Blue Dolphin Energy (BDCO) 10-Q 12 Oct 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Oct. 12, 2017
Document And Entity Information
Entity Registrant Name	BLUE DOLPHIN ENERGY CO
Entity Central Index Key	793,306
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,818,371
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 65,064	$ 1,152,628
Restricted cash	1,481,626	3,347,835
Accounts receivable, net	436,305	2,022,166
Accounts receivable, related party	0	1,161,589
Prepaid expenses and other current assets	1,103,308	1,046,191
Deposits	138,957	138,957
Inventory	3,848,449	2,075,538
Total current assets	7,073,709	10,944,904
Total property and equipment, net	64,313,447	62,324,463
Restricted cash, noncurrent	563,336	1,582,305
Surety bonds	230,000	205,000
Trade name	303,346	303,346
Total long-term assets	65,410,129	64,415,114
TOTAL ASSETS	72,483,838	75,360,018
CURRENT LIABILITIES
Long-term debt less unamortized debt issue costs, current portion	32,311,034	31,712,336
Interest payable, current portion	2,444,329	323,756
Long-term debt, related party, current portion	500,000	500,000
Accounts payable	3,677,808	14,552,383
Accounts payable, related party	672,000	369,600
Asset retirement obligations, current portion	17,068	17,510
Accrued expenses and other current liabilities	1,805,266	1,281,582
Accrued arbitration award payable	31,278,563	0
Total current liabilities	72,706,068	48,757,167
Long-term liabilities:
Asset retirement obligations, net of current portion	2,153,817	2,010,129
Deferred revenues and expenses	62,542	83,390
Long-term debt less unamortized debt issue costs, net of current portion	0	1,300,000
Long-term debt, related party, net of current portion	7,240,372	4,814,690
Long-term interest payable, net of current portion	0	1,691,383
Total long-term liabilities	9,456,731	9,899,592
TOTAL LIABILITIES	82,162,799	58,656,759
Commitments and contingencies (Note 18)
STOCKHOLDERS' EQUITY
Common stock (0.01 par value, 20,000,000 shares authorized; 10,818,371 and 10,624,714 shares issued at June 30,2017 and December 31, 2016, respectively	108,184	106,248
Additional paid-in capital	36,877,604	36,818,528
Accumulated deficit	(46,664,749)	(19,421,517)
Treasury stock (0 and 150,000 shares at cost at June 30, 2017 and December 31, 2016, respectively	0	(800,000)
Total stockholders' equity	(9,678,961)	16,703,259
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 72,483,838	$ 75,360,018

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
STOCKHOLDERS' EQUITY
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	10,818,371	10,624,714
Common stock, shares Outstanding	10,818,371	10,624,714
Treasury stock, shares	0	150,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
REVENUE FROM OPERATIONS
Refined petroleum product sales	$ 56,632,620	$ 41,402,286	$ 108,534,658	$ 72,595,423
Tank rental revenue	703,711	615,487	1,407,422	906,974
Other operations	0	24,687	0	52,339
Total revenue from operations	57,336,331	42,042,460	109,942,080	73,554,736
COST OF OPERATIONS
Cost of refined products sold	54,624,947	42,633,298	106,399,449	73,626,775
Refinery operating expenses	1,651,663	2,877,748	4,464,766	6,314,763
Joint Marketing Agreement profit share	0	97,527	0	(573,565)
Other operating expenses	54,282	103,650	115,126	197,592
Arbitration award and associated fees	24,338,628	0	24,338,628	0
General and administrative expenses	708,391	255,319	1,614,481	612,323
Depletion, depreciation and amortization	449,318	470,347	900,343	910,800
Bad debt recovery	0	0	0	(139,868)
Accretion expense	71,844	28,186	143,688	56,372
Total cost of operations	81,899,073	46,466,075	137,976,481	81,005,192
Loss from operations	(24,562,742)	(4,423,615)	(28,034,401)	(7,450,456)
OTHER INCOME (EXPENSE)
Easement, interest and other income	1,089	126,097	383,082	257,860
Interest and other expense	(831,629)	(399,559)	(1,426,413)	(819,466)
Gain on disposal of property	0	0	1,834,500	0
Total other income (expense)	(830,540)	(273,462)	791,169	(561,606)
Loss before income taxes	(25,393,282)	(4,697,077)	(27,243,232)	(8,012,062)
Income tax benefit	0	1,534,341	0	2,700,242
Net loss	$ (25,393,282)	$ (3,162,736)	$ (27,243,232)	$ (5,311,820)
Loss per common share:
Basic	$ (2.39)	$ (0.30)	$ (2.58)	$ (0.51)
Diluted	$ (2.39)	$ (0.30)	$ (2.58)	$ (0.51)
Weighted average number of common shares outstanding:
Basic	10,637,101	10,459,996	10,556,356	10,458,895
Diluted	10,637,101	10,459,996	10,556,356	10,458,895

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
OPERATING ACTIVITIES
Net loss	$ (25,393,282)	$ (3,162,736)	$ (27,243,232)	$ (5,311,820)
Adjustments to reconcile net loss to net cash used in operating activities:
Depletion, depreciation and amortization			900,343	910,800
Unrealized gain on derivatives			0	(385,350)
Deferred tax benefit			0	(2,700,242)
Amortization of debt issue costs			64,242	64,243
Accretion of asset retirement obligations	71,844	28,186	143,688	56,372	$ 112,744
Common stock issued for services			30,000	50,000
Recovery of bad debt	0	0	0	(139,868)
Changes in operating assets and liabilities
Accounts receivable			1,585,862	(3,535,787)
Accounts receivable, related party			1,161,589	0
Prepaid expenses and other current assets			(57,117)	298,001
Deposits and other assets			(25,000)	446,449
Inventory			(1,772,911)	(1,875,803)
Accounts payable, accrued expenses and other liabilities			19,943,605	13,256,568
Accounts payable, related party			302,400	561,963
Net cash provided by (used in) operating activities			(4,966,531)	1,695,526
INVESTING ACTIVITIES
Capital expenditures			(1,407,701)	(7,072,978)
Net cash used in investing activities			(1,407,701)	(7,072,978)
FINANCING ACTIVITIES
Payments on debt			(855,204)	(944,865)
Net activity on related-party debt			3,256,694	0
Net cash provided by (used in) financing activities			2,401,490	(944,865)
Net decrease in cash, cash equivalents, and restricted cash			(3,972,742)	(6,322,317)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD			6,082,768	20,645,652	20,645,652
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD	$ 2,110,026	$ 14,323,335	2,110,026	14,323,335	$ 6,082,768
Non-cash investing and financing activities:
Financing of capital expenditures via accounts payable			1,481,626	2,593,379
Financing of guaranty fees via long-term debt, related party			110,700	0
Conversion of accounts payable to short-term notes			0	0
Conversion of related-party notes to common stock			831,012	0
Interest paid			1,332,653	988,979
Income taxes paid			$ 0	$ 0

1. Organization

1. Organization	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Nature of Operations Structure and Management Our operations are conducted through the following active subsidiaries: ● Lazarus Energy, LLC, a Delaware limited liability company (“LE”). ● Lazarus Refining & Marketing, LLC, a Delaware limited liability company (“LRM”). ● Blue Dolphin Pipe Line Company (“BDPL”), a Delaware corporation. ● Blue Dolphin Petroleum Company, a Delaware corporation. ● Blue Dolphin Services Co., a Texas corporation. See "Part I, Item 1. Business and Item 2. Properties” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (the “Annual Report”) as filed with the Securities and Exchange Commission (the “SEC”) for additional information regarding our operating subsidiaries, principal facilities, and assets. References in this Quarterly Report to “we,” “us,” and “our” are to Blue Dolphin and its subsidiaries unless otherwise indicated or the context otherwise requires. Going Concern Final GEL Arbitration Award A hearing on confirmation of the Final Arbitration Award was scheduled to occur on September 18, 2017 in state district court in Harris County, Texas. Prior to the scheduled hearing, LE and GEL jointly notified the court that the hearing would be continued for a period of no more than 90 days after September 18, 2017 (the “Continuance Period”), to facilitate settlement discussions between the parties. On September 26, 2017, LE and Blue Dolphin, together with LEH and Jonathan Carroll, entered into a Letter Agreement with GEL, effective September 18, 2017 (the “GEL Letter Agreement”), confirming the parties’ agreement to the continuation of the confirmation hearing during the Continuance Period, subject to the terms of the GEL Letter Agreement. GEL may terminate the GEL Letter Agreement on the 45 th Sovereign Bank (“Sovereign”) has delivered to us notices of default under our secured loan agreements with Sovereign, stating that the Final Arbitration Award constitutes an event of default under the secured loan agreements. The occurrence of an event of default permits Sovereign to declare the amounts owed under these loan agreements immediately due and payable, exercise its rights with respect to collateral securing our obligations under these loan agreements, and/or exercise any other rights and remedies available. Sovereign has informed us that it not currently exercising its rights and remedies under the secured loan agreements in light of the ongoing settlement discussions with GEL and the continuance of the hearing on confirmation of the Final Arbitration Award and to allow Sovereign to evaluate any proposed settlement agreement related to the Final Arbitration Award, which would require Sovereign’s approval. However, Sovereign expressly reserved all of its rights, privileges and remedies related to events of default under the secured loan agreements and informed us that it would consider a final confirmation of the Final Arbitration Award to be a material event of default under the loan agreements. Any exercise by Sovereign of its rights and remedies under the secured loan agreements would have a material adverse effect on our business, financial condition and results of operations and likely would require us to seek protection under bankruptcy laws. The debt associated with loans under secured loan agreements was classified within the current portion of long-term debt on our consolidated balance sheet at June 30, 2017 due to existing or potential events of default related to the Final Arbitration Award as well as the uncertainty of our ability to meet financial covenants in the secured loan agreements in the future. We are currently evaluating the effects of the Final Arbitration Award on our business, financial condition and results of operations. In addition to the matters described above, the Final Arbitration Award could materially and adversely affect our ability to procure adequate amounts of crude oil and condensate and our relationships with our customers. For additional information regarding the Final Arbitration Award, the GEL Letter Agreements, and their potential effects on our business, financial condition and results of operations, see “Note (10) Long-Term Debt, Net,” “Note (18) Commitments and Contingencies” and “Note (19) Subsequent Events.” Operating Risks ● Net Losses – For the three months ended June 30, 2017, we reported a net loss of $25,393,282, or a loss of $2.39 per share, compared to a net loss of $3,162,736, or a loss of $0.30 per share, for the three months ended June 30, 2016. The $2.09 per share increase in net loss between the periods was primarily the result of the Final Arbitration Award in the current three-month period. For the six months ended June 30, 2017, we reported a net loss of $27,243,232, or a loss of $2.58 per share, compared to a net loss of $5,311,820, or a loss of $0.51 per share, for the six months ended June 30, 2016. The $2.07 per share increase in net loss between the periods was primarily the result of the Final Arbitration Award. ● Working Capital Deficits – We had a working capital deficit of $65,632,359 at June 30, 2017 compared to a working capital deficit of $37,812,263 at December 31, 2016. Excluding long-term debt, we had a working capital deficit of $32,821,325 at June 30, 2017, compared to working capital of $5,599,927 at December 31, 2016. The significant increase in working capital deficit between the periods primarily related to recording a current liability of $31,278,563 related to the Final Arbitration Award, a decrease in cash and cash equivalents, and a decrease in accounts receivable. ● Termination of Relationship with Genesis and GEL – As previously disclosed and discussed elsewhere in this Quarterly Report, we ceased purchases of crude oil and condensate from GEL under the Crude Supply Agreement in November 2016 and suspended the marketing and sale of refined petroleum products under the Joint Marketing Agreement following the processing of all crude oil and condensate supplied by GEL. ● Crude Supply Issues – We currently have in place a month-to-month evergreen crude supply contact with a major integrated oil and gas company. This new supplier currently provides us with adequate amounts of crude oil and condensate, and we expect the supplier to continue to do so for the foreseeable future. However, our ability to purchase adequate amounts of crude oil and condensate is dependent on our liquidity and access to capital, which have been adversely affected by the contract-related dispute with GEL and other factors, as noted above. The Final Arbitration Award could have a material adverse effect on our ability to procure adequate amounts and crude oil and condensate from our current supplier or otherwise. ● Financial Covenant Defaults – In addition to existing or potential events of default related to the Final Arbitration Award, at June 30, 2017, we were in violation of certain financial covenants in our secured loan agreements with Sovereign. Covenant defaults under the secured loan agreements would permit Sovereign to declare the amounts owed under these loan agreements immediately due and payable, exercise its rights with respect to collateral securing our obligations under these loan agreements, and/or exercise any other rights and remedies available. Sovereign waived the financial covenant defaults as of June 30, 2017. However, the debt associated with these loans was classified within the current portion of long-term debt on our consolidated balance sheet at June 30, 2017 due to existing or potential events of default related to the Final Arbitration Award as well as the uncertainty of our ability to meet the financial covenants in the future. There can be no assurance that Sovereign will provide a waiver of the events of default related to the Final Arbitration Award, consent to any proposed settlement with GEL or provide future waivers of any financial covenant defaults, which may have an adverse impact on our financial position and results of operations. We continued aggressive actions during the second quarter of 2017 to improve operations and liquidity. We began selling all of our jet fuel to LEH immediately following production, which minimizes inventory, improves cash flow, and reduces commodity risk. We also completed construction of several new petroleum storage tanks at the Nixon Facility. Increasing petroleum storage capacity: (i) assists with de-bottlenecking the facility, which supports future increased refinery throughput to approximately 17,000 bpd without substantial capital expense, and (ii) provides an opportunity to generate additional tank rental revenue by leasing to third-parties. Additional ongoing efforts to improve operations and liquidity include increasing jet fuel and HOBM sales volumes, the latter of which is prime for export to Mexico, and restructuring customer contracts on more favorable terms as they come up for renewal. Management believes that it is taking the appropriate steps to improve our financial stability. However, there can be no assurance that our plan will be successful, LEH and its affiliates will continue to fund our working capital needs, or that we will be able to obtain additional financing on commercially reasonable terms or at all. Among other factors, the Final Arbitration Award could prevent us from successfully executing our plan. For additional disclosures related to the contract-related dispute with GEL, the Final Arbitration Award, the GEL Letter Agreement, defaults under secured loan agreements, and risk factors that could materially affect our future business, financial condition and results of operations, refer to the following sections within this Quarterly Report: ● Part I, Item 1. Financial Statements, Notes to Consolidated Financial Statements: - Note (8) Related Party Transactions - Note (10) Long-Term Debt, Net - Note (18) Commitments and Contingencies – Legal Matters - Note (19) Subsequent Events ● Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations: - GEL Contract - Related Dispute and Final Arbitration Award - Results of Operations - Liquidity and Capital Resources ● Part II, Item 1. Legal Proceedings ● Part II, Item 1A. Risk Factors

