Blue Dolphin Energy (BDCO) 10-Q 15 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 15, 2020
Document And Entity Information
Entity Registrant Name	BLUE DOLPHIN ENERGY CO
Entity Central Index Key	0000793306
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,693,514
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	DE
Entity File Number	0-15905

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 269	$ 72
Restricted cash	49	49
Accounts receivable, net	1,325	446
Accounts receivable, related party (Note 3)	0	1,364
Prepaid expenses and other current assets (Note 6)	780	2,276
Deposits	174	158
Inventory (note 7)	813	1,645
Refundable federal income tax	100	65
Total current assets	3,510	6,075
LONG-TERM ASSETS
Total property and equipment, net (Note 8)	63,509	63,893
Operating lease ROU assets (Note 13)	613	649
Restricted cash, noncurrent	547	547
Surety bonds (Note 16)	230	230
Deferred tax assets, net (Note 14)	0	50
Total long-term assets	64,899	65,369
TOTAL ASSETS	68,409	71,444
CURRENT LIABILITIES
Long-term debt less unamortized debt issue costs, current portion, in default (Note 10)	33,580	33,836
Line of credit payable (Note 11)	11,243	11,464
Long-term debt, related party, current portion, in default (Note 3)	7,572	6,001
Current portion of lease liabilities (Note 13)	250	251
Interest payable (in default) (Note 10)	4,033	3,814
Interest payable, related party (in default) (Note 3)	2,334	2,174
Accounts payable	1,425	1,877
Accounts payable, related party (Note 3)	149	149
Asset retirement obligations, current portion (Note 12)	2,550	2,565
Accrued expenses and other current liabilities (Note 9)	2,801	3,333
Total current liabilities	65,937	65,464
LONG-TERM LIABILITIES
Long-term operating leases, net of current portion (Note 13)	518	564
Deferred revenue	1,808	1,930
Total long-term liabilities	2,326	2,494
TOTAL LIABILITIES	68,263	67,958
Commitments and contingencies (Note 18)
STOCKHOLDERS' DEFICIT
Common Stock shares issued and outstanding (12,327,365 at both March 31, 2020 and December 31, 2019)	123	123
Additional paid-in capital	38,275	38,275
Accumulated deficit	(38,252)	(34,912)
TOTAL STOCKHOLDERS' EQUITY	146	3,486
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 68,409	$ 71,444

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
STOCKHOLDERS' DEFICIT
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	12,327,365	12,327,365
Common stock, shares outstanding	12,327,365	12,327,365

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
REVENUE FROM OPERATIONS
Refinery operations (Note 4)	$ 60,897	$ 67,858
Tolling and terminaling (Note 4)	1,103	1,069
Total revenue from operations	62,000	68,927
COST OF GOODS SOLD
Crude oil, fuel use, and chemicals	59,720	63,187
Other conversion costs	2,368	2,329
Total cost of goods sold	62,088	65,516
Gross profit (deficit)	(88)	3,411
COST OF OPERATIONS
LEH operating fee (Note 3)	147	150
Other operating expenses	59	57
General and administrative expenses	644	670
Depletion, depreciation and amortization	633	590
Total cost of operations	1,483	1,467
Income (loss) from operations	(1,571)	1,944
OTHER INCOME (EXPENSE)
Easement, interest and other income	20	0
Interest and other expense	(1,774)	(1,197)
Total other income (expense)	(1,754)	(1,197)
Income (loss) before income taxes	(3,325)	747
Income tax expense	(15)	0
Net income (loss)	$ (3,340)	$ 747
Income (loss) per common share:
Basic	$ (0.27)	$ 0.07
Diluted	$ (0.27)	$ 0.07
Weighted average number of common shares outstanding:
Basic	12,327,365	10,975,514
Diluted	12,327,365	10,975,514

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
OPERATING ACTIVITIES
Net income (loss)	$ (3,340)	$ 747
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depletion, depreciation and amortization	633	590
Deferred income tax	15	0
Amortization of debt issue costs	220	32
Guaranty fees paid in kind	153	0
Deferred revenues and expenses	(122)	0
Changes in operating assets and liabilities
Changes in accounts receivable	(879)	(739)
Changes in accounts receivable, related party	1,364	(482)
Changes in prepaid expenses and other current assets	1,496	910
Changes in deposits and other assets	(16)	0
Changes in inventory	832	(333)
Changes in accrued arbitration award	0	(1,500)
Changes in accounts payable, accrued expenses and other liabilities	(683)	593
Changes in accounts payable, related party	0	151
Net cash used in operating activities	(327)	(31)
INVESTING ACTIVITIES
Capital expenditures	(198)	(123)
Net cash used in investing activities	(198)	(123)
FINANCING ACTIVITIES
Payments on debt	(696)	(250)
Net activity on related-party debt	1,418	419
Net cash provided by financing activities	722	169
Net change in cash, cash equivalents, and restricted cash	197	15
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD	668	1,665
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD	865	1,680
Non-cash investing and financing activities:
Financing of guaranty fees via long-term debt, related party	153	158
Interest paid	937	361
Income taxes paid	$ 0	$ 0

1. Organization

1. Organization	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Overview Blue Dolphin is an independent downstream energy company operating in the Gulf Coast region of the United States. Our subsidiaries operate a light sweet-crude, 15,000-bpd crude distillation tower with approximately 1.2 million bbls of petroleum storage tank capacity in Nixon, Texas. Blue Dolphin was formed in 1986 as a Delaware corporation and is traded on the OTCQX under the ticker symbol “BDCO”. Blue Dolphin has 20.0 million shares of Common Stock and 2.5 million shares of Preferred Stock authorized. There are no shares of Preferred Stock issued and outstanding. Our assets are primarily organized in two segments: refinery operations (owned by LE) and tolling and terminaling services (owned by LRM and NPS). Subsidiaries that are reflected in corporate and other include BDPL (inactive pipeline and facilities assets), BDPC (inactive leasehold interests in oil and gas wells), and BDSC (administrative services). See “Note (4)” to our consolidated financial statements for more information about our business segments. Unless the context otherwise requires, references in this report to “we,” “us,” “our,” or “ours,” refer to Blue Dolphin, one or more of its consolidated subsidiaries or all of them taken as a whole. Affiliates Affiliates control approximately 82% of the voting power of our Common Stock. An Affiliate operates and manages all Blue Dolphin properties and funds working capital requirements during periods of working capital deficits, and an Affiliate is a significant customer of our refined products. Blue Dolphin and certain of its subsidiaries are currently parties to a variety of agreements with Affiliates. See “Note (3)” to our consolidated financial statements for additional disclosures related to Affiliate agreements and arrangements and working capital deficits. Going Concern Management has determined that certain factors raise substantial doubt about our ability to continue as a going concern. These factors include the following: Defaults Under Secured Loan Agreements with Third Parties Veritex Loan Agreements In April 2019, LE, Jonathan Carroll, Blue Dolphin, LRM, and LE received notification from Veritex that the bank agreed to waive certain covenant defaults and forbear from enforcing its remedies under our secured loan agreements subject to: (i) the agreement and concurrence of the USDA and (ii) the replenishment of the payment reserve account on or before August 31, 2019. Following the GEL Settlement, the associated mutual releases became effective and GEL filed a stipulation of dismissal of claims against LE. As of the date of this report, LE had not replenished the payment reserve account and obligors were still in default under our other secured loan agreements with Veritex. At March 31, 2020, LE and LRM were in violation of the debt service coverage ratio, current ratio, and debt to net worth ratio financial covenants under our secured loan agreements with Veritex. As a result, the debt associated with these loans was classified within current portion of long-term debt on our consolidated balance sheets at March 31, 2020 and December 31, 2019. We were current on required monthly payments under our secured loan agreements with Veritex as of the filing date of this report. We can provide no assurance that: (i) our assets or cash flow will be sufficient to fully repay borrowings under our secured loan agreements with Veritex, either upon maturity or if accelerated, (ii) LE and LRM will be able to refinance or restructure the payments of the debt, and/or (iii) Veritex, as first lien holder, will provide future default waivers. Defaults under our secured loan agreements with Veritex permit Veritex to declare the amounts owed under these loan agreements immediately due and payable, exercise its rights with respect to collateral securing obligors’ obligations under these loan agreements, and/or exercise any other rights and remedies available. Any exercise by Veritex of its rights and remedies under our secured loan agreements would have a material adverse effect on our business operations, including crude oil and condensate procurement and our customer relationships; financial condition; and results of operations. Further, the trading price of our common stock and the value of an investment in our common stock could significantly decrease, which could lead to holders of our common stock losing their investment in our common stock in its entirety. Amended Pilot Line of Credit The borrower and guarantors are attempting to reach a negotiated settlement with Pilot, and Pilot hopes to continue to work with the borrower to settle its obligations under the Amended Pilot Line of Credit. Additionally, the borrower and guarantors are working with a lender on the possible refinance of amounts owing and payable under the Amended Pilot Line of Credit. Our ability to repay, refinance, replace or otherwise extend this credit facility is dependent on, among other things, business conditions, our financial performance and the general condition of the financial markets. Given the current financial markets, we could be forced to undertake alternate financings, including a sale of additional common stock, negotiate for an extension of the maturity, or sell assets and delay capital expenditures in order to generate proceeds that could be used to repay such indebtedness. We can provide no assurance that we will be able to consummate any such transaction on terms that are commercially reasonable, on terms acceptable to us or at all. In the event we were unsuccessful in such endeavors, we may be unable to pay the amounts outstanding under the Amended Pilot Line of Credit, which may require us to seek protection under bankruptcy laws. In such a case, the trading price of our common stock and the value of an investment in our common stock could significantly decrease, which could lead to holders of our common stock losing their investment in our common stock in its entirety. See “Note (10)” and “Note (11)” to our consolidated financial statements for additional information related to defaults under our secured loan agreements with Veritex and Pilot and their potential effects on our business, financial condition, and results of operations. Margin Deterioration and Volatility Net Losses and Working Capital Deficits We had a working capital deficit of $62.4 million and $59.4 million at March 31, 2020 and December 31, 2019, respectively. Excluding the current portion of long-term debt, we had a working capital deficit of $21.3 million and $19.6 million at March 31, 2020 and December 31, 2019, respectively. We had cash and cash equivalents and restricted cash (current portion) of $0.3 million and $0.05 million, respectively, at March 31, 2020. Comparatively, we had cash and cash equivalents and restricted cash (current portion) of $0.07 million and $0.05 million, respectively, at December 31, 2019. Operating Risks Successful execution of our business strategy depends on several key factors, including, having adequate working capital to meet operational needs and regulatory requirements, maintaining safe and reliable operations at the Nixon facility, meeting contractual obligations, and having favorable margins on refined products. As discussed under ‘going concern’ above and throughout this report, we are currently unable to estimate the impact the COVID-19 pandemic will have on our future financial position and results of operations. Our business was deemed as an essential business and, as such, has remained open. We have instituted various initiatives throughout the company as part of our business continuity programs, and we are working to mitigate risk when disruptions occur. Management believes that it is taking all prudent steps, however, there can be no assurance that our business strategy will be successful, that Affiliates will continue to fund our working capital needs when we experience working capital deficits, that we will meet regulatory requirements to provide additional financial assurance (supplemental pipeline bonds) and decommission offshore pipelines and platform assets, that we will be able to obtain additional financing on commercially reasonable terms or at all, or that margins on our refined products will be favorable. Further, if Veritex and/or Pilot exercise their rights and remedies under our secured loan agreements, our business, financial condition, and results of operations will be materially adversely affected.

