Blue Dolphin Energy (BDCO) 10-Q 17 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 17, 2021
Cover [Abstract]
Entity Registrant Name	BLUE DOLPHIN ENERGY COMPANY
Entity Central Index Key	0000793306
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Entity Common Stock Shares Outstanding		12,693,514
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity File Number	0-15905
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	73-1268729
Entity Address Address Line 1	801 Travis Street
Entity Address Address Line 2	Suite 2100
Entity Address City Or Town	Houston
Entity Address State Or Province	TX
Entity Address Postal Zip Code	77002
City Area Code	713
Local Phone Number	568-4725
Security 12g Title	Common Stock, par value $0.01 per share

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
CURRENT ASSETS
Cash and cash equivalents	$ 9	$ 549
Restricted cash	48	48
Accounts receivable, net	63	214
Prepaid expenses and other current assets	1,961	3,564
Deposits	110	124
Inventory	1,033	1,062
Total current assets	3,224	5,561
LONG-TERM ASSETS
Total property and equipment, net	61,214	62,497
Operating lease right-of-use assets, net	417	498
Restricted cash, noncurrent		514
Surety bonds	230	230
Total long-term assets	61,861	63,739
TOTAL ASSETS	65,085	69,300
CURRENT LIABILITIES
Long-term debt less unamortized debt issue costs, current portion (in default)	33,756	33,692
Line of credit payable (in default)	5,941	8,042
Long-term debt, related party, current portion (in default)	19,080	16,010
Interest payable (in default)	7,708	6,408
Interest payable, related party (in default)	3,134	2,814
Accounts payable	2,457	3,274
Accounts payable, related party	155	155
Current portion of lease liabilities	204	194
Asset retirement obligations, current portion	2,370	2,370
Accrued expenses and other current liabilities	5,803	4,882
Total current liabilities	80,608	77,841
LONG-TERM LIABILITIES
Long-term lease liabilities, net of current	266	370
Deferred revenues	1,423	1,520
Long-term debt, net of current portion	847	355
Total long-term liabilities	2,536	2,245
TOTAL LIABILITIES	83,144	80,086
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock ($0.01 par value, 20,000,000 shares authorized; 12,693,514 shares issued at both June 30, 2021 and December 31, 2020)	127	127
Additional paid-in capital	38,457	38,457
Accumulated deficit	(56,643)	(49,370)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	(18,059)	(10,786)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 65,085	$ 69,300

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
STOCKHOLDERS' DEFICIT
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	12,693,514	12,693,514

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
REVENUE FROM OPERATIONS
Refinery operations	$ 68,518,000	$ 17,359,000	$ 127,001,000	$ 78,256,000
Tolling and terminaling	923,000	1,110,000	1,853,000	2,213,000
Total revenue from operations	69,441,000	18,469,000	128,854,000	80,469,000
COST OF GOODS SOLD
Crude oil, fuel use, and chemicals	68,499,000	16,783,000	126,282,000	76,503,000
Other conversion costs	1,967,000	2,893,000	3,807,000	5,261,000
Total cost of goods sold	70,466,000	19,676,000	130,089,000	81,764,000
Gross loss	(1,025,000)	(1,207,000)	(1,235,000)	(1,295,000)
COST OF OPERATIONS
LEH operating fee	131,000	190,000	255,000	337,000
Other operating expenses	50,000	47,000	104,000	106,000
General and administrative expenses	743,000	531,000	1,270,000	1,175,000
Depletion, depreciation and amortization	693,000	669,000	1,386,000	1,302,000
Total cost of operations	1,486,000	1,437,000	3,015,000	2,920,000
Loss from operations	(2,511,000)	(2,644,000)	(4,250,000)	(4,215,000)
OTHER INCOME (EXPENSE)
Easement, interest and other income	0	80,000	2,000	100,000
Interest and other expense	(1,588,000)	(1,678,000)	(3,068,000)	(3,452,000)
Gain on extinguishment of debt	0	0	43,000	0
Total other expense	(1,588,000)	(1,598,000)	(3,023,000)	(3,352,000)
Loss before income taxes	(4,099,000)	(4,242,000)	(7,273,000)	(7,567,000)
Income tax expense	0	0	0	(15,000)
Net Loss	$ (4,099,000)	$ (4,242,000)	$ (7,273,000)	$ (7,582,000)
Loss per common share:
Basic-	$ (0.32)	$ (0.34)	$ (0.57)	$ (0.61)
Diluted-	$ (0.32)	$ (0.34)	$ (0.57)	$ (0.61)
Weighted average number of common shares outstanding:
Basic	12,693,514	12,580,853	12,693,514	12,454,109
Diluted	12,693,514	12,580,853	12,693,514	12,454,109