2. Basis of Presentation

2. Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements, which include Blue Dolphin and subsidiaries, have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim consolidated financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in our audited financial statements have been condensed or omitted pursuant to the SEC’s rules and regulations. Significant intercompany transactions have been eliminated in the consolidation. In management’s opinion, all adjustments considered necessary for a fair presentation have been included, disclosures are adequate, and the presented information is not misleading. The consolidated balance sheet as of December 31, 2016 was derived from the audited financial statements at that date. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017, or for any other period.

3. Significant Accounting Polic

3. Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	The summary of significant accounting policies of Blue Dolphin is presented to assist in understanding our consolidated financial statements. Our consolidated financial statements and accompanying notes are representations of management who is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of our consolidated financial statements. Use of Estimates Cash and Cash Equivalents Restricted Cash Accounts Receivable and Allowance for Doubtful Accounts Inventory Property and Equipment Refinery and Facilities We record refinery and facilities at cost less any adjustments for depreciation or impairment. Adjustment of the asset and the related accumulated depreciation accounts are made for the refinery and facilities asset’s retirement and disposal, with the resulting gain or loss included in the consolidated statements of operations. For financial reporting purposes, depreciation of refinery and facilities assets is computed using the straight-line method using an estimated useful life of 25 years beginning when the refinery and facilities assets are placed in service. We did not record any impairment of our refinery and facilities assets for any period presented. Pipelines and Facilities Oil and Gas Properties Construction in Progress (See “Note (7) Property, Plant and Equipment, Net” for additional disclosures related to our refinery and facilities assets, oil and gas properties, pipelines and facilities assets, and construction in progress.) Intangibles – Other Debt Issue Costs Revenue Recognition Refined Petroleum Products Revenue Tank Rental Revenue Easement Revenue Pipeline Transportation Revenue Deferred Revenue Income Taxes As of each reporting date, management considers new evidence, both positive and negative, to determine the realizability of deferred tax assets. Management considers whether it is more likely than not that a portion or all the deferred tax assets will be realized, which is dependent upon the generation of future taxable income prior to the expiration of any net operating loss (“NOL”) carryforwards. When management determines that it is more likely than not that a tax benefit will not be realized, a valuation allowance is recorded to reduce deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2016. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. Based on this evaluation, we recorded a full valuation allowance against the deferred tax assets as of December 31, 2016. FASB ASC guidance related to income taxes also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, as well as guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition. (See “Note (15) Income Taxes” for further information related to income taxes.) Impairment or Disposal of Long-Lived Assets Asset Retirement Obligations Management has concluded that there is no legal or contractual obligation to dismantle or remove the refinery and facilities assets. Further, management believes that these assets have indeterminate lives under FASB ASC guidance for estimating AROs because dates or ranges of dates upon which we would retire these assets cannot reasonably be estimated at this time. When a legal or contractual obligation to dismantle or remove the refinery and facilities assets arises and a date or range of dates can reasonably be estimated for the retirement of these assets, we will estimate the cost of performing the retirement activities and record a liability for the fair value of that cost using present value techniques. We recorded an ARO liability related to future asset retirement costs associated with dismantling, relocating, or disposing of our offshore platform, pipeline systems, and related onshore facilities, as well as for plugging and abandoning wells and restoring land and sea beds. We developed these cost estimates for each of our assets based upon regulatory requirements, structural makeup, water depth, reservoir characteristics, reservoir depth, equipment demand, current retirement procedures, and construction and engineering consultations. Because these costs typically extend many years into the future, estimating future costs are difficult and require management to make judgments that are subject to future revisions based upon numerous factors, including changing technology, political, and regulatory environments. We review our assumptions and estimates of future abandonment costs on an annual basis. (See “Note (11) Asset Retirement Obligations” for additional information related to our AROs.) Computation of Earnings Per Share The number of shares related to options, warrants, restricted stock, and similar instruments included in diluted EPS is based on the “Treasury Stock Method” prescribed in FASB ASC guidance for computation of EPS. This method assumes theoretical repurchase of shares using proceeds of the respective stock option or warrant exercised, and, for restricted stock, the amount of compensation cost attributed to future services that has not yet been recognized and the amount of any current and deferred tax benefit that would be credited to additional paid-in-capital upon the vesting of the restricted stock, at a price equal to the issuer’s average stock price during the related earnings period. Accordingly, the number of shares includable in the calculation of EPS in respect of the stock options, warrants, restricted stock, and similar instruments is dependent on this average stock price and will increase as the average stock price increases. (See “Note (16) Earnings Per Share” for additional information related to EPS.) Treasury Stock New Pronouncements Adopted ASU 2016-18, Statement of Cash Flows (Topic 230: Restricted Cash (a Consensus of the FASB Emerging Issues Task Force ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory New Pronouncements Issued, Not Yet Effective ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2016-13,Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) ASU 2016-02,Leases (Topic 842) ASU 2014-09, Revenue from Contracts with Customers , evenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update) Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Other new pronouncements issued but not yet effective are not expected to have a material impact on our financial position, results of operations, or liquidity. Reclassification

4. Business Segment Information

4. Business Segment Information	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Business Segment Information	Effective January 1, 2017, we began reporting as a single business segment – Refinery Operations. Business activities related to our Refinery Operations business segment are conducted at the Nixon Facility. Due to their small size, current and prior three months’ amounts associated with Pipeline Transportation operations were reclassified to Corporate and Other. Pipeline Transportation operations diminished significantly as services to third-parties ceased and third-party wells along our pipeline corridor were permanently abandoned. Business segment information for the periods indicated (and as of the dates indicated), was as follows: Three Months Ended June 30, 2017 2016 Segment Segment Refinery Corporate & Refinery Corporate & Operations Other Total Operations Other Total Revenue from operations $ 57,336,331 $ - $ 57,336,331 $ 42,017,773 $ 24,687 $ 42,042,460 Less: cost of operations(1) (81,054,127 ) (395,628 ) (81,449,755 ) (45,534,109 ) (364,092 ) (45,898,201 ) Other non-interest income(2) - - - - 125,000 125,000 Less: JMA Profit Share(3) - - - (97,527 ) - (97,527 ) EBITDA(4) $ (23,717,796) $ (395,628 ) $ (3,613,863 ) $ (214,405 ) Depletion, depreciation and amortization (449,318 ) (470,347 ) Interest expense, net (830,540 ) (398,462 ) Loss before income taxes (25,393,282 ) (4,697,077 ) Income tax benefit - 1,534,341 Net loss $ (25,393,282 ) $ (3,162,736 ) Capital expenditures $ 858,233 $ - $ 858,233 $ 4,920,507 $ - $ 4,920,507 Identifiable assets $ 71,436,425 $ 1,047,413 $ 72,483,838 $ 93,402,963 $ 5,760,191 $ 99,163,154 (1) Operation cost within the Refinery Operations segment includes related general and administrative expenses. Operation cost within Corporate and Other includes general and administrative expenses associated with corporate maintenance costs (such as accounting fees, director fees, and legal expense), as well as expenses associated with our pipeline assets and oil and/or gas leasehold interests (such as accretion and impairment expenses). (2) Other non-interest income reflects FLNG easement revenue. (3) The JMA Profit Share represents the GEL Profit Share plus the Performance Fee for the period pursuant to the Joint Marketing Agreement, under which marketing activities have ceased. (See “Note (18) Commitments and Contingencies – Legal matters” for further discussion related to the contract-related dispute with GEL.) (4) EBITDA is a non-GAAP financial measure. See “Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Non-GAAP Financial Measures” for additional information related to EBITDA. Six Months Ended June 30, 2017 2016 Segment Segment Refinery Corporate & Refinery Corporate & Operations Other Total Operations Other Total Revenue from operations $ 109,942,080 $ - $ 109,942,080 $ 73,502,397 $ 52,339 $ 73,554,736 Less: cost of operations(1) (136,249,888 ) (826,250 ) (137,076,138 ) (79,956,962 ) (710,995 ) (80,667,957 ) Other non-interest income(2) - - - - 255,665 255,665 Less: JMA Profit Share(3) - 2,216,251 2,216,251 573,565 - 573,565 EBITDA(4) $ (26,307,808 ) $ 1,390,001 $ (5,881,000 ) $ (402,991 ) Depletion, depreciation and amortization (900,343 ) (910,800 ) Interest expense, net (1,425,082 ) (817,271 ) Loss before income taxes (27,243,232 ) (8,012,062 ) Income tax benefit - 2,700,242 Net loss $ (27,243,232 ) $ (5,311,820 ) Capital expenditures $ 2,889,327 $ - $ 2,889,327 $ 10,304,149 $ - $ 10,304,149 Identifiable assets $ 71,436,425 $ 1,047,413 $ 72,483,838 $ 93,402,963 $ 5,760,191 $ 99,163,154 (1) Operation cost within the Refinery Operations segment includes related general and administrative expenses. Operation cost within Corporate and Other includes general and administrative expenses associated with corporate maintenance costs (such as accounting fees, director fees, and legal expense), as well as expenses associated with our pipeline assets and oil and/or gas leasehold interests (such as accretion and impairment expenses). (2) Other non-interest income reflects FLNG easement revenue. (3) The JMA Profit Share represents the GEL Profit Share plus the Performance Fee for the period pursuant to the Joint Marketing Agreement, under which marketing activities have ceased. (See “Note (18) Commitments and Contingencies – Legal matters” for further discussion related to the contract-related dispute with GEL.) (4) EBITDA is a non-GAAP financial measure. See “Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Non-GAAP Financial Measures” for additional information related to EBITDA.