2. Basis of Presentation

2. Basis of Presentation	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements, which include Blue Dolphin and its subsidiaries, have been prepared in accordance with GAAP for interim consolidated financial information pursuant to the rules and regulations of the SEC under Article 10 of Regulation S-X and the instructions to Form 10-Q. 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, 2019 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 on Form 10-K for the fiscal year ended December 31, 2019 as filed with the SEC. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020, or for any other period. As discussed further below within this “Note (2)” under ‘use of estimates,’ the recent outbreak of COVID-19 and its development into a pandemic in March 2020 has resulted in significant economic disruption globally. This disruption became more acute in the latter half of March 2020; therefore, our operating results for the three months ended March 31, 2020 do not fully reflect the impact this disruption has had, and will likely continue to have, on us. 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 The nature of our business requires that we make estimates and assumptions in accordance with U.S. GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. The COVID-19 outbreak has impacted these estimates and assumptions and will continue to do so. Our estimates at the end of the first quarter assumed no material impact from the disruptions caused by COVID-19. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of March 31, 2020 and through the filing date of this report. The accounting matters assessed included, but were not limited to, our allowance for doubtful accounts, inventory and related reserves and the carrying value of long-lived assets. While there was not a material impact to our consolidated financial statements as of and for the three months ended March 31, 2020, our future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to our consolidated financial statements in future reporting periods. Cash and Cash Equivalents Restricted Cash Accounts Receivable and Allowance for Doubtful Accounts Inventory Property and Equipment Refinery and Facilities Pipelines and Facilities Oil and Gas Properties CIP Leases. We recognize ROU assets and lease liabilities for leasing arrangements with terms greater than one year. We account for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. We allocate the consideration in these contracts based on pricing information contained in the lease. Expense for an operating lease is recognized as a single lease cost on a straight-line basis over the lease term and is reflected in the appropriate income statement line item based on the leased asset’s function. Amortization expense of a finance lease ROU asset is recognized on a straight-line basis over the lesser of the useful life of the leased asset or the lease term. However, if the lease transfers ownership of the finance lease ROU asset to us at the end of the lease term, the finance lease ROU asset is amortized over the useful life of the leased asset. Amortization expense is reflected in ‘depreciation and amortization expense.’ Interest expense is incurred based on the carrying value of the lease liability and is reflected in ‘interest and other expense.’ Revenue Recognition Refinery Operations Revenue We consider a variety of facts and circumstances in assessing the point of control transfer, including but not limited to: whether the purchaser can direct the use of the refined product, the transfer of significant risks and rewards, our rights to payment, and transfer of legal title. In each case, the term between the sale and when payment is due is not significant. Transportation, shipping, and handling costs incurred are included in cost of goods sold. Excise and other taxes that are collected from customers and remitted to governmental authorities are not included in revenue. Tolling and Terminaling Revenue We typically satisfy performance obligations for tolling and terminaling operations with the passage of time. We determine the transaction price at agreement inception based on the guaranteed minimum amount of revenue over the term of the agreement. We allocate the transaction price to the single performance obligation that exists under the agreement, and we recognize revenue in the amount for which we have a right to invoice. Generally, payment terms do not exceed 30 days. Revenue from tank storage customers may, from time to time, include fees for ancillary services, such as in-tank and tank-to-tank blending. These services are considered optional to the customer, and the price we charge for such services is not included in the fixed cost under the customer’s tank storage agreement. Ancillary services are considered a separate performance obligation by us under the tank storage agreement. The performance obligation is satisfied when the requested service has been performed in the applicable period. Deferred Revenue Income Taxes Significant judgment is required in evaluating uncertain tax positions and determining its provision for income taxes. As of each reporting date, we consider new evidence, both positive and negative, to determine the realizability of deferred tax assets. We consider 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 NOL carryforwards. When we determine 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 cumulative losses incurred over the three-year period ended March 31, 2020. Such objective evidence limits the ability to consider other subjective evidence, such as projections for future growth. Based on this evaluation, we recorded a valuation allowance against the deferred tax assets for which realization was not deemed more likely than not as of March 31, 2020 and December 31, 2019. We expect to recover deferred tax assets related to AMT credit carryforwards. In addition, we have NOL carryforwards that remain available for future use. The benefit of an uncertain tax position is recognized in the financial statements if it meets a minimum recognition threshold. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more-likely-than-not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement. At March 31, 2020 and December 31, 2019, there were no uncertain tax positions for which a reserve or liability was necessary. See “Note (14)” to our consolidated financial statements for more information related to income taxes. Impairment or Disposal of Long-Lived Assets Asset Retirement Obligations We have concluded that there is no legal or contractual obligation to dismantle or remove the refinery and facilities assets. Further, we believe that these assets have indeterminate lives 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. Cost estimates for each of our assets were developed based upon regulatory requirements, structural makeup, water depth, reservoir characteristics, reservoir depth, equipment demand, current retirement procedures, and construction and engineering consultations. 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 (12)” to our consolidated financial statements for additional information related to AROs. Computation of Earnings Per Share New Pronouncements Adopted Codification Updates to SEC Sections Consolidation New Pronouncements Issued, Not Yet Effective . Income Taxes . 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.

3. Related Party Transactions

3. Related Party Transactions	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Working Capital Currently, we depend on Affiliates for financing when revenue from operations and borrowings under bank facilities are insufficient to meet our liquidity and working capital needs. Such borrowings are reflected in our consolidated balance sheets in accounts payable, related party, and/or long-term debt, related party. Affiliate Agreements/Transactions Blue Dolphin and certain of its subsidiaries are party to several agreements with Affiliates. Management believes that these related-party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions. Related-party transactions consist of the following: Agreement/Transaction Parties Type Effective Date Interest Rate Key Terms Amended and Restated Guaranty Fee Agreement(1) Jonathan Carroll - LE Debt 04/01/2017 2.00% Tied to payoff of LE $25 million Veritex loan; payments 50% cash, 50% Common Stock Amended and Restated Guaranty Fee Agreement(1) Jonathan Carroll - LRM Debt 04/01/2017 2.00% Tied to payoff of LRM $10 million Veritex loan; payments 50% cash, 50% Common Stock Refinery Equipment Purchase LTRI - LE Operations 07/01/2019 --- LE purchase of two (2) refurbished heat exchangers for $0.08 million each Dock Tolling Agreement LMT - LE Operations 05/24/2016 --- 5-year term cancellable by either party any time; LE paid flat reservation fee for tolling volumes up to 84,000 gallons per day; excess tolling volumes subject to increased per gallon rate; terminated 07/01/2019 Jet Fuel Sales Agreement LEH - LE Operations 04/01/2020 --- 1-year term expiring earliest to occur of 03/31/2021 plus 30-day carryover or delivery of maximum jet fuel quantity; LEH bids on jet fuel contracts under preferential pricing terms due to a HUBZone certification March Carroll Note (in default) Jonathan Carroll – Blue Dolphin Debt 03/31/2017 8.00% Blue Dolphin working capital; matured 01/01/2019; interest still accruing March Ingleside Note (in default) Ingleside – Blue Dolphin Debt 03/31/2017 8.00% Blue Dolphin working capital; reflects amounts owed to Ingleside under previous Amended and Restated Tank Lease Agreement; matured 01/01/2019; interest still accruing June LEH Note (in default) LEH – Blue Dolphin Debt 03/312017 8.00% Blue Dolphin working capital; reflects amounts owed to LEH under the Amended and Restated Operating Agreement; reflects amounts owed to Jonathan Carroll under guaranty fee agreements; matured 01/01/2019; interest still accruing Office Sub-Lease Agreement LEH - BDSC Operations 01/01/2018 --- 68-month term expiring 08/31/2023; office lease Houston, Texas; includes 6-month rent abatement period; rent approximately $0.02 million per month Amended and Restated Operating Agreement LEH – Blue Dolphin, LE, LRM, NPS, BDPL, BDPC and BDSC Debt 04/01/2020 --- 3-year term; expires 04/01/2023 or notice by either party at any time of material breach or 90 days Board notice; LEH receives management fee of 5% of all consolidated operating costs, excluding crude costs, depreciation, amortization and interest of Blue Dolphin, LE, LRM, NPS, BDPL, BDPC and BDSC Loan and Security Agreement (in default) LEH - BDPL Debt 08/15/2016 16.00% 2-year term; $4.0 million principal amount; $0.5 million annual payment; proceeds used for working capital; no financial maintenance covenants; secured by certain BDPL property (1) On April 30, 2020, we issued an aggregate of 231,065 restricted shares of Common Stock to Jonathan Carroll, which represents payment of the common stock component of guaranty fees for the period November 2019 through March 2020. The average cost basis was $0.69, the low was $0.52, and the high was $1.07. For the foreseeable future, management does not intend on paying Mr. Carroll the cash portion of guaranty fees due to Blue Dolphin’s working capital deficits. The cash portion will continue to be accrued and added to the principal balance of the March Carroll Note. Related-Party Financial Impact Consolidated Balance Sheets Accounts receivable, related party Accounts payable, related party Long-term debt, related party, current portion (in default) and accrued interest payable, related party. March 31, December 31, 2020 2019 (in thousands) LEH June LEH Note (in default) $ 1,375 $ - BDPL Loan Agreement 6,334 6,174 LEH Total 7,709 6,174 Ingleside March Ingleside Note (in default) 1,024 1,004 Jonathan Carroll March Carroll Note (in default) 1,173 997 9,906 8,175 Less: Long-term debt, related party, current portion, in default (7,572 ) (6,001 ) Less: Accrued interest payable, related party (in default) (2,334 ) (2,174 ) $ - $ - Consolidated Statements of Operations Total revenue from operations. Three Months Ended March 31, 2020 2019 (in thousands, except percent amounts) Refinery operations LEH $ 17,715 28.6 % $ 20,809 30.2 % Third-Parties 43,182 69.6 % 47,049 68.3 % Tolling and terminaling Third-Parties 1,103 1.8 % 1,069 1.5 % $ 62,000 100.0 % $ 68,927 100.0 % Interest expense. Three Months Ended March 31, 2020 2019 (in thousands) Jonathan Carroll Guaranty Fee Agreements First Term Loan Due 2034 $ 108 $ 112 Second Term Loan Due 2034 45 46 March Carroll Note (in default) 23 25 LEH BDPL Loan Agreement (in default) 160 160 June LEH Note (in default) 25 6 Ingleside March Ingleside Note (in default) 20 26 $ 381 $ 375 Other.

4. Revenue and Segment Informat

4. Revenue and Segment Information	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Revenue and Segment Information	We have two reportable business segments: (i) refinery operations and (ii) tolling and terminaling. Refinery operations relate to the refining and marketing of petroleum products at our 15,000-bpd crude distillation tower. Tolling and terminaling operations relate to tolling and storage terminaling services under third-party lease agreements. Both operations are conducted at the Nixon facility. Corporate and other includes BDSC, BDPL and BDPC. Revenue from Contracts with Customers Disaggregation of Revenue Receivables from Contracts with Customers Contract Liabilities Remaining Performance Obligations Segment Information Three Months Ended March 31, 2020 2019 (in thousands) Net revenue (excluding intercompany fees and sales) Refinery operations $ 60,897 $ 67,858 Tolling and terminaling 1,103 1,069 Total net revenue 62,000 68,927 Intercompany fees and sales Refinery operations (617 ) (606 ) Tolling and terminaling 617 606 Total intercompany fees - - Operation costs and expenses(1) Refinery operations (61,833 ) (65,152 ) Tolling and terminaling (255 ) (364 ) Corporate and other (59 ) (57 ) Total operation costs and expenses (62,147 ) (65,573 ) Segment contribution margin (deficit) Refinery operations (1,553 ) 2,100 Tolling and terminaling 1,465 1,311 Corporate and other (59 ) (57 ) Total segment contribution margin (deficit) (147 ) 3,354 General and administrative expenses(2) Refinery operations (304 ) (332 ) Tolling and terminaling (68 ) (43 ) Corporate and other (419 ) (445 ) Total general and administrative expenses (791 ) (820 ) Depreciation and amortization Refinery operations (288 ) (465 ) Tolling and terminaling (294 ) (99 ) Corporate and other (51 ) (26 ) Total depreciation and amortization (633 ) (590 ) Interest and other non-operating expenses, net Refinery operations (741 ) (783 ) Tolling and terminaling (770 ) (196 ) Corporate and other (243 ) (218 ) Total interest and other non-operating expenses, net (1,754 ) (1,197 ) Income (loss) before income taxes Refinery operations (2,886 ) 520 Tolling and terminaling 333 973 Corporate and other (772 ) (746 ) Total income (loss) before income taxes (3,325 ) 747 Income tax expense (15 ) - Net income (loss) $ (3,340 ) $ 747 (1) Operation costs include cost of goods sold. Also, operation costs within: (a) tolling and terminaling includes terminal operating expenses and an allocation of other costs (e.g. insurance and maintenance) and (b) corporate and other includes expenses related to BDSC, BDPC and BDPL. (2) General and administrative expenses within refinery operations include the LEH operating fee. March 31, 2020 2019 (in thousands) Capital expenditures Refinery operations $ 6 $ 40 Tolling and terminaling 192 83 Corporate and other - - Total capital expenditures 198 123 Identifiable assets Refinery operations 48,418 50,340 Tolling and terminaling 18,407 18,880 Corporate and other 1,584 2,429 Total identifiable assets $ 68,409 $ 71,649

