Blueknight Energy Partners (BKEP) 10-Q 2 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 28, 2016	Dec. 31, 2015
Entity Information [Line Items]
Series A Preferred unitholders, units outstanding	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	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Entity Common Stock, Shares Outstanding		37,993,177
Subsequent Event [Member]
Entity Information [Line Items]
Series A Preferred unitholders, units outstanding		35,125,202

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 4,285	$ 3,038
Accounts receivable, net of allowance for doubtful accounts of $38 and $21 at December 31, 2015 and September 30, 2016, respectively	8,571	8,697
Receivables from related parties, net of allowance for doubtful accounts of $225 and $0 at December 31, 2015 and September 30, 2016, respectively	1,262	1,844
Prepaid insurance	2,554	1,397
Assets held for sale, net of accumulated depreciation of $1,442 at September 30, 2016	1,375	0
Other current assets	7,532	4,384
Total current assets	25,579	19,360
Property, plant and equipment, net of accumulated depreciation of $205,967 and $223,563 at December 31, 2015 and September 30, 2016, respectively	286,829	312,934
Investment in unconsolidated affiliate	20,164	19,078
Goodwill	4,746	4,387
Debt issuance costs, net	2,389	2,201
Intangibles and other assets, net	14,299	6,786
Total assets	354,006	364,746
Current liabilities:
Accounts payable	3,440	5,236
Accrued interest payable	219	191
Accrued property taxes payable	3,253	2,773
Unearned revenue	3,941	4,299
Unearned revenue with related parties	96	756
Accrued payroll	5,581	7,263
Other current liabilities	5,790	6,358
Total current liabilities	22,320	26,876
Unearned revenue with related parties, noncurrent	52	80
Other long-term liabilities	2,944	2,468
Interest rate swap liabilities	3,989	3,103
Long-term debt	254,000	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 September 30, 2016, respectively)	204,599	204,599
Common unitholders (33,039,818 and 37,122,607 units issued and outstanding at December 31, 2015 and September 30, 2016, respectively)	478,108	493,824
General partner interest (1.8% and 1.7% interest with 1,127,755 outstanding at both dates)	(612,006)	(611,204)
Total Partners’ capital	70,701	87,219
Total liabilities and Partners’ capital	$ 354,006	$ 364,746

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Accounts receivable, allowance for doubtful accounts	$ 21	$ 38
Receivables from related parties, allowance for doubtful accounts	0	225
Accumulated Depreciation, Assets held for sale	1,442	0
Accumulated depreciation	$ 223,563	$ 205,967
Partners’ capital:
Common unitholders, units issued	37,122,607	33,039,818
Common unitholders, units outstanding	37,122,607	33,039,818
Series A Preferred unitholders, units issued	30,147,624	30,158,619
Series A Preferred unitholders, units outstanding	30,147,624	30,158,619
General partner interest, units outstanding	1,127,755	1,127,755
General partner percentage interest	1.70%	1.80%

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Service revenue:
Third party revenue	$ 35,600	$ 36,360	$ 96,711	$ 104,872
Related party revenue	5,734	10,857	18,605	31,275
Product sales revenue:
Third party revenue	5,605	0	16,058	0
Total revenue	46,939	47,217	131,374	136,147
Costs and expenses:
Operating	25,267	31,678	80,314	97,446
Cost of product sales	3,513	0	10,789	0
General and administrative	4,865	4,742	14,447	14,386
Asset impairment expense	0	0	22,845	0
Total costs and expenses	33,645	36,420	128,395	111,832
Gain on sale of assets	104	6,213	85	6,477
Operating income	13,398	17,010	3,064	30,792
Other income (expense):
Equity earnings in unconsolidated affiliate	305	1,399	1,086	3,338
Interest expense (net of capitalized interest of $80, $0, $153 and $41, respectively)	(2,175)	(4,343)	(10,742)	(10,576)
Income (loss) before income taxes	11,528	14,066	(6,592)	23,554
Provision for income taxes	109	99	199	296
Net income (loss)	11,419	13,967	(6,791)	23,258
Allocation of net income (loss) for calculation of earnings per unit:
General partner interest in net income	341	376	291	720
Preferred interest in net income	6,279	5,391	17,058	16,173
Income (loss) available to limited partners	$ 4,799	$ 8,200	$ (24,140)	$ 6,365
Basic net income (loss) per common unit	$ 0.13	$ 0.24	$ (0.69)	$ 0.19
Diluted net income (loss) per common unit	$ 0.13	$ 0.21	$ (0.69)	$ 0.19
Weighted average common units outstanding - basic	36,036	32,947	34,139	32,919
Weighted average common units outstanding - diluted	36,036	63,875	34,139	32,919

CONSOLIDATED STATEMENTS OF OPE5

CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED STATEMENT OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Capitalized interest	$ 0	$ 80	$ 41	$ 153

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - 9 months ended Sep. 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)	(6,791)	(22,995)	16,173	31
Equity-based incentive compensation	1,319	1,297		22
Profits interest contribution	112			112
Distributions	(32,473)	(15,333)	(16,173)	(967)
Proceeds from sale of 3,795,000 common units, net of offering costs of $1.4 million.	20,967	20,967
Proceeds from sale of 71,807 common units pursuant to the Employee Unit Purchase Plan	348	348
Balance at Sep. 30, 2016	$ 70,701	$ 478,108	$ 204,599	$ (612,006)

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (PARENTHETICAL) - USD ($) $ in Millions	Sep. 30, 2016	Jul. 26, 2016
Changes in Partners Capital [Abstract]
Limited Partners' Capital Account, Units Issued	71,807	3,795,000
Limited Partners' Offering Costs		$ 1.4

