Blue Dolphin Energy (BDCO) 10-K 31 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 31, 2021	Jun. 30, 2020
Cover [Abstract]
Entity Registrant Name	BLUE DOLPHIN ENERGY CO
Entity Central Index Key	0000793306
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Entity File Number	0-15905
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	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	FY
Document Fiscal Year Focus	2020
Entity Public Float			$ 840,026

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 549	$ 72
Restricted cash	48	49
Accounts receivable, net	214	446
Accounts receivable, related party	0	1,364
Prepaid expenses and other current assets	3,564	2,276
Deposits	124	158
Inventory	1,062	1,645
Refundable federal income tax	0	65
Total current assets	5,561	6,075
LONG-TERM ASSETS
Total property and equipment, net	62,497	63,893
Operating lease right-of-use assets	498	649
Restricted cash, noncurrent	514	547
Surety bonds	230	230
Deferred tax assets, net	0	50
Total long-term assets	63,739	65,369
Total assets	69,300	71,444
CURRENT LIABILITIES
Long-term debt less unamortized debt issue costs, current portion (in default)	33,692	33,836
Line of credit payable less unamortized debt issue costs (in default)	8,042	11,464
Long-term debt, related party, current portion (in default)	16,010	6,001
Interest payable (in default)	6,408	3,814
Interest payable, related party (in default)	2,814	2,174
Accounts payable	3,274	1,877
Accounts payable, related party	155	149
Current portion of lease liabilities	194	251
Asset retirement obligations, current portion	2,370	2,565
Accrued expenses and other current liabilities	4,882	3,333
Total current liabilities	77,841	65,464
LONG-TERM LIABILITIES
Long-term lease liabilities, net of current	370	564
Deferred revenues	1,520	1,930
Long-term debt, net of current portion	355	0
Total long-term liabilities	2,245	2,494
Total liabilities	80,086	67,958
Commitments and contingencies (Note 16)
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock ($0.01 par value, 20,000,000 shares authorized; 12,693,514 and 12,327,365 shares issued at December 31, 2020 and 2019, respectively)	127	123
Additional paid-in capital	38,457	38,275
Accumulated deficit	(49,370)	(34,912)
Total stockholders' equity (deficit)	(10,786)	3,486
Total liabilities and stockholders' equity (deficit)	$ 69,300	$ 71,444

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	12,693,514	12,327,365
Common stock, shares outstanding	12,693,514	12,327,365

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
REVENUE FROM OPERATIONS
Refinery operations	$ 170,601	$ 304,924
Tolling and terminaling	4,209	4,338
Total revenue from operations	174,810	309,262
COST OF GOODS SOLD
Crude oil, fuel use, and chemicals	167,079	289,273
Other conversion costs	9,783	8,554
Total cost of goods sold	176,862	297,827
Gross profit (loss)	(2,052)	11,435
COST OF OPERATIONS
LEH operating fee	646	611
Other operating expenses	169	222
General and administrative expenses	2,299	2,659
Depletion, depreciation and amortization	2,686	2,490
Total cost of operations	5,800	5,982
Income (loss) from operations	(7,852)	5,453
OTHER INCOME (EXPENSE)
Easement, interest and other income	172	4
Interest and other expense	(6,763)	(6,750)
Loss on issuance of shares to extinguish related-party debt	0	(474)
Gain on extinguishment of debt	0	9,128
Total other income (expense)	(6,591)	1,908
Income (loss) before income taxes	(14,443)	7,361
Income tax expense	(15)	0
Net income (loss)	$ (14,458)	$ 7,361
Income (loss) per common share
Basic	$ (1.15)	$ 0.66
Diluted	$ (1.15)	$ 0.66
Weighted average number of common shares outstanding:
Basic	12,574,465	11,156,995
Diluted	12,574,465	11,156,995

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2018	10,975,514
Beginning balance, amount at Dec. 31, 2018	$ 110	$ 36,936	$ (42,273)	$ (5,227)
Common stock issued for extinguishment of related-party debt, shares	1,351,851
Common stock issued for extinguishment of related-party debt, amount	$ 13	1,339		1,352
Net income (loss)			7,361	7,361
Ending balance, shares at Dec. 31, 2019	12,327,365
Ending balance, amount at Dec. 31, 2019	$ 123	38,275	(34,912)	3,486
Common stock issued for services, shares	135,084
Common stock issued for services, amount	$ 2	66		68
Common stock issued for extinguishment of related-party debt, shares	231,065
Common stock issued for extinguishment of related-party debt, amount	$ 2	116		118
Net income (loss)			(14,458)	(14,458)
Ending balance, shares at Dec. 31, 2020	12,693,514
Ending balance, amount at Dec. 31, 2020	$ 127	$ 38,457	$ (49,370)	$ (10,786)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
OPERATING ACTIVITIES
Net income (loss)	$ (14,458)	$ 7,361
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depletion, depreciation and amortization	2,686	2,490
Deferred income tax	15	0
Amortization of debt issue costs	348	629
Guaranty fees paid in kind	609	625
Related-party interest expense paid in kind	559	161
Deferred revenues and expenses	(410)	0
Loss (gain) on issuance of shares	(80)	474
Gain on extinguishment of debt	0	(9,128)
Changes in operating assets and liabilities
Restricted cash	1	0
Accounts receivable	232	(67)
Accounts receivable, related party	1,364	(1,364)
Prepaid expenses and other current assets	(1,288)	(389)
Deposits and other assets	34	36
Inventory	583	(135)
Accrued arbitration award	0	(12,000)
Accounts payable, accrued expenses and other liabilities	5,898	4,497
Accounts payable, related party	6	(1,380)
Net cash used in operating activities	(3,901)	(8,190)
INVESTING ACTIVITIES
Capital expenditures	(1,085)	(1,574)
Net cash used in investing activities	(1,085)	(1,574)
FINANCING ACTIVITIES
Proceeds from debt	370	12,402
Payments on debt	(3,585)	(2,563)
Net activity on related-party debt	8,644	(1,072)
Net cash provided by financing activities	5,429	8,767
Net change in cash, cash equivalents, and restricted cash	443	(997)
Cash, cash equivalents, and restricted cash at beginning of period	668	1,665
Cash, cash equivalents, and restricted cash at end of period	1,111	668
Non-cash investing and financing activities:
Financing of capital expenditures via accounts payable and finance leases	0	86
Issuance of shares to extinguish debt and for services	267	474
Conversion of related-party notes to common stock	148	878
Line of credit closing costs included in principal balance	0	398
Interest paid	2,311	3,474
Income taxes paid	$ (100)	$ (101)

1. Organization

1. Organization	12 Months Ended
	Dec. 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”. 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 controlled approximately 82% of the voting power of our Common Stock as of the filing date of this report. 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, arrangements, and risks associated with working capital deficits. Going Concern Management has determined that certain factors raise substantial doubt about our ability to continue as a going concern. As discussed more fully below, these factors include inadequate liquidity to sustain operations due to defaults under our secured loan agreements, margin deterioration and volatility, and historic net losses and working capital deficits. Our consolidated financial statements assume we will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. Our ability to continue as a going concern depends on sustained positive operating margins and having working capital for, amongst other requirements, purchasing crude oil and condensate and making payments on long-term debt. Without positive operating margins and working capital, our business will be jeopardized, and we may not be able to continue. If we are unable to make required debt payments, we would likely have to consider other options, such as selling assets, raising additional debt or equity capital, cutting costs or otherwise reducing our cash requirements, or negotiating with our creditors to restructure our applicable obligations, including a potential bankruptcy filing. Defaults Under Secured Loan Agreements Third-Party Defaults ● Veritex Loans – Defaults under the LE Term Loan Due 2034 and LRM Term Loan Due 2034 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. Veritex exercising its rights would also adversely impact the trading price of our common stock and the value of an investment in our common stock, which could lead to holders of our common stock losing their investment in its entirety. 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. The borrowers continue in active dialogue with Veritex. As of the filing date of this report, payments under the Veritex loans were current, but other defaults remained outstanding. ● Amended Pilot Line of Credit – Upon maturity of the Pilot Line of Credit in May 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 (the “Obligations”). Pursuant to the Amended Pilot Line of Credit, commencing on May 4, 2020, the Obligations began to accrue interest at a default 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. Pursuant to a June 1, 2020 notice, Pilot began applying Pilot’s payment obligations to NPS under each of (a) the Terminal Services Agreement (covering Tank Nos. 67, 71, 72, 73, 77, and 78), dated as of May 2019, between NPS and Pilot, and (b) the Terminal Services Agreement (covering Tank No. 56), dated as of June 1, 2019, between NPS and Pilot, against NPS’ payment obligations to Pilot under the Amended Pilot Line of Credit. Such tank lease setoff amounts only partially satisfy NPS’ obligations under the Amended Pilot Line of Credit, and 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. For the twelve-month periods ended December 31, 2020 and 2019, the tank lease setoff amounts totaled $1.3 million and $0, respectively. For the twelve-month periods ended December 31, 2020 and 2019, the amount of interest NPS incurred under the Amended Pilot Line of Credit totaled $1.0 million and $0, respectively. On November 23, 2020, NPS and guarantors received notice from Pilot that the entry into the SBA EIDLs was a breach of the Amended Pilot Line of Credit and Pilot demanded full repayment of the Obligations, including through use of the proceeds of the SBA EIDLs. Pilot also notified the SBA that the liens securing the SBA EIDLs are junior to those securing the Obligations. While the SBA acknowledged this point and indicated a willingness to subordinate the SBA EIDLs, no further action has been taken by Pilot as of the filing date of this report. 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. NPS and guarantors continue in active dialogue with Pilot to reach a negotiated settlement, and we believe that Pilot hopes to continue working with NPS to settle the Obligations. NPS and guarantors are also working on the possible refinance of amounts owing and payable under the Amended Pilot Line of Credit. However, progress with potential lenders has been slow due to the ongoing COVID-19 pandemic. NPS’s 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. If new debt or other liabilities are added to the Company’s current consolidated debt levels, the related risks that it now faces could intensify. In the event we are unsuccessful in such endeavors, NPS 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. ● Notre Dame Debt – 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 LE Term Loan Due 2034. To date, no payments have been made under the subordinated Notre Dame Debt and the holder of the Notre Dame Debt has taken no action as a result of the non-payment. 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, sustained periods of low crude oil prices due to market volatility associated with the COVID-19 pandemic has resulted in significant financial constraints on producers, which in turn has resulted 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. During the twelve-month period ended December 31, 2020, our refinery experienced downtime as a result of lack of crude due to cash constraints. Related-Party Defaults Affiliates controlled approximately 82% of the voting power of our Common Stock as of the filing date of this report, an Affiliate operates and manages all Blue Dolphin properties, an Affiliate is a significant customer of our refined products, and we borrow from Affiliates during periods of working capital deficits. Replated party debt, which is currently in default, represents such working capital borrowings. Margin Deterioration and Volatility In response to margin deterioration and volatility, we adjust throughput and production at the Nixon refinery based on prevailing market conditions. ederal, state, and local governments and health officials have made strides to contain the virus, treat its effects, and implement OPEC has since agreed to certain production cuts, oil prices have remained depressed and oversupply and lack of demand in the market persists. Historic Net Losses and Working Capital Deficits Net Losses Working Capital Deficits December 31, 2020 2019 (in thousands) Cash and cash equivalents $ 549 $ 72 Restricted cash (current portion) 48 49 Restricted cash, noncurrent 514 547 Total $ 1,111 $ 668 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 “Part I, Item 1. Business —Going Concern” 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. Under earlier state and federal mandates that regulated business closures, our business was deemed as an essential business and, as such, remained open. As U.S. federal, state, and local officials address surging coronavirus cases and roll out COVID-19 vaccines, we expect to continue operating. Governmental mandates, while necessary to address the virus, will result in further business and operational disruptions, including demand destruction, liquidity strains, supply chain challenges, travel restrictions, controls on in-person gathering, and workforce availability. Despite this, management believes that it has taken all prudent steps to mitigate risk, avoid business disruptions, manage cash flow, and remain competitive in a low oil price environment. We are managing cash flow by optimizing receivables and payables by prioritizing payments, managing inventory to avoid buildup, monitoring discretionary spending, and delaying capital expenditures. At the Nixon facility, w e adjust throughput and production based on prevailing market conditions. 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. Principles of Consolidation