5. Concentration of Risk

5. Concentration of Risk	3 Months Ended
	Mar. 31, 2020
Risks and Uncertainties [Abstract]
Concentration of Risk	Bank Accounts Financial instruments that potentially subject us to concentrations of risk consist primarily of cash, trade receivables and payables. We maintain cash balances at financial institutions in Houston, Texas. The FDIC insures certain financial products up to a maximum of $250,000 per depositor. At both March 31, 2020 and December 31, 2019, we had cash balances (including restricted cash) that exceeded the FDIC insurance limit per depositor of approximately $0.3 million. Key Supplier Operation of the Nixon refinery depends on our ability to purchase adequate amounts of crude oil and condensate. We have a long-term crude supply agreement in place with Pilot. Under the initial term of the crude supply agreement, Pilot will sell us approximately 24.8 million net bbls of crude oil. Thereafter, the crude supply agreement will continue on a one-year evergreen basis. Pilot may terminate the crude supply agreement by providing the other party 60 days prior written notice. We may terminate the agreement upon the expiration of the initial term or at any time during a renewal term by giving Pilot 60 days prior written notice. Pilot also stores crude oil at the Nixon facility under a terminal services agreement. Under the terminal services agreement, Pilot stores crude oil at the Nixon facility at a specified rate per bbl of the storage tank’s shell capacity. Although the initial term of the terminal services agreement expired April 30, 2020, the agreement renewed on a one-year evergreen basis. Either party may terminate the terminal services agreement by providing the other party 60 days prior written notice. However, the terminal services agreement will automatically terminate upon expiration or termination of the crude supply agreement. Our financial health could be materially and adversely affected by defaults in our secured loan agreements, margin deterioration and volatility, historic net losses and working capital deficits, as well as termination of the crude supply agreement or terminal services agreement with Pilot, which could impact our ability to acquire crude oil and condensate. In addition, a sustained period of low crude oil prices due to market volatility associated with the COVID-19 pandemic may also result in significant financial constraints on producers, which could result in long term crude oil supply constraints and increased transportation costs. A failure to acquire crude oil and condensate when needed will have a material effect on our business results and operations. Significant Customers We routinely assess the financial strength of our customers and have not experienced significant write-downs in accounts receivable balances. We believe that our accounts receivable credit risk exposure is limited. Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable March 31 Three Months March 31, 2020 4 94% $0.6 million Three Months March 31, 2019 4 96% $0.8 million One of our significant customers is an Affiliate. The Affiliate, LEH, purchases our jet fuel under a Jet Fuel Sales Agreement and bids on jet fuel contracts under preferential pricing terms due to a HUBZone certification. LEH accounted for nearly 29% and 30% of our total revenue from operations for the three months ended March 31, 2020 and 2019, respectively. LEH represented $0 in accounts receivable at both March 31, 2020 and March 31, 2019. Amounts outstanding relating to the Jet Fuel Sales Agreement can vary significantly period to period based on the timing of the related sales and payments received. The amounts are paid under normal business terms. The total amount owed to LEH under the June LEH Note and the BDPL Loan Agreement totaled $7.6 million and $6.2 million at March 31, 2020 and December 31, 2019, respectively. See “Note (3)” and “Note (16)” to our consolidated financial statements for additional disclosures related to transactions with Affiliates. Concentration of Customers Refined Product Sales Year Ended March 31, 2020 2019 (in thousands, except percent amounts) LPG mix $ - 0.0 % $ 8 0 % Naphtha 11,515 18.9 % 13,795 20.3 % Jet fuel 17,715 29.1 % 20,809 30.7 % HOBM 15,191 24.9 % 16,160 23.8 % AGO 16,476 27.1 % 17,086 25.2 % $ 60,897 100.0 % $ 67,858 100.0 % An Affiliate, LEH, purchases our jet fuel. See “Note (3)” and “Note (16)” to our consolidated financial statements for additional disclosures related to Affiliate transactions.

6. Prepaid Expenses and Other C

6. Prepaid Expenses and Other Current Assets	3 Months Ended
	Mar. 31, 2020
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: March 31, December 31, 2020 2019 (in thousands) Prepaid crude oil and condensate $ 379 $ 1,651 Other prepaids 191 87 Prepaid easement renewal fees 115 121 Prepaid insurance 95 417 $ 780 $ 2,276

7. Inventory

7. Inventory	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventory	Inventory as of the dates indicated consisted of the following: March 31, December 31, 2020 2019 (in thousands) Crude oil and condensate $ 554 $ 959 Chemicals 157 120 AGO 56 440 Naphtha 29 95 Propane 15 26 LPG mix 2 5 $ 813 $ 1,645 At March 31, 2020 and December 31, 2019, we recorded a write-down of inventory to its net realizable value of approximately $0.2 million and $0.1 million, respectively.

8. Property, Plant and Equipmen

8. Property, Plant and Equipment, Net	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net	Property, plant and equipment, net, as of the dates indicated consisted of the following: March 31, December 31, 2020 2019 (in thousands) Refinery and facilities $ 66,317 $ 66,317 Land 566 566 Other property and equipment 833 833 67,716 67,716 Less: Accumulated depletion, depreciation, and amortiation (13,321) (13,321 ) (12,739 ) 54,395 54,977 CIP 9,114 8,916 $ 63,509 $ 63,893 We capitalize interest cost incurred on funds used to construct property, plant, and equipment. Capitalized interest is recorded as part of the asset it relates to and is depreciated over the asset’s useful life. Capitalized interest cost, which is included in CIP, was $0.7 million at both March 31, 2020 and December 31, 2019. Capital expenditures for expansion at the Nixon facility are funded by long-term debt from Veritex, revenue from operations, and working capital from Affiliates. Unused amounts for capital expenditures derived from Veritex loans are reflected in restricted cash (current and non-current portions) on our consolidated balance sheets. See “Note (10)” to our consolidated financial statements for additional disclosures related to working capital deficits and borrowings for capital spending.

9. Accrued Expenses and Other C

9. Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2020
Other Liabilities, Current [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities as of the dates indicated consisted of the following: March 31, December 31, 2020 2019 (in thousands) Unearned revenue from contracts with customers $ 1,697 $ 1,990 Unearned contract renewal income 500 500 Taxes payable 252 183 Insurance 169 159 Board of director fees payable 123 263 Other payable 50 228 Customer deposits 10 10 $ 2,801 $ 3,333

10. Third-Party Long-Term Debt

10. Third-Party Long-Term Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Third-Party Long-Term Debt	Loan Agreements Loan Description Original Principal Amount (in millions) Maturity Date Monthly Principal and Interest Payment Interest Rate Loan Purpose USDA-Guaranteed Loans First Term Loan Due 2034 ( in default $ 25.0 Jun 2034 $0.2 million WSJ Prime + 2.75% Refinance loan; capital improvements Second Term Loan Due 2034 ( in default $ 10.0 Dec 2034 $0.1 million WSJ Prime + 2.75% Refinance bridge loan; capital improvements Notre Dame Debt ( in default $ 11.7 (1) Jan 2018 No payments to date; payment rights subordinated(2) 16.00 % Working capital; reduce balance of GEL Final Arbitration Award (1) Original principal amount was $8.0 million; pursuant to a 2017 sixth amendment, the Notre Dame Debt was amended to increase the principal amount by $3.7 million; the additional principal was used to reduce the GEL Final Arbitration Award by $3.6 million. (2) Pursuant to a 2015 subordination agreement, the holder of the Notre Dame Debt agreed to subordinate their right to payments, as well as any security interest and liens on the Nixon facility’s business assets, in favor of Veritex as holder of the First Term Loan Due 2034. Guarantees and Security Loan Description Guarantees Security USDA-Guaranteed Loans First Term Loan Due 2034 ( in default ● ● ● ● ● ● ● ● Second Term Loan Due 2034 ( in default ● ● ● ● ● ● ● ● Notre Dame Debt ( in default --- ● (1) As a condition of the First Term Loan Due 2034 and Second Term Loan Due 2034, Jonathan Carroll was required to personally guarantee repayment borrowed funds and accrued interest. (2) Pursuant to a 2015 subordination agreement, the holder of the Notre Dame Debt agreed to subordinate their right to payments, as well as any security interest and liens on the Nixon facility’s business assets, in favor of Veritex as holder of the First Term Loan Due 2034. The USDA, acting through its agencies, administers a federal rural credit program that makes direct loans and guarantees portions of loans made and serviced by USDA-qualified lenders for various purposes. Each USDA guarantee is a full faith and credit obligation of the U.S. with the USDA guaranteeing up to 100% of the principal amount. The lender for a USDA-guaranteed loan, in our case Veritex, is required by regulations to retain both the guaranteed and unguaranteed portions of the loan, to service the entire underlying loan, and to remain mortgage and/or secured party of record. Both the guaranteed and unguaranteed portions of the loan are to be secured by the same collateral with equal lien priority. The USDA-guaranteed portion of a loan cannot be paid later than, or in any way be subordinated to, the related unguaranteed portion. See “Note (3)” and “Note (16)” to our consolidated financial statements for additional disclosures related to Affiliate agreements and transactions, including long-term debt guarantees. Representations, Warranties, Covenants, and Defaults The First Term Loan Due 2034 and Second Term Loan Due 2034 contain representations and warranties, affirmative and negative covenants, and events of default that we consider usual and customary for bank facilities of this type. Specifically, the First Term Loan Due 2034 and Second Term Loan Due 2034 contain debt service coverage ratio, current ratio, and debt to net worth ratio financial covenants. The First Term Loan Due 2034 also requires that a $1.0 million payment reserve account be maintained. There are no financial maintenance covenants associated with the Notre Dame Debt. Proceeds available for use under the First Term Loan Due 2034 and Second Term Loan Due 2034 were placed in a disbursement account whereby Veritex makes payments for construction related expenses. Amounts held in the disbursement account are reflected as restricted cash (current portion) and restricted cash, noncurrent in our consolidated balance sheets. As described elsewhere in this report, we are in default under our secured loan agreements. Defaults include events of default and financial covenant violations. Defaults under our secured loan agreements permit Veritex to declare the amounts owed under these loan agreements immediately due and payable, exercise its rights with respect to collateral securing obligors’ obligations under these loan agreements, and/or exercise any other rights and remedies available. The debt associated with these loans was classified within the current portion of long-term debt on our consolidated balance sheets at March 31, 2020 and December 31, 2019. Events of Default In April 2019, LE, Jonathan Carroll, Blue Dolphin, LRM, and LE received notification from Veritex that the bank agreed to waive certain covenant violations and forbear from enforcing its remedies under our secured loan agreements subject to: (i) the agreement and concurrence of the USDA and (ii) the replenishment of the payment reserve account on or before August 31, 2019. Following the GEL Settlement, the associated mutual releases became effective and GEL filed a stipulation of dismissal of claims against LE. As of the date of this report, LE had not replenished the payment reserve account and obligors were still in default under our other secured loan agreements with Veritex. Financial Covenant Violations We can provide no assurance that: (i) our assets or cash flow will be sufficient to fully repay borrowings under our secured loan agreements with Vertitex, either upon maturity or if accelerated, (ii) LE and LRM will be able to refinance or restructure the payments of the debt, and/or (iii) Veritex, as first lien holder, will provide future default waivers. Defaults under our secured loan agreements and any exercise by Veritex of its rights and remedies related to such defaults may have a material adverse effect on the trading prices of our common stock and on the value of an investment in our common stock, and holders of our common stock could lose their investment in our common stock in its entirety. See “Note (1)” and “Note (11)” to our consolidated financial statements for additional information regarding defaults under our secured loan agreements and their potential effects on our business, financial condition, and results of operations. Outstanding Principal, Debt Issue Costs, and Accrued Interest Third-party long-term debt (outstanding principal and accrued interest), as of the dates indicated was as follows: March 31, December 31, 2020 2019 (in thousands) USDA-Guaranteed Loans First Term Loan Due 2034 (in default) $ 21,586 $ 21,776 Second Term Loan Due 2034 (in default) 8,953 9,031 Notre Dame Debt (in default) 8,816 8,617 39,355 39,424 Less: Current portion of long-term debt, net (33,580 ) (33,836 ) Less: Unamortized debt issue costs (1,845 ) (1,877 ) Less: Accrued interest payable (in default) (3,930 ) (3,711 ) $ - $ - Unamortized debt issue costs associated with USDA-guaranteed loans as of the dates indicated consisted of the following: March 31, December 31, 2020 2019 (in thousands) USDA-Guaranteed Loans First Term Loan Due 2034 (in default) $ 1,674 $ 1,674 Second Term Loan Due 2034 (in default) 768 768 Less: Accumulated amortization (597 ) (565 ) $ 1,845 $ 1,877 Amortization expense was $0.03 million for both three-month periods ended March 31, 2020 and 2019. Accrued interest related to third-party long-term debt, reflected as accrued interest payable in our consolidated balance sheets, as of the dates indicated consisted of the following: March 31, December 31, 2020 2019 (in thousands) Notre Dame Debt (in default) $ 3,838 $ 3,639 USDA-Guaranteed Loans First Term Loan Due 2034 (in default) 41 25 Second Term Loan Due 2034 (in default) 51 47 3,930 3,711 Less: Accrued interest payable (in default) (3,930 ) (3,711 ) Long-term Interest Payable, Net of Current Portion $ - $ - As a result of new ASU guidance related to leases, capital leases are now reported in “Note (13)” as finance leases. See “Note (1),” “Note (3),” and “Note (11”) to our consolidated financial statements for information related to third-party debt, related-party debt and debt obligations associated with Pilot.