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
OPERATING ACTIVITIES
Net loss	$ (7,273,000)	$ (7,582,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depletion, depreciation and amortization	1,386,000	1,302,000
Deferred income tax	0	15,000
Amortization of debt issue costs	64,000	284,000
Guaranty fees paid in kind	304,000	305,000
Related-party interest expense paid in kind	646,000	220,000
Deferred revenues and expenses	(97,000)	(182,000)
Gain on issuance of shares	0	(80,000)
Gain on extinguishment of debt	43,000	0
Changes in operating assets and liabilities
Accounts receivable	151,000	308,000
Accounts receivable, related party	0	1,364,000
Prepaid expenses and other current assets	1,603,000	364,000
Deposits and other assets	14,000	(66,000)
Inventory	29,000	(1,913,000)
Accounts payable, accrued expenses and other liabilities	(450,000)	1,807,000
Net cash used in operating activities	(3,666,000)	(3,854,000)
INVESTING ACTIVITIES
Capital expenditures		(908,000)
Net cash used in investing activities	0	(908,000)
FINANCING ACTIVITIES
Proceeds from debt	500,000
Payments on debt	(9,000)	(1,501,000)
Net activity on related-party debt	2,121,000	6,195,000
Net cash provided by financing activities	2,612,000	4,694,000
Net change in cash, cash equivalents, and restricted cash	(1,054,000)	(68,000)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD	1,111,000	668,000
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD	57,000	600,000
Non-cash investing and financing activities:
Issuance of shares for services and/or to extinguish debt		120,000
Conversion of related-party notes to common stock		148,000
Related-party payments on line of credit payable	900,000
Interest paid	542,000	$ 1,608,000
Set-off of tank rental fees under line of credit payable	$ 1,201,000

Organization

Organization	6 Months Ended
	Jun. 30, 2021
Organization
Note 1. Organization	(1) 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. For both the three and six-month periods ended June 30, 2021, principal and interest payments to Veritex totaled $0. For both the three and six-month periods ended June 30, 2020, principal and interest payments to Veritex totaled $0.9 million. As of the filing date of this report, LE and LRM were in default with respect to required monthly payments under the LE Term Loan Due 2034 and LRM Term Loan Due 2034. · 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 “Pilot Obligations”). Pursuant to the Amended Pilot Line of Credit, commencing on May 4, 2020, the Pilot 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 Pilot 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 three-month periods ended June 30, 2021 and 2020, the tank lease setoff amounts totaled $0.6 million and $0.2 million, respectively. For the three-month periods ended June 30, 2021 and 2020, the amount of interest NPS incurred under the Amended Pilot Line of Credit totaled $0.3 million and $0.4 million, respectively. For the six-month periods ended June 30, 2021 and 2020, the tank lease setoff amounts totaled $1.2 million and $0.2 million, respectively. For the six-month periods ended June 30, 2021 and 2020, the amount of interest NPS incurred under the Amended Pilot Line of Credit totaled $0.6 million and $0.8 million, respectively. On November 23, 2020, NPS and guarantors received notice from Pilot that the entry into the LE Term Loan Due 2050 and NPS Term Loan Due 2050 was a breach of the Amended Pilot Line of Credit and Pilot demanded full repayment of the Pilot Obligations, including through use of the proceeds of these SBA EIDLs. Pilot also notified the SBA that the liens securing the LE Term Loan Due 2050 and NPS Term Loan Due 2050 were junior to those securing the Pilot Obligations. While the SBA acknowledged this point and indicated a willingness to subordinate the loans, 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 Pilot 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 results in significant financial constraints on producers, which in turn results 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 three-month periods ended June 30, 2021 and 2020, our refinery experienced 4 days and 8 days of downtime, respectively, as a result of crude deficiencies associated with COVID-19 related cash constraints. During the six-month periods ended June 30, 2021 and 2020, our refinery experienced 5 days and 8 days, respectively, of downtime as a result of crude deficiencies associated with COVID-19 related 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. Related party debt represents such working capital borrowings. As of the filing date of this report, Blue Dolphin was in default with respect to past due payment obligations under the March Carroll Note, March Ingleside Note, and June LEH Note. As of the same date, BDPL was also in default related to past due payment obligations under the BDPL-LEH Loan Agreement. Margin Deterioration and Volatility Historic Net Losses and Working Capital Deficits Net Losses Net loss for the six months ended June 30, 2021 was $7.3 million, or a loss of $0.57 per share, compared to a net loss of $7.6 million, or a loss of $0.61 per share, for the six months ended June 30, 2020. The improvement between the six-month periods in 2021 compared to 2020 was the result of improved market conditions as more businesses resumed operations and governmental pandemic-related restrictions were lifted, including more favorable commodity prices and improved throughput and sales volumes. The improvement between the periods was also due to less refinery downtime and decreased interest and other expense. Working Capital Deficits Cash and cash equivalents totaled $0.009 million and $0.5 million at June 30, 2021 and December 31, 2020, respectively. Restricted cash (current portion) totaled $0.05 million at both June 30, 2021 and December 31, 2021. Restricted cash, noncurrent totaled $0 and $0.5 million at June 30, 2021 and December 31, 2020, respectively. 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. 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 the spread of COVID-19 with vaccine programs and monitor variant clusters, we expect to continue operating. Any 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. 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, we adjust throughput and production based on prevailing market conditions. With regard to personnel safety, we adopted remote working where possible and social distancing, mask wearing, and other site-specific precautionary measures where on-site operations are required. We also incentivize personnel to receive the COVID-19 vaccine. 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.