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ (6,791)	$ 23,258
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for uncollectible receivables from third parties	(13)	(166)
Provision for uncollectible receivables from related parties	(229)	0
Depreciation and amortization	22,447	20,141
Amortization of debt issuance costs	767	655
Unrealized loss related to interest rate swaps	886	2,635
Asset impairment charge	22,845	0
Gain on sale of assets	(85)	(6,477)
Equity-based incentive compensation	1,319	1,459
Equity earnings in unconsolidated affiliate	(1,086)	(3,338)
Distributions from unconsolidated affiliate	0	3,719
Gain related to investments	0	(267)
Changes in assets and liabilities
Decrease (increase) in accounts receivable	139	(867)
Decrease (increase) in receivables from related parties	811	(380)
Decrease in prepaid insurance	2,032	2,419
Decrease (increase) in other current assets	329	(138)
Decrease (increase) in other assets	40	(1,262)
Increase in accounts payable	(517)	(351)
Increase (decrease) in accrued interest payable	28	(41)
Increase in accrued property taxes	480	1,268
Increase (decrease) in unearned revenue	(9)	3,146
Decrease in unearned revenue from related parties	(688)	(838)
Decrease in accrued payroll	(1,682)	(254)
Decrease in other accrued liabilities	(1,110)	(1,127)
Net cash provided by operating activities	39,913	43,194
Cash flows from investing activities:
Acquisitions	(18,989)	(13,895)
Capital expenditures	(15,643)	(30,044)
Proceeds from sale of assets	1,488	13,540
Distributions from unconsolidated affiliate	0	316
Proceeds from sale of investments	0	2,346
Net cash used in investing activities	(33,144)	(27,737)
Cash flows from financing activities:
Payment on insurance premium financing agreement	(2,521)	(2,320)
Debt issuance costs	(955)	0
Borrowings under credit facility	83,000	88,000
Payments under credit facility	(74,000)	(72,000)
Proceeds from equity issuance, net of offering costs	21,315	186
Capital contribution related to profits interest	112	112
Distributions	(32,473)	(30,960)
Net cash used in financing activities	(5,522)	(16,982)
Net increase (decrease) in cash and cash equivalents	1,247	(1,525)
Cash and cash equivalents at beginning of period	3,038	2,661
Cash and cash equivalents at end of period	4,285	1,136
Supplemental disclosure of cash flow information:
Increase (decrease) in accounts payable related to purchase of property, plant and equipment	(1,279)	3,023
Increase in accrued liabilities related to insurance premium financing agreement	$ 3,189	$ 3,439

ORGANIZATION AND NATURE OF BUSI

ORGANIZATION AND NATURE OF BUSINESS	9 Months Ended
	Sep. 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-seven 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. On July 19, 2016, the Partnership announced that Ergon, Inc. (together with its affiliates, “Ergon”) agreed to purchase 100% of the outstanding voting stock of Blueknight GP Holding, L.L.C., which owns 100% of the capital stock of Blueknight Energy Partners G.P., L.L.C. (the “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. This transaction was consummated on October 5, 2016. See Note 17 for further description of the Ergon transactions.

BASIS OF CONSOLIDATION AND PRES

BASIS OF CONSOLIDATION AND PRESENTATION	9 Months Ended
	Sep. 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 nine months ended September 30, 2015 and 2016 , the condensed consolidated statement of changes in partners’ capital for the nine months ended September 30, 2016 , the condensed consolidated statements of cash flows for the nine months ended September 30, 2015 and 2016 , and the condensed consolidated balance sheet as of September 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)	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure [Text Block]	ESTRUCTURING 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 Nine Months ended 2016 2016 (in thousands) Beginning balance $ 795 $ 1,565 Charged to expense — — Cash payments (192 ) (962 ) Ending balance $ 603 $ 603 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)	9 Months Ended
	Sep. 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 September 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 September 30, 2016 Balance sheets Current assets $ 2,496 $ 2,074 Noncurrent assets 86,702 90,031 Total assets $ 89,198 $ 92,105 Current liabilities 2,534 1,330 Long-term liabilities 23,194 23,119 Member’s equity 63,470 67,656 Total liabilities and member’s equity $ 89,198 $ 92,105 Three Months ended Nine Months ended 2015 2016 2015 2016 Income statements Operating revenues $ 7,883 $ 3,528 $ 20,683 $ 12,003 Net income $ 5,394 $ 1,176 $ 12,618 $ 4,187