11. Line of Credit Payable

11. Line of Credit Payable	3 Months Ended
	Mar. 31, 2020
Line of Credit Facility [Abstract]
Line of Credit Payable	Line of Credit Agreement Line of Credit Description Principal Amount (in millions) Maturity Date Monthly Principal and Interest Payment Interest Rate Loan Purpose Amended Pilot Line of Credit ( in default $ 13.0 May 2020 ---- 14.00 % GEL Settlement Payment, NPS purchase of crude oil from Pilot, and working capital Under the Amended Pilot Line of Credit, NPS was required to make monthly interest only payments to Pilot in each of September and October 2019 in the amount of $0.1 million. The required payments were made. On May 4, 2020, Pilot sent NPS, as borrower, and LRM, LEH, LE and Blue Dolphin, each a guarantor and collectively guarantors, a notice demanding the immediate payment of the unpaid principal amount and all interest accrued and unpaid, and all other amounts owing or payable under the Amended Pilot Line of Credit. Pursuant to the Amended Pilot Line of Credit, commencing on May 4, 2020, all amounts outstanding under the Amended Pilot Line of Credit began to accrue interest at a rate of fourteen percent (14%) per annum. Failure of the borrower or any guarantor of paying the past due obligations constituted an event of default. Pilot expressly retained and reserved all its rights and remedies available to it at any time, including without limitation, the right to exercise all rights and remedies available to Pilot under the Amended Pilot Line of Credit or applicable law or equity. Any exercise by Pilot of its rights and remedies under the Amended Pilot Line of Credit would have a material adverse effect on our business operations, including crude oil and condensate procurement and our customer relationships; financial condition; and results of operations. The borrower and guarantors are attempting to reach a negotiated settlement with Pilot, and Pilot hopes to continue to work with the borrower to settle its obligations under the Amended Pilot Line of Credit. Additionally, the borrower and guarantors are working with a lender on the possible refinance of amounts owing and payable under the Amended Pilot Line of Credit. Our ability to repay, refinance, replace or otherwise extend this credit facility is dependent on, among other things, business conditions, our financial performance and the general condition of the financial markets. Given the current financial markets, we could be forced to undertake alternate financings, including a sale of additional common stock, negotiate for an extension of the maturity, or sell assets and delay capital expenditures in order to generate proceeds that could be used to repay such indebtedness. We can provide no assurance that we will be able to consummate any such transaction on terms that are commercially reasonable, on terms acceptable to us or at all. In the event we were unsuccessful in such endeavors, we may be unable to pay the amounts outstanding under the Amended Pilot Line of Credit, which may require us to seek protection under bankruptcy laws. In such a case, the trading price of our common stock and the value of an investment in our common stock could significantly decrease, which could lead to holders of our common stock losing their investment in our common stock in its entirety. Guarantees and Security Loan Description Guarantees Security Amended Pilot Line of Credit (in default) ● ● ● ● ● Representations, Warranties, and Covenants The Amended Pilot Line of Credit contains customary affirmative and negative covenants and events of default. In a April 30, 2019, Agreement Regarding Attornment of Tank Leases between Veritex, LE, NPS, and Pilot, Veritex in its capacity as a secured lender of LE and LRM, agreed to permit the continued performance of obligations under a certain tank lease agreement if it were to foreclose on LE property that NPS was leasing from LE so long as certain conditions were met. The effectiveness of the Agreement Regarding Attornment of Tank Leases was subject to certain conditions, including the agreement and concurrence of the USDA. Line of credit payable, which represents outstanding principal and accrued interest, as of the dates indicated was as follows: March 31, December 31, 2020 2019 (in thousands) Amended Pilot Line of Credit (in default) $ 11,378 $ 11,786 Less: Unamortized debt issue costs (32 ) (219 ) Less: Interest payable, short-term (103 ) (103 ) $ 11,243 $ 11,464 31 BLUE DOLPHIN ENERGY COMPANY FORM 10-Q 3/31/20 Notes to Consolidated Financial Statements

12. ARO's

12. ARO's	3 Months Ended
	Mar. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Refinery and Facilities Management has concluded that there is no legal or contractual obligation to dismantle or remove the refinery and facilities assets. Management believes that the refinery and facilities 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. Pipelines and Facilities and Oil and Gas Properties We have AROs associated with the dismantlement and abandonment in place of our pipelines and facilities assets, as well as the plugging and abandonment of our oil and gas properties. We recorded a discounted liability for the fair value of an ARO with a corresponding increase to the carrying value of the related long-lived asset at the time the asset was installed or placed in service, and we depreciated the amount added to property and equipment and recognized accretion expense relating to the discounted liability over the remaining life of the asset. At March 31, 2020 and December 31, 2019, the liability was fully accreted. See “Note (16)” to our consolidated financial statements for disclosures related to decommissioning of our offshore pipelines and platform assets and related risks. ARO liability as of the dates indicated was as follows: March 31, December 31, 2020 2019 (in thousands) AROs, at the beginning of the period $ 2,565 $ 2,565 Liabilities settled (15 ) — 2,550 2,565 Less: AROs, current portion (2,550 ) (2,565 ) Long-term AROs, at the end of the period $ — $ —

13. Lease Obligations

13. Lease Obligations	3 Months Ended
	Mar. 31, 2020
Leases, Operating [Abstract]
Leases	Lease Obligations Operating Lease Office Lease Finance Lease Crane Backhoe Rent-to-Own Agreement . The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheet: March 31, December 31, Balance Sheet Location 2020 2019 (in thousands) Assets Operating lease ROU assets Operating lease ROU assets $ 787 $ 787 Less: Accumulated amortization on operating lease assets (174 ) (138 ) 613 649 Finance lease assets Property and equipment, net 180 180 Less: Accumulated amortization on finance lease assets (40 ) (34 ) 140 146 Total lease assets 753 795 Liabilities Current Operating lease Current portion of lease liabilities 180 175 Finance leases Current portion of lease liabilities 70 76 250 251 Noncurrent Operating lease Long-term lease liabilities, net of current 518 564 Total lease liabilities $ 768 $ 815 Weighted average remaining lease term in years Operating lease 3.42 Finance leases 0.17 Weighted average discount rate Operating lease 8.25 % Finance leases 8.25 % Notes to Consolidated Financial Statements The following table presents information related to lease costs for operating and finance leases: Three Months Ended March 31, 2020 2019 Operating lease costs $ 51 $ 51 Finance lease costs: Depreciation of leased assets 6 4 Interest on lease liabilities 2 1 Total lease cost $ 59 $ 56 The table below presents supplemental cash flow information related to leases as follows: Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 88 $ 57 Operating cash flows for finance leases $ 2 $ 1 Financing cash flows for finance leases $ 6 $ 9 As of March 31, 2020, maturities of lease liabilities for the periods indicated were as follows: March 31, Operating Lease Financing Leases Total (in thousands) 2020 $ 180 $ 70 $ 250 2021 199 - 199 2022 220 - 220 2023 99 - 99 $ 698 $ 70 $ 768 Future minimum annual lease commitments that are non-cancelable: Operating March 31, Lease (in thousands) 2020 $ 231 2021 234 2022 238 2023 101 $ 804

14. Income Taxes

14. Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Tax Provision The provision for income tax benefit (expense) for the periods indicated was as follows: Year Ended March 31, 2020 2019 Current Federal $ (15 ) $ - State - - Deferred Federal 698 (157 ) State - - Change in valuation allowance (698 ) (157 ) Total provision for income taxes $ (15 ) $ - The state of Texas, TMT is treated as an income tax for financial reporting purposes. Deferred income taxes as of the dates indicated consisted of the following: March 31, December 31, 2020 2019 (in thousands) Deferred tax assets: NOL and capital loss carryforwards $ 13,057 $ 12,463 Business interest expense 2,295 1,923 Start-up costs (crude oil and condensate processing facility) 573 594 ARO liability/deferred revenue 535 539 AMT credit - 50 Other 5 11 Total deferred tax assets 16,465 15,580 Deferred tax liabilities: Basis differences in property and equipment (6,422 ) (6,183 ) Total deferred tax liabilities (6,422 ) (6,183 ) 10,043 9,397 Valuation allowance (10,043 ) (9,347 ) Deferred tax assets, net $ - $ 50 Deferred Income Taxes Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis, as well as from NOL carryforwards. We state those balances at the enacted tax rates we expect will be in effect when taxes are paid. NOL carryforwards and deferred tax assets represent amounts available to reduce future taxable income. NOL Carryforwards NOL Carryforwards Net Operating Loss Carryforward Pre-Ownership Change Post-Ownership Change Total (in thousands) Balance at December 31, 2018 9,614 37,335 46,949 Net operating losses - 5,723 5,723 Balance at December 31, 2019 $ 9,614 $ 43,058 $ 52,672 Net operating losses - 2,829 2,829 Balance at March 31, 2020 $ 9,614 $ 45,887 $ 55,501 Valuation Allowance

15. Earnings Per Share

15. Earnings Per Share	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 (in thousands) 2019 (in thousands) Net income (loss) $ (3,340 ) $ 747 Basic and diluted income (loss) per share $ (0.27 ) $ 0.07 Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock dilutive shares of common stock 12,327,365 10,975,514 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 months ended March 31, 2020 and 2019 was the same as basic EPS as there were no stock options or other dilutive instruments outstanding.