Principles of Consolidation and

Principles of Consolidation and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Organization
Note 2. Principles of Consolidation and Significant Accounting Policies	(2) Principles of Consolidation and Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements, which include Blue Dolphin and its subsidiaries, have been prepared in accordance with GAAP for interim consolidated financial information pursuant to the rules and regulations of the SEC under Article 10 of Regulation S-X and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in our audited financial statements have been condensed or omitted pursuant to the SEC’s rules and regulations. Significant intercompany transactions have been eliminated in the consolidation. In management’s opinion, all adjustments considered necessary for a fair presentation have been included, disclosures are adequate, and the presented information is not misleading. The consolidated balance sheet as of December 31, 2020 was derived from the audited financial statements at that date. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 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 represents fees pursuant to: (i) tank storage agreements, whereby a customer agrees to pay a certain fee per tank based on tank size over a period of time for the storage of products and (ii) tolling agreements, whereby a customer agrees to pay a certain fee per gallon or barrel for throughput volumes moving through the naphtha stabilizer unit and a fixed monthly reservation fee for use of the naphtha stabilizer unit. 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 the 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 June 30, 2021. 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 June 30, 2021 and December 31, 2020. 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 June 30, 2021 and December 31, 2020, 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 June 30, 2021. 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. Asset Retirement Obligations Notes to Consolidated Financial Statements 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 New Pronouncements Issued, Not Yet Effective . Other new pronouncements issued but not yet effective are not expected to have a material impact on our financial position, results of operations, or liquidity.

