Barrels | bbl	2
Subsequent Event [Member] | Blueknight GP Holding, LLC [Member] | Ergon [Member]
Subsequent Event [Line Items]
Number of terminalling and storage facilities providing asphalt product and residual fuel terminalling storage and blending services (in terminalling and storage facilities) | Terminalling_And_Storage_Facilities	9
Subsequent Event [Member] | General Partner Interest [Member]
Subsequent Event [Line Items]
Business acquisition, percentage of voting interests acquired	100.00%

SUBSEQUENT EVENTS - Credit Faci

SUBSEQUENT EVENTS - Credit Facility (Details)	Jul. 19, 2016USD ($)shares	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Subsequent Event [Line Items]
Cash and cash equivalents		$ 3,034,000	$ 3,038,000	$ 2,354,000	$ 2,661,000
Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Debt Instrument Covenant, Issued Qualified Senior Notes		$ 200,000,000
Consolidated total leverage (as a ratio), Maximum permitted		4.50
Minimum Acquisition Costs		$ 10,000,000
Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Debt Instrument Covenant, Issued Qualified Senior Notes		$ 200,000,000
Provision One, Applicable Period One [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		5
Provision One, Applicable Period One [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		5
Provision One, Applicable Period Two [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		4.75
Provision One, Applicable Period Three [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		4.50
Provision Two, Applicable Period One [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		5.50
Provision Two, Applicable Period One [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		5.50
Provision Two, Applicable Period Two [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted		5
Subsequent Event [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Debt Instrument, Covenant, Percentage Voting Equity Ownership Requirement	50.00%
Subsequent Event [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Debt Instrument Covenant, Issued Qualified Senior Notes	$ 200,000,000
Consolidated total leverage (as a ratio), Maximum permitted	4.75
Cash and cash equivalents	$ 20,000,000
Minimum Acquisition Costs	15,000,000
Subsequent Event [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Cash and cash equivalents	$ 20,000,000
Subsequent Event [Member] | Provision One, Applicable Period One [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	5
Subsequent Event [Member] | Provision One, Applicable Period Two [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	4.75
Subsequent Event [Member] | Provision One, Applicable Period Three [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	5.25
Subsequent Event [Member] | Provision Two, Applicable Period One [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	5
Subsequent Event [Member] | Provision Two, Applicable Period Two [Member] | Aggregate Principal Above Threshold [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	5.50
Subsequent Event [Member] | Series A Preferred Stock [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Stock Repurchased During Period, Shares | shares	13,335,390