16. Commitments and Contingenci

16. Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Amended and Restated Operating Agreement See “Note (3)” to our consolidated financial statements for additional disclosures related to operation and management of all Blue Dolphin properties by an Affiliate under the Amended and Restated Operating Agreement. Defaults Under Secured Loan Agreements with Third Parties See “Note (1),” “Note (3),” “Note (10),” and “Note (11)” to our consolidated financial statements for additional disclosures related to defaults under our secured and unsecured debt agreements. Financing Agreements and Guarantees Indebtedness Guarantees Health, Safety and Environmental Matters Our operations are subject to extensive federal, state, and local environmental, health, and safety regulations governing, among other things, the generation, storage, handling, use and transportation of petroleum products and hazardous substances; the emission and discharge of materials into the environment; waste management; characteristics and composition of jet fuel and other products; and the monitoring, reporting and control of air emissions. Our operations also require numerous permits and authorizations under various environmental, health, and safety laws and regulations. Failure to obtain and comply with these permits or environmental, health, or safety laws generally could result in fines, penalties or other sanctions, or a revocation of our permits. Legal Matters Resolved - GEL Settlement (in millions) Initial payment (September 2017) $ 3.7 GEL Interim Payments (July 2018 to April 2019) 8.0 Settlement Payment (Multiple Payments May 7 to 10, 2019) 10.0 Deferred Interim Installment Payments (June 2019 to August 2019) 0.5 $ 22.2 The GEL Settlement Effective Date occurred on August 23, 2019. As a result of the GEL Settlement: (i) the mutual releases became effective, (ii) GEL filed a stipulation of dismissal of claims against LE, and (iii) Blue Dolphin recognized a $9.1 million gain on the extinguishment of debt on its consolidated statements of operations in the third quarter of 2019. Until the GEL Settlement occurred, the debt was reflected on Blue Dolphin’s consolidated balance sheets as accrued arbitration award payable. At both March 31, 2020 and December 31, 2019, the accrued arbitration award payable was $0. BOEM Additional Financial Assurance (Supplemental Pipeline Bonds) BDPL has historically maintained $0.9 million in financial assurance to BOEM for the decommissioning of its trunk pipeline offshore in federal waters. Following an agency restructuring of the financial assurance program, in March 2018 BOEM ordered BDPL to provide additional financial assurance totaling approximately $4.8 million for five (5) existing pipeline rights-of-way within sixty (60) calendar days. In June 2018, BOEM issued BDPL INCs for each right-of-way that failed to comply. BDPL appealed the INCs to the IBLA, and the IBLA granted multiple extension requests that extended BDPL’s deadline for filing a statement of reasons for the appeal with the IBLA. On August 9, 2019, BDPL timely filed its statement of reasons for the appeal with the IBLA. Considering BDPL’s August 2019 meeting with BOEM and BSEE, BDPL requested a stay in the IBLA matter until August 2020. The Office of the Solicitor of the U.S. Department of the Interior was agreeable to a 10-day extension while it conferred with BOEM on BDPL’s stay request. In late October 2019, BDPL filed a motion to request the 10-day extension, which motion was subsequently granted by the IBLA. The solicitor’s office consented to an additional 14-day extension for BDPL to file its reply, and BDPL filed a motion to request the 14-day extension in November 2019. The solicitor’s office indicated that BOEM would not consent to further extensions. However, the solicitor’s office signaled that BDPL’s adherence to the milestones identified in the August 15, 2019 meeting may help in future discussions with BOEM related to the INCs. BDPL reasonably expects that successful completion of its decommissioning obligations (discussed within this “Note (16)” under ‘BSEE Offshore Pipelines and Platform Decommissioning’) prior to BSEE’s August 2020 deadline will significantly reduce or eliminate the amount of financial assurance required by BOEM, which may serve to partially or fully resolve the INCs. BDPL’s pending appeal of the BOEM INCs does not relieve BDPL of its obligations to provide additional financial assurance or of BOEM’s authority to impose financial penalties. There can be no assurance that we will be able to meet additional financial assurance (supplemental pipeline bond) requirements. If BDPL is required by BOEM to provide significant additional financial assurance (supplemental pipeline bonds) or is assessed significant penalties under the INCs, we will experience a significant and material adverse effect on our operations, liquidity, and financial condition. We are currently unable to predict the outcome of the BOEM INCs. Accordingly, we have not recorded a liability on our consolidated balance sheet as of March 31, 2020. At March 31, 2020 and December 31, 2019, BDPL maintained approximately $0.9 million in credit and cash-backed pipeline rights-of-way bonds issued to BOEM. Other Legal Matters Nixon Facility Expansion We BSEE Offshore Pipelines and Platform Decommissioning BDPL has pipelines and platform assets that are subject to BSEE’s idle iron regulations. Idle iron regulations mandate lessees and rights-of-way holders to permanently abandon and/or remove platforms and other structures when they are no longer useful for operations. Until such structures are abandoned or removed, lessees and rights-of-way holders are required to inspect and maintain the assets in accordance with regulatory requirements. In December 2018, BSEE issued an INC to BDPL for failure to flush and fill Pipeline Segment No. 13101. Management met with BOEM and BSEE on August 15, 2019 to address BDPL’s plans with respect to decommissioning its offshore pipelines and platform assets. BSEE proposed that BDPL re-submit permit applications for pipeline and platform decommissioning, along with a safe boarding plan for the platform, within six (6) months (no later than February 15, 2020), and develop and implement a safe boarding plan for submission with such permit applications. Further, BSEE proposed that BDPL complete approved, permitted work within 12 months (no later than August 15, 2020). BDPL timely submitted permit applications for decommissioning of the subject offshore pipelines and platform assets to BSEE on February 11, 2020 and the USACOE on March 25, 2020. In April 2020, BSEE issued an INC to BDPL for failure to perform the required structural surveys for the GA-288C Platform. BDPL requested an extension to the INC related to the structural platform surveys, and BSEE approved BDPL’s extension request. Completion of the platform surveys are required by May 30, 2020 with associated reports due to BSEE by June 8, 2020. BDPL expects to complete approved, permitted decommissioning work by the BSEE August 2020 deadline. BSEE’s deadline to complete decommissioning of BDPL’s offshore pipelines and platform assets, as well as to complete the structural platform surveys, does not relieve BDPL of its obligations to remedy the BSEE INCs or of BSEE’s authority to impose financial penalties. There can be no assurance that we will be able to meet BSEE’s time tables. If BDPL fails to complete decommissioning of the offshore pipelines and platform assets and/or structural surveys of the platform are not completed by the allowable time frames, BDPL will be subject to vigorous regulatory oversight and enforcement, including but not limited to failure to correct an INC, civil penalties, and revocation of BDPL’s operator designation, which may have a material adverse effect on our earnings, cash flows and liquidity. We are currently unable to predict the outcome of the BSEE INCs. Accordingly, we have not recorded a liability on our consolidated balance sheet as of March 31, 2020. As of March 31, 2020, we maintained $2.6 million in AROs related to abandonment of these assets.

17. Subsequent Event

17. Subsequent Event	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Event	Sales of Unregistered Securities Set forth below is information regarding the sale or issuance of shares of Common Stock by us that were not registered under the Securities Act of 1933 and subsequent to the three months ended March 31, 2020: On April 30, 2020, we issued an aggregate of 231,065 restricted shares of Common Stock to Jonathan Carroll, which represents payment of the common stock component of guaranty fees for the period November 2019 through March 2020. The average cost basis was $0.69, the low was $0.52, and the high was $1.07. For the foreseeable future, management does not intend on paying Mr. Carroll the cash portion of guaranty fees due to Blue Dolphin’s working capital deficits. The cash portion will continue to be accrued and added to the principal balance of the March Carroll Note. See “Note (3)” to our consolidated financial statements for additional disclosures related to Affiliates and working capital deficits, as well as for information related to the guaranty fee agreements. On April 30, 2020, we also issued an aggregate of 135,084 restricted shares of Common Stock to certain of our non-employee, independent directors, which represents payment for services rendered to the Board for the three month periods ended September 30, 2018, March 31, 2019, September 30, 2019, and March 31, 2020. The average cost basis was $0.97, the low was $0.57, and the high was $1.18. The sale and issuance of the securities were exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act. Amended and Restated Operating Agreement The Amended and Restated Operating Agreement was set to expire on April 1, 2020. However, the Amended and Restated Operating Agreement was renewed and approved by the Board on May 14, 2020 with an effective date of April 1, 2020. Key terms of the Amended and Restated Operating Agreement follow: Term Compensation The foregoing summarizes the material terms of the Amended and Restated Operating Agreement. This summary does not purport to be complete and is qualified in its entirety by reference to the full text of the agreement, which is filed as Exhibit 10.1 to this report. Together, Jonathan Carroll and LEH own approximately 82% of Blue Dolphin’s Common Stock. See “Note (3)” of our consolidated financial statements and “Part II, Item 5. Other Information” for additional disclosures related to Affiliate transactions, including the Amended and Restated Operating Agreement.

2. Basis of Presentation (Polic

2. Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates	The outbreak of COVID-19 and its development into a pandemic in March 2020 and certain developments in the global oil markets have impacted and continue to impact our business. Our business was designated as an essential business and, as such, has remained open. We have instituted various initiatives throughout the company as part of our business continuity programs, and we are working to mitigate risk when disruptions occur. Many uncertainties remain with respect to COVID-19, including its resulting economic effects, and we are unable to predict the ultimate economic impacts from COVID-19 on our business and how quickly national economies can recover once the pandemic subsidies. However, the adverse impacts of the economic effects from COVID-19 and uncertainty in the global oil markets on our business have been and will likely continue to be significant. The nature of our business requires that we make estimates and assumptions in accordance with U.S. GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. The COVID-19 outbreak has impacted these estimates and assumptions and will continue to do so. Our estimates at the end of the first quarter assumed no material impact from the disruptions caused by COVID-19. We assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to us and the unknown future impacts of COVID-19 as of March 31, 2020 and through the filing date of this report. The accounting matters assessed included, but were not limited to, our allowance for doubtful accounts, inventory and related reserves and the carrying value of long-lived assets. While there was not a material impact to our consolidated financial statements as of and for the three months ended March 31, 2020, our future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to our consolidated financial statements in future reporting periods.
Cash and Cash Equivalents	Cash and cash equivalents represent liquid investments with an original maturity of three months or less. Cash balances are maintained in depository and overnight investment accounts with financial institutions that, at times, may exceed insured deposit limits. We monitor the financial condition of the financial institutions and have experienced no losses associated with these accounts.
Restricted Cash	Restricted cash, current portion primarily represents a payment reserve account held by Veritex as security for payments under a loan agreement. Restricted cash, noncurrent represents funds held in the Veritex disbursement account for payment of construction related expenses to complete building new petroleum storage tanks.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts receivable are presented net of any necessary allowance(s) for doubtful accounts. Receivables are recorded at the invoiced amount and generally do not bear interest. An allowance for doubtful accounts is established, when necessary, based on prior experience and other factors which, in management's judgment, deserve consideration in estimating bad debts. Management assesses collectability of the customer’s account based on current aging status, collection history, and financial condition. Based on a review of these factors, management establishes or adjusts the allowance for specific customers and the entire accounts receivable portfolio. We had an allowance for doubtful accounts of $0.1 million at both March 31, 2020 and December 31, 2019.
Inventory	Inventory primarily consists of refined products, crude oil and condensate, and chemicals. Inventory is valued at lower of cost or net realizable value with cost determined by the average cost method, and net realizable value determined based on estimated selling prices less associated delivery costs. If the net realizable value of our refined products inventory declines to an amount less than our average cost, we record a write-down of inventory and an associated adjustment to cost of goods sold. See “Note (7)” to our consolidated financial statements for additional disclosures related to inventory.
Property and Equipment	Refinery and Facilities Pipelines and Facilities Oil and Gas Properties CIP
Leases	We evaluate if a contract is or contains a lease at inception of the contract. If we determine that a contract is or contains a lease, we recognize ROU asset and lease liability at the commencement date of the lease based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit rate when readily determinable. If not determinable, we use the incremental borrowing rate to discount lease payments to present value. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. We recognize ROU assets and lease liabilities for leasing arrangements with terms greater than one year. We account for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. We allocate the consideration in these contracts based on pricing information contained in the lease. Expense for an operating lease is recognized as a single lease cost on a straight-line basis over the lease term and is reflected in the appropriate income statement line item based on the leased asset’s function. Amortization expense of a finance lease ROU asset is recognized on a straight-line basis over the lesser of the useful life of the leased asset or the lease term. However, if the lease transfers ownership of the finance lease ROU asset to us at the end of the lease term, the finance lease ROU asset is amortized over the useful life of the leased asset. Amortization expense is reflected in ‘depreciation and amortization expense.’ Interest expense is incurred based on the carrying value of the lease liability and is reflected in ‘interest and other expense.’
Revenue Recognition	Refinery Operations Revenue We consider a variety of facts and circumstances in assessing the point of control transfer, including but not limited to: whether the purchaser can direct the use of the refined product, the transfer of significant risks and rewards, our rights to payment, and transfer of legal title. In each case, the term between the sale and when payment is due is not significant. Transportation, shipping, and handling costs incurred are included in cost of goods sold. Excise and other taxes that are collected from customers and remitted to governmental authorities are not included in revenue. Tolling and Terminaling Revenue We typically satisfy performance obligations for tolling and terminaling operations with the passage of time. We determine the transaction price at agreement inception based on the guaranteed minimum amount of revenue over the term of the agreement. We allocate the transaction price to the single performance obligation that exists under the agreement, and we recognize revenue in the amount for which we have a right to invoice. Generally, payment terms do not exceed 30 days. Revenue from tank storage customers may, from time to time, include fees for ancillary services, such as in-tank and tank-to-tank blending. These services are considered optional to the customer, and the price we charge for such services is not included in the fixed cost under the customer’s tank storage agreement. Ancillary services are considered a separate performance obligation by us under the tank storage agreement. The performance obligation is satisfied when the requested service has been performed in the applicable period. Deferred Revenue
Income Taxes	Deferred income taxes are determined based on the differences between the financial reporting and tax basis of assets and liabilities, as well as operating losses and tax credit carryforwards using currently enacted tax rates and laws in effect for the year in which the differences are expected to reverse. We record a valuation allowance against deferred income tax assets if it is more likely than not that those assets will not be realized. The provision for income taxes comprises our current tax liability and change in deferred income tax assets and liabilities. Significant judgment is required in evaluating uncertain tax positions and determining its provision for income taxes. As of each reporting date, we consider new evidence, both positive and negative, to determine the realizability of deferred tax assets. We consider 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 NOL carryforwards. When we determine 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 cumulative losses incurred over the three-year period ended March 31, 2020. Such objective evidence limits the ability to consider other subjective evidence, such as projections for future growth. Based on this evaluation, we recorded a valuation allowance against the deferred tax assets for which realization was not deemed more likely than not as of March 31, 2020 and December 31, 2019. We expect to recover deferred tax assets related to AMT credit carryforwards. In addition, we have NOL carryforwards that remain available for future use. The benefit of an uncertain tax position is recognized in the financial statements if it meets a minimum recognition threshold. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more-likely-than-not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement. At March 31, 2020 and December 31, 2019, there were no uncertain tax positions for which a reserve or liability was necessary. See “Note (14)” to our consolidated financial statements for more information related to income taxes.
Impairment or Disposal of Long-Lived Assets	We periodically evaluate our long-lived assets for impairment. Additionally, we evaluate our long-lived assets when events or circumstances indicate that the carrying value of these assets may not be recoverable. The carrying value is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or group of assets. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment loss equal to the amount by which the carrying value exceeds the fair value of the asset or group of assets is recognized. Significant management judgment is required in the forecasting of future operating results that are used in the preparation of projected cash flows and, should different conditions prevail or judgments be made, material impairment charges could be necessary. The GEL Final Arbitration Award represented a significant adverse change that could have affected the value of certain of our long-lived assets, and management performed potential impairment testing of our refinery and facilities assets in 2019 and 2018. Upon completion of that testing, no impairment was deemed necessary and we did not record any impairment of our refinery and facilities assets for the periods presented.
Asset Retirement Obligations	We record a liability for the discounted fair value of an ARO in the period incurred, and we also capitalize the corresponding cost by increasing the carrying amount of the related long-lived asset. The liability is accreted towards its future value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. We have concluded that there is no legal or contractual obligation to dismantle or remove the refinery and facilities assets. Further, we believe that these assets have indeterminate lives 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. Cost estimates for each of our assets were developed based upon regulatory requirements, structural makeup, water depth, reservoir characteristics, reservoir depth, equipment demand, current retirement procedures, and construction and engineering consultations. 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 (12)” to our consolidated financial statements for additional information related to AROs.
Computation of Earnings Per Share	We present basic and diluted EPS. Basic EPS excludes dilution and is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS is computed by dividing net income available to common stockholders by the diluted weighted average number of common shares outstanding, which includes the potential dilution that could occur if securities or other contracts to issue shares of common stock were converted to common stock that then shared in the earnings of the entity. The number of shares related to restricted stock included in diluted EPS is based on the “Treasury Stock Method.” We do not have issued options, warrants, or similar instruments. See “Note (15)” to our consolidated financial statements for additional information related to EPS.
New Pronouncements	The FASB issues an ASU to communicate changes to the FASB ASC, including changes to non-authoritative SEC content. Recently adopted ASUs include: Codification Updates to SEC Sections Consolidation New Pronouncements Issued, Not Yet Effective . Income Taxes . 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.