2. Principles of Consolidation and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Principles of Consolidation and Significant Accounting Policies	Basis of Presentation The accompanying consolidated financial statements, which include Blue Dolphin and its subsidiaries, have been prepared in accordance with U.S. generally accepted accounting principles and the rules and regulations of the SEC. These rules and regulations conform to the accounting principles contained in FASB’s ASC, the single source of GAAP. All significant intercompany items have been eliminated in consolidation. Additionally, any material subsequent events that occurred after the date through which this report covers have been properly recognized or disclosed in our financial statements. 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. As discussed further below within “Note (2) – Significant Accounting Policies – Use of Estimates,” the ongoing COVID-19 pandemic has resulted in significant economic disruption globally. This disruption became more acute from the latter half of March 2020 and continued through the end of 2020; therefore, our operating results for the twelve months ended December 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 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 December 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 December 31, 2020 and 2019. 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 December 31, 2020 and 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 The market volatility of commodity prices as a result of the ongoing COVID-19 pandemic could affect the value of certain of our long-lived assets. Management evaluated our refinery and facilities assets for impairment as of December 31, 2020. No impairment was deemed necessary based upon this testing, and we did not record any impairment of our refinery and facilities assets for the periods presented. However, an impairment may be required in the future as the long-term impact of the crisis becomes clearer, losses continue to be material, or as new opportunities arise, such as reconfiguration of the Nixon refinery into a renewable fuels facility. 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 Income Taxes. Consolidation Codification Updates to SEC Sections Codification Improvements. New Pronouncements Issued, Not Yet Effective . No 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	12 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
Related-Party Transactions	Affiliate Operational Agreements Summary Blue Dolphin and certain of its subsidiaries are party to several operational 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 agreements related to Blue Dolphin’s operations consist of the following: Agreement/Transaction Parties Effective Date Key Terms Refinery Equipment Purchase LTRI - LE 07/01/2019 LE purchase of two (2) refurbished heat exchangers for $0.08 million each Dock Tolling Agreement LMT - LE 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 04/01/2021 1-year term expiring earliest to occur of 03/31/2022 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 Office Sub-Lease Agreement LEH - BDSC 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 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 Working Capital We have historically depended 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. Related-Party Long-Term Debt Loan Description Parties Maturity Date Interest Rate Loan Purpose March Carroll Note (in default) Jonathan Carroll – Blue Dolphin Jan 2019 8.00% Blue Dolphin working capital; reflects amounts owed to Jonathan Carroll under the guaranty fee agreements March Ingleside Note (in default) Ingleside – Blue Dolphin Jan 2019 8.00% Blue Dolphin working capital June LEH Note (in default) LEH – Blue Dolphin Jan 2019 8.00% Blue Dolphin working capital; reflects amounts owed to LEH under the Amended and Restated Operating Agreement BDPL-LEH Loan Agreement (in default) LEH - BDPL Aug 2018 16.00% Blue Dolphin working capital Amended and Restated Guaranty Fee Agreement(2) Jonathan Carroll - LE -- 2.00% Tied to payoff of LE $25 million Veritex loan Amended and Restated Guaranty Fee Agreement(2) Jonathan Carroll - LRM -- 2.00% Tied to payoff of LRM $10 million Veritex loan (1) The original principal amount of the BDPL-LEH Loan Agreement was $4.0 million. (2) As a condition for our secured loan agreements with Veritex, Jonathan Carroll was required to personally guarantee repayment of borrowed funds and accrued interest. Under the guaranty fee agreements, Mr. Carroll is entitled to receive guaranty fees. The fees are payable 50% in cash and 50% in Common Stock. The Common Stock portion is paid quarterly. For the foreseeable future, management does not intend to pay Mr. Carroll the cash portion due to Blue Dolphin’s working capital deficits. The cash portion will continue to accrue and be added to the outstanding principal balance owed to Mr. Carroll under the March Carroll Note. Guarantees and Security Loan Description Guarantees Security BDPL-LEH Loan Agreement --- ● Covenants The BDPL-LEH Loan Agreement contains representations and warranties, affirmative and negative covenants, and events of default that we consider usual and customary for a credit facility of this type. There are no covenants associated with the March Carroll Note, March Ingleside Note, or June LEH Note. Defaults Loan Description Event(s) of Default Covenant Violations March Carroll Note (in default) Failure of borrower to pay past due obligations; loan matured January 2019 -- March Ingleside Note (in default) Failure of borrower to pay past due obligations; loan matured January 2019 --- June LEH Note (in default) Failure of borrower to pay past due obligations; loan matured January 2019 --- BDPL-LEH Loan Agreement (in default) Failure of borrower to pay past due obligations; loan matured August 2018 --- 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. December 31, 2020 2019 (in thousands) LEH June LEH Note (in default) $ 9,446 $ - BDPL-LEH Loan Agreement 6,814 6,174 LEH Total 16,260 6,174 Ingleside March Ingleside Note (in default) 1,013 1,004 Jonathan Carroll March Carroll Note (in default) 1,551 997 18,824 8,175 Less: Long-term debt, related party, current portion, in default (16,010 ) (6,001 ) Less: Accrued interest payable, related party (in default) (2,814 ) (2,174 ) $ - $ - Consolidated Statements of Operations Total revenue from operations. Twelve Months Ended December 31, 2020 2019 (in thousands, except percent amounts) Refinery operations LEH $ 49,786 28.5 % $ 97,239 31.0 % Third-Parties 120,815 69.1 % 207,685 67.6 % Tolling and terminaling Third-Parties 4,209 2.4 % 4,338 1.4 % $ 174,810 100.0 % $ 309,262 100.0 % Interest expense. Twelve Months Ended December 31, 2020 2019 (in thousands) Jonathan Carroll Guaranty Fee Agreements First Term Loan Due 2034 $ 431 $ 443 Second Term Loan Due 2034 178 183 March Carroll Note (in default) 103 103 LEH BDPL-LEH Loan Agreement (in default) 640 640 June LEH Note (in default) 40 40 Ingleside March Ingleside Note (in default) 63 63 $ 1,455 $ 1,472 Other.

4. Revenue and Segment Informat

4. Revenue and Segment Information	12 Months Ended
	Dec. 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 Twelve Months Ended December 31, 2020 2019 (in thousands) Net revenue (excluding intercompany fees and sales) Refinery operations $ 170,601 $ 304,924 Tolling and terminaling 4,209 4,338 Total net revenue 174,810 309,262 Intercompany fees and sales Refinery operations (2,384 ) (2,615 ) Tolling and terminaling 2,384 2,615 Total intercompany fees - - Operation costs and expenses(1) Refinery operations (175,201 ) (296,502 ) Tolling and terminaling (1,661 ) (1,325 ) Corporate and other (169 ) (222 ) Total operation costs and expenses (177,031 ) (298,049 ) Segment contribution margin (deficit) Refinery operations (6,984 ) 5,807 Tolling and terminaling 4,932 5,628 Corporate and other (169 ) (222 ) Total segment contribution margin (deficit) (2,221 ) 11,213 General and administrative expenses(2) Refinery operations (1,257 ) (1,252 ) Tolling and terminaling (307 ) (262 ) Corporate and other (1,381 ) (1,756 ) Total general and administrative expenses (2,945 ) (3,270 ) Depreciation and amortization Refinery operations (1,186 ) (1,913 ) Tolling and terminaling (1,296 ) (396 ) Corporate and other (204 ) (181 ) Total depreciation and amortization (2,686 ) (2,490 ) Interest and other non-operating expenses, net Refinery operations (2,929 ) 5,668 Tolling and terminaling (2,546 ) (2,398 ) Corporate and other (1,116 ) (1,362 ) Total interest and other non-operating expenses, net (6,591 ) # 1,908 Income (loss) before income taxes Refinery operations (12,356 ) 8,310 Tolling and terminaling 783 2,572 Corporate and other (2,870 ) (3,521 ) Total income (loss) before income taxes (14,443 ) 7,361 Income tax expense (15 ) - Net income (loss) $ (14,458 ) $ 7,361 (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. Twelve Months Ended December 31, 2020 2019 (in thousands) Capital expenditures Refinery operations $ 295 $ 1,453 Tolling and terminaling 790 121 Corporate and other - - Total capital expenditures $ 1,085 $ 1,574 December 31, 2020 2019 (in thousands) Identifiable assets Refinery operations $ 48,521 $ 51,317 Tolling and terminaling 18,722 18,401 Corporate and other 2,057 1,726 Total identifiable assets $ 69,300 $ 71,444