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	PROPERTY, PLANT AND EQUIPMENT Estimated Useful Lives (Years) December 31, 2015 September 30, 2016 (dollars in thousands) Land N/A $ 19,680 $ 23,234 Land improvements 10-20 6,382 6,663 Pipelines and facilities 5-30 165,497 168,237 Storage and terminal facilities 10-35 251,051 262,510 Transportation equipment 3-10 13,728 12,152 Office property and equipment and other 3-20 28,453 29,287 Pipeline linefill and tank bottoms N/A 3,474 3,425 Construction-in-progress N/A 30,636 4,884 Property, plant and equipment, gross 518,901 510,392 Accumulated depreciation (205,967 ) (223,563 ) Property, plant and equipment, net $ 312,934 $ 286,829 Depreciation expense for the three months ended September 30, 2015 and 2016 was $6.7 million and $7.3 million , respectively, and depreciation expense for the nine months ended September 30, 2015 and 2016 was $20.1 million and $21.6 million , respectively. The Partnership recorded no asset impairment expense for the three months ended September 30, 2016 . For the nine months ended September 30, 2016 , the Partnership recorded asset impairment expense of $22.8 million . The year-to-date impairment 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 was 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 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	9 Months Ended
	Sep. 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 and to increase the limit on material project adjustments to EBITDA (as defined in the credit agreement). On July 19, 2016, the Partnership entered into a second amendment to the credit agreement which, among other things, amended the maximum permitted consolidated total leverage ratio as discussed below. As of October 28, 2016 , approximately $315.0 million of revolver borrowings and $1.4 million of letters of credit were outstanding under the credit facility, leaving the Partnership with approximately $83.6 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 second amended and restated credit agreement, as amended on July 19, 2016. 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 5.00 to 1.00; provided that: • the maximum permitted consolidated total leverage ratio is 5.00 to 1.00 for the fiscal quarter ending September 30, 2016, and 4.75 to 1.00 for each fiscal quarter 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); and 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 from and after the fiscal quarter ending immediately preceding the fiscal quarter in which a specified acquisition occurs to and including the last day of the second full fiscal quarter following the fiscal quarter in which such acquisition occurred, the maximum permitted consolidated total leverage ratio will be 5.50 to 1.00. 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. Furthermore, the credit agreement: • requires the Partnership and its subsidiaries execute certain account control agreements; • requires 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 • restricts 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 . 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 September 30, 2016 , the Partnership’s consolidated total leverage ratio was 3.94 to 1.00 and the consolidated interest coverage ratio was 5.51 to 1.00. The Partnership was in compliance with all covenants of its credit agreement as of September 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 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) Ergon ceases to 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 nine months ended September 30, 2015 . The Partnership capitalized $0.9 million and $1.0 million of debt issuance costs during the three and nine months ended September 30, 2016 , respectively. 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 the three months ended September 30, 2015 and 2016 was $0.2 million and $0.3 million , respectively. Interest expense related to debt issuance cost amortization for the nine months ended September 30, 2015 and 2016 was $0.7 million and $0.8 million , respectively. During the three months ended September 30, 2015 and 2016 , the weighted average interest rate under the Partnership’s credit agreement was 3.31% and 4.27% , respectively, resulting in interest expense of approximately $2.0 million and $2.8 million , respectively. During the nine months ended September 30, 2015 and 2016 , the weighted average interest rate under the Partnership’s credit agreement was 3.37% and 3.92% , respectively, resulting in interest expense of approximately $5.9 million and $8.0 million , respectively. As of September 30, 2016 , borrowings under the Partnership’s amended and restated credit agreement bore interest at a weighted average interest rate of 4.35% . During the three months ended September 30, 2015 , the Partnership capitalized interest of less than $0.1 million . The Partnership capitalized no interest during the three months ended September 30, 2016 . During the nine months ended September 30, 2015 and 2016 , the Partnership capitalized interest of $0.2 million and less than $0.1 million , respectively. 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 September 30, 2015 and 2016 , the Partnership recorded swap interest expense of $0.8 million and $0.6 million , respectively. During the nine months ended September 30, 2015 and 2016 , the Partnership recorded swap interest expense of $2.2 million and $1.9 million , respectively. The fair market value of the interest rate swaps at December 31, 2015 and September 30, 2016 is a liability of $3.1 million and $4.0 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	9 Months Ended
	Sep. 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 Nine Months ended 2015 2016 2015 2016 Net income (loss) $ 13,967 $ 11,419 $ 23,258 $ (6,791 ) General partner interest in net income 376 341 720 291 Preferred interest in net income 5,391 6,279 16,173 17,058 Income (loss) available to limited partners $ 8,200 $ 4,799 $ 6,365 $ (24,140 ) Basic weighted average number of units: Common units 32,947 36,036 32,919 34,139 Restricted and phantom units 721 876 675 799 Diluted weighted average number of units: Common units 63,875 36,036 32,919 34,139 Basic net income (loss) per common unit $ 0.24 $ 0.13 $ 0.19 $ (0.69 ) Diluted net income (loss) per common unit $ 0.21 $ 0.13 $ 0.19 $ (0.69 )

PARTNERS' CAPITAL AND DISTRIBUT

PARTNERS' CAPITAL AND DISTRIBUTIONS	9 Months Ended
	Sep. 30, 2016
Partners' Capital Account, Distributions [Abstract]
PARTNERS' CAPITAL AND DISTRIBUTIONS	ARTNERS’ CAPITAL AND DISTRIBUTIONS 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 $1.4 million . On October 20, 2016 , the Board approved a distribution of $0.17875 per preferred unit, or a total distribution of $6.3 million , for the quarter ending September 30, 2016 . The Partnership will pay this distribution on the preferred units on November 14, 2016 , to unitholders of record as of November 4, 2016 . In addition, on October 20, 2016 , the Board declared a cash distribution of $0.1450 per unit on its outstanding common units. The distribution will be paid on November 14, 2016 , to unitholders of record on November 4, 2016 . The distribution is for the three months ended September 30, 2016 . The total distribution will be approximately $6.0 million , with approximately $5.5 million and $0.4 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	9 Months Ended
	Sep. 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 Holding B.V. (“Vitol”). For the three months ended September 30, 2015 and 2016 , the Partnership recognized revenues of $10.5 million and $5.4 million , respectively, for services provided to Vitol. For the nine months ended September 30, 2015 and 2016 , the Partnership recognized revenues of $30.3 million and $17.6 million , respectively, for services provided to Vitol. As of December 31, 2015 and September 30, 2016 , the Partnership had receivables from Vitol of $1.8 million and $1.2 million , respectively, net of allowance for doubtful accounts. As of December 31, 2015 and September 30, 2016 , the Partnership had unearned revenues from Vitol of $0.8 million and $0.1 million , respectively. As a result of the change of control of the Partnership’s General Partner, Vitol is no longer a related party as of October 5, 2016. See Note 17 for further description of the Ergon transactions. The Partnership also provides operating and administrative services to Advantage Pipeline. For the three months ended September 30, 2015 and 2016 , the Partnership earned revenues of $0.4 million and $0.3 million , respectively, for services provided to Advantage Pipeline. For each of the nine months ended September 30, 2015 and 2016 , the Partnership earned revenues of $1.0 million for services provided to Advantage Pipeline. As of both December 31, 2015 and September 30, 2016 , the Partnership had receivables from Advantage Pipeline of $0.1 million .

LONG-TERM INCENTIVE PLAN

LONG-TERM INCENTIVE PLAN	9 Months Ended
	Sep. 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 September 30, 2016 was $2.3 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 September 30, 2016 was $0.5 million and will be expensed over the remaining vesting period. The Partnership’s equity-based incentive compensation expense for each of the three months ended September 30, 2015 and 2016 was $0.7 million . The Partnership’s equity-based incentive compensation expense for the nine months ended September 30, 2015 and 2016 was $1.9 million and $1.8 million , respectively. 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 304,760 7.70 Forfeited 97,803 6.66 Nonvested at September 30, 2016 929,109 $ 6.60