Related-Party Transactions

Related-Party Transactions	6 Months Ended
	Jun. 30, 2021
Related-Party Transactions
Note 3. Related-Party Transactions	(3) 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 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 funding when revenue from operations and availability 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) (1) 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, Security and Defaults Loan Description Guarantees Security Event(s) of Default March Carroll Note (in default) --- --- Failure of borrower to pay past due payment obligations; loan matured January 2019 March Ingleside Note (in default) --- --- Failure of borrower to pay past due payment obligations; loan matured January 2019 June LEH Note (in default) --- --- Failure of borrower to pay past due payment obligations; loan matured January 2019 BDPL-LEH Loan Agreement --- Certain BDPL property Failure of borrower to pay past due payment obligations; loan matured August 2018 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. Related-Party Financial Impact Consolidated Balance Sheets Accounts payable, related party . Long-term debt, related party, current portion (in default) and accrued interest payable, related party. June 30, December 31, 2021 2020 (in thousands) LEH June LEH Note (in default) $ 12,119 $ 9,446 BDPL-LEH Loan Agreement (in default) 7,134 6,814 LEH Total 19,253 16,260 Ingleside March Ingleside Note (in default) 1,045 1,013 Jonathan Carroll March Carroll Note (in default) 1,916 1,551 22,214 18,824 Less: Long-term debt, related party, current portion (in default) (19,080 ) (16,010 ) Less: Accrued interest payable, related party (in default) (3,134 ) (2,814 ) $ - $ - Consolidated Statements of Operations. Total revenue from operations. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands, except percent amounts) (in thousands, except percent amounts) Refinery operations LEH $ 20,979 30.2 % $ 4,587 24.8 % $ 37,059 28.8 % $ 22,302 27.7 % Third-Parties 47,539 68.5 % 12,772 69.2 % 89,942 69.8 % 55,954 69.5 % Tolling and terminaling Third-Parties 923 1.3 % 1,110 6.0 % 1,853 1.4 % 2,213 2.8 % $ 69,441 100.0 % $ 18,469 100.0 % $ 128,854 100.0 % $ 80,469 100.0 % Interest expense. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Jonathan Carroll Guaranty Fee Agreements First Term Loan Due 2034 $ 108 $ 108 $ 216 $ 216 Second Term Loan Due 2034 45 44 90 89 March Carroll Note (in default) 32 20 61 43 LEH BDPL-LEH Loan Agreement (in default) 160 160 320 320 June LEH Note (in default) 215 117 397 142 Ingleside March Ingleside Note (in default) 14 15 28 35 $ 574 $ 464 $ 1,112 $ 845 Other The LEH operating fee totaled approximately $0.1 million and $0.2 million for the three-month periods ended June 30, 2021 and 2020, respectively. The LEH operating fee was relatively flat, totaling approximately $0.3 million for both six-month periods ended June 30, 2021 and 2020.

Revenue and Segment Information

Revenue and Segment Information	6 Months Ended
	Jun. 30, 2021
Revenue and Segment Information
Note 4. Revenue and Segment Information	(4) Revenue and Segment Information We have two reportable business segments: (i) refinery operations and (ii) tolling and terminaling. Refinery operations relate to the refining and marketing of petroleum products at our 15,000-bpd crude distillation tower. Tolling and terminaling operations relate to tolling and storage terminaling services under third-party lease agreements. Both operations are conducted at the Nixon facility. Corporate and other includes BDSC, BDPL and BDPC. Revenue from Contracts with Customers Disaggregation of Revenue Receivables from Contracts with Customers Contract Liabilities Remaining Performance Obligations Segment Information . Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Net revenue (excluding intercompany fees and sales) Refinery operations $ 68,518 $ 17,359 $ 127,001 $ 78,256 Tolling and terminaling 923 1,110 1,853 2,213 Total net revenue 69,441 18,469 128,854 80,469 Intercompany fees and sales Refinery operations (581 ) (406 ) (1,147 ) (1,023 ) Tolling and terminaling 581 406 1,147 1,023 Total intercompany fees - - - - Operation costs and expenses (1) Refinery operations (70,054 ) (19,418 ) (129,343 ) (81,251 ) Tolling and terminaling (412 ) (258 ) (746 ) (513 ) Corporate and other (50 ) (47 ) (104 ) (106 ) Total operation costs and expenses (70,516 ) (19,723 ) (130,193 ) (81,870 ) Segment contribution margin (deficit) Refinery operations (2,117 ) (2,465 ) (3,489 ) (4,018 ) Tolling and terminaling 1,092 1,258 2,254 2,723 Corporate and other (50 ) (47 ) (104 ) (106 ) Total segment contribution deficit (1,075 ) (1,254 ) (1,339 ) (1,401 ) General and administrative expenses (2) Refinery operations (265 ) (327 ) (566 ) (631 ) Tolling and terminaling (68 ) (68 ) (136 ) (136 ) Corporate and other (410 ) (326 ) (823 ) (745 ) Total general and administrative expenses (743 ) (721 ) (1,525 ) (1,512 ) Depreciation and amortization Refinery operations (302 ) (294 ) (604 ) (582 ) Tolling and terminaling (340 ) (324 ) (680 ) (618 ) Corporate and other (51 ) (51 ) (102 ) (102 ) Total depreciation and amortization (693 ) (669 ) (1,386 ) (1,302 ) Interest and other non-operating expenses, net Refinery operations (708 ) (751 ) (1,306 ) (1,492 ) Tolling and terminaling (448 ) (616 ) (900 ) (1,386 ) Corporate and other (432 ) (231 ) (817 ) (474 ) Total interest and other non-operating expenses, net (1,588 ) (1,598 ) (3,023 ) (3,352 ) Income (loss) before income taxes Refinery operations (3,392 ) (3,837 ) (5,965 ) (6,723 ) Tolling and terminaling 236 250 538 583 Corporate and other (943 ) (655 ) (1,846 ) (1,427 ) Total loss before income taxes (4,099 ) (4,242 ) (7,273 ) (7,567 ) Income tax expense - - - (15 ) Net loss $ (4,099 ) $ (4,242 ) $ (7,273 ) $ (7,582 ) (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. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Capital expenditures Refinery operations $ - $ 286 $ - $ 292 Tolling and terminaling - 424 - 616 Corporate and other - - - - Total capital expenditures $ - $ 710 $ - $ 908 June 30, December 31, 2021 2020 (in thousands) Identifiable assets Refinery operations $ 45,679 $ 48,521 Tolling and terminaling 17,847 18,722 Corporate and other 1,559 2,057 Total identifiable assets $ 65,085 $ 69,300