5. Prepaid Expenses and Other C

5. Prepaid Expenses and Other Current Assets	6 Months Ended
	Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 Prepaid crude oil and condensate $ 732,078 $ - Prepaid insurance 371,230 248,853 Short-term tax bond - 505,000 Prepaid exise taxes - 292,338 $ 1,103,308 $ 1,046,191

6. Inventory

6. Inventory	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventory	Inventory as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 HOBM $ 2,263,477 $ 212,987 Crude oil and condensate 878,339 26,123 Chemicals 299,860 182,751 AGO 238,742 143,362 Naphtha 136,584 533,580 Propane 14,212 11,318 Jet fuel 10,977 964,124 LPG mix 6,258 1,293 $ 3,848,449 $ 2,075,538

7. Property, Plant and Equipmen

7. Property, Plant and Equipment, Net	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net	Property, plant and equipment, net, as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 Refinery and facilities $ 51,432,434 $ 50,814,309 Land 566,159 602,938 Other property and equipment 652,795 652,795 52,651,388 - 52,070,042 Less: Accumulated depletion, depreciation, and amortization (7,585,586 ) (6,685,244 ) 45,065,802 45,384,798 Construction in progress 19,247,645 16,939,665 $ 64,313,447 $ 62,324,463 We capitalize interest cost incurred on funds used to construct property, plant, and equipment. The capitalized interest is recorded as part of the asset to which it relates and is depreciated over the asset’s useful life. Interest cost capitalized was $2,966,647 and $2,108,298 at June 30, 2017 and December 31, 2016, respectively.

8. Related Party Transactions

8. Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	We are party to several agreements with related parties. We believe these related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions. Related Parties LEH Ingleside Crude, LLC (“Ingleside”) Lazarus Marine Terminal I, LLC (“LMT”) Jonathan Carroll Operations Related Agreements . Amended and Restated Operating Agreement Jet Fuel Sales Agreement Terminal Services Agreement Amended and Restated Tank Lease Agreement Tolling Agreement Financial Agreements . Loan and Security Agreement The proceeds of the LEH Loan Agreement were used for working capital. There are no financial maintenance covenants associated with the LEH Loan Agreement. The LEH Loan Agreement is secured by the BDPL Property. Outstanding principal and interest less associated debt issue costs owed to LEH under the LEH Loan Agreement are reflected in long-term debt, related party, current portion and long-term debt, related party, net of current portion in our consolidated balance sheets. Promissory Notes ● June LEH Note ● March Ingleside Note ● March Carroll Note Amended and Restated Guaranty Fee Agreements Financial Statements Impact Consolidated Balance Sheets June 30, December 31, 2017 2016 LEH $ 6,484,297 $ 4,000,000 Ingleside 1,143,803 722,278 Jonathan Carroll 112,272 592,412 7,740,372 5,314,690 Less: Long-term debt, related party, current portion (500,000 ) (500,000 ) $ 7,240,372 $ 4,814,690 Accrued interest associated with the LEH Loan Agreement was $565,333 and $243,556 at June 30, 2017 and December 31, 2016, respectively. Accrued interest associated with the LEH Loan Agreement is reflected in accounts payable, related party. Accrued interest associated with the June LEH Note, the March Ingleside Note, and the March Carroll Note are reflected in long-term debt. Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Jet fuel sales $ 20,157,974 $ 8,912,074 $ 35,557,967 $ 8,912,074 Jet fuel storage fees 375,000 324,000 750,000 324,000 HOBM sales - - 3,656,638 - $ 20,532,974 $ 9,236,074 $ 39,964,605 $ 9,236,074 Related party cost of goods sold associated with the Tolling Agreement with LMT totaled $151,200 and $0 for the three months ended June 30, 2017 and 2016; related party cost of goods sold for the six months ended June 30, 2017 and 2016 totaled $302,400 and $0. Related party refinery operating expenses associated with the Amended and Restated Operating Agreement with LEH and the Amended and Restated Tank Lease Agreement with Ingleside for the periods indicated were as follows: Three Months Ended June 30, 2017 2016 Amount Per bbl Amount Per bbl LEH $ 1,651,663 $ 1.53 $ 2,427,748 $ 3.42 Ingleside - - 450,000 0.63 $ 1,651,663 $ 1.53 $ 2,877,748 $ 4.05 Six Months Ended June 30, 2017 2016 Amount Per bbl Amount Per bbl LEH $ 4,464,766 $ 2.14 $ 5,589,763 $ 2.95 Ingleside - - 725,000 0.38 $ 4,464,766 $ 2.14 $ 6,314,763 $ 3.33 Interest expense associated with the LEH Loan Agreement and Amended and Restated Guaranty Fee Agreements for the periods indicated was as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 LEH $ 234,391 $ - $ 441,685 $ - Jonathan Carroll 166,270 174,243 334,095 350,631 $ 400,661 $ 174,243 $ 775,780 $ 350,631

9. Accrued Expenses and Other C

9. Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2017
Disclosure Text Block Supplement [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 Unearned revenue $ 911,983 $ 408,770 Customer deposits 450,000 450,000 Board of director fees payable 171,429 136,429 Other payable 108,247 189,719 Property taxes 67,736 4,694 Excise and income taxes payable 67,473 24,187 Insurance 28,398 67,783 $ 1,805,266 $ 1,281,582

10. Long-Term Debt, Net

10. Long-Term Debt, Net	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Long-Term Debt, Net	Long-term debt, net represents the outstanding principal and interest of our long-term debt less associated debt issue costs. Long-term debt, net as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 First Term Loan Due 2034 $ 23,551,966 $ 23,924,607 Second Term Loan Due 2034 9,607,032 9,729,853 Notre Dame Debt 1,300,000 1,300,000 Term Loan Due 2017 - 184,994 Capital Leases 50,790 135,879 $ 34,509,788 $ 35,275,333 Less: Current portion of long-term debt, net (32,311,034 ) (31,712,336 ) Less: Unamortized debt issue costs (2,198,754 ) (2,262,997 ) $ - $ 1,300,000 Unamortized debt issue costs, which relate to secured loan agreements with Sovereign, as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 First Term Loan Due 2034 $ 1,673,545 $ 1,673,545 Second Term Loan Due 2034 767,673 767,673 Less: Accumulated amortization (242,464 ) (178,221 ) $ 2,198,754 $ 2,262,997 Amortization expense associated with our long-term debt, net, which is included in interest expense, was $32,121 and $32,121 for the three months ended June 30, 2017 and 2016, respectively. Amortization expense was $64,242 and $63,990 for the six months ended June 30, 2017 and 2016, respectively. Accrued interest associated with our long-term debt, net is reflected as interest payable, current portion and long-term interest payable, net of current portion in our consolidated balance sheets and includes related party interest. Accrued interest as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 Notre Dame Debt $ 1,794,534 $ 1,691,383 LEH Loan Agreement (related party) 565,333 243,556 Second Term Loan Due 2034 47,904 44,984 First Term Loan Due 2034 36,135 33,866 Capital Leases 423 1,165 Term Loan Due 2017 - 185 2,444,329 2,015,139 Less: Interest payable, current portion (2,444,329 ) (323,756 ) $ - $ 1,691,383 Related Party First Term Loan Due 2034 providing for a term loan in the principal amount of $25.0 million As described elsewhere in this Quarterly Report, Sovereign has notified us that the Final Arbitration Award constitutes an event of default under the First Term Loan Due 2034. In addition to existing or potential events of default related to the Final Arbitration Award, at June 30, 2017, LE was in violation of the debt service coverage ratio, the current ratio, and debt to net worth ratio financial covenants related to the first Term Loan Due 2034. LE also failed to replenish a payment reserve account as required. The occurrence of events of default under the First Term Loan Due 2034 permits Sovereign to declare the amounts owed under the First Term Loan Due 2034 immediately due and payable, exercise its rights with respect to collateral securing LE’s obligations under the loan agreement, and/or exercise any other rights and remedies available. Sovereign waived the financial covenant defaults as of June 30, 2017. Sovereign has informed us that it is not currently exercising its rights, privileges and remedies under the First Term Loan Due 2034 in light of the ongoing settlement discussions with GEL and the continuance of the hearing on confirmation of the Final Arbitration Award and to allow Sovereign to evaluate any proposed settlement agreement related to the Final Arbitration Award, which would require Sovereign’s approval. However, Sovereign expressly reserved all of its rights, privileges and remedies related to events of default under the First Term Loan Due 2034 and informed us that it would consider a final confirmation of the Final Arbitration Award to be a material event of default under the loan agreement. Any exercise by Sovereign of its rights and remedies under the First Term Loan Due 2034 would have a material adverse effect on our business, financial condition and results of operations and likely would require us to seek protection under bankruptcy laws. (See “Note (1) Organization – Going Concern and Operating Risks” and “Note (19) Subsequent Events” for additional disclosures related to the First Term Loan Due 2034, the Final Arbitration Award and financial covenant violations.) As a condition of the First Term Loan Due 2034, Jonathan Carroll was required to guarantee r epayment A portion of the proceeds of the First Term Loan Due 2034 were used to refinance approximately $8.5 million of debt owed under a previous debt facility with American First National Bank. Remaining proceeds are being used primarily to construct new petroleum storage tanks at the Nixon Facility. The First Term Loan Due 2034 is secured by: (i) a first lien on all Nixon Facility business assets (excluding accounts receivable and inventory), (ii) assignment of all Nixon Facility contracts, permits, and licenses, (iii) absolute assignment of Nixon Facility rents and leases, including tank rental income, (iv) a $1.0 million payment reserve account held by Sovereign, and (v) a pledge of $5.0 million of a life insurance policy on Jonathan Carroll. The First Term Loan Due 2034 contains representations and warranties, affirmative, restrictive, and financial covenants, as well as events of default which are customary for bank facilities of this type. Second Term Loan Due 2034 As described elsewhere in this Quarterly Report, Sovereign has notified us that the Final Arbitration Award constitutes an event of default under the Second Term Loan Due 2034. In addition to existing or potential events of default related to the Final Arbitration Award, at June 30, 2017, LRM was in violation of the debt service coverage ratio, the current ratio, and debt to net worth ratio financial covenants related to the Second Term Loan Due 2034. The occurrence of events of default under the Second Term Loan Due 2034 permits Sovereign to declare the amounts owed under the Second Term Loan Due 2034 immediately due and payable, exercise its rights with respect to collateral securing LRM’s obligations under the loan agreement, and/or exercise any other rights and remedies available. Sovereign waived the financial covenant defaults as of June 30, 2017. Sovereign has informed us that it is not currently exercising its rights, privileges and remedies under the Second Term Loan Due 2034 in light of the ongoing settlement discussions with GEL and the continuance of the hearing on confirmation of the Final Arbitration Award and to allow Sovereign to evaluate any proposed settlement agreement related to the Final Arbitration Award, which would require Sovereign’s approval. However, Sovereign expressly reserved all of its rights, privileges and remedies related to events of default under the Second Term Loan Due 2034 and informed us that it would consider a final confirmation of the Final Arbitration Award to be a material event of default under the loan agreement. Any exercise by Sovereign of its rights and remedies under the Second Term Loan Due 2034 would have a material adverse effect on our business, financial condition and results of operations and likely would require us to seek protection under bankruptcy laws. (See “Note (1) Organization – Going Concern and Operating Risks” and “Note (19) Subsequent Events” for additional disclosures related to the First Term Loan Due 2034, the Final Arbitration Award and financial covenant violations.) As a condition of the Second Term Loan Due 2034, Jonathan Carroll was required to guarantee repayment of funds borrowed and interest accrued under the loan. For his personal guarantee, LRM entered a Guaranty Fee Agreement with Jonathan Carroll whereby he receives a fee equal to 2.00% per annum, paid monthly, of the outstanding principal balance owed under the Second Term Loan Due 2034. Effective in April 2017, the Guaranty Fee Agreement associated with the Second Term Loan Due 2034 was amended and restated to reflect payment in cash and shares of Blue Dolphin Common Stock. For the three months ended June 30, 2017 and 2016, guaranty fees related to the Second Term Loan Due 2034 totaled $48,190 and $49,420, respectively. For the six months ended June 30, 2017 and 2016, guaranty fees related to the Second Term Loan Due 2034 totaled $96,613 and $99,168, respectively. Guaranty fees are recognized monthly as incurred and are included in interest and other expense in our consolidated statements of operations. LEH, LE and Blue Dolphin also guaranteed the Second Term Loan Due 2034. (See “Note (8) Related Party Transactions” for additional disclosures related to LEH and Jonathan Carroll.) A portion of the proceeds of the Second Term Loan Due 2034 were used to refinance a previous bridge loan from Sovereign in the amount of $3.0 million. Remaining proceeds are being used primarily to construct additional new petroleum storage tanks at the Nixon Facility. The Second Term Loan Due 2034 is secured by: (i) a second priority lien on the rights of LE in the Nixon Facility and the other collateral of LE pursuant to a security agreement; (ii) a first priority lien on the real property interests of LRM; (iii) a first priority lien on all of LRM’s fixtures, furniture, machinery and equipment; (iv) a first priority lien on all of LRM’s contractual rights, general intangibles and instruments, except with respect to LRM’s rights in its leases of certain specified tanks, with respect to which Sovereign has a second priority lien in such leases subordinate to a prior lien granted by LRM to Sovereign to secure obligations of LRM under the Term Loan Due 2017; and (v) all other collateral as described in the security documents. The Second Term Loan Due 2034 contains representations and warranties, affirmative, restrictive, and financial covenants, as well as events of default which are customary for bank facilities of this type. Notre Dame Debt The Notre Dame Debt is secured by a Deed of Trust, Security Agreement and Financing Statements (the “Subordinated Deed of Trust”), which encumbers the Nixon Facility and general assets of LE. There are no financial maintenance covenants associated with the Notre Dame Debt. Pursuant to a Subordination Agreement dated June 2015, the holder of the Notre Dame Debt agreed to subordinate any security interest and liens on the Nixon Facility, as well as its right to payments, in favor of Sovereign as holder of the First Term Loan Due 2034. Term Loan Due 2017 As a condition of the Term Loan Due 2017, Jonathan Carroll was required to guarantee r epayment Capital Leases A summary of equipment held under long-term capital leases as of the dates indicated follows: June 30, December 31, 2017 2016 Boiler equipment $ 538,598 $ 538,598 Less: accumulated depreciation - - $ 538,598 $ 538,598