5. Concentration of Risk

5. Concentration of Risk	12 Months Ended
	Dec. 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 December 31, 2020 and 2019, we had cash balances (including restricted cash) that exceeded the FDIC insurance limit per depositor of approximately $0.6 million and $0.3 million, respectively. 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. Effective March 1, 2020, Pilot assigned its rights, title, interest, and obligations in the crude supply agreement to Tartan Oil LLC, a Pilot affiliate. Either party may terminate the crude supply agreement by providing the other party 60 days prior written notice. Pilot also stores crude oil at the Nixon facility under two terminal services agreements. Under the terminal services agreements, 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. Beginning on June 1, 2020, Pilot began applying payment obligations owed to NPS under two terminal services agreements against NPS’ payment obligations to Pilot under the Amended Pilot Line of Credit. For the twelve-month periods ended December 31, 2020 and 2019, the tank lease setoff amounts totaled $1.3 million and $0, respectively. For the twelve-month periods ended December 31, 2020 and 2019, the amount of interest NPS incurred under the Amended Pilot line of credit totaled $1.0 million and $0, respectively. See “Note (1) Organization – Going Concern” to our consolidated financial statements for additional disclosures related to defaults in our debt obligations. 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, sustained periods of low crude oil prices due to market volatility associated with the COVID-19 pandemic has resulted in significant financial constraints on producers, which in turn has resulted in long term crude oil supply constraints and increased transportation costs. During the twelve-month period ended December 31, 2020, our refinery experienced downtime as a result of lack of crude due to cash constraints. 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 December 31, 2020 3 70.8% $0 2019 4 96.5% $1.7 million One of our significant customers is LEH, an Affiliate. The Affiliate 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. The Affiliate accounted for 28.7% and 31.3% of total revenue from operations in 2020 and 2019, respectively. The Affiliate represented approximately $0 and $1.4 million in accounts receivable at December 31, 2020 and 2019, respectively. The amounts will be paid under normal business terms. Amounts outstanding relating to the Jet Fuel Sales Agreement can significantly vary period to period based on the timing of the related sales and payments received. Amounts we owed to LEH under various long-term debt, related-party agreements totaled $9.1 million and $6.2 million at December 31, 2020 and 2019, respectively. See “Notes (3) and (16)” to our consolidated financial statements for additional disclosures related to transactions with Affiliates. Concentration of Customers Refined Product Sales Twelve Months Ended December 31, 2020 2019 (in thousands, except percent amounts) LPG mix $ 2 0.0 % $ 17 0 % Naphtha 34,413 20.2 % 59,799 19.6 % Jet fuel 49,786 29.2 % 97,239 31.9 % HOBM 42,777 25.1 % 66,891 21.9 % AGO 43,623 25.5 % 80,978 26.6 % $ 170,601 100.0 % $ 304,924 100.0 % An Affiliate, LEH, purchases all of our jet fuel. See “Notes (3) and (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	12 Months Ended
	Dec. 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: December 31, 2020 2019 (in thousands) Prepaid crude oil and condensate $ 2,249 $ 1,651 Prepaid insurance 1,182 417 Prepaid easement renewal fees 99 121 Other prepaids 34 87 $ 3,564 $ 2,276

7. Inventory

7. Inventory	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory	Inventory as of the dates indicated consisted of the following: December 31, 2020 2019 (in thousands) Crude oil and condensate $ 463 $ 959 Chemicals 271 120 AGO 133 440 Naphtha 120 95 HOBM 54 - Propane 15 26 LPG mix 6 5 $ 1,062 $ 1,645

8. Property, Plant and Equipmen

8. Property, Plant and Equipment, Net	12 Months Ended
	Dec. 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: December 31, 2020 2019 (in thousands) Refinery and facilities $ 72,184 $ 66,317 Land 566 566 Other property and equipment 903 833 73,653 67,716 Less: Accumulated depletion, depreciation, and amortization (15,220 ) (12,739 ) 58,433 54,977 CIP 4,064 8,916 $ 62,497 $ 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 and $0.7 million at December 31, 2020 and 2019. Capital expenditures for expansion at the Nixon facility were funded by long-term debt from Veritex, revenue from operations, and working capital from Affiliates. At December 31, 2020, unused amounts for capital expenditures derived from Veritex loans were 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	12 Months Ended
	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities as of the dates indicated consisted of the following: December 31, 2020 2019 (in thousands) Unearned revenue from contracts with customers $ 3,421 $ 1,990 Insurance 541 159 Unearned contract renewal income 500 500 Other payable 252 228 Board of director fees payable 100 263 Taxes payable 58 183 Customer deposits 10 10 $ 4,882 $ 3,333

10. Third-Party Long-Term Debt

10. Third-Party Long-Term Debt	12 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
Third-Party Long-Term Debt	Loan Agreements Summary Loan Description Parties Original Principal Amount (in millions) Maturity Date Monthly Principal and Interest Payment Interest Rate Loan Purpose Veritex Loans(1) LE Term Loan Due 2034 ( in default LE-Veritex $25.0 Jun 2034 $0.2 million WSJ Prime + 2.75% Refinance loan; capital improvements LRM Term Loan Due 2034 ( in default LRM-Veritex $10.0 Dec 2034 $0.1 million WSJ Prime + 2.75% Refinance bridge loan; capital improvements Notre Dame Debt ( in default LE-Kissick $11.7 Jan 2018 No payments to date; payment rights subordinated 16.00% Working capital; reduced balance of GEL Final Arbitration Award SBA EIDLs LE Term Loan Due 2050(4) LE-SBA $0.15 Aug 2050 $0.0007 million 3.75% Working capital NPS Term Loan Due 2050(4) NPS-SBA $0.15 Aug 2050 $0.0007 million 3.75% Working capital Equipment Loan Due 2025 LE-Texas First $0.07 Oct 2025 $0.0013 million 4.50% Equipment Lease Conversion (1) Proceeds were placed in a disbursement account whereby Veritex makes payments for construction related expenses. Amounts held in the disbursement account are reflected on our consolidated balance sheets as restricted cash (current portion) and restricted cash (noncurrent). At December 31, 2020, restricted cash (current portion) was $0.05 million and restricted cash, noncurrent was $0.5 million. At December 31, 2019, restricted cash (current portion) was $0.05 million and restricted cash, noncurrent was $0.6 million. (2) LE originally entered into a loan agreement with Notre Dame Investors, Inc. in the principal amount of $8.0 million. The debt is currently held by John Kissick. 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. (3) 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 LE Term Loan Due 2034. (4) Payments are deferred for the first twelve (12) months of the loan; the first payment is due August 2021; interest accrues during the deferral period. SBA EIDLs are not forgivable. 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: December 31, 2020 2019 (in thousands) Veritex Loans LE Term Loan Due 2034 (in default) $ 22,840 $ 21,776 LRM Term Loan Due 2034 (in default) 9,473 9,031 Notre Dame Debt (in default) 9,413 8,617 SBA EIDLs LE Term Loan 2050 152 - NPS Term Loan 2050 152 - Equipment Loan Due 2025 71 - 42,101 39,424 Less: Current portion of long-term debt, net (33,692 ) (33,836 ) Less: Unamortized debt issue costs (1,749 ) (1,877 ) Less: Accrued interest payable (in default) (6,305 ) (3,711 ) $ 355 $ - Unamortized debt issue costs associated with the Veritex loans as of the dates indicated consisted of the following: December 31, 2020 2019 (in thousands) Veritex Loans LE Term Loan Due 2034 (in default) $ 1,674 $ 1,674 LRM Term Loan Due 2034 (in default) 768 768 Less: Accumulated amortization (693 ) (565 ) $ 1,749 $ 1,877 Amortization expense was $0.1 million for both twelve-month periods ended December 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: December 31, 2020 2019 (in thousands) Notre Dame Debt (in default) $ 4,435 $ 3,639 Veritex Loans LE Term Loan Due 2034 (in default) 1,295 25 LRM Term Loan Due 2034 (in default) 571 47 SBA EIDLs LE Term Loan 2050 2 - NPS Term Loan 2050 2 - 6,305 3,711 Less: Accrued interest payable (in default) (6,305 ) (3,711 ) Long-term Interest Payable, Net of Current Portion $ - $ - Payment Deferments Veritex Loans SBA EIDLs Guarantees and Security Loan Description Guarantees Security Veritex Loans(1) LE Term Loan Due 2034 ( in default ● ● ● ● ● ● ● ● LRM Term Loan Due 2034 ( in default ● ● ● ● ● ● ● ● Notre Dame Debt ( in default --- ● SBA EIDLs LE Term Loan Due 2050 --- ● NPS Term Loan Due 2050 --- ● Equipment Loan Due 2025 --- ● (1) As a condition of the LE Term Loan Due 2034 and LRM Term Loan Due 2034, Jonathan Carroll was required to personally guarantee repayment of 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 LE 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 “Notes (3) and (16)” to our consolidated financial statements for additional disclosures related to Affiliate agreements and transactions, including long-term debt guarantees. Covenants The Veritex loans and SBA EIDLs contain representations and warranties, affirmative and negative covenants, and events of default that we consider usual and customary for credit facilities of this type. There are no covenants associated with the Notre Dame Debt and the Equipment Loan Due 2025. Defaults Loan Description Event(s) of Default Covenant Violations Veritex Loans LE Term Loan Due 2034 ( in default GEL Final Arbitration Award and associated material adverse effect conditions; failure to replenish $1.0 million payment reserve account; events of default under other secured loan agreements with Veritex Financial covenants: ● LRM Term Loan Due 2034 ( in default GEL Final Arbitration Award and associated material adverse effect conditions; events of default under other secured loan agreements with Veritex Financial covenants: ● Notre Dame Debt ( in default Failure of borrower to pay past due obligations; loan matured January 2019 --- As reflected in the table above and elsewhere in this report, we are in default under the LE Term Loan Due 2034, LRM Term Loan Due 2034, and the Notre Dame Debt. Defaults under the LE Term Loan Due 2034 and LRM Term Loan Due 2034 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 the LE Term Loan Due 2034, LRM Term Loan Due 2034, and the Notre Dame Debt was classified within the current portion of long-term debt on our consolidated balance sheets at December 31, 2020 and 2019. 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. 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. 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 “Notes (1) and (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. Future annual third-party long-term debt payments, which are reflected as current due to defaults under our secured loan agreements: Years Ending December 31, Principal and Accrued Interest Debt Issue Costs Total (in thousands) 2021 $ 35,441 $ (1,749 ) $ 33,692 2022 16 - 16 2023 18 - 18 2024 19 - 19 2025 9 - 9 Subsequent to 2025 293 - 293 $ 35,796 $ (1,749 ) $ 34,047