Concentration of Risk

Concentration of Risk	6 Months Ended
	Jun. 30, 2021
Concentration of Risk
Note 5. Concentration of Risk	(5) 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 June 30, 2021 and December 31, 2020, we had cash balances (including restricted cash) that exceeded the FDIC insurance limit per depositor of $0 and $0.6 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. The crude supply agreement, the initial term of which is volume based, expires when Pilot sells us 24.8 million net bbls of crude oil. Thereafter, the crude supply agreement automatically renews for successive one-year terms (each such term, a “Renewal Term”) unless either party provides the other with notice of nonrenewal at least 60 days prior to expiration of any Renewal Term. Total volume sold to us under the crude supply agreement totaled approximately 6.8 million bbls as of June 30, 2021. Effective June 30, 2020, Pilot assigned its rights, title, interest, and obligations in the crude supply agreement to Tartan Oil LLC, a Pilot affiliate. Sustained periods of low crude oil prices due to market volatility associated with the COVID-19 pandemic results in significant financial constraints on producers, which in turn results 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 three-month periods ended June 30, 2021 and 2020, our refinery experienced 4 days and 8 days, respectively, of downtime as a result of crude deficiencies due to COVID-19 related cash constraints. During the six-month periods ended June 30, 2021 and 2020, our refinery experienced 5 days and 8 days, respectively, of downtime as a result of crude deficiencies due to COVID-19 related cash constraints. 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 renews 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 three-month periods ended June 30, 2021 and 2020, the tank lease setoff amounts totaled $0.6 million and $0.2 million, respectively. For the three-month periods ended June 30, 2021 and 2020, the amount of interest NPS incurred under the Amended Pilot Line of Credit totaled $0.3 million and $0.4 million, respectively. For the six-month periods ended June 30, 2021 and 2020, the tank lease setoff amounts totaled $1.2 million and $0.2 million, respectively. For the six-month periods ended June 30, 2021 and 2020, the amount of interest NPS incurred under the Amended Pilot Line of Credit totaled $0.6 million and $0.8 million, respectively. See “Note (1) Organization – Going Concern” to our consolidated financial statements for additional disclosures related to defaults in our debt obligations. On November 23, 2020, NPS and guarantors received notice from Pilot that the entry into the LE Term Loan Due 2050 and NPS Term Loan Due 2050 was a breach of the Amended Pilot Line of Credit and Pilot demanded full repayment of the Pilot Obligations, including through use of the proceeds of these SBA EIDLs. Pilot also notified the SBA that the liens securing the LE Term Loan Due 2050 and NPS Term Loan Due 2050 were junior to those securing the Pilot Obligations. While the SBA acknowledged this point and indicated a willingness to subordinate the loans, no further action has been taken by Pilot as of the filing date of this report . 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. 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. Three Months Ended Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable at June 30, June 30, 2021 3 75 % $ 0 June 30, 2020 3 69 % $ 0 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 30% and 25% of total revenue from operations for the three months ended June 30, 2021 and 2020, respectively. The Affiliate represented $0 in accounts receivable at both June 30, 2021 and 2020, respectively. Six Months Ended Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable at June 30, June 30, 2021 4 86 % $ 0 June 30, 2020 4 90 % $ 0 The Affiliate accounted for 29% and 28% of total revenue from operations for the six months ended June 30, 2021 and 2020, respectively. The Affiliate represented $0 in accounts receivable at both June 30, 2021 and 2020, respectively. Outstanding amounts under certain related party agreements can significantly vary period to period based on the timing of sales and payments. With regard to the Amended and Restated Operating Agreement, any amount that remains outstanding at the end of the quarter is added to the June LEH Note, which is reflected on the consolidated balance sheets within long-term debt, related party, current portion (in default). At June 30, 2021 and December 31, 2020, the total amount we owed to LEH under long-term debt, related-party agreements totaled $19.3 million and $16.3 million, 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 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands, except percent amounts) (in thousands, except percent amounts) LPG mix $ 6 0 % $ - 0 % $ 12 0 % $ - 0 % Naphtha 15,264 22.3 % 3,160 18.2 % 29,488 23.2 % 14,675 18.8 % Jet fuel 20,979 30.6 % 4,587 26.4 % 37,059 29.2 % 22,302 28.5 % HOBM 16,012 23.4 % 3,691 21.3 % 31,675 24.9 % 18,882 24.1 % AGO 16,257 23.7 % 5,921 34.1 % 28,767 22.7 % 22,397 28.6 % $ 68,518 100.0 % $ 17,359 100.0 % $ 127,001 100.0 % $ 78,256 100.0 % 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.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	6 Months Ended
	Jun. 30, 2021
Prepaid Expenses and Other Current Assets
Note 6. Prepaid Expenses and Other Current Assets	(6) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets as of the dates indicated consisted of the following: June 30, December 31, 2021 2020 (in thousands) Prepaid insurance $ 1,597 $ 1,182 Prepaid crude oil and condensate 266 2,249 Prepaid easement renewal fees 88 99 Other prepaids 10 34 $ 1,961 $ 3,564