11. Asset Retirement Obligation

11. Asset Retirement Obligations	6 Months Ended
	Jun. 30, 2017
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Refinery and Facilities Pipelines and Facilities and Oil and Gas Properties Changes to our ARO liability for the periods indicated were as follows: June 30, December 31, 2017 2016 Asset retirement obligations, at the beginning of the period $ 2,027,639 $ 1,985,864 Liabilities settled (442 ) (70,969 ) Accretion expense 143,688 112,744 2,170,885 2,027,639 Less: asset retirement obligations, current portion (17,068 ) (17,510 ) Long-term asset retirement obligations, at the end of the period $ 2,153,817 $ 2,010,129 Liabilities settled represents amounts paid for plugging and abandonment costs against the asset’s ARO liability. At June 30, 2017 and December 31, 2016, we recognized $442 and $70,969, respectively, in liabilities settled. Abandonment expense represents amounts paid for plugging and abandonment costs that exceed the asset’s ARO liability. For the three and six months ended June 30, 2017 and 2016, we recognized $0 in abandonment expense.

12. Treasury Stock

12. Treasury Stock	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Treasury Stock	At June 30, 2017 and December 31, 2016, we had 0 and 150,000 shares of treasury stock, respectively. In May 2017, we issued 150,000 shares of treasury stock to Jonathan Carroll as payment of amounts due under the March Carroll Note.

13. Concentration of Risk

13. Concentration of Risk	6 Months Ended
	Jun. 30, 2017
Risks and Uncertainties [Abstract]
Concentration of Risk	Bank Accounts Key Supplier We purchased light crude oil and condensate for the Nixon Facility from GEL pursuant to the Crude Supply Agreement. As discussed elsewhere in this Quarterly Report, we ceased purchases of crude oil and condensate from GEL under the Crude Supply Agreement in November 2016. (See “Part I, Item 1 Financial Statements – Note (18) Commitments and Contingencies – Legal Matters” in this Quarterly Report for disclosures related to the Crude Supply Agreement, the current contract-related dispute with GEL, and the Final Arbitration Award.) We currently have in place a month-to-month evergreen crude supply contract with a major integrated oil and gas company. This new supplier currently provides us with adequate amounts of crude oil and condensate, and we expect the supplier to continue to do so for the foreseeable future. However, our ability to purchase crude oil and condensate is dependent on our liquidity and access to capital, which have been adversely affected by net losses, working capital deficits, the contract-related dispute with GEL, and financial covenant defaults in secured loan agreements. The Final Arbitration Award could have a material adverse effect on our ability to procure adequate amounts and crude oil and condensate from our current supplier or otherwise. Significant Customers For the three months ended June 30, 2017, we had 4 customers that accounted for approximately 80% of our refined petroleum product sales. LEH, a related party, was 1 of these 4 significant customers and accounted for approximately 36% of our refined petroleum product sales. At June 30, 2017, these 4 customers represented approximately $0.3 million in accounts receivable. LEH represented approximately $0 million in accounts receivable. For the three months ended June 30, 2016, we had 4 customers that accounted for approximately 71% of our refined petroleum product sales. LEH was one of these 4 significant customers and accounted for approximately 22% of our refined petroleum product sales. At June 30, 2016, these 4 customers represented approximately $6.2 million in accounts receivable. For the six months ended June 30, 2017, we had 3 customers that accounted for approximately 76% of our refined petroleum product sales. LEH was 1 of these 3 significant customers and accounted for approximately 36% of our refined petroleum product sales. At June 30, 2017, these 3 customers represented approximately $0.1 million in accounts receivable. LEH represented approximately $0 million in accounts receivable. For the six months ended June 30, 2016, we had 4 customers that accounted for approximately 64% of our refined petroleum product sales. LEH was one of these 4 significant customers and accounted for approximately 12% of our refined petroleum product sales. At June 30, 2016, these 4 customers represented approximately $6.2 in accounts receivable. LEH represented approximately $0 million in accounts receivable. LEH purchases our jet fuel and resells the jet fuel to a government agency. Occasionally, LEH purchases HOBM to resell to U.S.-based customers. (See “Note (8) Related Party Transactions” for additional disclosures related to our sale of jet fuel to LEH under the Jet Fuel Sales Agreement and the associated storage of LEH’s purchased jet fuel under the Terminal Services Agreement.) Refined Petroleum Product Sales Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 LPG mix $ - 0.0 % $ 133,757 0.3 % $ 120,542 0.1 % $ 384,304 0.8 % Naphtha 13,253,969 23.4 % 7,287,804 17.6 % 27,016,913 24.9 % 16,313,325 28.9 % Jet fuel 20,157,974 35.6 % 17,539,473 42.4 % 35,557,968 32.8 % 26,045,786 27.3 % HOBM 10,883,053 19.2 % 7,889,499 19.1 % 21,568,793 19.9 % 11,052,994 10.1 % Reduced Crude - 0.0 % 546,112 1.3 % - 0.0 % 3,791,919 10.4 % AGO 12,337,624 21.8 % 8,005,641 19.3 % 24,270,442 22.3 % 15,007,095 22.5 % $ 56,632,620 100.0 % $ 41,402,286 100.0 % $ 108,534,658 100.0 % $ 72,595,423 100.0 %

14. Leases

14. Leases	6 Months Ended
	Jun. 30, 2017
Leases, Operating [Abstract]
Leases	Our company headquarters is in downtown Houston, Texas. We lease 13,878 square feet of office space, 7,389 square feet of which is used and paid for by LEH. The office lease had a 10-year term expiring in September 2017, but we extended the lease until December 2017. We are currently exploring our leasing options. Rent expense is recognized on a straight-line basis. For the three months ended June 30, 2017 and 2016, rent expense totaled $45,092 and $29,857, respectively. For the six months ended June 30, 2017 and 2016, rent expense totaled $76,173 and $59,715, respectively.

15. Income Taxes

15. Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Tax Benefit Deferred Income Taxes NOL Carryforwards NOL carryforwards that remained available for future use for the periods indicated were as follow (amounts shown are net of NOLs that will expire unused because of the IRC Section 382 limitation): Net Operating Loss Carryforward Pre-Ownership Change Post-Ownership Change Total Balance at December 31, 2015 $ 9,614,449 $ 9,616,941 $ 19,231,390 Net operating losses - 13,945,128 13,945,128 Balance at December 31, 2016 $ 9,614,449 $ 23,562,069 $ 33,176,518 Net operating losses - 9,477,523 9,477,523 Balance at June 30, 2017 $ 9,614,449 $ 30,039,592 $ 42,654,041 Deferred Tax Assets and Liabilities June 30, December 31, 2017 2016 Deferred tax assets: Net operating loss and capital loss carryforwards $ 16,772,696 $ 13,550,338 Accrued arbitration payable 6,674,017 - Start-up costs (Nixon Facility) 1,304,695 1,373,363 Asset retirement obligations liability/deferred revenue 759,366 717,751 AMT credit and other 233,572 266,522 Total deferred tax assets 25,744,346 15,907,974 Deferred tax liabilities: Basis differences in property and equipment (6,469,616 ) (5,895,943 ) Total deferred tax liabilities (6,469,616 ) (5,895,943 ) 19,274,730 10,012,031 Valuation allowance (19,274,730 ) (10,012,031 ) Deferred tax assets, net $ - $ - Valuation Allowance Uncertain Tax Positions As part of this guidance, we record income tax related interest and penalties, if applicable, as a component of the provision for income tax benefit (expense). However, there were no amounts recognized relating to interest and penalties in the consolidated statements of operations for the three and six months ended June 30, 2017 and 2016. Our federal income tax returns are subject to examination by the Internal Revenue Service for tax years ending December 31, 2013, or after and by the state of Texas for tax years ending December 31, 2012, or after. We believe there are no uncertain tax positions for both federal and state income taxes.

16. Earnings Per Share

16. Earnings Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	A reconciliation between basic and diluted income per share for the periods indicated was as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net loss $ (25,393,282 ) $ (3,162,736 ) $ (27,243,232 ) $ (5,311,820 ) Basic and diluted income per share $ (2.39 ) $ (0.30 ) $ (2.58 ) $ (0.51 ) Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock 10,637,101 10,459,996 10,556,356 10,458,895 Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding. Diluted EPS for the three and six months ended June 30, 2017 and 2016 was the same as basic EPS as there were no stock options or other dilutive instruments outstanding.