3. Related Party Transactions (

3. Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Affiliate Agreements/Transactions	Agreement/Transaction Parties Type Effective Date Interest Rate Key Terms Amended and Restated Guaranty Fee Agreement(1) Jonathan Carroll - LE Debt 04/01/2017 2.00% Tied to payoff of LE $25 million Veritex loan; payments 50% cash, 50% Common Stock Amended and Restated Guaranty Fee Agreement(1) Jonathan Carroll - LRM Debt 04/01/2017 2.00% Tied to payoff of LRM $10 million Veritex loan; payments 50% cash, 50% Common Stock Refinery Equipment Purchase LTRI - LE Operations 07/01/2019 --- LE purchase of two (2) refurbished heat exchangers for $0.08 million each Dock Tolling Agreement LMT - LE Operations 05/24/2016 --- 5-year term cancellable by either party any time; LE paid flat reservation fee for tolling volumes up to 84,000 gallons per day; excess tolling volumes subject to increased per gallon rate; terminated 07/01/2019 Jet Fuel Sales Agreement LEH - LE Operations 04/01/2020 --- 1-year term expiring earliest to occur of 03/31/2021 plus 30-day carryover or delivery of maximum jet fuel quantity; LEH bids on jet fuel contracts under preferential pricing terms due to a HUBZone certification March Carroll Note (in default) Jonathan Carroll – Blue Dolphin Debt 03/31/2017 8.00% Blue Dolphin working capital; matured 01/01/2019; interest still accruing March Ingleside Note (in default) Ingleside – Blue Dolphin Debt 03/31/2017 8.00% Blue Dolphin working capital; reflects amounts owed to Ingleside under previous Amended and Restated Tank Lease Agreement; matured 01/01/2019; interest still accruing June LEH Note (in default) LEH – Blue Dolphin Debt 03/312017 8.00% Blue Dolphin working capital; reflects amounts owed to LEH under the Amended and Restated Operating Agreement; reflects amounts owed to Jonathan Carroll under guaranty fee agreements; matured 01/01/2019; interest still accruing Office Sub-Lease Agreement LEH - BDSC Operations 01/01/2018 --- 68-month term expiring 08/31/2023; office lease Houston, Texas; includes 6-month rent abatement period; rent approximately $0.02 million per month Amended and Restated Operating Agreement LEH – Blue Dolphin, LE, LRM, NPS, BDPL, BDPC and BDSC Debt 04/01/2020 --- 3-year term; expires 04/01/2023 or notice by either party at any time of material breach or 90 days Board notice; LEH receives management fee of 5% of all consolidated operating costs, excluding crude costs, depreciation, amortization and interest of Blue Dolphin, LE, LRM, NPS, BDPL, BDPC and BDSC Loan and Security Agreement (in default) LEH - BDPL Debt 08/15/2016 16.00% 2-year term; $4.0 million principal amount; $0.5 million annual payment; proceeds used for working capital; no financial maintenance covenants; secured by certain BDPL property
Accounts payable, related party	March 31, December 31, 2020 2019 (in thousands) LEH June LEH Note (in default) $ 1,375 $ - BDPL Loan Agreement 6,334 6,174 LEH Total 7,709 6,174 Ingleside March Ingleside Note (in default) 1,024 1,004 Jonathan Carroll March Carroll Note (in default) 1,173 997 9,906 8,175 Less: Long-term debt, related party, current portion, in default (7,572 ) (6,001 ) Less: Accrued interest payable, related party (in default) (2,334 ) (2,174 ) $ - $ -
Refinery operating expenses	Three Months Ended March 31, 2020 2019 (in thousands, except percent amounts) Refinery operations LEH $ 17,715 28.6 % $ 20,809 30.2 % Third-Parties 43,182 69.6 % 47,049 68.3 % Tolling and terminaling Third-Parties 1,103 1.8 % 1,069 1.5 % $ 62,000 100.0 % $ 68,927 100.0 %
Accrued interest expenses	Three Months Ended March 31, 2020 2019 (in thousands) Jonathan Carroll Guaranty Fee Agreements First Term Loan Due 2034 $ 108 $ 112 Second Term Loan Due 2034 45 46 March Carroll Note (in default) 23 25 LEH BDPL Loan Agreement (in default) 160 160 June LEH Note (in default) 25 6 Ingleside March Ingleside Note (in default) 20 26 $ 381 $ 375

4. Revenue and Segment Inform_2

4. Revenue and Segment Information (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Business segment reporting	Three Months Ended March 31, 2020 2019 (in thousands) Net revenue (excluding intercompany fees and sales) Refinery operations $ 60,897 $ 67,858 Tolling and terminaling 1,103 1,069 Total net revenue 62,000 68,927 Intercompany fees and sales Refinery operations (617 ) (606 ) Tolling and terminaling 617 606 Total intercompany fees - - Operation costs and expenses(1) Refinery operations (61,833 ) (65,152 ) Tolling and terminaling (255 ) (364 ) Corporate and other (59 ) (57 ) Total operation costs and expenses (62,147 ) (65,573 ) Segment contribution margin (deficit) Refinery operations (1,553 ) 2,100 Tolling and terminaling 1,465 1,311 Corporate and other (59 ) (57 ) Total segment contribution margin (deficit) (147 ) 3,354 General and administrative expenses(2) Refinery operations (304 ) (332 ) Tolling and terminaling (68 ) (43 ) Corporate and other (419 ) (445 ) Total general and administrative expenses (791 ) (820 ) Depreciation and amortization Refinery operations (288 ) (465 ) Tolling and terminaling (294 ) (99 ) Corporate and other (51 ) (26 ) Total depreciation and amortization (633 ) (590 ) Interest and other non-operating expenses, net Refinery operations (741 ) (783 ) Tolling and terminaling (770 ) (196 ) Corporate and other (243 ) (218 ) Total interest and other non-operating expenses, net (1,754 ) (1,197 ) Income (loss) before income taxes Refinery operations (2,886 ) 520 Tolling and terminaling 333 973 Corporate and other (772 ) (746 ) Total income (loss) before income taxes (3,325 ) 747 Income tax expense (15 ) - Net income (loss) $ (3,340 ) $ 747 (1) Operation costs include cost of goods sold. Also, operation costs within: (a) tolling and terminaling includes terminal operating expenses and an allocation of other costs (e.g. insurance and maintenance) and (b) corporate and other includes expenses related to BDSC, BDPC and BDPL. (2) General and administrative expenses within refinery operations include the LEH operating fee. March 31, 2020 2019 (in thousands) Capital expenditures Refinery operations $ 6 $ 40 Tolling and terminaling 192 83 Corporate and other - - Total capital expenditures 198 123 Identifiable assets Refinery operations 48,418 50,340 Tolling and terminaling 18,407 18,880 Corporate and other 1,584 2,429 Total identifiable assets $ 68,409 $ 71,649

5. Concentration of Risk (Table

5. Concentration of Risk (Tables)	3 Months Ended
	Mar. 31, 2020
Risks and Uncertainties [Abstract]
Significant customers	Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable March 31 Three Months March 31, 2020 4 94 $0.6 million Three Months March 31, 2019 4 96 $0.8 million
Percentages of all refined petroleum products sales to total sales	Year Ended March 31, 2020 2019 (in thousands, except percent amounts) LPG mix $ - 0.0 % $ 8 0 % Naphtha 11,515 18.9 % 13,795 20.3 % Jet fuel 17,715 29.1 % 20,809 30.7 % HOBM 15,191 24.9 % 16,160 23.8 % AGO 16,476 27.1 % 17,086 25.2 % $ 60,897 100.0 % $ 67,858 100.0 %

6. Prepaid Expenses and Other_2

6. Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Mar. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid balances	March 31, December 31, 2020 2019 (in thousands) Prepaid crude oil and condensate $ 379 $ 1,651 Other prepaids 191 87 Prepaid easement renewal fees 115 121 Prepaid insurance 95 417 $ 780 $ 2,276

7. Inventory (Tables)

7. Inventory (Tables)	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventory	March 31, December 31, 2020 2019 (in thousands) Crude oil and condensate $ 554 $ 959 Chemicals 157 120 AGO 56 440 Naphtha 29 95 Propane 15 26 LPG mix 2 5 $ 813 $ 1,645

8. Property, Plant and Equipm_2

8. Property, Plant and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Property and equipment	March 31, December 31, 2020 2019 (in thousands) Refinery and facilities $ 66,317 $ 66,317 Land 566 566 Other property and equipment 833 833 67,716 67,716 Less: Accumulated depletion, depreciation, and amortiation (13,321 ) (12,739 ) 54,395 54,977 CIP 9,114 8,916 $ 63,509 $ 63,893