11. Line of Credit Payable

11. Line of Credit Payable	12 Months Ended
	Dec. 31, 2020
Line of Credit Facility [Abstract]
Line of Credit Payable	Line of Credit Agreement Summary Line of Credit Description Original 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 Outstanding Principal, Debt Issue Costs, and Accrued Interest Line of credit payable, which represents outstanding principal and accrued interest, as of the dates indicated was as follows: December 31, 2020 2019 (in thousands) Amended Pilot Line of Credit (in default) $ 8,145 $ 11,786 Less: Unamortized debt issue costs - (219 ) Less: Interest payable, short-term (103 ) (103 ) $ 8,042 $ 11,464 Guarantees and Security Loan Description Guarantees Security Amended Pilot Line of Credit (in default) ● ● ● ● ● In an Agreement Regarding Attornment of Tank Leases dated April 30, 2019 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 that the Agreement Regarding Attornment of Tank Leases does not impair or void the LE Term Loan Due 2034 and LRM Term Loan Due 2034 or any associated guarantees. Veritex used commercially reasonable efforts to obtain such USDA concurrence, however, to date such USDA concurrence has not been provided. Covenants The Amended Pilot Line of Credit contains customary affirmative and negative covenants and events of default. Defaults Loan Description Event(s) of Default Covenant Violations Amended Pilot Line of Credit ( in default Failure of borrower or any guarantor to pay past due obligations; loan matured May 2020 --- As reflected in the table above and elsewhere in this report, we are in default under the Amended Pilot Line of Credit. Upon maturity of the Amended Pilot Line of Credit in May 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 (the “Obligations”). Pursuant to the Amended Pilot Line of Credit, commencing on May 4, 2020, the Obligations began to accrue interest at a default 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. Pursuant to a June 1, 2020 notice, Pilot began applying Pilot’s payment obligations to NPS under each of (a) the Terminal Services Agreement (covering Tank Nos. 67, 71, 72, 73, 77, and 78), dated as of May 2019, between NPS and Pilot, and (b) the Terminal Services Agreement (covering Tank No. 56), dated as of June 1, 2019, between NPS and Pilot, against NPS’ payment obligations to Pilot under the Amended Pilot Line of Credit. Such tank lease setoff amounts only partially satisfy NPS’ obligations under the Amended Pilot Line of Credit, and 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. For the twelve-month periods ended December 31, 2020 and 2019, the tank lease setoff amounts totaled $1.3 million and $0, respectively. For the twelve-month periods ended December 31, 2020 and 2019, the amount of interest NPS incurred under the Amended Pilot Line of Credit totaled $1.0 million and $0, respectively. On November 23, 2020, NPS and guarantors received notice from Pilot that the entry into the SBA EIDLs was a breach of the Amended Pilot Line of Credit and Pilot demanded full repayment of the Obligations, including through use of the proceeds of the SBA EIDLs. Pilot also notified the SBA that the liens securing the SBA EIDLs are junior to those securing the Obligations. While the SBA acknowledged this point and indicated a willingness to subordinate the SBA EIDLs, no further action has been taken by Pilot as of the filing date of this report. 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. NPS and guarantors continue in active dialogue with Pilot to reach a negotiated settlement, and we believe that Pilot hopes to continue working with NPS to settle the Obligations. NPS and guarantors are also working on the possible refinance of amounts owing and payable under the Amended Pilot Line of Credit. However, progress with potential lenders has been slow due to the ongoing COVID-19 pandemic. NPS’s 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. If new debt or other liabilities are added to the Company’s current consolidated debt levels, the related risks that it now faces could intensify. In the event we are unsuccessful in such endeavors, NPS 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.

12. AROs

12. AROs	12 Months Ended
	Dec. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]
AROs	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 decommissioning 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 December 31, 2020 and 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: December 31, 2020 2019 (in thousands) AROs, at the beginning of the period $ 2,565 $ 2,565 Liabilities settled (195 ) - 2,370 2,565 Less: AROs, current portion (2,370 ) (2,565 ) Long-term AROs, at the end of the period $ - $ - Liabilities settled reflects preparatory costs in the period associated with decommissioning our offshore pipelines and platform assets.

13. Lease Obligations

13. Lease Obligations	12 Months Ended
	Dec. 31, 2020
Leases [Abstract]
Lease Obligations	Lease Obligations Operating Lease Office Lease An Affiliate, LEH, subleases a portion of the Houston office space. Sublease income received from LEH totaled approximately $0.03 million for both the twelve months ended December 31, 2020 and 2019. See “Note (3)” to our consolidated financial statements for additional disclosures related to the Affiliate sub-lease. Finance Leases Crane Backhoe Rent-to-Own Agreement backhoe at maturity. The equipment rental agreement matured in May 2020. In October 2020, LE entered into a new 5-year loan to finance purchase of the backhoe. The backhoe continues to be used at the Nixon facility. See “Note (10)” to our consolidated financial statements for additional disclosures related to the equipment purchase loan. The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheet: 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 Operating lease ROU assets (289 ) (138 ) 498 649 Finance lease assets Property and equipment, net - 180 Less: Accumulated amortization on finance lease assets Property and equipment, net - (34 ) - 146 Total lease assets 498 795 Liabilities Current Operating lease Current portion of lease liabilities 194 175 Finance leases Current portion of lease liabilities - 76 194 251 Noncurrent Operating lease Long-term lease liabilities, net of current 370 564 Total lease liabilities $ 564 $ 815 Weighted average remaining lease term in years Operating lease 2.67 Weighted average discount rate Operating lease 8.25 % Finance leases 8.25 % The following table presents information related to lease costs for operating and finance leases: Twelve Months Ended December 31, 2020 2019 (in thousands) Operating lease costs $ 206 $ 206 Finance lease costs: Depreciation of leased assets 13 21 Interest on lease liabilities 3 6 Total lease cost $ 222 $ 233 The table below presents supplemental cash flow information related to leases as follows: December 31, 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 230 $ 190 Operating cash flows for finance leases $ 4 $ 6 Financing cash flows for finance leases $ 17 $ 45 As of December 31, 2020, maturities of lease liabilities for the periods indicated were as follows: December 31, Operating Lease Financing Leases Total (in thousands) 2021 $ 194 $ - $ 194 2022 214 - 214 2023 156 - 156 $ 564 $ - $ 564 Future minimum annual lease commitments that are non-cancelable: Operating December 31, Lease (in thousands) 2021 $ 233 2022 237 2023 161 $ 631

14. Income Taxes

14. Income Taxes	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Tax Provision The provision for income tax benefit (expense) for the periods indicated was as follows: Twelve Months Ended December 31, 2020 2019 (in thousands) Current Federal $ (15 ) $ - State - - Deferred Federal 3,033 (2,210 ) State - - Change in valuation allowance (3,033 ) 2,210 Total provision for income taxes $ (15 ) $ - The TMT is treated as an income tax for financial reporting purposes. Effective Tax Rate Our effective tax rate was as follows: December 31, 2020 2019 Expected tax rate 21.00 % 21.00 % Permanent differences 0.00 % 0.00 % State tax 0.00 % 0.00 % Federal tax 0.00 % 0.00 % Change in valuation allowance (21.00 %) (21.00 %) 0.00 % 0.00 % Our effective tax rate differed from the U.S. federal statutory rate primarily due to AMT credits made refundable by the Tax Cuts and Jobs Act. At the date of enactment of the Tax Cuts and Jobs Act, we re-measured our deferred tax assets and liabilities using a rate of 21%, which is the rate expected to be in place when such deferred assets and liabilities are expected to reverse in the future. The re-measurement was offset by a change in our valuation allowance, resulting in there being no impact on our net deferred tax assets. Deferred income taxes as of the dates indicated consisted of the following: December 31, 2020 2019 (in thousands) Deferred tax assets: NOL and capital loss carryforwards $ 15,258 $ 12,463 Business interest expense 3,343 1,923 Start-up costs (crude oil and condensate processing facility) 509 594 ARO liability/deferred revenue 498 539 AMT credit - 50 Other 4 11 Total deferred tax assets 19,611 15,580 Deferred tax liabilities: Basis differences in property and equipment (7,230 ) (6,183 ) Total deferred tax liabilities (7,230 ) (6,183 ) 12,381 9,397 Valuation allowance (12,381 ) (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 - 13,305 13,305 Balance at December 31, 2020 $ 9,614 $ 56,363 $ 65,977 Valuation Allowance