17. Inventory Risk Management

17. Inventory Risk Management	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Inventory Risk Management	We began selling all of our jet fuel to LEH immediately following production, which minimizes inventory, improves cash flow, and reduces commodity risk. Previously, Genesis/GEL used commodity futures contracts to mitigate the volatile change in value for certain of our refined petroleum products inventory. The following table provides the effect of derivative instruments in our consolidated statements of operations for the three and six months ended June 30, 2017 and 2016: Loss Recognized Three Months Ended June 30, Six Months Ended June 30, Derivatives Statements of Operations Location 2017 2016 2017 2016 Commodity contracts Cost of refined products sold $ - $ 3,852,100 $ - $ 3,359,572 When active, the fair value of commodity futures contracts was reflected in our consolidated balance sheets and the related net gain or loss was recorded within cost of refined products sold in our consolidated statements of operations. Quoted prices for identical assets or liabilities in active markets (Level 1) were considered to determine the fair values for marking to market the financial instruments at each period end. Commodity transactions were executed to minimize transaction costs, monitor consolidated net exposures, and allow for increased responsiveness to changes in market factors. At June 30, 2017, we had no futures contracts of refined petroleum products and crude oil and condensate that were entered as economic hedges. We also had no derivative instruments that were reported in our consolidated balance sheets at June 30, 2017 and December 31, 2016. The following table provides the effect of derivative instruments in our consolidated statements of operations for the three and six months ended June 30, 2017 and 2016: Loss Recognized Three Months Ended June 30, Six Months Ended June 30, Derivatives Statements of Operations Location 2017 2016 2017 2016 Commodity contracts Cost of refined products sold $ - $ 3,852,100 $ - $ 3,359,572

18. Commitments and Contingenci

18. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Legal Matters GEL Contract-Related Dispute and Final Arbitration Award. In May 2016, GEL filed, in state district court in Harris County, Texas, a petition and application for a temporary restraining order, temporary injunction, and permanent injunction (the “Petition”) against LE and LEH. The Petition alleged that LE breached the Joint Marketing Agreement, and that LEH tortiously interfered with the Joint Marketing Agreement, in connection with an agreement by LEH to supply jet fuel acquired from LE to a government agency. The Petition primarily sought temporary and permanent injunctions related to sales of product from the Nixon Facility to this customer. In June 2016, the court issued a temporary injunction against LE and LEH as requested by GEL. In a matter separate from the above referenced Petition, LE asserted that GEL materially breached the parties’ agreements in April 2016 by refusing to deliver our operational requirements of crude oil for an extended period. LE filed a demand for arbitration in June 2016, pursuant to the terms of a Dispute Resolution Agreement between the parties. The GEL Arbitration alleged that GEL breached the Crude Supply Agreement by: (i) overcharging for crude oil and condensate based on Genesis’ cost as defined in the Crude Supply Agreement, (ii) overcharging for trucking costs, and (iii) significantly under-delivering crude oil and condensate, resulting in significant refinery downtime and significant decreases in refinery throughput, refinery production, and refined petroleum product sales during 2016. GEL made counter claims in the GEL Arbitration with allegations against LE like those made in the Petition. GEL sought substantial damages, as well as recovery of attorneys’ fee and costs, totaling approximately $44.0 million in the aggregate, based on allegations of breach of contract, fraudulent transfer and unjust enrichment. Arbitration preceedings commenced in May 2017 and were declared closed in July 2017. On August 11, 2017, the arbitrator delivered the Final Arbitration Award. The Final Arbitration Award denied all of LE’s claims against GEL and granted substantially all of the relief requested by GEL in its counterclaims. Among other matters, the Final Arbitration Award: ● determined that LE materially breached the Crude Supply Agreement and the Joint Marketing Agreement; ● determined that LE’s sales of jet fuel to LEH in connection with LEH’s supplying such jet fuel to a government agency was a fraudulent transfer under applicable law; ● denied LE’s request to dissolve the temporary injunction and awarded to GEL certain funds held with the court related to the temporary injunction; ● denied all other claims made by LE; and ● awarded damages, legal and administrative fees and court costs to GEL in the aggregate amount of approximately $31.3 million, with such amounts to bear interest at a rate of 5.0% per annum until paid in full. A hearing on confirmation of the Final Arbitration Award was scheduled to occur on September 18, 2017 in state district court in Harris County, Texas. Prior to the scheduled hearing, LE and GEL jointly notified the court of the Continuance Period to facilitate settlement discussions between the parties. On September 26, 2017, LE and Blue Dolphin, together with LEH and Jonathan Carroll, entered into the GEL Letter Agreement, confirming the parties’ agreement to the continuation of the confirmation hearing during the Continuance Period, subject to the terms of the GEL Letter Agreement. The GEL Letter Agreement includes the following key terms, among others: · the parties agreed to work together in good faith during the Continuance Period to negotiate and document the terms of a settlement and payment structure to resolve all of their disputes and obligations, including those related to and arising from the Final Arbitration Award; · LE agreed to pay GEL approximately $3.6 million, consisting of a cash payment and release of certain funds held in the court’s registry, which amount will be applied to reduce the balance of the Final Arbitration Award; · we waived all objections to confirmation of the Final Arbitration Award, but GEL agreed that it would not take any action to confirm, enforce, collect, execute upon, perfect or exercise any remedies regarding that waiver or the Final Award prior to the earlier of (i) the expiration of the Continuance Period without the parties’ agreeing to a settlement and (ii) termination of the GEL Letter Agreement; · we agreed that, without GEL’s consent, we would not, subject to certain agreed-upon exceptions: (i) incur debt, (ii) create liens on our assets, (iii) sell, lease or otherwise transfer assets outside the ordinary course of business, (iv) engage in transactions with affiliates or amend the terms of existing affiliate transactions, (v) become party to bankruptcy, reorganization, liquidation or similar proceedings, (vi) make investments in, acquire material assets of or merge or consolidate with any other entity, (vii) allow changes to our equity ownership structures, or (viii) amend our debt instruments or organizational documents; and · GEL may terminate the Letter Agreement on the 45 th As described elsewhere in this Quarterly Report, Sovereign has notified us that the Final Arbitration Award constitutes an event of default under our secured loan agreements with Sovereign. The occurrence of events of default under the secured loan agreements permits Sovereign to declare the amounts owed under these loan agreements immediately due and payable, exercise its rights with respect to collateral securing our obligations under these loan agreements, and/or exercise any other rights and remedies available. Sovereign has informed us that it is not currently exercising its rights, privileges and remedies under the secured loan agreements in light of the ongoing settlement discussions with GEL and the continuance of the hearing on confirmation of the Final Arbitration Award and to allow Sovereign to evaluate any proposed settlement agreement related to the Final Arbitration Award, which would require Sovereign’s approval. However, Sovereign expressly reserved all of its rights, privileges and remedies related to events of default under the secured loan agreements and informed us that it would consider a final confirmation of the Final Arbitration Award to be a material event of default under the loan agreements. Any exercise by Sovereign of its rights and remedies under the secured loan agreements would have a material adverse effect on our business, financial condition and results of operations and likely would require us to seek protection under bankruptcy laws. The debt associated with loans under our secured loan agreements was classified within the current portion of long-term debt on our consolidated balance sheet at June 30, 2017 due to existing or potential events of default related to the Final Arbitration Award as well as the uncertainty of our ability to meet financial covenants in the secured loan agreements in the future. We are currently evaluating the effects of the Final Arbitration Award on our business, financial condition and results of operations. In addition to the matters described above, the Final Arbitration Award could materially and adversely affect our ability to procure adequate amounts of crude oil and condensate or our relationships with our customers. The contract-related dispute has negatively affected our customer relationships, prevented us from taking advantage of business opportunities, disrupted refinery operations, diverted management’s focus away from running the business, and impacted our ability to obtain financing. We can provide no assurance as to whether negotiations with GEL will result in a settlement or as to the potential terms of any such settlement or whether Sovereign would approve any such settlement. If we are unable to reach an acceptable settlement with GEL or Sovereign does not approve any such settlement and GEL seeks to confirm and enforce the Final Arbitration Award, our business, financial condition and results of operations will be materially adversely affected and we likely would be required to seek protection under bankruptcy laws. Other Legal Matters Amended and Restated Operating Agreement Financing Agreements Health, Safety and Environmental Matters Nixon Facility Expansion Supplemental Pipeline Bonds In October 2016, we received a letter from the BOEM summarizing the amount required as additional security on our existing pipeline rights-of-way. The letter, which is a courtesy and does not constitute a formal order by the BOEM, requested that we provide additional supplemental pipeline bonds or acceptable financial reassurance of approximately $4.6 million. At June 30, 2017 and December 31, 2016, we maintained approximately $0.9 million in credit and cash-backed pipeline rights-of-way bonds issued to the BOEM. Of the five (5) pipeline rights-of-ways reflected in the BOEM’s October 2016 letter: (i) the pipeline associated with one (1) right-of-way was decommissioned in 1997, and (ii) the pipelines associated with three (3) rights-of-way (Segment Nos. 15635, 13101, and 9428) have been approved for decommissioning by the Bureau of Safety and Environmental Enforcement (the “BSEE”); decommissioning of Segment No. 9428 also requires approval by the U.S. Army Corps of Engineers, which has not yet been granted. There can be no assurance that the BOEM will accept a reduced amount of supplemental financial assurance or not require additional supplemental pipeline bonds related to our existing pipeline rights-of-way. If we are required by the BOEM to provide significant additional supplemental bonds or acceptable financial assurance, we may experience a significant and material adverse effect on our operations, liquidity, and financial condition.

19. Subsequent Events

19. Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Final Award in GEL Arbitration A hearing on confirmation of the Final Arbitration Award was scheduled to occur on September 18, 2017 in state district court in Harris County, Texas. Prior to the scheduled hearing, LE and GEL jointly notified the court of the Continuance Period to facilitate settlement discussions between the parties. On September 26, 2017, LE and Blue Dolphin, together with LEH and Jonathan Carroll, entered into the GEL Letter Agreement, confirming the parties’ agreement to the continuation of the confirmation hearing during the Continuance Period, subject to the terms of the GEL Letter Agreement. GEL may terminate the GEL Letter Agreement on the 45 th In addition to the matters described above and below under “Defaults Under Secured Loan Agreements,” the Final Arbitration Award could materially and adversely affect our ability to procure adequate amounts of crude oil and condensate and our relationships with our customers. For additional information regarding the Final Arbitration Award, the GEL Letter Agreement, and their potential effects on our business, financial condition and results of operations, see “Note (1) Organization – Going Concern,” “Note (10) Long-Term Debt, Net” and “Note (18) Commitments and Contingencies.” Defaults Under Secured Loan Agreements . By letter dated August14, 2017, Sovereign waived the financial covenant defaults as of June 30, 2017. However, the debt associated with these loans was classified within the current portion of long-term debt on our consolidated balance sheets due to existing or potential events of default related to the Final Arbitration Award as well as the uncertainty of our ability to meet the financial covenants in the future. There can be no assurance that Sovereign will provide a waiver of events of default related to the Final Arbitration Award, consent to any proposed settlement with GEL or provide future waivers of financial covenant defaults, which may have an adverse impact on our financial position and results of operations. By letter dated August 25, 2017, Sovereign notified us that the Final Arbitration Award constitutes an event of default under the First Term Loan Due 2034 and Second Term Loan Due 2034 and demanded: (i) immediate payment of currently due amounts from each obligor obligated to pay any obligations due and owing under the First Term Loan Due 2034 and Second Term Loan Due 2034 and (ii) the immediate cure of any existing default relating to such obligor. However, Sovereign informed us that it was not currently exercising its other rights, privileges and remedies. Sovereign expressly reserved all of its rights, privileges and remedies. By letter dated September 14, 2017, Sovereign further notified us that it is not currently exercising its rights, privileges and remedies under the secured loan agreements in light of the ongoing settlement discussions with GEL and the continuance of the hearing on confirmation of the Final Arbitration Award and to allow Sovereign to evaluate any proposed settlement agreement related to the Final Arbitration Award, which would require Sovereign’s approval. However, Sovereign again expressly reserved all of its rights, privileges and remedies related to events of default under the secured loan agreements and informed us that it would consider a final confirmation of the Final Arbitration Award to be a material event of default under the loan agreements. Any exercise by Sovereign of its rights and remedies under the secured loan agreements would have a material adverse effect on our business, financial condition and results of operations and likely would require us to seek protection under bankruptcy laws. June LEH Note Amended and Restated Guaranty Fee Agreements