EMPLOYEE BENEFIT PLAN

EMPLOYEE BENEFIT PLAN	9 Months Ended
	Sep. 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 September 30, 2015 and 2016 , for discretionary contributions under the 401(k) Plan. The Partnership recognized expense of $1.2 million and $0.9 million , respectively, for the nine months ended September 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 $0.3 million and $0.2 million , respectively, for the three months ended September 30, 2015 and 2016 , for discretionary profit sharing contributions under the 401(k) Plan. The Partnership recognized expense of $0.6 million and $0.5 million , respectively, for the nine months ended September 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 September 30, 2015 and 2016 , in connection with the Unit Purchase Plan. The Partnership recognized compensation expense of $0.1 million and less than $0.1 million , respectively, for the nine months ended September 30, 2015 and 2016 , in connection with the Unit Purchase Plan.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 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 September 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 $ 3,989 $ — $ 3,989 $ — Total $ 3,989 $ — $ 3,989 $ — 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 September 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 September 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	9 Months Ended
	Sep. 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. On October 5, 2016, the Partnership acquired nine additional terminalling and storage facilities, bringing the total to 54 terminalling and storage facilities located in 26 states ( see Note 17 ). 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 Nine Months ended 2015 2016 2015 2016 Asphalt Terminalling Services Service revenue Third party revenue $ 21,307 $ 25,217 $ 54,934 $ 60,656 Related party revenue 482 242 887 800 Total revenue for reportable segments 21,789 25,459 55,821 61,456 Operating expense (excluding depreciation and amortization) 6,308 6,467 19,067 19,737 Operating margin (excluding depreciation and amortization) 15,481 18,992 36,754 41,719 Total assets (end of period) $ 101,434 $ 114,703 $ 101,434 $ 114,703 Crude Oil Terminalling and Storage Services Service revenue Third party revenue $ 3,524 $ 3,444 $ 9,721 $ 10,631 Related party revenue 3,041 2,344 9,052 7,747 Total revenue for reportable segments 6,565 5,788 18,773 18,378 Operating expense (excluding depreciation and amortization) 1,325 776 4,582 3,071 Operating margin (excluding depreciation and amortization) 5,240 5,012 14,191 15,307 Total assets (end of period) $ 73,628 $ 74,807 $ 73,628 $ 74,807 Crude Oil Pipeline Services Service revenue Third party revenue $ 2,594 $ 1,107 $ 11,107 $ 6,061 Related party revenue 3,301 1,665 8,291 4,970 Product sales revenue Third party revenue — 5,605 — 16,058 Total revenue for reportable segments 5,895 8,377 19,398 27,089 Operating expense (excluding depreciation and amortization) 4,855 3,349 13,589 11,288 Operating expense (intersegment) — 197 — 692 Cost of product sales — 3,513 — 10,789 Cost of product sales (intersegment) — — — 426 Operating margin (excluding depreciation and amortization) 1,040 1,318 5,809 3,894 Total assets (end of period) $ 192,945 $ 151,341 $ 192,945 $ 151,341 Crude Oil Trucking and Producer Field Services Service revenue Third party revenue $ 8,935 $ 5,832 $ 29,110 $ 19,363 Related party revenue 4,033 1,483 13,045 5,088 Intersegment revenue — 197 — 692 Product sales revenue Intersegment revenue — — — 426 Total revenue for reportable segments 12,968 7,512 42,155 25,569 Operating expense (excluding depreciation and amortization) 12,432 7,051 40,067 23,771 Operating margin (excluding depreciation and amortization) 536 461 2,088 1,798 Total assets (end of period) $ 15,023 $ 13,155 $ 15,023 $ 13,155 Total operating margin (excluding depreciation and amortization) (1) $ 22,297 $ 25,783 $ 58,842 $ 62,718 Total Segment Revenues $ 47,217 $ 47,136 $ 136,147 $ 132,492 Elimination of Intersegment Revenues $ — $ (197 ) $ — $ (1,118 ) Consolidated Revenues $ 47,217 $ 46,939 $ 136,147 $ 131,374 ____________________ (1) The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): Three Months ended Nine Months ended 2015 2016 2015 2016 Operating margin (excluding depreciation and amortization) $ 22,297 $ 25,783 $ 58,842 $ 62,718 Depreciation and amortization (6,758 ) (7,624 ) (20,141 ) (22,447 ) General and administrative expenses (4,742 ) (4,865 ) (14,386 ) (14,447 ) Asset impairment expense — — — (22,845 ) Gain on sale of assets 6,213 104 6,477 85 Interest expense (4,343 ) (2,175 ) (10,576 ) (10,742 ) Equity earnings in unconsolidated affiliate 1,399 305 3,338 1,086 Income (loss) before income taxes $ 14,066 $ 11,528 $ 23,554 $ (6,592 )

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENT AND CONTINGENCIES	OMMITMENTS 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	9 Months Ended
	Sep. 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 September 30, 2016 , are presented below (dollars in thousands): Deferred tax assets Difference in bases of property, plant and equipment $ 859 Deferred tax asset 859 Less: valuation allowance 859 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 September 30, 2016 .

RECENTLY ISSUED ACCOUNTING STAN

RECENTLY ISSUED ACCOUNTING STANDARDS	9 Months Ended
	Sep. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENTLY ISSUED ACCOUNTING STANDARDS	ECENTLY 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 nine months ended September 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 has evaluated the impact of this guidance, which will be adopted beginning with the Partnership’s quarterly report for the period ending March 31, 2017, and does not anticipate a material impact on the Partnership’s financial position, results of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments.” This update provides 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. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This update addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This update is effective for financial statements issued for annual periods beginning after December 15, 2017, 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, 2018.

SUBSEQUENT EVENTS (Notes)