15. Earnings Per Share

15. Earnings Per Share	12 Months Ended
	Dec. 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: Twelve Months Ended December 31, 2020 2019 (in thousands, except share and per share amounts) Net income (loss) $ (14,458 ) $ 7,361 Basic and diluted income (loss) per share $ (1.15 ) $ 0.66 Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock 12,574,465 11,156,995 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 twelve months ended December 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	12 Months Ended
	Dec. 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. 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 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 twelve (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. Although we planned to decommission the offshore pipelines and platform assets in the third quarter of 2020, decommissioning of these assets has been delayed due to cash constraints associated with the ongoing impact of COVID-19 and winter being the offseason for dive operations in the U.S. Gulf of Mexico. We cannot currently estimate when decommissioning may occur. In the interim, BDPL provides BSEE with updates regarding the project’s status. In April 2020, BSEE issued another 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. The required platform surveys were completed, and the INC was resolved in June 2020. Lack of permit approvals does not relieve BDPL of its obligations to remedy the BSEE INCs or of BSEE’s authority to impose financial penalties. If BDPL fails to complete decommissioning of the offshore pipelines and platform assets and/or remedy the INCs within a timeframe determined to be prudent by BSEE, BDPL could be subject to regulatory oversight and enforcement, including but not limited to failure to correct an INC, civil penalties, and revocation of BDPL’s operator designation, which could 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 December 31, 2020. At December 31, 2020 and 2019, BDPL maintained $2.4 million and $2.6 million, respectively, in AROs related to abandonment of these assets.  Defaults Under Secured Loan Agreements with Third Parties See “Notes (1), (3), (10), and (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 The operations of certain Blue Dolphin subsidiaries 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. These 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 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 an August 15, 2019 meeting between management and BSEE may help in future discussions with BOEM related to the INCs. Decommissioning of these assets will significantly reduce or eliminate the amount of financial assurance required by BOEM, which may serve to partially or fully resolve the INCs. Although we planned to decommission the offshore pipelines and platform assets in the third quarter of 2020, decommissioning of these assets has been delayed due to cash constraints associated with the ongoing impact of COVID-19 and winter being the offseason for dive operations in the U.S. Gulf of Mexico. We cannot currently estimate when decommissioning may occur. In the interim, BDPL provides BOEM and BSEE with updates regarding the project’s status. 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 December 31, 2020. At both December 31, 2020 and 2019, BDPL maintained approximately $0.9 million in credit and cash-backed pipeline rights-of-way bonds issued to BOEM. 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 In August 2019, the GEL Final Arbitration Award was resolved as a result of the GEL Settlement. Under the GEL Settlement: (i) the mutual releases between the parties became effective, (ii) GEL filed the 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 December 31, 2020 and 2019, the accrued arbitration award payable was $0. Other Legal Matters Share Issuances (Sales of Unregistered Securities) We are obligated to issue shares of our Common Stock to: (i) non-employee directors for services rendered to the Board and (ii) to Jonathan Carroll pursuant to the Guaranty Fee Agreements. For the foreseeable future, management does not intend to pay Mr. Carroll the cash portion of guaranty fees due to Blue Dolphin’s working capital deficits. The cash portion will continue to accrue and be 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. Set forth below is information regarding the sale or issuance of Common Stock related to the above noted obligations during the twelve months ended December 31, 2020 and 2019: ● On April 30, 2020, we issued an aggregate of 231,065 restricted shares of Common Stock to Jonathan Carroll, which represented payment of the common stock component of guaranty fees for the period November 2019 through March 2020. We recorded income of approximately $0.03 million related to the share issuance. ● 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 represented 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. We recorded income of approximately $0.05 million related to the share issuance. ● On November 14, 2019, we issued an aggregate of 1,351,851 restricted shares of Common Stock to Jonathan Carroll pursuant to guaranty fee agreements. The issuance represented payment of the common stock component of the guaranty fees for the period May 2017 through October 2019, which payments were not permissible under the GEL Settlement Agreement. We recorded an expense of approximately $0.5 million related to the share issuance. We recognized income on the issuance of shares of approximately $0.08 million and an expense of approximately $0.5 million for the twelve months ended December 31, 2020 and 2019, respectively. The sale and issuance of these securities were exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act.

17. Subsequent Events

17. Subsequent Events	12 Months Ended
	Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	BDSC Office Lease Default Pursuant to a letter dated March 29, 2021, TR 801 Travis LLC, a Delaware limited partnership (“Landlord”), informed BDSC that it was in default under its office lease. BDSC’s failure to pay past due obligations, including rent installments and other charges, constituted an event of default. Landlord is entitled to, and is fully prepared to, immediately exercise any or all of its rights and remedies, without giving BDSC any further notice or demand. Landlord 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 Landlord under the office lease or applicable law or equity.

2. Principles of Consolidatio_2

2. Principles of Consolidation and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates
Cash and Cash Equivalents	Cash and Cash Equivalents
Restricted Cash	Restricted Cash
Accounts Receivable, Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts
Inventory	Inventory
Property and Equipment	Property and Equipment Refinery and Facilities Pipelines and Facilities Oil and Gas Properties CIP
Leases	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	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	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 December 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 December 31, 2020 and 2019. 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 December 31, 2020 and 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	Impairment or Disposal of Long-Lived Assets The market volatility of commodity prices as a result of the ongoing COVID-19 pandemic could affect the value of certain of our long-lived assets. Management evaluated our refinery and facilities assets for impairment as of December 31, 2020. No impairment was deemed necessary based upon this testing, and we did not record any impairment of our refinery and facilities assets for the periods presented. However, an impairment may be required in the future as the long-term impact of the crisis becomes clearer, losses continue to be material, or as new opportunities arise, such as reconfiguration of the Nixon refinery into a renewable fuels facility.
Asset Retirement Obligations	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	Computation of Earnings Per Share
New Pronouncements Adopted	New Pronouncements Adopted Income Taxes. Consolidation Codification Updates to SEC Sections Codification Improvements.
New Pronouncements Issued, Not Yet Effective	New Pronouncements Issued, Not Yet Effective . No new pronouncements issued but not yet effective are not expected to have a material impact on our financial position, results of operations, or liquidity.

1. Organization (Tables)

1. Organization (Tables)	12 Months Ended
	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents and restricted cash	December 31, 2020 2019 (in thousands) Cash and cash equivalents $ 549 $ 72 Restricted cash (current portion) 48 49 Restricted cash, noncurrent 514 547 Total $ 1,111 $ 668

3. Related-Party Transactions (

3. Related-Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
Affiliate agreements/transactions	Agreement/Transaction Parties Effective Date Key Terms Refinery Equipment Purchase LTRI - LE 07/01/2019 LE purchase of two (2) refurbished heat exchangers for $0.08 million each Dock Tolling Agreement LMT - LE 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 04/01/2021 1-year term expiring earliest to occur of 03/31/2022 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 Office Sub-Lease Agreement LEH - BDSC 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 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 Related-Party Long-Term Debt Loan Description Parties Maturity Date Interest Rate Loan Purpose March Carroll Note (in default) Jonathan Carroll – Blue Dolphin Jan 2019 8.00% Blue Dolphin working capital; reflects amounts owed to Jonathan Carroll under the guaranty fee agreements March Ingleside Note (in default) Ingleside – Blue Dolphin Jan 2019 8.00% Blue Dolphin working capital June LEH Note (in default) LEH – Blue Dolphin Jan 2019 8.00% Blue Dolphin working capital; reflects amounts owed to LEH under the Amended and Restated Operating Agreement BDPL-LEH Loan Agreement (in default) LEH - BDPL Aug 2018 16.00% Blue Dolphin working capital Amended and Restated Guaranty Fee Agreement(2) Jonathan Carroll - LE -- 2.00% Tied to payoff of LE $25 million Veritex loan Amended and Restated Guaranty Fee Agreement(2) Jonathan Carroll - LRM -- 2.00% Tied to payoff of LRM $10 million Veritex loan (1) The original principal amount of the BDPL-LEH Loan Agreement was $4.0 million. (2) As a condition for our secured loan agreements with Veritex, Jonathan Carroll was required to personally guarantee repayment of borrowed funds and accrued interest. Under the guaranty fee agreements, Mr. Carroll is entitled to receive guaranty fees. The fees are payable 50% in cash and 50% in Common Stock. The Common Stock portion is paid quarterly. For the foreseeable future, management does not intend to pay Mr. Carroll the cash portion due to Blue Dolphin’s working capital deficits. The cash portion will continue to accrue and be added to the outstanding principal balance owed to Mr. Carroll under the March Carroll Note. Guarantees and Security Loan Description Guarantees Security BDPL-LEH Loan Agreement --- ● Defaults Loan Description Event(s) of Default Covenant Violations March Carroll Note (in default) Failure of borrower to pay past due obligations; loan matured January 2019 -- March Ingleside Note (in default) Failure of borrower to pay past due obligations; loan matured January 2019 --- June LEH Note (in default) Failure of borrower to pay past due obligations; loan matured January 2019 --- BDPL-LEH Loan Agreement (in default) Failure of borrower to pay past due obligations; loan matured August 2018 ---
Accounts payable, related party	December 31, 2020 2019 (in thousands) LEH June LEH Note (in default) $ 9,446 $ - BDPL-LEH Loan Agreement 6,814 6,174 LEH Total 16,260 6,174 Ingleside March Ingleside Note (in default) 1,013 1,004 Jonathan Carroll March Carroll Note (in default) 1,551 997 18,824 8,175 Less: Long-term debt, related party, current portion, in default (16,010 ) (6,001 ) Less: Accrued interest payable, related party (in default) (2,814 ) (2,174 ) $ - $ -
Refinery operating expenses	Twelve Months Ended December 31, 2020 2019 (in thousands, except percent amounts) Refinery operations LEH $ 49,786 28.5 % $ 97,239 31.0 % Third-Parties 120,815 69.1 % 207,685 67.6 % Tolling and terminaling Third-Parties 4,209 2.4 % 4,338 1.4 % $ 174,810 100.0 % $ 309,262 100.0 %
Accrued interest expenses	Twelve Months Ended December 31, 2020 2019 (in thousands) Jonathan Carroll Guaranty Fee Agreements First Term Loan Due 2034 $ 431 $ 443 Second Term Loan Due 2034 178 183 March Carroll Note (in default) 103 103 LEH BDPL-LEH Loan Agreement (in default) 640 640 June LEH Note (in default) 40 40 Ingleside March Ingleside Note (in default) 63 63 $ 1,455 $ 1,472