3. Significant Accounting Pol25

3. Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates
Cash and Cash Equivalents	Cash and Cash Equivalents
Restricted Cash	Restricted Cash
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts
Inventory	Inventory
Property and Equipment	Property and Equipment Refinery and Facilities We record refinery and facilities at cost less any adjustments for depreciation or impairment. Adjustment of the asset and the related accumulated depreciation accounts are made for the refinery and facilities asset’s retirement and disposal, with the resulting gain or loss included in the consolidated statements of operations. For financial reporting purposes, depreciation of refinery and facilities assets is computed using the straight-line method using an estimated useful life of 25 years beginning when the refinery and facilities assets are placed in service. We did not record any impairment of our refinery and facilities assets for any period presented. Pipelines and Facilities Oil and Gas Properties Construction in Progress (See “Note (7) Property, Plant and Equipment, Net” for additional disclosures related to our refinery and facilities assets, oil and gas properties, pipelines and facilities assets, and construction in progress.)
Intangibles - Other	Intangibles – Other
Debt Issue Costs	Debt Issue Costs
Revenue Recognition	Revenue Recognition Refined Petroleum Products Revenue Tank Rental Revenue Easement Revenue Pipeline Transportation Revenue Deferred Revenue
Income Taxes	Income Taxes As of each reporting date, management considers new evidence, both positive and negative, to determine the realizability of deferred tax assets. Management considers whether it is more likely than not that a portion or all the deferred tax assets will be realized, which is dependent upon the generation of future taxable income prior to the expiration of any net operating loss (“NOL”) carryforwards. When management determines that it is more likely than not that a tax benefit will not be realized, a valuation allowance is recorded to reduce deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2016. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. Based on this evaluation, we recorded a full valuation allowance against the deferred tax assets as of December 31, 2016. FASB ASC guidance related to income taxes also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, as well as guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition. (See “Note (15) Income Taxes” for further information related to income taxes.)
Impairment or Disposal of Long-Lived Assets	Impairment or Disposal of Long-Lived Assets
Asset Retirement Obligations	Asset Retirement Obligations Management has concluded that there is no legal or contractual obligation to dismantle or remove the refinery and facilities assets. Further, management believes that these assets have indeterminate lives under FASB ASC guidance for estimating AROs because dates or ranges of dates upon which we would retire these assets cannot reasonably be estimated at this time. When a legal or contractual obligation to dismantle or remove the refinery and facilities assets arises and a date or range of dates can reasonably be estimated for the retirement of these assets, we will estimate the cost of performing the retirement activities and record a liability for the fair value of that cost using present value techniques. We recorded an ARO liability related to future asset retirement costs associated with dismantling, relocating, or disposing of our offshore platform, pipeline systems, and related onshore facilities, as well as for plugging and abandoning wells and restoring land and sea beds. We developed these cost estimates for each of our assets based upon regulatory requirements, structural makeup, water depth, reservoir characteristics, reservoir depth, equipment demand, current retirement procedures, and construction and engineering consultations. Because these costs typically extend many years into the future, estimating future costs are difficult and require management to make judgments that are subject to future revisions based upon numerous factors, including changing technology, political, and regulatory environments. We review our assumptions and estimates of future abandonment costs on an annual basis. (See “Note (11) Asset Retirement Obligations” for additional information related to our AROs.)
Computation of Earnings Per Share	Computation of Earnings Per Share The number of shares related to options, warrants, restricted stock, and similar instruments included in diluted EPS is based on the “Treasury Stock Method” prescribed in FASB ASC guidance for computation of EPS. This method assumes theoretical repurchase of shares using proceeds of the respective stock option or warrant exercised, and, for restricted stock, the amount of compensation cost attributed to future services that has not yet been recognized and the amount of any current and deferred tax benefit that would be credited to additional paid-in-capital upon the vesting of the restricted stock, at a price equal to the issuer’s average stock price during the related earnings period. Accordingly, the number of shares includable in the calculation of EPS in respect of the stock options, warrants, restricted stock, and similar instruments is dependent on this average stock price and will increase as the average stock price increases. (See “Note (16) Earnings Per Share” for additional information related to EPS.)
Treasury Stock	Treasury Stock
New Pronouncements Adopted	New Pronouncements Adopted ASU 2016-18, Statement of Cash Flows (Topic 230: Restricted Cash (a Consensus of the FASB Emerging Issues Task Force ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory
New Pronouncements Issued but Not Yet Effective	New Pronouncements Issued, Not Yet Effective ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2016-13,Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) ASU 2016-02,Leases (Topic 842) ASU 2014-09, Revenue from Contracts with Customers , evenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update) Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Other new pronouncements issued but not yet effective are not expected to have a material impact on our financial position, results of operations, or liquidity.
Reclassification	Reclassification

4. Business Segment Informati26

4. Business Segment Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Business segment reporting	Three Months Ended June 30, 2017 2016 Segment Segment Refinery Corporate & Refinery Corporate & Operations Other Total Operations Other Total Revenue from operations $ 57,336,331 $ - $ 57,336,331 $ 42,017,773 $ 24,687 $ 42,042,460 Less: cost of operations(1) (81,054,127 ) (395,628 ) (81,449,755 ) (45,534,109 ) (364,092 ) (45,898,201 ) Other non-interest income(2) - - - - 125,000 125,000 Less: JMA Profit Share(3) - - - (97,527 ) - (97,527 ) EBITDA(4) $ (23,717,796) $ (395,628 ) $ (3,613,863 ) $ (214,405 ) Depletion, depreciation and amortization (449,318 ) (470,347 ) Interest expense, net (830,540 ) (398,462 ) Loss before income taxes (25,393,282 ) (4,697,077 ) Income tax benefit - 1,534,341 Net loss $ (25,393,282 ) $ (3,162,736 ) Capital expenditures $ 858,233 $ - $ 858,233 $ 4,920,507 $ - $ 4,920,507 Identifiable assets $ 71,436,425 $ 1,047,413 $ 72,483,838 $ 93,402,963 $ 5,760,191 $ 99,163,154 (1) Operation cost within the Refinery Operations segment includes related general and administrative expenses. Operation cost within Corporate and Other includes general and administrative expenses associated with corporate maintenance costs (such as accounting fees, director fees, and legal expense), as well as expenses associated with our pipeline assets and oil and/or gas leasehold interests (such as accretion and impairment expenses). (2) Other non-interest income reflects FLNG easement revenue. (3) The JMA Profit Share represents the GEL Profit Share plus the Performance Fee for the period pursuant to the Joint Marketing Agreement, under which marketing activities have ceased. (See “Note (18) Commitments and Contingencies – Legal matters” for further discussion related to the contract-related dispute with GEL.) (4) EBITDA is a non-GAAP financial measure. See “Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Non-GAAP Financial Measures” for additional information related to EBITDA. Six Months Ended June 30, 2017 2016 Segment Segment Refinery Corporate & Refinery Corporate & Operations Other Total Operations Other Total Revenue from operations $ 109,942,080 $ - $ 109,942,080 $ 73,502,397 $ 52,339 $ 73,554,736 Less: cost of operations(1) (136,249,888 ) (826,250 ) (137,076,138 ) (79,956,962 ) (710,995 ) (80,667,957 ) Other non-interest income(2) - - - - 255,665 255,665 Less: JMA Profit Share(3) - 2,216,251 2,216,251 573,565 - 573,565 EBITDA(4) $ (26,307,808 ) $ 1,390,001 $ (5,881,000 ) $ (402,991 ) Depletion, depreciation and amortization (900,343 ) (910,800 ) Interest expense, net (1,425,082 ) (817,271 ) Loss before income taxes (27,243,232 ) (8,012,062 ) Income tax benefit - 2,700,242 Net loss $ (27,243,232 ) $ (5,311,820 ) Capital expenditures $ 2,889,327 $ - $ 2,889,327 $ 10,304,149 $ - $ 10,304,149 Identifiable assets $ 71,436,425 $ 1,047,413 $ 72,483,838 $ 93,402,963 $ 5,760,191 $ 99,163,154 (1) Operation cost within the Refinery Operations segment includes related general and administrative expenses. Operation cost within Corporate and Other includes general and administrative expenses associated with corporate maintenance costs (such as accounting fees, director fees, and legal expense), as well as expenses associated with our pipeline assets and oil and/or gas leasehold interests (such as accretion and impairment expenses). (2) Other non-interest income reflects FLNG easement revenue. (3) The JMA Profit Share represents the GEL Profit Share plus the Performance Fee for the period pursuant to the Joint Marketing Agreement, under which marketing activities have ceased. (See “Note (18) Commitments and Contingencies – Legal matters” for further discussion related to the contract-related dispute with GEL.) (4) EBITDA is a non-GAAP financial measure. See “Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Non-GAAP Financial Measures” for additional information related to EBITDA.

5. Prepaid Expenses and Other27

5. Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid balances	Prepaid expenses and other current assets as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 Prepaid crude oil and condensate $ 732,078 $ - Prepaid insurance 371,230 248,853 Short-term tax bond - 505,000 Prepaid exise taxes - 292,338 $ 1,103,308 $ 1,046,191

6. Inventory (Tables)

6. Inventory (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventory	Inventory as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 HOBM $ 2,263,477 $ 212,987 Crude oil and condensate 878,339 26,123 Chemicals 299,860 182,751 AGO 238,742 143,362 Naphtha 136,584 533,580 Propane 14,212 11,318 Jet fuel 10,977 964,124 LPG mix 6,258 1,293 $ 3,848,449 $ 2,075,538

7. Property, Plant and Equipm29

7. Property, Plant and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Property and equipment	Property, plant and equipment, net, as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 Refinery and facilities $ 51,432,434 $ 50,814,309 Land 566,159 602,938 Other property and equipment 652,795 652,795 52,651,388 - 52,070,042 Less: Accumulated depletion, depreciation, and amortization (7,585,586 ) (6,685,244 ) 45,065,802 45,384,798 Construction in progress 19,247,645 16,939,665 $ 64,313,447 $ 62,324,463

8. Related Party Transactions (

8. Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Accounts Payable, Related Party	Consolidated Balance Sheets June 30, December 31, 2017 2016 LEH $ 6,484,297 $ 4,000,000 Ingleside 1,143,803 722,278 Jonathan Carroll 112,272 592,412 7,740,372 5,314,690 Less: Long-term debt, related party, current portion (500,000 ) (500,000 ) $ 7,240,372 $ 4,814,690
Accrued interest Expenses	Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Jet fuel sales $ 20,157,974 $ 8,912,074 $ 35,557,967 $ 8,912,074 Jet fuel storage fees 375,000 324,000 750,000 324,000 HOBM sales - - 3,656,638 - $ 20,532,974 $ 9,236,074 $ 39,964,605 $ 9,236,074
Refinery operating expenses	Related party refinery operating expenses associated with the Amended and Restated Operating Agreement with LEH and the Amended and Restated Tank Lease Agreement with Ingleside for the periods indicated were as follows: Three Months Ended June 30, 2017 2016 Amount Per bbl Amount Per bbl LEH $ 1,651,663 $ 1.53 $ 2,427,748 $ 3.42 Ingleside - - 450,000 0.63 $ 1,651,663 $ 1.53 $ 2,877,748 $ 4.05 Six Months Ended June 30, 2017 2016 Amount Per bbl Amount Per bbl LEH $ 4,464,766 $ 2.14 $ 5,589,763 $ 2.95 Ingleside - - 725,000 0.38 $ 4,464,766 $ 2.14 $ 6,314,763 $ 3.33 Interest expense associated with the LEH Loan Agreement and Amended and Restated Guaranty Fee Agreements for the periods indicated was as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 LEH $ 234,391 $ - $ 441,685 $ - Jonathan Carroll 166,270 174,243 334,095 350,631 $ 400,661 $ 174,243 $ 775,780 $ 350,631