Inventory

Inventory	6 Months Ended
	Jun. 30, 2021
Inventory
Note 7. Inventory	(7) Inventory Inventory as of the dates indicated consisted of the following: June 30, December 31, 2021 2020 (in thousands) Crude oil and condensate $ 587 $ 463 AGO 159 133 Naphtha 158 120 Chemicals 98 271 Propane 23 15 LPG mix 8 6 HOBM - 54 $ 1,033 $ 1,062

Property, Plant and Equipment,

Property, Plant and Equipment, Net	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment, Net
Note 8. Property, Plant and Equipment, Net	(8) Property, Plant and Equipment, Net Property, plant and equipment, net, as of the dates indicated consisted of the following: June 30, December 31, 2021 2020 (in thousands) Refinery and facilities $ 72,184 $ 72,184 Land 566 566 Other property and equipment 903 903 73,653 73,653 Less: Accumulated depletion, depreciation, and amortiation (16,503 ) (15,220 ) 57,150 58,433 CIP 4,064 4,064 $ 61,214 $ 62,497 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 at June 30, 2021 and December 31, 2020. 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 June 30, 2021 and 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.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2021
Accrued Expenses and Other Current Liabilities
Note 9. Accrued Expenses and Other Current Liabilities	(9) Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities as of the dates indicated consisted of the following: June 30, December 31, 2021 2020 (in thousands) Unearned revenue from contracts with customers $ 3,878 $ 3,421 Insurance 783 541 Unearned contract renewal income 400 500 Taxes payable 214 58 Other payable 190 252 Customer deposits 173 10 Board of director fees payable 165 100 $ 5,803 $ 4,882