4. Revenue and Segment Inform_2

4. Revenue and Segment Information (Tables)	12 Months Ended
	Dec. 31, 2020
Segment Reporting [Abstract]
Business segment reporting	Twelve Months Ended December 31, 2020 2019 (in thousands) Net revenue (excluding intercompany fees and sales) Refinery operations $ 170,601 $ 304,924 Tolling and terminaling 4,209 4,338 Total net revenue 174,810 309,262 Intercompany fees and sales Refinery operations (2,384 ) (2,615 ) Tolling and terminaling 2,384 2,615 Total intercompany fees - - Operation costs and expenses(1) Refinery operations (175,201 ) (296,502 ) Tolling and terminaling (1,661 ) (1,325 ) Corporate and other (169 ) (222 ) Total operation costs and expenses (177,031 ) (298,049 ) Segment contribution margin (deficit) Refinery operations (6,984 ) 5,807 Tolling and terminaling 4,932 5,628 Corporate and other (169 ) (222 ) Total segment contribution margin (deficit) (2,221 ) 11,213 General and administrative expenses(2) Refinery operations (1,257 ) (1,252 ) Tolling and terminaling (307 ) (262 ) Corporate and other (1,381 ) (1,756 ) Total general and administrative expenses (2,945 ) (3,270 ) Depreciation and amortization Refinery operations (1,186 ) (1,913 ) Tolling and terminaling (1,296 ) (396 ) Corporate and other (204 ) (181 ) Total depreciation and amortization (2,686 ) (2,490 ) Interest and other non-operating expenses, net Refinery operations (2,929 ) 5,668 Tolling and terminaling (2,546 ) (2,398 ) Corporate and other (1,116 ) (1,362 ) Total interest and other non-operating expenses, net (6,591 ) # 1,908 Income (loss) before income taxes Refinery operations (12,356 ) 8,310 Tolling and terminaling 783 2,572 Corporate and other (2,870 ) (3,521 ) Total income (loss) before income taxes (14,443 ) 7,361 Income tax expense (15 ) - Net income (loss) $ (14,458 ) $ 7,361 (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. Twelve Months Ended December 31, 2020 2019 (in thousands) Capital expenditures Refinery operations $ 295 $ 1,453 Tolling and terminaling 790 121 Corporate and other - - Total capital expenditures $ 1,085 $ 1,574 December 31, 2020 2019 (in thousands) Identifiable assets Refinery operations $ 48,521 $ 51,317 Tolling and terminaling 18,722 18,401 Corporate and other 2,057 1,726 Total identifiable assets $ 69,300 $ 71,444

5. Concentration of Risk (Table

5. Concentration of Risk (Tables)	12 Months Ended
	Dec. 31, 2020
Risks and Uncertainties [Abstract]
Significant customers	Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable December 31, 2020 3 70.8% $0 2019 4 96.5% $1.7 million
Percentages of all refined petroleum products sales to total sales	Twelve Months Ended December 31, 2020 2019 (in thousands, except percent amounts) LPG mix $ 2 0.0 % $ 17 0 % Naphtha 34,413 20.2 % 59,799 19.6 % Jet fuel 49,786 29.2 % 97,239 31.9 % HOBM 42,777 25.1 % 66,891 21.9 % AGO 43,623 25.5 % 80,978 26.6 % $ 170,601 100.0 % $ 304,924 100.0 %

6. Prepaid Expenses and Other_2

6. Prepaid Expenses and Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses and other current assets	December 31, 2020 2019 (in thousands) Prepaid crude oil and condensate $ 2,249 $ 1,651 Prepaid insurance 1,182 417 Prepaid easement renewal fees 99 121 Other prepaids 34 87 $ 3,564 $ 2,276

7. Inventory (Tables)

7. Inventory (Tables)	12 Months Ended
	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory	December 31, 2020 2019 (in thousands) Crude oil and condensate $ 463 $ 959 Chemicals 271 120 AGO 133 440 Naphtha 120 95 HOBM 54 - Propane 15 26 LPG mix 6 5 $ 1,062 $ 1,645

8. Property, Plant and Equipm_2

8. Property, Plant and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Property and equipment	December 31, 2020 2019 (in thousands) Refinery and facilities $ 72,184 $ 66,317 Land 566 566 Other property and equipment 903 833 73,653 67,716 Less: Accumulated depletion, depreciation, and amortization (15,220 ) (12,739 ) 58,433 54,977 CIP 4,064 8,916 $ 62,497 $ 63,893

9. Accrued Expenses and Other_2

9. Accrued Expenses and Other Current Liabilities (Tables)	12 Months Ended
	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued expenses and other current liabilities	December 31, 2020 2019 (in thousands) Unearned revenue from contracts with customers $ 3,421 $ 1,990 Insurance 541 159 Unearned contract renewal income 500 500 Other payable 252 228 Board of director fees payable 100 263 Taxes payable 58 183 Customer deposits 10 10 $ 4,882 $ 3,333

10. Third-Party Long-Term Debt

10. Third-Party Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Loan agreements	Loan Description Parties Original Principal Amount (in millions) Maturity Date Monthly Principal and Interest Payment Interest Rate Loan Purpose Veritex Loans(1) LE Term Loan Due 2034 ( in default LE-Veritex $25.0 Jun 2034 $0.2 million WSJ Prime + 2.75% Refinance loan; capital improvements LRM Term Loan Due 2034 ( in default LRM-Veritex $10.0 Dec 2034 $0.1 million WSJ Prime + 2.75% Refinance bridge loan; capital improvements Notre Dame Debt ( in default LE-Kissick $11.7 Jan 2018 No payments to date; payment rights subordinated 16.00% Working capital; reduced balance of GEL Final Arbitration Award SBA EIDLs LE Term Loan Due 2050(4) LE-SBA $0.15 Aug 2050 $0.0007 million 3.75% Working capital NPS Term Loan Due 2050(4) NPS-SBA $0.15 Aug 2050 $0.0007 million 3.75% Working capital Equipment Loan Due 2025 LE-Texas First $0.07 Oct 2025 $0.0013 million 4.50% Equipment Lease Conversion (1) Proceeds were placed in a disbursement account whereby Veritex makes payments for construction related expenses. Amounts held in the disbursement account are reflected on our consolidated balance sheets as restricted cash (current portion) and restricted cash (noncurrent). At December 31, 2020, restricted cash (current portion) was $0.05 million and restricted cash, noncurrent was $0.5 million. At December 31, 2019, restricted cash (current portion) was $0.05 million and restricted cash, noncurrent was $0.6 million. (2) LE originally entered into a loan agreement with Notre Dame Investors, Inc. in the principal amount of $8.0 million. The debt is currently held by John Kissick. 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. (3) 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 LE Term Loan Due 2034. (4) Payments are deferred for the first twelve (12) months of the loan; the first payment is due August 2021; interest accrues during the deferral period. SBA EIDLs are not forgivable.
Long term debt	December 31, 2020 2019 (in thousands) Veritex Loans LE Term Loan Due 2034 (in default) $ 22,840 $ 21,776 LRM Term Loan Due 2034 (in default) 9,473 9,031 Notre Dame Debt (in default) 9,413 8,617 SBA EIDLs LE Term Loan 2050 152 - NPS Term Loan 2050 152 - Equipment Loan Due 2025 71 - 42,101 39,424 Less: Current portion of long-term debt, net (33,692 ) (33,836 ) Less: Unamortized debt issue costs (1,749 ) (1,877 ) Less: Accrued interest payable (in default) (6,305 ) (3,711 ) $ 355 $ -
Debt issue costs	December 31, 2020 2019 (in thousands) Veritex Loans LE Term Loan Due 2034 (in default) $ 1,674 $ 1,674 LRM Term Loan Due 2034 (in default) 768 768 Less: Accumulated amortization (693 ) (565 ) $ 1,749 $ 1,877
Accrued interest related to our long-term debt, net	December 31, 2020 2019 (in thousands) Notre Dame Debt (in default) $ 4,435 $ 3,639 Veritex Loans LE Term Loan Due 2034 (in default) 1,295 25 LRM Term Loan Due 2034 (in default) 571 47 SBA EIDLs LE Term Loan 2050 2 - NPS Term Loan 2050 2 - 6,305 3,711 Less: Accrued interest payable (in default) (6,305 ) (3,711 ) Long-term Interest Payable, Net of Current Portion $ - $ -
Third-party long-term debt payments	Years Ending December 31, Principal and Accrued Interest Debt Issue Costs Total (in thousands) 2021 $ 35,441 $ (1,749 ) $ 33,692 2022 16 - 16 2023 18 - 18 2024 19 - 19 2025 9 - 9 Subsequent to 2025 293 - 293 $ 35,796 $ (1,749 ) $ 34,047

11. Line of Credit Payable (Tab

11. Line of Credit Payable (Tables)	12 Months Ended
	Dec. 31, 2020
Line of Credit Facility [Abstract]
Line of credit agreement	Line of Credit Description Original 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	December 31, 2020 2019 (in thousands) Amended Pilot Line of Credit (in default) $ 8,145 $ 11,786 Less: Unamortized debt issue costs - (219 ) Less: Interest payable, short-term (103 ) (103 ) $ 8,042 $ 11,464

12. AROs (Tables)

12. AROs (Tables)	12 Months Ended
	Dec. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations	December 31, 2020 2019 (in thousands) AROs, at the beginning of the period $ 2,565 $ 2,565 Liabilities settled (195 ) - 2,370 2,565 Less: AROs, current portion (2,370 ) (2,565 ) Long-term AROs, at the end of the period $ - $ -

13. Lease Obligations (Tables)

13. Lease Obligations (Tables)	12 Months Ended
	Dec. 31, 2020
Leases [Abstract]
Lease-related assets and liabilities	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 Operating lease ROU assets (289 ) (138 ) 498 649 Finance lease assets Property and equipment, net - 180 Less: Accumulated amortization on finance lease assets Property and equipment, net - (34 ) - 146 Total lease assets 498 795 Liabilities Current Operating lease Current portion of lease liabilities 194 175 Finance leases Current portion of lease liabilities - 76 194 251 Noncurrent Operating lease Long-term lease liabilities, net of current 370 564 Total lease liabilities $ 564 $ 815 Weighted average remaining lease term in years Operating lease 2.67 Weighted average discount rate Operating lease 8.25 % Finance leases 8.25 %
Lease costs	Twelve Months Ended December 31, 2020 2019 (in thousands) Operating lease costs $ 206 $ 206 Finance lease costs: Depreciation of leased assets 13 21 Interest on lease liabilities 3 6 Total lease cost $ 222 $ 233
Supplemental cash flow information related to leases	December 31, 2020 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 230 $ 190 Operating cash flows for finance leases $ 4 $ 6 Financing cash flows for finance leases $ 17 $ 45
Maturities of lease liabilities	December 31, Operating Lease Financing Leases Total (in thousands) 2021 $ 194 $ - $ 194 2022 214 - 214 2023 156 - 156 $ 564 $ - $ 564
Future minimum annual lease commitments	Operating December 31, Lease (in thousands) 2021 $ 233 2022 237 2023 161 $ 631