SUBSEQUENT EVENTS (Notes)	9 Months Ended
	Sep. 30, 2016
Subsequent Event [Line Items]
Subsequent Events [Text Block]	UBSEQUENT EVENTS Ergon Transactions Membership Interest Purchase Agreement On July 19, 2016, the Partnership announced that Ergon 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 CBB, an indirect wholly-owned subsidiary of Charlesbank, BEHI, an indirect wholly-owned subsidiary of Vitol, and Ergon Asphalt Holdings, LLC, a wholly-owned subsidiary of Ergon. This transaction was consummated on October 5, 2016. Contribution Agreement In addition, Ergon (i) contributed nine asphalt terminals 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) acquired 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. As of the closing of the transactions in the Contribution Agreement, the Partnership owns a network of 54 asphalt terminals in 26 states with a combined capacity of 9.6 million barrels of asphalt and residual fuel oil storage. As a result of this acquisition which was completed on October 5, 2016, the Partnership’s consolidated results of operations will include the results of the acquired Ergon business beginning in the fourth quarter of 2016. The Partnership has not completed the detailed valuation work necessary to arrive at the required estimates of the fair value of the acquired assets and liabilities assumed and the related allocation of purchase price. The Partnership’s preliminary allocation of purchase price to the assets acquired and liabilities assumed will be included in the Partnership’s future filings. Storage, Throughput and Handling Agreement In connection with the consummation of the transactions described above, the Partnership and Ergon entered that certain Storage, Throughput and Handling Agreement, dated October 5, 2016 (the “Storage, Throughput and Handling Agreement”). Pursuant to the Storage, Throughput and Handling Agreement, the Partnership’s subsidiaries operate certain asphalt terminals, storage tanks and related real property, contracts, permits, assets and other interests (the “Terminal Assets”) previously owned by Ergon, and store and terminal Ergon’s asphalt products at the Terminal Assets, in exchange for the payment of certain fees by Ergon. The term of the related party agreement began on October 5, 2016, and will continue for a period of seven years. The related party agreement will then continue on a year-to-year basis unless cancelled by either party by delivering not less than 180 days’ notice. Each party has agreed to indemnify the other party (and its affiliates) for any and all liabilities arising from (i) its breach of the Storage, Throughput and Handling Agreement, (ii) its negligence or willful misconduct, or the negligence or willful misconduct of an affiliate, or (iii) its failure to comply with law with respect to the sale, transportation, storage, handling or disposal of product. Omnibus Agreement In connection with the consummation of the transactions described above, the General Partner, the Partnership and certain of the Partnership’s subsidiaries entered into the Omnibus Agreement, dated as of October 5, 2016 (the “Omnibus Agreement”) with Ergon pursuant to which Ergon was granted a right of first offer with respect to the (i) Wolcott, Kansas Asphalt Terminal; (ii) Ennis, Texas Asphalt Terminal; (iii) Chandler, Arizona Asphalt/Emulsion Terminal; (iv) Mt. Pleasant, Texas Emulsion Terminal; (v) Pleasanton, Texas Emulsion Terminal; (vi) Birmingport, Alabama Asphalt/Polymer/Emulsion Terminal; (vii) Memphis, Tennessee Asphalt/Polymer/Emulsion Terminal; (viii) Nashville, Tennessee Asphalt/Polymer Terminal; (ix) Yellow Creek, Mississippi Asphalt Terminal; (x) Fontana, California Asphalt/Emulsion Terminal; and (xi) Las Vegas, Nevada Asphalt/Emulsion/Polymer Terminal (collectively, the “ROFO Assets”) to the extent that the owner of the ROFO Assets proposes to transfer such ROFO Asset while the Omnibus Agreement is in effect. In addition, the Omnibus Agreement also granted Ergon a right of first refusal to purchase the (i) Fontana, California Asphalt/Emulsion Terminal and (ii) Las Vegas, Nevada Asphalt/Emulsion/Polymer Terminal (together, the “ROFR Assets”) if any owner of the ROFR Assets proposes or intends to sell any ROFR Asset to a third party through the period ending December 31, 2018. Preferred Unit Purchase Agreement Pursuant to a Preferred Unit Purchase Agreement dated July 19, 2016 among the Partnership, CBB and BEHI, on October 5, 2016, the Partnership purchased 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 each retained 2,488,789 ( 4,977,578 in aggregate) Series A preferred units upon completion of these transactions.

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	9 Months Ended
	Sep. 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 Nine Months ended 2016 2016 (in thousands) Beginning balance $ 795 $ 1,565 Charged to expense — — Cash payments (192 ) (962 ) Ending balance $ 603 $ 603

EQUITY METHOD INVESTMENT (Table

EQUITY METHOD INVESTMENT (Tables)	9 Months Ended
	Sep. 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 September 30, 2016 Balance sheets Current assets $ 2,496 $ 2,074 Noncurrent assets 86,702 90,031 Total assets $ 89,198 $ 92,105 Current liabilities 2,534 1,330 Long-term liabilities 23,194 23,119 Member’s equity 63,470 67,656 Total liabilities and member’s equity $ 89,198 $ 92,105 Three Months ended Nine Months ended 2015 2016 2015 2016 Income statements Operating revenues $ 7,883 $ 3,528 $ 20,683 $ 12,003 Net income $ 5,394 $ 1,176 $ 12,618 $ 4,187

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Estimated Useful Lives (Years) December 31, 2015 September 30, 2016 (dollars in thousands) Land N/A $ 19,680 $ 23,234 Land improvements 10-20 6,382 6,663 Pipelines and facilities 5-30 165,497 168,237 Storage and terminal facilities 10-35 251,051 262,510 Transportation equipment 3-10 13,728 12,152 Office property and equipment and other 3-20 28,453 29,287 Pipeline linefill and tank bottoms N/A 3,474 3,425 Construction-in-progress N/A 30,636 4,884 Property, plant and equipment, gross 518,901 510,392 Accumulated depreciation (205,967 ) (223,563 ) Property, plant and equipment, net $ 312,934 $ 286,829

NET INCOME PER LIMITED PARTNE29

NET INCOME PER LIMITED PARTNER UNIT (Tables)	9 Months Ended
	Sep. 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 Nine Months ended 2015 2016 2015 2016 Net income (loss) $ 13,967 $ 11,419 $ 23,258 $ (6,791 ) General partner interest in net income 376 341 720 291 Preferred interest in net income 5,391 6,279 16,173 17,058 Income (loss) available to limited partners $ 8,200 $ 4,799 $ 6,365 $ (24,140 ) Basic weighted average number of units: Common units 32,947 36,036 32,919 34,139 Restricted and phantom units 721 876 675 799 Diluted weighted average number of units: Common units 63,875 36,036 32,919 34,139 Basic net income (loss) per common unit $ 0.24 $ 0.13 $ 0.19 $ (0.69 ) Diluted net income (loss) per common unit $ 0.21 $ 0.13 $ 0.19 $ (0.69 )