Third-Party Long-Term Debt

Third-Party Long-Term Debt	6 Months Ended
	Jun. 30, 2021
Third-Party Long-Term Debt
Note 10 .Third-Party Long-Term Debt	(10) 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 (2)(3) LE-Kissick $11.7 Jan 2018 No payments to date; payment rights subordinated 16.00% Working capital; reduced arbitration award payable to GEL SBA EIDLs BDEC Term Loan Due 2051 (4) Blue Dolphin-SBA $0.5 Jun 2051 $0.003 million 3.75% Working capital LE Term Loan Due 2050 (5) LE-SBA $0.15 Aug 2050 $0.0007 million 3.75% Working capital NPS Term Loan Due 2050 (5) NPS-SBA $0.15 Aug 2050 $0.0007 million 3.75% Working capital Equipment Loan Due 2025 (6) 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 June 30, 2021, restricted cash (current portion) was $0.05 million and restricted cash, noncurrent was $0. At December 31, 2020, restricted cash (current portion) was $0.05 million and restricted cash, noncurrent was $0.5 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 arbitration award payable to GEL 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) Payment is deferred for the first eighteen (18) months of the loan; the first payment is due December 2022; interest accrues during the deferral period. The BDEC Term Loan Due 2051 is not forgivable. (5) Payments are deferred for the first twelve (12) months of the loan; the first payment is due September 2021; interest accrues during the deferral period. The LE Term Loan Due 2050 and NPS Term Loan Due 2050 are not forgivable. (6) In May 2019, LE entered into a 12-month equipment rental agreement with the option to purchase the backhoe at maturity. The equipment rental agreement matured in May 2020. In October 2020, LE entered into the Equipment Loan Due 2025 to finance the purchase of the backhoe. The backhoe continues to be used at the Nixon facility. Outstanding Principal, Debt Issue Costs, and Accrued Interest Third-party long-term debt (outstanding principal, accrued interest, and late fees), as of the dates indicated was as follows: June 30, December 31, 2021 2020 (in thousands) Veritex Loans LE Term Loan Due 2034 (in default) $ 23,468 $ 22,840 LRM Term Loan Due 2034 (in default) 9,738 9,473 Notre Dame Debt (in default) 9,812 9,413 SBA EIDLs BDEC Term Loan Due 2051 503 - LE Term Loan Due 2050 155 152 NPS Term Loan Due 2050 155 152 Equipment Loan Due 2025 62 71 43,893 42,101 Less: Current portion of long-term debt, net (33,756 ) (33,692 ) Less: Unamortized debt issue costs (1,685 ) (1,749 ) Less: Accrued interest payable (in default) (7,605 ) (6,305 ) $ 847 $ 355 Unamortized debt issue costs associated with the Veritex loans as of the dates indicated consisted of the following: June 30, December 31, 2021 2020 (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 (757 ) (693 ) $ 1,685 $ 1,749 Amortization expense was $0.03 million for both three-month periods ended June 30, 2021 and 2020. Amortization expense was $0.06million for both six-month periods ended June 30, 2021 and 2020. Accrued interest and late fees 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: June 30, December 31, 2021 2020 (in thousands) Notre Dame Debt (in default) $ 4,834 $ 4,435 Veritex Loans LE Term Loan Due 2034 (in default) 1,923 1,295 LRM Term Loan Due 2034 (in default) 835 571 SBA EIDLs BDEC Term Loan Due 2051 3 - LE Term Loan Due 2050 5 2 NPS Term Loan Due 2050 5 2 7,605 6,305 Less: Accrued interest payable (in default) (7,605 ) (6,305 ) 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 • 100% USDA-guarantee • Jonathan Carroll personal guarantee • LEH, LRM and Blue Dolphin cross-guarantee • First priority lien on Nixon facility’s business assets (excluding accounts receivable and inventory) • Assignment of all Nixon facility contracts, permits, and licenses • Absolute assignment of Nixon facility rents and leases, including tank rental income • $1.0 million payment reserve account held by Veritex • $5.0 million life insurance policy on Jonathan Carroll LRM Term Loan Due 2034 ( in default • 100% USDA-guarantee • Jonathan Carroll personal guarantee • LEH, LE and Blue Dolphin cross-guarantee • Second priority lien on rights of LE in crude distillation tower and other collateral of LE • First priority lien on real property interests of LRM • First priority lien on all LRM fixtures, furniture, machinery, and equipment • First priority lien on all LRM contractual rights, general intangibles, and instruments, except with respect to LRM rights in its leases of certain specified tanks for which Veritex has second priority lien • All other collateral as described in the security documents Notre Dame Debt ( in default (2) --- • Subordinated deed of trust that encumbers the crude distillation tower and general assets of LE SBA EIDLs BDEC Term Loan Due 2051 • Jonathan Carroll, personal guarantee • LEH guarantee • Business assets (e.g., machinery and equipment, furniture, fixtures, etc.) as more fully described in the security agreement LE Term Loan Due 2050 (3) --- • Business assets (e.g., machinery and equipment, furniture, fixtures, etc.) as more fully described in the security agreement NPS Term Loan Due 2050 (3) --- • Business assets (e.g., machinery and equipment, furniture, fixtures, etc.) as more fully described in the security agreement Equipment Loan Due 2025 --- • First priority security interest in the equipment (backhoe). (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. (3) On November 23, 2020, NPS and guarantors received notice from Pilot that the entry into the LE Term Loan Due 2050 and NPS Term Loan Due 2050 was a breach of the Amended Pilot Line of Credit and Pilot demanded full repayment of the Pilot Obligations, including through use of the proceeds of these SBA EIDLs. Pilot also notified the SBA that the liens securing the LE Term Loan Due 2050 and NPS Term Loan Due 2050 were junior to those securing the Pilot Obligations. While the SBA acknowledged this point and indicated a willingness to subordinate these loans to Pilot, no further action has been taken by Pilot as of the filing date of this report. 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 Failure to make required monthly payments; failure to replenish $1.0 million payment reserve account; events of default under other secured loan agreements with Veritex Financial covenants: • debt service coverage ratio, current ratio, and debt to net worth ratio LRM Term Loan Due 2034 ( in default Failure to make required monthly payments; events of default under other secured loan agreements with Veritex Financial covenants: • debt service coverage ratio, current ratio, and debt to net worth ratio 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 filing, 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 June 30, 2021 and December 31, 2020. 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.