14. Income Taxes (Tables)

14. Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income tax benefit (expense)	Twelve Months Ended December 31, 2020 2019 (in thousands) Current Federal $ (15 ) $ - State - - Deferred Federal 3,033 (2,210 ) State - - Change in valuation allowance (3,033 ) 2,210 Total provision for income taxes $ (15 ) $ -
Effective tax rate	December 31, 2020 2019 Expected tax rate 21.00 % 21.00 % Permanent differences 0.00 % 0.00 % State tax 0.00 % 0.00 % Federal tax 0.00 % 0.00 % Change in valuation allowance (21.00 %) (21.00 %) 0.00 % 0.00 %
Deferred tax assets and deferred tax liabilities	December 31, 2020 2019 (in thousands) Deferred tax assets: NOL and capital loss carryforwards $ 15,258 $ 12,463 Business interest expense 3,343 1,923 Start-up costs (crude oil and condensate processing facility) 509 594 ARO liability/deferred revenue 498 539 AMT credit - 50 Other 4 11 Total deferred tax assets 19,611 15,580 Deferred tax liabilities: Basis differences in property and equipment (7,230 ) (6,183 ) Total deferred tax liabilities (7,230 ) (6,183 ) 12,381 9,397 Valuation allowance (12,381 ) (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 - 13,305 13,305 Balance at December 31, 2020 $ 9,614 $ 56,363 $ 65,977

15. Earnings Per Share (Tables)

15. Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2020
Earnings Per Share [Abstract]
Earnings per share	Twelve Months Ended December 31, 2020 2019 (in thousands, except share and per share amounts) Net income (loss) $ (14,458 ) $ 7,361 Basic and diluted income (loss) per share $ (1.15 ) $ 0.66 Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock 12,574,465 11,156,995

16. Commitments and Contingen_2

16. Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [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)

1. Organization (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 549	$ 72
Restricted cash (current portion)	48	49
Restricted cash, noncurrent	$ 514	$ 547

1. Organization (Details Narrat

1. Organization (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ (14,458)	$ 7,361
Net income (loss) per common share	$ (1.15)	$ 0.66
Working capital deficit	$ (72,300)	$ (59,400)

2. Principles of Consolidatio_3

2. Principles of Consolidation and Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Allowance for doubtful accounts	$ 100	$ 100

3. Related-Party Transactions_2

3. Related-Party Transactions (Details)	12 Months Ended
	Dec. 31, 2020
LTRI LE
Type	Refinery Equipment Purchase
Effective date	7/1/2019
Key terms/purpose	LE purchase of two (2) refurbished heat exchangers for $0.08 million each
LMT - LE
Type	Dock Tolling Agreement
Effective date	5/24/2016
Key terms/purpose	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	Jet Fuel Sales Agreement
Effective date	4/1/2020
Key terms/purpose	1-year term expiring earliest to occur of 03/31/2022 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
LEH - BDSC
Type	Office Sub-Lease Agreement
Effective date	1/1/2018
Key terms/purpose	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	Amended and Restated Operating Agreement
Effective date	4/1/2020
Key terms/purpose	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
Jonathan Carroll - Blue Dolphin
Type	March Carroll Note (in default)
Maturity date	Jan 2019
Interest rate	8.00%
Key terms/purpose	Blue Dolphin working capital; reflects amounts owed to Jonathan Carroll under the guaranty fee agreements
Ingleside - Blue Dolphin
Type	March Ingleside Note (in default)
Maturity date	Jan 2019
Interest rate	8.00%
Key terms/purpose	Blue Dolphin working capital
LEH - Blue Dolphin
Type	June LEH Note (in default)
Maturity date	Jan 2019
Interest rate	8.00%
Key terms/purpose	Blue Dolphin working capital; reflects amounts owed to LEH under the Amended and Restated Operating Agreement
LEH - BDPL
Type	BDPL-LEH Loan Agreement (in default)
Maturity date	Aug 2018
Interest rate	16.00%
Key terms/purpose	Blue Dolphin working capital
Jonathan Carroll - LE
Type	Amended and Restated Guaranty Fee Agreement
Interest rate	2.00%
Key terms/purpose	Tied to payoff of LE $25 million Veritex loan
Jonathan Carroll - LRM
Type	Amended and Restated Guaranty Fee Agreement
Interest rate	2.00%
Key terms/purpose	Tied to payoff of LRM $10 million Veritex loan

3. Related-Party Transactions_3

3. Related-Party Transactions (Details 1) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Prepaid operating expenses, related party	$ 18,824	$ 8,175
Less: long-term debt, related party, current portion, in default	(16,010)	(6,001)
Less: interest payable, related party, in default	(2,814)	(2,174)
Long-term debt - net of current portion, related party	0	0
LEH
Prepaid operating expenses, related party	16,260	6,174
LEH | June LEH Note
Prepaid operating expenses, related party	9,446	0
LEH | BDPL-LEH Loan Agreement
Prepaid operating expenses, related party	6,814	6,174
Ingleside | March Ingleside Note
Prepaid operating expenses, related party	1,013	1,004
Jonathan Carroll | March Carroll Note
Prepaid operating expenses, related party	$ 1,551	$ 997

3. Related-Party Transactions_4

3. Related-Party Transactions (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Refinery operations revenues	$ 170,601	$ 304,924
Tolling and terminaling revenues	4,209	4,338
Total revenues	$ 174,810	$ 309,262
Total revenues, percent	100.00%	100.00%
LEH
Refinery operations revenues	$ 49,786	$ 97,239
Refinery operations revenues, percent	28.50%	31.00%
Third Parties
Refinery operations revenues	$ 120,815	$ 207,685
Tolling and terminaling revenues	$ 4,209	$ 4,338
Refinery operations revenues, percent	69.10%	67.60%
Tolling and terminaling revenues, percent	2.40%	1.40%

3. Related-Party Transactions_5

3. Related-Party Transactions (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Interest expenses under loan and guarantee, related party	$ 1,455	$ 1,472
Jonathan Carroll | First Term Loan Due 2034
Interest expenses under loan and guarantee, related party	431	443
Jonathan Carroll | Second Term Loan Due 2034
Interest expenses under loan and guarantee, related party	178	183
Jonathan Carroll | March Carroll Note
Interest expenses under loan and guarantee, related party	103	103
LEH | BDPL-LEH Loan Agreement
Interest expenses under loan and guarantee, related party	640	640
LEH | June LEH Note
Interest expenses under loan and guarantee, related party	40	406
Ingleside | March Ingleside Note
Interest expenses under loan and guarantee, related party	$ 63	$ 63

3. Related-Party Transactions_6

3. Related-Party Transactions (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions [Abstract]
Accounts receivable, related party	$ 0	$ 1,364
Accounts payable, related party	155	149
Dock Tolling Agreement with LMT fees	30	30
Lease payments received under the office sub-lease agreement with LEH	$ 60	$ 60

4. Revenue and Segment Inform_3

4. Revenue and Segment Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Net revenues (excluding intercompany fees and sales)	$ 174,810	$ 309,262
General and administrative expenses	2,299	2,659
Income tax expense	15	0
Net income (loss)	(14,458)	7,361
Identifiable assets	69,300	71,444
Refinery Operations
Net revenues (excluding intercompany fees and sales)	170,601	304,924
Intercompany fees and sales	(2,384)	(2,615)
Operation costs and expenses	(175,201)	(296,502)
Segment contribution margin (deficit)	(6,984)	5,807
General and administrative expenses	(1,257)	(1,252)
Depreciation and amortization	(1,186)	(1,913)
Interest and other non-operating expenses, net	(2,929)	5,668
Income (loss) before income taxes	(12,356)	8,310
Capital expenditures	295	1,453
Identifiable assets	48,521	51,317
Tolling and Terminaling
Net revenues (excluding intercompany fees and sales)	4,209	4,338
Intercompany fees and sales	2,384	2,615
Operation costs and expenses	(1,661)	(1,325)
Segment contribution margin (deficit)	4,932	5,628
General and administrative expenses	(307)	(262)
Depreciation and amortization	(1,296)	(396)
Interest and other non-operating expenses, net	(2,546)	(2,398)
Income (loss) before income taxes	783	2,572
Capital expenditures	790	121
Identifiable assets	18,722	18,401
Corporate and Other
Operation costs and expenses	(169)	(222)
Segment contribution margin (deficit)	(169)	(222)
General and administrative expenses	(1,381)	(1,756)
Depreciation and amortization	(204)	(181)
Interest and other non-operating expenses, net	(1,116)	(1,362)
Income (loss) before income taxes	(2,870)	(3,521)
Capital expenditures	0	0
Identifiable assets	2,057	1,726
Total
Net revenues (excluding intercompany fees and sales)	174,810	309,262
Intercompany fees and sales	0	0
Operation costs and expenses	(177,031)	(298,049)
Segment contribution margin (deficit)	(2,221)	11,213
General and administrative expenses	(2,945)	(3,270)
Depreciation and amortization	(2,686)	(2,490)
Interest and other non-operating expenses, net	(6,591)	1,908
Income (loss) before income taxes	(14,443)	7,361
Income tax expense	(15)	0
Net income (loss)	(14,458)	7,361
Capital expenditures	1,085	1,574
Identifiable assets	$ 69,300	$ 71,444

5. Concentration of Risk (Detai

5. Concentration of Risk (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Concentration of risk	100.00%	100.00%
3 Significant Customers
Concentration of risk	70.80%
Portion of accounts receivable	$ 0
4 Significant Customers
Concentration of risk		96.50%
Portion of accounts receivable		$ 1,700

5. Concentration of Risk (Det_2

5. Concentration of Risk (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Total refined petroleum product sales	$ 170,601	$ 304,924
Concentration risk	100.00%	100.00%
LPG Mix
Total refined petroleum product sales	$ 2	$ 17
Concentration risk	0.00%	0.00%
Naphtha
Total refined petroleum product sales	$ 34,413	$ 59,799
Concentration risk	20.20%	19.60%
Jet Fuel
Total refined petroleum product sales	$ 49,786	$ 97,239
Concentration risk	22.00%	31.90%
HOBM
Total refined petroleum product sales	$ 42,777	$ 66,891
Concentration risk	25.10%	21.90%
AGO
Total refined petroleum product sales	$ 43,623	$ 80,978
Concentration risk	25.50%	26.60%