9. Accrued Expenses and Other31

9. Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure Text Block Supplement [Abstract]
Accrued expenses and other current liabilities	Accrued expenses and other current liabilities as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 Unearned revenue $ 911,983 $ 408,770 Customer deposits 450,000 450,000 Board of director fees payable 171,429 136,429 Other payable 108,247 189,719 Property taxes 67,736 4,694 Excise and income taxes payable 67,473 24,187 Insurance 28,398 67,783 $ 1,805,266 $ 1,281,582

10. Long-Term Debt, Net (Tables

10. Long-Term Debt, Net (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Schedule of Long Term Debt	Long-term debt, net represents the outstanding principal and interest of our long-term debt less associated debt issue costs. Long-term debt, net as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 First Term Loan Due 2034 $ 23,551,966 $ 23,924,607 Second Term Loan Due 2034 9,607,032 9,729,853 Notre Dame Debt 1,300,000 1,300,000 Term Loan Due 2017 - 184,994 Capital Leases 50,790 135,879 $ 34,509,788 $ 35,275,333 Less: Current portion of long-term debt, net (32,311,034 ) (31,712,336 ) Less: Unamortized debt issue costs (2,198,754 ) (2,262,997 ) $ - $ 1,300,000
Schedule of Debt issue costs	Unamortized debt issue costs, which relate to secured loan agreements with Sovereign, as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 First Term Loan Due 2034 $ 1,673,545 $ 1,673,545 Second Term Loan Due 2034 767,673 767,673 Less: Accumulated amortization (242,464 ) (178,221 ) $ 2,198,754 $ 2,262,997
Accrued interest related to our long-term debt, net	Accrued interest associated with our long-term debt, net is reflected as interest payable, current portion and long-term interest payable, net of current portion in our consolidated balance sheets and includes related party interest. Accrued interest as of the dates indicated consisted of the following: June 30, December 31, 2017 2016 Notre Dame Debt $ 1,794,534 $ 1,691,383 LEH Loan Agreement (related party) 565,333 243,556 Second Term Loan Due 2034 47,904 44,984 First Term Loan Due 2034 36,135 33,866 Capital Leases 423 1,165 Term Loan Due 2017 - 185 2,444,329 2,015,139 Less: Interest payable, current portion (2,444,329 ) (323,756 ) $ - $ 1,691,383
Schedule of summary of equipment held under long-term capital leases	A summary of equipment held under long-term capital leases as of the dates indicated follows: June 30, December 31, 2017 2016 Boiler equipment $ 538,598 $ 538,598 Less: accumulated depreciation - - $ 538,598 $ 538,598

11. Asset Retirement Obligati33

11. Asset Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2017
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations	Changes to our ARO liability for the periods indicated were as follows: June 30, December 31, 2017 2016 Asset retirement obligations, at the beginning of the period $ 2,027,639 $ 1,985,864 Liabilities settled (442 ) (70,969 ) Accretion expense 143,688 112,744 2,170,885 2,027,639 Less: asset retirement obligations, current portion (17,068 ) (17,510 ) Long-term asset retirement obligations, at the end of the period $ 2,153,817 $ 2,010,129

13. Concentration of Risk (Tabl

13. Concentration of Risk (Tables)	6 Months Ended
	Jun. 30, 2017
Risks and Uncertainties [Abstract]
Percentages of all refined petroleum products sales to total sales	Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 LPG mix $ - 0.0 % $ 133,757 0.3 % $ 120,542 0.1 % $ 384,304 0.8 % Naphtha 13,253,969 23.4 % 7,287,804 17.6 % 27,016,913 24.9 % 16,313,325 28.9 % Jet fuel 20,157,974 35.6 % 17,539,473 42.4 % 35,557,968 32.8 % 26,045,786 27.3 % HOBM 10,883,053 19.2 % 7,889,499 19.1 % 21,568,793 19.9 % 11,052,994 10.1 % Reduced Crude - 0.0 % 546,112 1.3 % - 0.0 % 3,791,919 10.4 % AGO 12,337,624 21.8 % 8,005,641 19.3 % 24,270,442 22.3 % 15,007,095 22.5 % $ 56,632,620 100.0 % $ 41,402,286 100.0 % $ 108,534,658 100.0 % $ 72,595,423 100.0 %

15. Income Taxes (Tables)

15. Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
NOL carryforwards	Net Operating Loss Carryforward Pre-Ownership Change Post-Ownership Change Total Balance at December 31, 2015 $ 9,614,449 $ 9,616,941 $ 19,231,390 Net operating losses - 13,945,128 13,945,128 Balance at December 31, 2016 $ 9,614,449 $ 23,562,069 $ 33,176,518 Net operating losses - 9,477,523 9,477,523 Balance at June 30, 2017 $ 9,614,449 $ 30,039,592 $ 42,654,041
Deferred tax assets and deferred tax liabilities	June 30, December 31, 2017 2016 Deferred tax assets: Net operating loss and capital loss carryforwards $ 16,772,696 $ 13,550,338 Accrued arbitration payable 6,674,017 - Start-up costs (Nixon Facility) 1,304,695 1,373,363 Asset retirement obligations liability/deferred revenue 759,366 717,751 AMT credit and other 233,572 266,522 Total deferred tax assets 25,744,346 15,907,974 Deferred tax liabilities: Basis differences in property and equipment (6,469,616 ) (5,895,943 ) Total deferred tax liabilities (6,469,616 ) (5,895,943 ) 19,274,730 10,012,031 Valuation allowance (19,274,730 ) (10,012,031 ) Deferred tax assets, net $ - $ -

16. Earnings Per Share (Tables)

16. Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings per share	Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net loss $ (25,393,282 ) $ (3,162,736 ) $ (27,243,232 ) $ (5,311,820 ) Basic and diluted income per share $ (2.39 ) $ (0.30 ) $ (2.58 ) $ (0.51 ) Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock 10,637,101 10,459,996 10,556,356 10,458,895

17. Inventory Risk Management (

17. Inventory Risk Management (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Effect of derivative instruments	Loss Recognized Three Months Ended June 30, Six Months Ended June 30, Derivatives Statements of Operations Location 2017 2016 2017 2016 Commodity contracts Cost of refined products sold $ - $ 3,852,100 $ - $ 3,359,572 Loss Recognized Three Months Ended June 30, Six Months Ended June 30, Derivatives Statements of Operations Location 2017 2016 2017 2016 Commodity contracts Cost of refined products sold $ - $ 3,852,100 $ - $ 3,359,572

1. Organization (Details Narrat

1. Organization (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ (25,393,282)	$ (3,162,736)	$ (27,243,232)	$ (5,311,820)
Net Loss per common share	$ (2.39)	$ (0.30)	$ (2.58)	$ (0.51)
Improvement in net loss	$ 0.20		$ 0.23
Working capital deficit current portion	$ 65,632,359		$ 65,632,359		$ 37,812,263
Working capital deficit payment of Operations	$ 32,821,325		$ 32,821,325		$ 5,599,927

3. Significant Accounting Pol39

3. Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and cash equivalents	$ 65,064		$ 65,064		$ 1,152,628
Restricted cash	2,044,962		2,044,962		4,930,140
Restricted cash (current portion)	1,481,626		1,481,626		3,347,835
Restricted cash, noncurrent	563,336		563,336		1,582,305
Allowance for doubtful accounts	0		0		0
Trade name	303,346		303,346		$ 303,346
Gain on the disposal of property	$ 0	$ 0	$ 1,834,500	$ 0

4. Business Segment Informati40

4. Business Segment Information (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue from operations	$ 57,336,331	$ 42,042,460		$ 109,942,080	$ 73,554,736
Depletion, depreciation and amortization	(32,121)	(32,121)	$ (31,869)	(64,242)	(63,990)
Income tax benefit	0	(1,534,341)		0	(2,700,242)
Net income (loss)	(25,393,282)	(3,162,736)		(27,243,232)	(5,311,820)
Refinery Operations [Member]
Revenue from operations	57,336,331	42,017,773		109,942,080	73,502,397
Less: cost of operations (1)	(81,054,127)	(45,534,109)		(136,249,888)	(79,956,962)
Other non-interest income (2)	0	0		0	0
Less: JMA Profit Share (3)	0	(97,527)		0	573,565
EBITDA (4)	(23,717,796)	(3,613,863)		(26,307,808)	(5,881,000)
Capital expenditures	858,233	4,920,507		2,889,327	10,304,149
Identifiable assets	71,436,425	93,402,963		71,436,425	93,402,963
Corporate and Other [Member]
Revenue from operations	0	24,687		0	52,339
Less: cost of operations (1)	(395,628)	(364,092)		(826,250)	(710,995)
Other non-interest income (2)	0	125,000		0	255,665
Less: JMA Profit Share (3)	0	0		2,216,251	0
EBITDA (4)	(395,628)	(214,405)		1,390,001	(402,991)
Capital expenditures	0	0		0	0
Identifiable assets	1,047,413	5,760,191		1,047,413	5,760,191
Total
Revenue from operations	57,336,331	42,042,460		109,942,080	73,554,736
Less: cost of operations (1)	(81,449,755)	(45,898,201)		(137,076,138)	(80,667,957)
Other non-interest income (2)	0	125,000		0	255,665
Less: JMA Profit Share (3)	0	(97,527)		2,216,251	573,565
Depletion, depreciation and amortization	(449,318)	(470,347)		(900,343)	(910,800)
Interest expense, net	(830,540)	(398,462)		(1,425,082)	(817,271)
Income (loss) before income taxes	(25,393,282)	(4,697,077)		(27,243,232)	(8,012,062)
Income tax benefit	0	1,534,341		0	2,700,242
Net income (loss)	(25,393,282)	(3,162,736)		(27,243,232)	(5,311,820)
Capital expenditures	858,233	4,920,507		2,889,327	10,304,149
Identifiable assets	$ 72,483,838	$ 99,163,154		$ 72,483,838	$ 99,163,154

5. Prepaid Expenses and Other41

5. Prepaid Expenses and Other Current Assets (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid crude oil and condensate	$ 732,078	$ 0
Prepaid insurance	371,230	248,853
Short-term tax bond	0	505,000
prepaid exise taxes	0	292,338
Prepaid expenses, net	$ 1,103,308	$ 1,046,191

6. Inventory (Details)

6. Inventory (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
HOBM	$ 2,263,477	$ 212,987
Crude oil and condensate	878,339	26,123
Chemicals	299,860	182,751
AGO	238,742	143,362
Naphtha	136,584	533,580
Propane	14,212	11,318
Jet fuel	10,977	964,124
LPG mix	6,258	1,293
Inventories, net	$ 3,848,449	$ 2,075,538

7. Property, Plant and Equipm43

7. Property, Plant and Equipment, Net (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Refinery and facilities	$ 51,432,434	$ 50,814,309
Land	566,159	602,938
Other property and equipment	652,795	652,795
Property, Plant and Equipment, Gross	52,651,388	52,070,042
Less: Accumulated depletion, depreciation and amortization	(7,585,586)	(6,685,244)
Property, plant and equipment, gross	45,065,802	45,384,798
Construction in progress	19,247,645	16,939,665
Property, plant and equipment, net	$ 64,313,447	$ 62,324,463

8. Property, Plant and Equipmen

8. Property, Plant and Equipment, Net (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Interest cost capitalized	$ 2,966,647	$ 2,108,298