LONG-TERM INCENTIVE PLAN (Table

LONG-TERM INCENTIVE PLAN (Tables)	9 Months Ended
	Sep. 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 304,760 7.70 Forfeited 97,803 6.66 Nonvested at September 30, 2016 929,109 $ 6.60
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)	9 Months Ended
	Sep. 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 September 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 $ 3,989 $ — $ 3,989 $ — Total $ 3,989 $ — $ 3,989 $ —

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	9 Months Ended
	Sep. 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 Nine Months ended 2015 2016 2015 2016 Asphalt Terminalling Services Service revenue Third party revenue $ 21,307 $ 25,217 $ 54,934 $ 60,656 Related party revenue 482 242 887 800 Total revenue for reportable segments 21,789 25,459 55,821 61,456 Operating expense (excluding depreciation and amortization) 6,308 6,467 19,067 19,737 Operating margin (excluding depreciation and amortization) 15,481 18,992 36,754 41,719 Total assets (end of period) $ 101,434 $ 114,703 $ 101,434 $ 114,703 Crude Oil Terminalling and Storage Services Service revenue Third party revenue $ 3,524 $ 3,444 $ 9,721 $ 10,631 Related party revenue 3,041 2,344 9,052 7,747 Total revenue for reportable segments 6,565 5,788 18,773 18,378 Operating expense (excluding depreciation and amortization) 1,325 776 4,582 3,071 Operating margin (excluding depreciation and amortization) 5,240 5,012 14,191 15,307 Total assets (end of period) $ 73,628 $ 74,807 $ 73,628 $ 74,807 Crude Oil Pipeline Services Service revenue Third party revenue $ 2,594 $ 1,107 $ 11,107 $ 6,061 Related party revenue 3,301 1,665 8,291 4,970 Product sales revenue Third party revenue — 5,605 — 16,058 Total revenue for reportable segments 5,895 8,377 19,398 27,089 Operating expense (excluding depreciation and amortization) 4,855 3,349 13,589 11,288 Operating expense (intersegment) — 197 — 692 Cost of product sales — 3,513 — 10,789 Cost of product sales (intersegment) — — — 426 Operating margin (excluding depreciation and amortization) 1,040 1,318 5,809 3,894 Total assets (end of period) $ 192,945 $ 151,341 $ 192,945 $ 151,341 Crude Oil Trucking and Producer Field Services Service revenue Third party revenue $ 8,935 $ 5,832 $ 29,110 $ 19,363 Related party revenue 4,033 1,483 13,045 5,088 Intersegment revenue — 197 — 692 Product sales revenue Intersegment revenue — — — 426 Total revenue for reportable segments 12,968 7,512 42,155 25,569 Operating expense (excluding depreciation and amortization) 12,432 7,051 40,067 23,771 Operating margin (excluding depreciation and amortization) 536 461 2,088 1,798 Total assets (end of period) $ 15,023 $ 13,155 $ 15,023 $ 13,155 Total operating margin (excluding depreciation and amortization) (1) $ 22,297 $ 25,783 $ 58,842 $ 62,718 Total Segment Revenues $ 47,217 $ 47,136 $ 136,147 $ 132,492 Elimination of Intersegment Revenues $ — $ (197 ) $ — $ (1,118 ) Consolidated Revenues $ 47,217 $ 46,939 $ 136,147 $ 131,374 ____________________ (1) The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): Three Months ended Nine Months ended 2015 2016 2015 2016 Operating margin (excluding depreciation and amortization) $ 22,297 $ 25,783 $ 58,842 $ 62,718 Depreciation and amortization (6,758 ) (7,624 ) (20,141 ) (22,447 ) General and administrative expenses (4,742 ) (4,865 ) (14,386 ) (14,447 ) Asset impairment expense — — — (22,845 ) Gain on sale of assets 6,213 104 6,477 85 Interest expense (4,343 ) (2,175 ) (10,576 ) (10,742 ) Equity earnings in unconsolidated affiliate 1,399 305 3,338 1,086 Income (loss) before income taxes $ 14,066 $ 11,528 $ 23,554 $ (6,592 )

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 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 September 30, 2016 , are presented below (dollars in thousands): Deferred tax assets Difference in bases of property, plant and equipment $ 859 Deferred tax asset 859 Less: valuation allowance 859 Net deferred tax asset $ —

ORGANIZATION AND NATURE OF BU34

ORGANIZATION AND NATURE OF BUSINESS (Narrative) (Details)	9 Months Ended
	Sep. 30, 2016Operating-segmentsStates	Jul. 19, 2016
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Number of states in which entity operates (in states) | States	27
Number of operating segments (in operating segments) | Operating-segments	4
Blueknight GP Holding, LLC [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%
General Partner [Member]
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%

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	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 603	$ 603	$ 795	$ 1,565
Charged to expense	0	0
Cash payments	$ (192)	$ (962)

EQUITY METHOD INVESTMENT (Detai

EQUITY METHOD INVESTMENT (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 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	$ 2,074		$ 2,074		$ 2,496
Equity Method Investment, Summarized Financial Information, Noncurrent Assets	90,031		90,031		86,702
Equity Method Investment, Summarized Financial Information, Assets	92,105		92,105		89,198
Equity Method Investment, Summarized Financial Information, Current Liabilities	1,330		1,330		2,534
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities	23,119		23,119		23,194
Equity Method Investment Summarized Financial Information, Equity	67,656		67,656		63,470
Equity Method Investment, Summarized Financial Information, Liabilities and Equity	92,105		92,105		$ 89,198
Equity Method Investment, Summarized Financial Information, Revenue	3,528	$ 7,883	12,003	$ 20,683
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	$ 1,176	$ 5,394	$ 4,187	$ 12,618
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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 510,392		$ 510,392		$ 518,901
Accumulated depreciation	223,563		223,563		205,967
Property, plant and equipment, net	286,829		286,829		312,934
Depreciation	7,300	$ 6,700	21,600	$ 20,100
Asset impairment expense	0	$ 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	168,237		$ 168,237		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	262,510		$ 262,510		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	12,152		$ 12,152		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	29,287		$ 29,287		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	$ 4,884		4,884		$ 30,636
Crude Oil Pipeline Services [Member]
Property, Plant and Equipment [Line Items]
Asset impairment expense			$ 22,600