5. Concentration of Risk (Det_3

5. Concentration of Risk (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Risks and Uncertainties [Abstract]
Balances in excess of FDIC insurance limit	$ 600	$ 300

6. Prepaid Expenses and Other_3

6. Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid crude oil and condensate	$ 2,249	$ 1,651
Prepaid insurance	1,182	417
Prepaid easement renewal fees	99	121
Other prepaids	34	87
Prepaid expenses, net	$ 3,564	$ 2,276

7. Inventory (Details)

7. Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Inventory	$ 1,062	$ 1,645
Crude Oil and Condensate
Inventory	463	959
Chemicals
Inventory	271	120
AGO
Inventory	133	440
Naphtha
Inventory	120	95
HOBM
Inventory	54	0
Propane
Inventory	15	26
LPG Mix
Inventory	$ 6	$ 5

8. Property, Plant and Equipm_3

8. Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Refinery and facilities	$ 72,184	$ 66,317
Land	566	566
Other property and equipment	903	833
Property, plant and equipment, gross	73,653	67,716
Less: accumulated depletion, depreciation, and amortization	(15,220)	(12,739)
Property, plant and equipment less depreciation	58,433	54,977
CIP	4,064	8,916
Property, plant and equipment, net	$ 62,497	$ 63,893

8. Property, Plant and Equipm_4

8. Property, Plant and Equipment, Net (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Interest costs capitalized	$ 0	$ 700

9. Accrued Expenses and Other_3

9. Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Unearned revenue from contracts with customers	$ 3,421	$ 1,990
Insurance	541	159
Unearned contract renewal income	500	500
Other payable	252	228
Board of director fees payable	100	263
Customer deposits	58	183
Taxes payable	10	10
Accrued expenses and other current liabilities, net	$ 4,882	$ 3,333

10. Third-Party Long-Term Deb_2

10. Third-Party Long-Term Debt (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)
LE Term Loan Due 2034
Original principal amount	$ 25,000
Maturity date	Jun 2034
Interest rate	WSJ Prime + 2.75%
LRM Term Loan Due 2034
Original principal amount	$ 10,000
Maturity date	Dec 2034
Interest rate	WSJ Prime + 2.75%
Notre Dame Debt (in default)
Original principal amount	$ 11,700
Maturity date	Jan 2018
Interest rate	16.00%
LE Term Loan Due 2050
Original principal amount	$ 150
Maturity date	Aug 2050
Interest rate	3.75%
NPS Term Loan Due 2050
Original principal amount	$ 150
Maturity date	Aug 2050
Interest rate	3.75%

10. Third-Party Long-Term Deb_3

10. Third-Party Long-Term Debt (Details 1) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Principal balance outstanding	$ 42,101	$ 39,424
Less: current portion of long-term debt, net	(33,692)	(33,836)
Less: unamortized debt issue costs	(1,749)	(1,877)
Less: accrued interest payable (in default)	(6,305)	(3,711)
Long term debt	355	0
LE Term Loan Due 2034
Principal balance outstanding	22,840	21,776
Less: accrued interest payable (in default)	(1,295)	(25)
LRM Term Loan Due 2034
Principal balance outstanding	9,473	9,031
Less: accrued interest payable (in default)	(571)	(47)
Notre Dame Debt (in default)
Principal balance outstanding	9,413	8,617
Less: accrued interest payable (in default)	(4,435)	(3,639)
LE Term Loan Due 2050
Principal balance outstanding	152	0
Less: accrued interest payable (in default)	(2)	0
NPS Term Loan Due 2050
Principal balance outstanding	152	0
Less: accrued interest payable (in default)	(2)	0
Equipment Loan Due 2025
Principal balance outstanding	$ 71	$ 0

10. Third-Party Long-Term Deb_4

10. Third-Party Long-Term Debt (Details 2) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Less: accumulated amortization	$ (693)	$ (565)
Unamortized debt issue costs, net	1,749	1,877
LE Term Loan Due 2034
Unamortized debt issue costs, gross	1,674	1,674
LRM Term Loan Due 2034
Unamortized debt issue costs, gross	$ 768	$ 768

10. Third-Party Long-Term Deb_5

10. Third-Party Long-Term Debt (Details 3) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accrued interest	$ 6,305	$ 3,711
Less: accrued interest payable (in default)	(6,305)	(3,711)
Long-term interest payable, net of current portion	0	0
Notre Dame Debt (in default)
Accrued interest	4,435	3,639
LE Term Loan Due 2034
Accrued interest	1,295	25
LRM Term Loan Due 2034
Accrued interest	571	47
LE Term Loan Due 2050
Accrued interest	2	0
NPS Term Loan Due 2050
Accrued interest	$ 2	$ 0

10. Third-Party Long-Term Deb_6

10. Third-Party Long-Term Debt (Details 4) $ in Thousands	Dec. 31, 2020USD ($)
2021	$ 33,692
2022	16
2023	18
2024	19
2025	9
Subsequent to 2025	293
Long term debt payment, net	34,047
Principal
2021	35,441
2022	16
2023	18
2024	19
2025	9
Subsequent to 2025	293
Long term debt payment, net	35,796
Debt Issuance Costs
2021	(1,749)
2022	0
2023	0
2024	0
2025	0
Subsequent to 2025	0
Long term debt payment, net	$ (1,749)

10. Third-Party Long-Term Deb_7

10. Third-Party Long-Term Debt (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Amortization expense	$ 348	$ 629

11. Line of Credit Payable (Det

11. Line of Credit Payable (Details) - Amended Pilot Line Of Credit (in default) $ in Thousands	12 Months Ended
	Dec. 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	Dec. 31, 2020	Dec. 31, 2019
Line of credit, gross	$ 42,101	$ 39,424
Less: unamortized debt issue costs	(1,749)	(1,877)
Less: interest payable, short term	(6,305)	(3,711)
Amended Pilot Line Of Credit (in default)
Line of credit, gross	8,145	11,786
Less: unamortized debt issue costs	0	(219)
Less: interest payable, short term	(103)	(103)
Line of credit	$ 8,042	$ 11,464

12. ARO'S (Details)

12. ARO'S (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]
AROs, at the beginning of the period	$ 2,565	$ 2,565
Liabilities settled	(195)	0
AROs	2,370	2,565
Less: AROs, current portion	(2,370)	(2,565)
Long-term AROs, at the end of the period	$ 0	$ 0

13. Lease Obligation (Details)

13. Lease Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease right-of-use assets, gross	$ 787	$ 787
Less: accumulated amortization on operating lease assets	(289)	(138)
Operating lease right-of-use assets, net	498	649
Finance lease assets, gross	0	180
Less: accumulated amortization on finance lease assets	0	(34)
Finance lease assets, net	0	146
Total lease assets	498	795
Current portion of operating lease	194	175
Current portion of finance lease	0	76
Total current lease liability	194	251
Long-term portion of operating lease	370	564
Total lease liabilities	$ 564	$ 815
Weighted average remaining lease term in years - operating lease		2 years 8 months 1 day
Weighted average discount rate - operating lease		8.25%
Weighted average discount rate - finance lease		8.25%

13. Lease Obligation (Details 1

13. Lease Obligation (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease costs	$ 206	$ 206
Depreciation of leased assets	13	21
Interest on lease liabilities	3	6
Total lease cost	$ 222	$ 233

13. Lease Obligation (Details 2

13. Lease Obligation (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating cash flows for operating lease	$ 230	$ 190
Operating cash flows for finance leases	4	6
Financing cash flows for finance leases	$ 17	$ 45

13. Lease Obligation (Details 3

13. Lease Obligation (Details 3) $ in Thousands	Dec. 31, 2020USD ($)
Operating Lease
2021	$ 194
2022	214
2023	156
Total minimum rental payments	564
Finance Lease
2021	0
2022	0
2023	0
Total minimum rental payments	0
Total
2021	194
2022	214
2023	156
Total minimum rental payments	$ 564

13. Lease Obligation (Details 4

13. Lease Obligation (Details 4) $ in Thousands	Dec. 31, 2020USD ($)
Leases [Abstract]
2021	$ 233
2022	237
2023	161
Total	$ 631

14. Income Taxes (Details)

14. Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Current federal	$ (15)	$ 0
Current state	0	0
Deferred federal	3,033	(2,210)
Deferred state	0	0
Change in valuation allowance	(3,033)	2,210
Total provision for income taxes	$ (15)	$ 0

14. Income Taxes (Details 1)

14. Income Taxes (Details 1)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Expected tax rate	21.00%	21.00%
Permanent differences	0.00%	0.00%
State tax	0.00%	0.00%
Federal tax	0.00%	0.00%
Change in valuation allowance	(21.00%)	(21.00%)
Effective tax rate	0.00%	0.00%

14. Income Taxes (Details 2)

14. Income Taxes (Details 2) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
NOL and capital loss carryforwards	$ 15,258	$ 12,463
Business interest expense	3,343	1,923
Start-up costs (crude oil and condensate processing facility)	509	594
ARO liability/deferred revenue	498	539
AMT credit	0	50
Other	4	11
Total deferred tax assets	19,611	15,580
Deferred tax liabilities:
Basis differences in property and equipment	(7,230)	(6,183)
Total deferred tax liabilities	(7,230)	(6,183)
Deferred tax assets, net	12,381	9,397
Valuation allowance	(12,381)	(9,347)
Deferred tax assets, net	$ 0	$ 50

14. Income Taxes (Details 3)

14. Income Taxes (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Beginning balance	$ 52,672	$ 46,949
Net operating losses	13,305	5,723
Ending balance	65,977	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	13,305	5,723
Ending balance	$ 56,363	$ 43,058

15. Earnings per share (Details

15. Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Net income (loss)	$ (14,458)	$ 7,361
Basic and diluted income (loss) per share	$ (1.15)	$ 0.66
Basic and Diluted
Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock	12,574,465	11,156,995

16. Commitments and Contingen_3

16. Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2020USD ($)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	$ 22,200
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 (Multiple Payments May 7 to 10, 2019)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	10,000
Deferred Interim Installment Payments (June 2019 to August 2019)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	$ 500