9. Accrued Expenses and Other_2

9. Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2020
Other Liabilities, Current [Abstract]
Accrued expenses and other current liabilities	March 31, December 31, 2020 2019 (in thousands) Unearned revenue from contracts with customers $ 1,697 $ 1,990 Unearned contract renewal income 500 500 Taxes payable 252 183 Insurance 169 159 Board of director fees payable 123 263 Other payable 50 228 Customer deposits 10 10 $ 2,801 $ 3,333

10. Third-Party Long-Term Debt

10. Third-Party Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Loan agreements	Loan Description Original Principal Amount (in millions) Maturity Date Monthly Principal and Interest Payment Interest Rate Loan Purpose USDA-Guaranteed Loans First Term Loan Due 2034 ( in default $ 25.0 Jun 2034 $0.2 million WSJ Prime + 2.75% Refinance loan; capital improvements Second Term Loan Due 2034 ( in default $ 10.0 Dec 2034 $0.1 million WSJ Prime + 2.75% Refinance bridge loan; capital improvements Notre Dame Debt ( in default $ 11.7 (1) Jan 2018 No payments to date; payment rights subordinated(2) 16.00 % Working capital; reduce balance of GEL Final Arbitration Award
Schedule of long term debt	March 31, December 31, 2020 2019 (in thousands) USDA-Guaranteed Loans First Term Loan Due 2034 (in default) $ 21,586 $ 21,776 Second Term Loan Due 2034 (in default) 8,953 9,031 Notre Dame Debt (in default) 8,816 8,617 39,355 39,424 Less: Current portion of long-term debt, net (33,580 ) (33,836 ) Less: Unamortized debt issue costs (1,845 ) (1,877 ) Less: Accrued interest payable (in default) (3,930 ) (3,711 ) $ - $ -
Schedule of debt issue costs	March 31, December 31, 2020 2019 (in thousands) USDA-Guaranteed Loans First Term Loan Due 2034 (in default) $ 1,674 $ 1,674 Second Term Loan Due 2034 (in default) 768 768 Less: Accumulated amortization (597 ) (565 ) $ 1,845 $ 1,877
Accrued interest related to our long-term debt, net	March 31, December 31, 2020 2019 (in thousands) Notre Dame Debt (in default) $ 3,838 $ 3,639 USDA-Guaranteed Loans First Term Loan Due 2034 (in default) 41 25 Second Term Loan Due 2034 (in default) 51 47 3,930 3,711 Less: Accrued interest payable (in default) (3,930 ) (3,711 ) Long-term Interest Payable, Net of Current Portion $ - $ -

11. Line of Credit Payable (Tab

11. Line of Credit Payable (Tables)	3 Months Ended
	Mar. 31, 2020
Line of Credit Facility [Abstract]
Line of credit agreement	Line of Credit Description Principal Amount (in millions) Maturity Date Monthly Principal and Interest Payment Interest Rate Loan Purpose Amended Pilot Line of Credit ( in default $ 13.0 May 2020 ---- 14.00 % GEL Settlement Payment, NPS purchase of crude oil from Pilot, and working capital
Line of credit	March 31, December 31, 2020 2019 (in thousands) Amended Pilot Line of Credit (in default) $ 11,378 $ 11,786 Less: Unamortized debt issue costs (32 ) (219 ) Less: Interest payable, short-term (103 ) (103 ) $ 11,243 $ 11,464

12. AROs (Tables)

12. AROs (Tables)	3 Months Ended
	Mar. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations	March 31, December 31, 2020 2019 (in thousands) AROs, at the beginning of the period $ 2,565 $ 2,565 Liabilities settled (15 ) — 2,550 2,565 Less: AROs, current portion (2,550 ) (2,565 ) Long-term AROs, at the end of the period $ — $ —

13. Leases (Tables)

13. Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Schedule of leases	March 31, December 31, Balance Sheet Location 2020 2019 (in thousands) Assets Operating lease ROU assets Operating lease ROU assets $ 787 $ 787 Less: Accumulated amortization on operating lease assets (174 ) (138 ) 613 649 Finance lease assets Property and equipment, net 180 180 Less: Accumulated amortization on finance lease assets (40 ) (34 ) 140 146 Total lease assets 753 795 Liabilities Current Operating lease Current portion of lease liabilities 180 175 Finance leases Current portion of lease liabilities 70 76 250 251 Noncurrent Operating lease Long-term lease liabilities, net of current 518 564 Total lease liabilities $ 768 $ 815 Weighted average remaining lease term in years Operating lease 3.42 Finance leases 0.17 Weighted average discount rate Operating lease 8.25 % Finance leases 8.25 %
Lease costs	Three Months Ended March 31, 2020 2019 Operating lease costs $ 51 $ 51 Finance lease costs: Depreciation of leased assets Interest on lease liabilities 2 1 Total lease cost $ 59 $ 56
Supplemental cash flow information related to leases	Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 88 $ 57 Operating cash flows for finance leases $ 2 $ 1 Financing cash flows for finance leases $ 6 $ 9
Maturities of operating lease liabilities	March 31, Operating Lease Financing Leases Total (in thousands) 2020 $ 180 $ 70 $ 250 2021 199 - 199 2022 220 - 220 2023 99 - 99 $ 698 $ 70 $ 768
Future minimum annual lease commitments	Operating March 31, Lease (in thousands) 2020 $ 231 2021 234 2022 238 2023 101 $ 804

14. Income Taxes (Tables)

14. Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income tax benefit (expense)	Year Ended March 31, 2020 2019 Current Federal $ (15 ) $ - State - - Deferred Federal 698 (157 ) State - - Change in valuation allowance (698 ) (157 ) Total provision for income taxes $ (15 ) $ -
Deferred tax assets and deferred tax liabilities	March 31, December 31, 2020 2019 (in thousands) Deferred tax assets: NOL and capital loss carryforwards $ 13,057 $ 12,463 Business interest expense 2,295 1,923 Start-up costs (crude oil and condensate processing facility) 573 594 ARO liability/deferred revenue 535 539 AMT credit - 50 Other 5 11 Total deferred tax assets 16,465 15,580 Deferred tax liabilities: Basis differences in property and equipment (6,422 ) (6,183 ) Total deferred tax liabilities (6,422 ) (6,183 ) 10,043 9,397 Valuation allowance (10,043 ) (9,347 ) Deferred tax assets, net $ - $ 50
NOL carryforwards	Net Operating Loss Carryforward Pre-Ownership Change Post-Ownership Change Total (in thousands) Balance at December 31, 2018 9,614 37,335 46,949 Net operating losses - 5,723 5,723 Balance at December 31, 2019 $ 9,614 $ 43,058 $ 52,672 Net operating losses - 2,829 2,829 Balance at March 31, 2020 $ 9,614 $ 45,887 $ 55,501

15. Earnings Per Share (Tables)

15. Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Earnings per share	Three Months Ended March 31, 2020 (in thousands) 2019 (in thousands) Net income (loss) $ (3,340 ) $ 747 Basic and diluted income (loss) per share $ (0.27 ) $ 0.07 Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock dilutive shares of common stock 12,327,365 10,975,514

16. Commitments and Contingen_2

16. Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Amounts from the Lazarus Parties toward reducing the outstanding balance of the Final Arbitration Award	(in millions) Initial payment (September 2017) $ 3.7 GEL Interim Payments (July 2018 to April 2019) 8.0 Settlement Payment (Multiple Payments May 7 to 10, 2019) 10.0 Deferred Interim Installment Payments (June 2019 to August 2019) 0.5 $ 22.2

1. Organization (Details Narrat

1. Organization (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ (3,340)	$ 747
Net loss per common share	$ (0.27)	$ 0.07
Working capital deficit	$ (6,240)		$ (5,940)

2. Basis of Presentation (Detai

2. Basis of Presentation (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Allowance for doubtful accounts	$ 100	$ 100

3. Related Party Transactions_2

3. Related Party Transactions (Details)	3 Months Ended
	Mar. 31, 2020
Jonathan Carroll - LE
Type	Debt
Effective Date	4/1/2017
Interest rate	2.00%
Key Terms	Tied to payoff of LE $25 million Veritex loan; payments 50% cash, 50% Common Stock
Jonathan Carroll - LRM
Type	Debt
Effective Date	4/1/2017
Interest rate	2.00%
Key Terms	Tied to payoff of LRM $10 million Veritex loan; payments 50% cash, 50% Common Stock
LTRI LE
Type	Operations
Effective Date	7/1/2019
Interest rate	0.00%
Key Terms	LE purchase of two (2) refurbished heat exchangers for $0.08 million each
LMT - LE
Type	Operations
Effective Date	5/24/2016
Interest rate	0.00%
Key Terms	5-year term cancellable by either party any time; LE paid flat reservation fee for tolling volumes up to 84,000 gallons per day; excess tolling volumes subject to increased per gallon rate; terminated 07/01/2019
LEH - LE
Type	Operations
Effective Date	4/1/2020
Interest rate	0.00%
Key Terms	1-year term expiring earliest to occur of 03/31/2021 plus 30-day carryover or delivery of maximum jet fuel quantity; LEH bids on jet fuel contracts under preferential pricing terms due to a HUBZone certification
Jonathan Carroll - Blue Dolphin
Type	Debt
Effective Date	3/31/2017
Interest rate	8.00%
Key Terms	Blue Dolphin working capital; matured 01/01/2019; interest still accruing
Ingleside - Blue Dolphin
Type	Debt
Effective Date	3/31/2017
Interest rate	8.00%
Key Terms	Blue Dolphin working capital; reflects amounts owed to Ingleside under previous Amended and Restated Tank Lease Agreement; matured 01/01/2019; interest still accruing
LEH - Blue Dolphin
Type	Debt
Effective Date	03/312017
Interest rate	8.00%
Key Terms	Blue Dolphin working capital; reflects amounts owed to LEH under the Amended and Restated Operating Agreement; reflects amounts owed to Jonathan Carroll under guaranty fee agreements; matured 01/01/2019; interest still accruing
LEH - BDSC
Type	Operations
Effective Date	1/1/2018
Interest rate	0.00%
Key Terms	68-month term expiring 08/31/2023; office lease Houston, Texas; includes 6-month rent abatement period; rent approximately $0.02 million per month
LEH - Blue Dolphin, LE, LRM, NPS, BDPL, BDPC and BDSC
Type	Debt
Effective Date	4/1/2020
Interest rate	0.00%
Key Terms	3-year term; expires 04/01/2023 or notice by either party at any time of material breach or 90 days Board notice; LEH receives management fee of 5% of all consolidated operating costs, excluding crude costs, depreciation, amortization and interest of Blue Dolphin, LE, LRM, NPS, BDPL, BDPC and BDSC
LEH - BDPL
Type	Debt
Effective Date	8/15/2016
Interest rate	16.00%
Key Terms	2-year term; $4.0 million principal amount; $0.5 million annual payment; proceeds used for working capital; no financial maintenance covenants; secured by certain BDPL property

3. Related Party Transactions_3

3. Related Party Transactions (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Prepaid operating expenses, related party	$ 9,906	$ 8,175
Less: Long-term debt, related party, current portion, in default	(7,572)	(6,001)
Less: Interest payable, related party, in default	(2,334)	(2,174)
Long-term debt - net of current portion, related party	0	0
LEH
Prepaid operating expenses, related party	7,709	6,174
LEH | June LEH Note
Prepaid operating expenses, related party	1,375	0
LEH | BDPL Loan Agreement
Prepaid operating expenses, related party	6,334	6,174
Ingleside | March Ingleside Note
Prepaid operating expenses, related party	1,024	1,004
Jonathan Carroll | March Carroll Note
Prepaid operating expenses, related party	$ 1,173	$ 997

3. Related Party Transactions_4

3. Related Party Transactions (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Tolling and terminaling revenues	$ 1,103	$ 1,069
Total revenues	$ 62,000	$ 68,927
Tolling and terminaling revenues, percent	1.80%	1.50%
Total revenues, percent	100.00%	100.00%
LEH
Refinery operations revenues	$ 17,715	$ 20,809
Refinery operations revenues, percent	28.60%	30.20%
Third Parties
Refinery operations revenues	$ 43,182	$ 47,049
Refinery operations revenues, percent	69.60%	68.30%