DEBT (Credit Agreements) (Detai

DEBT (Credit Agreements) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Oct. 28, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Debt Instrument [Line Items]
Cash and cash equivalents	$ 4,285,000	$ 1,136,000	$ 4,285,000	$ 1,136,000		$ 3,038,000	$ 2,661,000
Debt Instrument, Interest Rate During Period	4.27%	3.31%	3.92%	3.37%
Debt issuance costs			$ 955,000	$ 0
Amortization of debt issuance costs	$ 300,000	$ 200,000	767,000	655,000
Interest expense for long-term debt	2,800,000	2,000,000	8,000,000	5,900,000
Capitalized interest	0	80,000	41,000	153,000
Derivative, Notional Amount	200,000,000		200,000,000
Interest rate swap liabilities	3,989,000		3,989,000			$ 3,103,000
Interest Expense, Other	600,000	800,000	$ 1,900,000	2,200,000
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	3.94		3.94
Consolidated interest coverage (as a ratio), actual	5.51		5.51
Debt issuance costs	$ 900,000	$ 0	$ 1,000,000	$ 0
Weighted average interest rate (as a percent)	4.35%		4.35%
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					$ 315,000,000
Debt Instrument, Unused Borrowing Capacity, Amount					83,600,000
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					$ 1,400,000
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	5		5
Cash and cash equivalents	$ 20,000,000		$ 20,000,000
Minimum Acquisition Costs			15,000,000
Debt Instrument Covenant, Issued Qualified Senior Notes	200,000,000		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 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 Three [Member] | Aggregate Principal Below Threshold [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Consolidated total leverage (as a ratio), Maximum permitted	5.25		5.25
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	5.50		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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ 11,419	$ 13,967	$ (6,791)	$ 23,258
General partner interest in net income	341	376	291	720
Preferred interest in net income	6,279	5,391	17,058	16,173
Income (loss) available to limited partners	$ 4,799	$ 8,200	$ (24,140)	$ 6,365
Basic weighted average number of units:
Weighted average common units outstanding - basic	36,036	32,947	34,139	32,919
Restricted and phantom units	876	721	799	675
Weighted average common units outstanding - diluted	36,036	63,875	34,139	32,919
Basic net income (loss) per common unit	$ 0.13	$ 0.24	$ (0.69)	$ 0.19
Diluted net income (loss) per common unit	$ 0.13	$ 0.21	$ (0.69)	$ 0.19

PARTNERS' CAPITAL AND DISTRIB40

PARTNERS' CAPITAL AND DISTRIBUTIONS (Narrative) (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 30, 2016USD ($)$ / shares
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	$ 5.5
Limited Partner [Member]
Distribution Made to Member or Limited Partner, Distributions Declared (in dollars per unit) | $ / shares	$ 0.1450
Distribution Made to Member or Limited Partner, Cash Distributions Declared	$ 6
General Partner Interest [Member]
Distribution Made to Member or Limited Partner, Cash Distributions Declared	$ 0.4
Preferred Partner [Member]
Distribution Made to Member or Limited Partner, Distributions Declared (in dollars per unit) | $ / shares	$ 0.17875
Distribution Made to Member or Limited Partner, Cash Distributions Declared	$ 6.3

PARTNERS' CAPITAL AND DISTRIB41

PARTNERS' CAPITAL AND DISTRIBUTIONS Issuances Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 05, 2016	Jul. 26, 2016	Sep. 30, 2016
Capital Unit [Line Items]
Limited Partners' Capital Account, Units Issued		3,795,000	71,807
Sale of Stock, Price Per Share		$ 5.90
Proceeds from equity issuance, net of offering costs			$ 348
Limited Partners' Offering Costs		$ 1,400
Limited Partner [Member]
Capital Unit [Line Items]
Proceeds from equity issuance, net of offering costs		$ 21,200	$ 348
Subsequent Event [Member]
Capital Unit [Line Items]
Proceeds from equity issuance, net of offering costs	$ 5,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Related party revenue	$ 5,734	$ 10,857	$ 18,605	$ 31,275
Receivables from related parties	1,262		1,262		$ 1,844
Vitol [Member]
Related Party Transaction [Line Items]
Related party revenue	5,400	10,500	17,600	30,300
Receivables from related parties	1,200		1,200		1,800
Due to Related Parties	100		100		800
Advantage Pipeline, L.L.C. [Member]
Related Party Transaction [Line Items]
Related party revenue	300	$ 400	1,000	$ 1,000
Receivables from related parties	$ 100		$ 100		$ 100

LONG-TERM INCENTIVE PLAN (Detai

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

1 Months Ended

3 Months Ended

6 Months Ended

9 Months Ended

Mar. 31, 2016

Dec. 31, 2015

Mar. 31, 2015

Dec. 31, 2014

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2012

Sep. 30, 2016

Sep. 30, 2015

Jun. 30, 2014

Sep. 30, 2016

Sep. 30, 2015

Apr. 28, 2014

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

Equity-based incentive compensation expense (in dollars)

$ 1,319

$ 1,459

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

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

304,760

Number of Units, Forfeited

97,803

Number of Units, Nonvested, Ending balance

915,541

929,109

929,109

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)

7.70

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

6.66

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

$ 7.81

$ 6.60

$ 6.60

Plan [Member] | Phantom common units [Member]

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

Unrecognized estimated compensation cost (in dollars)

$ 2,300

$ 2,300

Equity-based incentive compensation expense (in dollars)

700

$ 700

1,800

$ 1,900

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)

$ 500

$ 500

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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 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	0.9	1.2
Deferred Profit Sharing [Member]
Defined Contribution Plan Disclosure [Line Items]
Employer discretionary contribution amount	$ 0.2	$ 0.3	$ 0.5	$ 0.6