8. Related Party Transactions45

8. Related Party Transactions (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016	Dec. 30, 2016	Mar. 31, 2016
Prepaid operating expenses, related party	$ 7,740,372	$ 5,314,690
Less: Long-term debt - current portion, related party	500,000	500,000
Long-term debt - net of current portion, related party	7,240,372	4,814,690
LEH [Member]
Prepaid operating expenses, related party	6,484,297		$ 4,000,000
Jonathan Carroll [Member]
Prepaid operating expenses, related party	112,272	$ 592,412
Ingleside [Member]
Prepaid operating expenses, related party	$ 1,143,803			$ 722,278

8. Related Party Transactions46

8. Related Party Transactions (Details 1)	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)$ / bbl	Jun. 30, 2016USD ($)$ / bbl	Jun. 30, 2017USD ($)$ / bbl	Jun. 30, 2016USD ($)$ / bbl
Refinery operating expenses, Amount | $	$ 1,651,663	$ 2,877,748	$ 4,464,766	$ 6,314,763
Refinery operating expenses, Per bbl | $ / bbl	1.53	4.05	2.14	3.33
Ingleside [Member]
Refinery operating expenses, Amount | $	$ 0	$ 450,000	$ 0	$ 725,000
Refinery operating expenses, Per bbl | $ / bbl	0	0.63	.00	0.38
LEH [Member]
Refinery operating expenses, Amount | $	$ 1,651,663	$ 2,427,748	$ 4,464,766	$ 5,589,763
Refinery operating expenses, Per bbl | $ / bbl	1.53	3.42	2.14	2.95

8. Related Party Transactions47

8. Related Party Transactions (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest expenses under loan and guarantee, related party	$ 400,661	$ 174,243	$ 775,780	$ 350,631
Jonathan Carroll [Member]
Interest expenses under loan and guarantee, related party	166,270	174,243	334,095	350,631
LEH [Member]
Interest expenses under loan and guarantee, related party	$ 234,391	$ 0	$ 441,685	$ 0

8. Related Party Transactions48

8. Related Party Transactions (Details 3) - LEH [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Jet fuel sales	$ 20,157,974	$ 8,912,074	$ 35,557,967	$ 8,912,074
Jet fuel storag fees	375,000	324,000	750,000	324,000
HOBM sales	0	0	3,656,638	0
Total	$ 20,532,974	$ 9,236,074	$ 39,964,605	$ 9,236,074

8. Related Party Transactions49

8. Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2016	Jun. 30, 2017	Dec. 31, 2016	Dec. 30, 2016
Prepaid related party operating expenses		$ 7,740,372	$ 5,314,690
Outstanding principal and interest		775,442	592,412
Accounts payable, related party		672,000	369,600
Sales to LMT totaled	$ 0	151,200
Accounts receivable related to LEH		0	1,161,589
Accrued interest		565,333	243,556
Jonathan Carroll [Member]
Prepaid related party operating expenses		112,272	592,412
Outstanding principal and interest		112,272	592,412
Ingleside [Member]
Prepaid related party operating expenses	$ 722,278	1,143,803
Outstanding principal and interest		1,143,803	722,278
Accounts receivable related to LEH		1,161,589
LEH [Member]
Prepaid related party operating expenses		6,484,297		$ 4,000,000
LEH Note [Member]
Outstanding principal and interest		$ 440,815	$ 0

9. Accrued Expenses and Other50

9. Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Disclosure Text Block Supplement [Abstract]
Unearned revenue	$ 911,983	$ 408,770
Customer deposits	450,000	450,000
Board of director fees payable	171,429	136,429
Other payable	108,247	189,719
Property taxes	67,736	4,694
Excise and income taxes payable	67,473	24,187
Insurance	28,398	67,783
Accrued Expenses and Other Current Liabilities, Net	$ 1,805,266	$ 1,281,582

10. Long-Term Debt, Net (Detail

10. Long-Term Debt, Net (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Debt Issue Costs	$ 34,509,788	$ 40,590,023
Less: Current portion of long-term debt, net	(32,311,034)	35,275,333
Less: Unamortized debt issue costs	(2,198,754)	(2,262,997)
Long term debt	0	1,300,000
First Term Loan Due 2034 [Member]
Principal balance outstanding	23,551,966	23,924,607
Second Term Loan Due 2034 [Member]
Principal balance outstanding	9,607,032	9,729,853
Notre Dame Debt [Member]
Principal balance outstanding	1,300,000	1,300,000
Term Loan Due 2017 [Member]
Principal balance outstanding	0	184,994
Capital Leases [Member]
Principal balance outstanding	50,790	135,879
Amended and Restated Carroll Note [Member]
Principal balance outstanding	775,442	592,412
LEH Note [Member]
Principal balance outstanding	440,815	0
Amended and Restated Ingleside Note [Member]
Principal balance outstanding	1,195,723	722,278
LEH Loan Agreement [Member]
Principal balance outstanding	$ 4,000,000	$ 4,000,000

10. Long-Term Debt, Net (Deta52

10. Long-Term Debt, Net (Details 1) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
First Term Loan Due 2034	$ 36,135	$ 33,866
Second Term Loan Due 2034	767,673	767,673
Less: Accumulated amortization	(242,464)	(178,221)
Long term debt	$ 2,198,754	$ 2,262,997

10 Long-Term Debt, Net (Details

10 Long-Term Debt, Net (Details 2) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Long-term Debt Net Details 2
Notre Dame Debt	$ 1,794,534	$ 1,691,383
LEH Loan Agreement (related party)	565,333	243,556
Second Term Loan Due 2034	47,904	44,984
First Term Loan Due 2034	36,135	33,866
Capital leases	423	1,165
Term Loan Due 2017	0	185
Total	2,444,329	2,015,139
Less: Interest payable, current portion	(2,444,329)	(323,756)
Long term debt	$ 0	$ 1,691,383

10. Long-Term Debt, Net (Deta54

10. Long-Term Debt, Net (Details 3) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Boiler equipment	$ 538,598	$ 538,598
Less: accumulated depreciation	0	0
Capital lease obligation	$ 538,598	$ 538,598

10.Long-Term Debt, Net (Details

10.Long-Term Debt, Net (Details Narrative) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Amortization expense	$ 32,121	$ 32,121	$ 31,869	$ 64,242	$ 63,990
Principal balance outstanding	0			0		$ 1,300,000
Guaranty fees	$ 118,080	$ 121,739		237,071	244,372	$ 122,633
FirstTermLoanDueTwoThousandThirtyFourMember
Guaranty fees				118,991
Term Loan Due 2017 [Member]
Guaranty fees				0	$ 3,083
SecondLoanDueTwoThousandThirtyFourMember
Interest accrued					2.00%
Guaranty fees				$ 49,420	$ 48,190

11. Asset Retirement Obligati56

11. Asset Retirement Obligations (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations, at the beginning of the period			$ 2,027,639	$ 1,985,864	$ 1,985,864
Liabilities settled			(442)		(70,969)
Accretion expense	$ 71,844	$ 28,186	143,688	$ 56,372	112,744
Asset retirement obligations	2,170,885		2,170,885		2,027,639
Less: asset retirement obligations, current portion	(17,068)		(17,068)		(17,510)
Long-term asset retirement obligations, at the end of the period	$ 2,153,817		$ 2,153,817		$ 2,010,129

11. Asset Retirement Obligati57

11. Asset Retirement Obligations (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Asset Retirement Obligation Disclosure [Abstract]
Liabilities settled recognized	$ 442	$ 70,969

12. Treasury Stock (Details Nar

12. Treasury Stock (Details Narrative) - shares	Jun. 30, 2017	Dec. 31, 2016
Equity [Abstract]
Treasury stock	0	150,000

13. Concentration of Risk (Deta

13. Concentration of Risk (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Total refined petroleum product sales	$ 56,632,620	$ 41,402,286	$ 108,534,658	$ 72,595,423
Concentration Risk	100.00%	100.00%	100.00%	100.00%
LPG mix
Total refined petroleum product sales	$ 0	$ 133,757	$ 120,542	$ 384,304
Concentration Risk	0.00%	0.30%	0.10%	0.80%
HOBM
Total refined petroleum product sales	$ 10,883,053	$ 7,889,499	$ 21,568,793	$ 11,052,994
Concentration Risk	19.20%	19.10%	19.90%	10.10%
Naphtha
Total refined petroleum product sales	$ 13,253,969	$ 7,287,804	$ 27,016,913	$ 16,313,325
Concentration Risk	23.40%	17.60%	24.90%	28.90%
AGO
Total refined petroleum product sales	$ 12,337,624	$ 8,005,641	$ 24,270,442	$ 15,007,095
Concentration Risk	21.80%	19.30%	22.30%	22.50%
Reduced crude
Total refined petroleum product sales	$ 0	$ 546,112	$ 0	$ 3,791,919
Concentration Risk	0.00%	1.30%	0.00%	10.40%
Jet Fuel
Total refined petroleum product sales	$ 20,157,974	$ 17,539,473	$ 35,557,968	$ 26,045,786
Concentration Risk	35.60%	42.40%	32.80%	27.30%

13. Concentration of Risk (De60

13. Concentration of Risk (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Concentration Risk	100.00%	100.00%	100.00%	100.00%
FDIC insurance limit	$ 1,597,835		$ 1,597,835		$ 5,372,689
LEH [Member]
Concentration Risk			36.00%
Concentration risk accounts receivable	0		$ 0
Account Receivable	$ 620,000		$ 620,000

14. Leases (Details Narrative)

14. Leases (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Leases, Operating [Abstract]
Rent expense	$ 45,092	$ 29,857	$ 76,173	$ 59,715

15. Income Taxes (Details)

15. Income Taxes (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Balance	$ 33,176,518	$ 19,231,390
Net operating losses	9,477,523	13,945,128
Balance at December 31	42,654,041	33,176,518
Pre-Ownership Change [Member]
Balance	9,614,449	9,614,449
Net operating losses	0	0
Balance at December 31	9,614,449	9,614,449
Post-Ownership Change [Member]
Balance	23,562,069	9,616,941
Net operating losses	9,477,523	13,945,128
Balance at December 31	$ 30,039,592	$ 23,562,069

15. Income Taxes (Details 1)

15. Income Taxes (Details 1) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Deferred tax assets:
Net operating loss and capital loss carryforwards	$ 16,772,696	$ 13,550,338
Accrued arbitration payable	6,674,017	0
Start-up costs (Nixon Facility)	1,304,695	1,373,363
Asset retirement obligations liability/deferred revenue	759,366	717,751
AMT credit and other	233,572	266,522
Total deferred tax assets	25,744,346	15,907,974
Deferred tax liabilities:
Basis differences in property and equipment	(6,469,616)	(5,895,943)
Total deferred tax liabilities	(6,469,616)	(5,895,943)
Deferred tax assets, net	19,274,730	10,012,031
Valuation allowance	(19,274,730)	(10,012,031)
Deferred tax assets, net	$ 0	$ 0

15. Income Taxes (Details Narra

15. Income Taxes (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Tax Benefit	$ 0	$ 1,534,341	$ 0	$ 2,700,242

16. Earnings per share (Details

16. Earnings per share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net loss	$ (25,393,282)	$ (3,162,736)	$ (27,243,232)	$ (5,311,820)
Basic and diluted income per share	$ (2.39)	$ (0.30)	$ (2.58)	$ (0.51)
Basic and diluted
Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock	10,637,101	10,459,996	10,556,356	10,458,895

17. Inventory Risk Management66

17. Inventory Risk Management (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Cost of refined products sold			$ 0	$ 3,359,572
Commodity Contracts [Member]
Cost of refined products sold	$ 0	$ 3,852,100	$ 0	$ 3,359,572

18. Commitments and Contingen67

18. Commitments and Contingencies (Details Narrative) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Credit and cash backed rights of way bonds issued to the BOEM	$ 4,600,000	$ 900,000