3. Related Party Transactions_5

3. Related Party Transactions (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest expenses under loan and guarantee, related party	$ 381	$ 375
Jonathan Carroll | First Term Loan Due 2034
Interest expenses under loan and guarantee, related party	108	12
Jonathan Carroll | Second Term Loan Due 2034
Interest expenses under loan and guarantee, related party	45	46
Jonathan Carroll | March Carroll Note
Interest expenses under loan and guarantee, related party	23	25
LEH | BDPL Loan Agreement
Interest expenses under loan and guarantee, related party	160	160
LEH | June LEH Note
Interest expenses under loan and guarantee, related party	25	6
Ingleside | March Ingleside Note
Interest expenses under loan and guarantee, related party	$ 20	$ 26

3. Related Party Transactions_6

3. Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transactions [Abstract]
Accounts receivable, related party	$ 0		$ 1,364
Accounts payable, related party	149		$ 149
Dock Tolling Agreement with LMT fees	0	$ 200
Lease payments received under the office sub-lease agreement with LEH	$ 10	$ 10

4. Revenue and Segment Inform_3

4. Revenue and Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net revenues (excluding intercompany fees and sales)	$ 62,000	$ 68,927
General and administrative expenses	644	670
Net income (loss)	(3,340)	747
Refinery Operations
Net revenues (excluding intercompany fees and sales)	60,897	67,858
Intercompany fees and sales	(617)	(606)
Operation costs and expenses	(61,833)	(65,152)
Segment contribution margin	(1,553)	2,100
General and administrative expenses	(304)	(332)
Depreciation and amortization	(288)	(465)
Interest and other non-operating income (expenses)	(741)	(783)
Income (loss) before income taxes	(2,886)	520
Capital expenditures	6	40
Identifiable assets	48,418	50,340
Tolling and Terminaling
Net revenues (excluding intercompany fees and sales)	1,103	1,069
Intercompany fees and sales	617	606
Operation costs and expenses	(255)	(364)
Segment contribution margin	1,465	1,311
General and administrative expenses	(68)	(43)
Depreciation and amortization	(294)	(99)
Interest and other non-operating income (expenses)	(770)	(196)
Income (loss) before income taxes	333	973
Capital expenditures	192	83
Identifiable assets	18,407	18,880
Corporate & Other
Operation costs and expenses	(59)	(57)
Segment contribution margin	(59)	(57)
General and administrative expenses	(419)	(445)
Depreciation and amortization	(51)	(26)
Interest and other non-operating income (expenses)	(243)	(218)
Income (loss) before income taxes	(772)	(746)
Capital expenditures	0	0
Identifiable assets	1,584	2,429
Total
Net revenues (excluding intercompany fees and sales)	62,000	68,927
Intercompany fees and sales	0	0
Operation costs and expenses	(62,147)	(65,573)
Segment contribution margin	(147)	3,354
General and administrative expenses	(791)	(820)
Depreciation and amortization	(633)	(590)
Interest and other non-operating income (expenses)	(1,754)	(1,197)
Income (loss) before income taxes	(3,325)	747
Income tax expense	(15)	0
Net income (loss)	(3,340)	747
Capital expenditures	198	123
Identifiable assets	$ 68,409	$ 71,649

5. Concentration of Risk (Detai

5. Concentration of Risk (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Concentration of risk	100.00%	100.00%
4 Significant Customers
Concentration of risk	94.00%	96.00%
Portion of accounts receivable	$ 600	$ 800

5. Concentration of Risk (Det_2

5. Concentration of Risk (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Total refined petroleum product sales	$ 60,897	$ 67,858
Concentration Risk	100.00%	100.00%
LPG mix
Total refined petroleum product sales	$ 0	$ 8
Concentration Risk	0.00%	0.00%
Naphtha
Total refined petroleum product sales	$ 11,515	$ 13,795
Concentration Risk	18.90%	20.30%
Jet Fuel
Total refined petroleum product sales	$ 17,715	$ 20,809
Concentration Risk	29.10%	30.70%
HOBM
Total refined petroleum product sales	$ 15,191	$ 16,160
Concentration Risk	24.90%	23.80%
AGO
Total refined petroleum product sales	$ 16,476	$ 17,086
Concentration Risk	27.10%	25.20%

5. Concentration of Risk (Det_3

5. Concentration of Risk (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Risks and Uncertainties [Abstract]
Balances in excess of FDIC insurance limit	$ 300	$ 300

6. Prepaid Expenses and Other_3

6. Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid crude oil and condensate	$ 379	$ 1,651
Other prepaids	191	87
Prepaid easement renewal fees	115	121
Prepaid insurance	95	417
Prepaid expenses, net	$ 780	$ 2,276

7. Inventory (Details)

7. Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Crude oil and condensate	$ 554
Chemicals	157	$ 120
AGO	56	440
Naphtha	29	95
Propane	15	26
LPG mix	2	5
Inventories, net	$ 813	$ 1,645

8. Property, Plant and Equipm_3

8. Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Refinery and facilities	$ 66,317	$ 66,317
Land	566	566
Other property and equipment	833	833
Property, Plant and Equipment, gross	67,716	67,716
Less: Accumulated depletion, depreciation and amortization	(13,321)	(12,739)
Property, plant and equipment, gross	54,395	54,977
Construction in progress	9,114	8,916
Property, plant and equipment, net	$ 63,509	$ 63,893

8. Property, Plant and Equipm_4

8. Property, Plant and Equipment, Net (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Interest cost capitalized	$ 700	$ 700

9. Accrued Expenses and Other_3

9. Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other Liabilities, Current [Abstract]
Unearned revenue from contracts with customers	$ 1,697	$ 1,990
Unearned contract renewal income	500	500
Taxes payable	252	183
Insurance	169	159
Board of director fees payable	123	263
Other payable	50	228
Customer deposits	10	10
Accrued Expenses and Other Current Liabilities, Net	$ 2,801	$ 3,333

10. Third-Party Long-Term Deb_2

10. Third-Party Long-Term Debt (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
First term loan due 2034
Original Principal Amount	$ 25,000
Maturity Date	June 2034
Interest rate	WSJ Prime + 2.75%
Second term loan due 2034
Original Principal Amount	$ 10,000
Maturity Date	December 2034
Interest rate	WSJ Prime + 2.75%
Notre Dame Debt
Original Principal Amount	$ 11,700
Maturity Date	January 2018
Interest rate	16.00%

10. Third-Party Long-Term Deb_3

10. Third-Party Long-Term Debt (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Principal balance outstanding	$ 39,355	$ 39,424
Less: Current portion of long-term debt, net	(33,580)	(33,836)
Less: Unamortized debt issue costs	(1,845)	(1,877)
Less: Accrued interest payable (in default)	(3,930)	(3,711)
Long term debt	0	0
First Term Loan Due 2034
Principal balance outstanding	21,586	21,776
Second Term Loan Due 2034
Principal balance outstanding	8,953	9,031
Notre Dame Debt
Principal balance outstanding	$ 8,816	$ 8,617

10. Third-Party Long-Term Deb_4

10. Third-Party Long-Term Debt (Details 2) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
First Term Loan Due 2034	$ 1,674	$ 1,674
Second Term Loan Due 2034	768	768
Less: Accumulated amortization	(597)	(565)
Long term debt	$ 1,845	$ 1,877

10. Third-Party Long-Term Deb_5

10. Third-Party Long-Term Debt (Details 3) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Notre Dame Debt (in default)	$ 3,838	$ 3,639
First Term Loan Due 2034	41	25
Second Term Loan Due 2034	51	47
Total	3,930	3,711
Less: Interest payable, in default	(3,930)	(3,711)
Long term debt	$ 0	$ 0

11. Line of Credit Payable (Det

11. Line of Credit Payable (Details) - Amended Pilot Line Of Credit $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Principal amount	$ 13,000
Maturity date	May 2020
Interest rate	14.00%

11. Line of Credit Payable (D_2

11. Line of Credit Payable (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Line of credit, gross	$ 39,355	$ 39,424
Less: Unamortized debt issue costs	(1,845)	(1,877)
Less: Interest payable, short term	(3,930)	(3,711)
Pilot Line of Credit
Line of credit, gross	11,378	11,786
Less: Unamortized debt issue costs	(32)	(219)
Less: Interest payable, short term	(103)	(103)
Line of credit	$ 11,243	$ 11,464

12. ARO'S (Details)

12. ARO'S (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations, at the beginning of the period	$ 2,565	$ 2,565
Liabilities settled	(15)	0
Asset retirement obligations	2,550	2,565
Less: asset retirement obligations, current portion	(2,550)	(2,565)
Long-term asset retirement obligations, at the end of the period	$ 0	$ 2,565

13. Lease Obligations (Details)

13. Lease Obligations (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease right-of-use assets, gross	$ 787		$ 787
Less: Accumulated amortization on operating lease assets	(174)	$ (138)
Operating lease right-of-use assets, net	613		649
Finance lease assets, gross	180		180
Less: Accumulated amortization on finance lease assets	(40)	$ (34)
Finance lease assets, net	140		140
Total lease assets	753		795
Current portion of operating lease	180		175
Current portion of finance lease	70		76
Total current lease liability	250		251
Long-term portion of operating lease	518		564
Total lease liabilities	$ 768		$ 815
Weighted average remaining lease term in years - operating lease	3 years 5 months 1 day
Weighted average remaining lease term in years - finance lease	2 months 1 day
Weighted average discount rate - operating lease	8.25%
Weighted average discount rate - finance lease	8.25%

13. Lease Obligations (Details

13. Lease Obligations (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating lease costs	$ 51	$ 51
Depreciation of leased assets	6	4
Interest on lease liabilities	2	1
Total lease cost	$ 59	$ 56

13. Lease Obligations (Detail_2

13. Lease Obligations (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating cash flows for operating lease	$ 88	$ 57
Operating cash flows for finance leases	2	1
Financing cash flows for finance leases	$ 6	$ 9

13. Lease Obligations (Detail_3

13. Lease Obligations (Details 3) $ in Thousands	Mar. 31, 2020USD ($)
Operating Lease
2020	$ 180
2021	199
2022	220
2023	99
Total minimum rental payments	698
Finance Lease
2020	70
2021	0
2022	0
2023	0
Total minimum rental payments	70
Total
2020	250
2021	199
2022	220
2023	99
Total minimum rental payments	$ 768

13. Lease Obligations (Detail_4

13. Lease Obligations (Details 4) $ in Thousands	Mar. 31, 2020USD ($)
Leases [Abstract]
2020	$ 231
2021	234
2022	238
2023	101
Total	$ 804

14. Income Taxes (Details)

14. Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Current federal	$ (15)	$ 0
Current state	0	0
Deferred federal	698	(157)
Deferred state	0	0
Change in valuation allowance	(698)	(157)
Total provision for income taxes	$ (15)	$ 0

14. Income Taxes (Details 1)

14. Income Taxes (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Net operating loss and capital loss carryforwards	$ 13,057	$ 12,463
Business interest expense	2,295	1,923
Start-up costs (crude oil and condensate processing facility)	573	594
ARO liability/deferred revenue	535	539
AMT credit	0	50
Other	5	11
Total deferred tax assets	16,465	15,580
Deferred tax liabilities:
Basis differences in property and equipment	(6,422)	(6,183)
Total deferred tax liabilities	(6,422)	(6,183)
Deferred tax assets, net	10,043	9,397
Valuation allowance	(10,043)	(9,347)
Deferred tax assets, net	$ 0	$ 50

14. Income Taxes (Details 2)

14. Income Taxes (Details 2) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Beginning balance	$ 52,672	$ 46,949
Net operating losses	2,829	5,723
Ending balance	55,501	52,672
Pre-Ownership Change
Beginning balance	9,614	9,614
Net operating losses	0	0
Ending balance	9,614	9,614
Post-Ownership Change
Beginning balance	43,058	37,335
Net operating losses	2,829	5,723
Ending balance	$ 45,887	$ 43,058

14. Income Taxes (Details Narra

14. Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income tax benefit	$ 15	$ 0

15. Earnings per share (Details

15. Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net income (loss)	$ (3,340)	$ 747
Basic and diluted income per share	$ (.27)	$ .07
Basic and diluted
Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock	12,327,365	10,975,514

16. Commitments and Contingen_3

16. Commitments and Contingencies (Details) $ in Thousands	Mar. 31, 2020USD ($)
Initial payment (September 2017)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	$ 3,700
Interim Payments (July 2018 to April 2019)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	8,000
Settlement Payment (May 2019)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	10,000
Deferred Interim Installment Payments (June 2019 to July 2019)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	$ 500