EMPLOYEE BENEFIT PLAN EUPP (Det

EMPLOYEE BENEFIT PLAN EUPP (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 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	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liabilities	$ 3,989	$ 3,103
Total	3,989	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	3,989
Total	3,989	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		9 Months Ended
		Sep. 30, 2016USD ($)StatesTerminalling_And_Storage_Facilities	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)Operating-segmentsStatesTerminalling_And_Storage_FacilitiesPipeline_Systems	Sep. 30, 2015USD ($)	Oct. 05, 2016StatesTerminalling_And_Storage_Facilities	Dec. 31, 2015USD ($)
Segment Reporting Information [Line Items]
Number of operating segments (in operating segments) | Operating-segments				4
Service revenue
Third party revenue		$ 35,600	$ 36,360	$ 96,711	$ 104,872
Related party revenue		5,734	10,857	18,605	31,275
Cost of product sales		3,513	0	10,789	0
Third party revenue		5,605	0	16,058	0
Total revenue for reportable segments		46,939	47,217	131,374	136,147
Operating margin (excluding depreciation and amortization)	[1]	25,783	22,297	62,718	58,842
Total assets (end of period)		354,006		354,006			$ 364,746
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Operating margin (excluding depreciation and amortization)	[1]	25,783	22,297	62,718	58,842
Depreciation and amortization		(7,624)	(6,758)	(22,447)	(20,141)
General and administrative expenses		(4,865)	(4,742)	(14,447)	(14,386)
Asset impairment expense		0	0	(22,845)	0
Gain on sale of assets		104	6,213	85	6,477
Interest expense		(2,175)	(4,343)	(10,742)	(10,576)
Equity earnings in unconsolidated affiliate		305	1,399	1,086	3,338
Income (loss) before income taxes		$ 11,528	14,066	$ (6,592)	23,554
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		$ 25,217	21,307	$ 60,656	54,934
Related party revenue		242	482	800	887
Total revenue for reportable segments		25,459	21,789	61,456	55,821
Operating expenses (excluding depreciation and amortization)		6,467	6,308	19,737	19,067
Operating margin (excluding depreciation and amortization)		18,992	15,481	41,719	36,754
Total assets (end of period)		114,703	101,434	114,703	101,434
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Operating margin (excluding depreciation and amortization)		18,992	15,481	41,719	36,754
Crude Oil Terminalling and Storage Services [Member]
Service revenue
Third party revenue		3,444	3,524	10,631	9,721
Related party revenue		2,344	3,041	7,747	9,052
Total revenue for reportable segments		5,788	6,565	18,378	18,773
Operating expenses (excluding depreciation and amortization)		776	1,325	3,071	4,582
Operating margin (excluding depreciation and amortization)		5,012	5,240	15,307	14,191
Total assets (end of period)		74,807	73,628	74,807	73,628
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Operating margin (excluding depreciation and amortization)		5,012	5,240	$ 15,307	14,191
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		1,107	2,594	$ 6,061	11,107
Related party revenue		1,665	3,301	4,970	8,291
Cost of product sales		3,513	0	10,789	0
Third party revenue		5,605	0	16,058	0
Total revenue for reportable segments		8,377	5,895	27,089	19,398
Operating expenses (excluding depreciation and amortization)		3,349	4,855	11,288	13,589
Inter-segment Operating Expenses		197	0	692	0
Operating margin (excluding depreciation and amortization)		1,318	1,040	3,894	5,809
Total assets (end of period)		151,341	192,945	151,341	192,945
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Operating margin (excluding depreciation and amortization)		1,318	1,040	3,894	5,809
Asset impairment expense				(22,600)
Inter-Segment Cost of Purchased Oil and Gas		0	0	426	0
Crude Oil Trucking and Producer Field Services [Member]
Service revenue
Third party revenue		5,832	8,935	19,363	29,110
Related party revenue		1,483	4,033	5,088	13,045
Total revenue for reportable segments		7,512	12,968	25,569	42,155
Operating expenses (excluding depreciation and amortization)		7,051	12,432	23,771	40,067
Operating margin (excluding depreciation and amortization)		461	536	1,798	2,088
Total assets (end of period)		13,155	15,023	13,155	15,023
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Operating margin (excluding depreciation and amortization)		461	536	1,798	2,088
Intersegment Revenues		197	0	692	0
Inter-Segment Sales Revenue, Goods, Net		0	0	426	0
Operating Segments [Member]
Service revenue
Total revenue for reportable segments		47,136	47,217	132,492	136,147
Reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes
Intersegment Revenues		$ (197)	$ 0	$ (1,118)	$ 0
Subsequent Event [Member] | 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						54
Number of states where Asphalt terminalling and storage facilities are located | States						26
[1]	The following table reconciles segment operating margin (excluding depreciation and amortization) to income before income taxes (in thousands): Three Months ended September 30, Nine Months ended September 30, 2015 2016 2015 2016Operating margin (excluding depreciation and amortization)$22,297 $25,783 $58,842 $62,718Depreciation and amortization(6,758) (7,624) (20,141) (22,447)General and administrative expenses(4,742) (4,865) (14,386) (14,447)Asset impairment expense— — — (22,845)Gain on sale of assets6,213 104 6,477 85Interest expense(4,343) (2,175) (10,576) (10,742)Equity earnings in unconsolidated affiliate1,399 305 3,338 1,086Income (loss) before income taxes$14,066 $11,528 $23,554 $(6,592)

INCOME TAXES (Details)

INCOME TAXES (Details) $ in Thousands	9 Months Ended
	Sep. 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	$ 859
Deferred tax asset	859
Less: valuation allowance	859
Net deferred tax asset	$ 0

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Thousands, bbl in Millions	Oct. 05, 2016USD ($)StatesTerminalling_And_Storage_Facilitiessharesbbl	Sep. 30, 2016USD ($)StatesTerminalling_And_Storage_Facilities	Sep. 30, 2015USD ($)	Jul. 19, 2016
Subsequent Event [Line Items]
Proceeds from Partnership Contribution | $		$ 18,989	$ 13,895
Proceeds from equity issuance, net of offering costs | $		$ 348
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
Blueknight GP Holding, LLC [Member]
Subsequent Event [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired				100.00%
General Partner Interest [Member]
Subsequent Event [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired				100.00%
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	9.6
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
Preferred Stock, Shares Outstanding | shares	4,977,578
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]
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 EVENTS - Credit Faci

SUBSEQUENT EVENTS - Credit Facility (Details)	9 Months Ended
	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Subsequent Event [Line Items]
Cash and cash equivalents	$ 4,285,000	$ 3,038,000	$ 1,136,000	$ 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	5
Cash and cash equivalents	$ 20,000,000
Minimum Acquisition Costs	15,000,000
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	5.25
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