Line of Credit Payable

Line of Credit Payable	6 Months Ended
	Jun. 30, 2021
Line of Credit Payable
Note 11 . Line of Credit Payable	(11) 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% Settlement payment to GEL, NPS purchase of crude oil from Pilot, and working capital Outstanding Principal, Debt Issue Costs, and Accrued Interest Amounts owed under the Amended Pilot Line of Credit, which represents outstanding principal and accrued interest, as of the dates indicated was as follows: June 30, December 31, 2021 2020 (in thousands) Amended Pilot Line of Credit (in default) $ 6,044 $ 8,145 Less: Interest payable, short-term (103 ) (103 ) $ 5,941 $ 8,042 Guarantees and Security Loan Description Guarantees Security Amended Pilot Line of Credit (in default) • Blue Dolphin pledged its equity interests in NPS to Pilot to secure NPS’ obligations; • Blue Dolphin, LE, LRM, and LEH have each guaranteed NPS’ obligations. • NPS receivables; • NPS assets, including a tank lease (the “Tank Lease”); • LRM receivables. 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 filing, 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 Pilot Obligations. Pursuant to the Amended Pilot Line of Credit, commencing on May 4, 2020, the Pilot 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 Pilot 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 three-month periods ended June 30, 2021 and 2020, the tank lease setoff amounts totaled $0.6 million and $0.2 million, respectively. For the three-month periods ended June 30, 2021 and 2020, the amount of interest NPS incurred under the Amended Pilot Line of Credit totaled $0.3 million and $0.4 million, respectively. For the six-month periods ended June 30, 2021 and 2020, the tank lease setoff amounts totaled $1.2 million and $0.2 million, respectively. For the six-month periods ended June 30, 2021 and 2020, the amount of interest NPS incurred under the Amended Pilot Line of Credit totaled $0.6 million and $0.8 million, respectively. On November 23, 2020, NPS and guarantors received notice from Pilot that the entry into the LE Term Loan Due 2050 and NPS Term Loan Due 2050 was a breach of the Amended Pilot Line of Credit and Pilot demanded full repayment of the Pilot Obligations, including through use of the proceeds of these SBA EIDLs. Pilot also notified the SBA that the liens securing the LE Term Loan Due 2050 and NPS Term Loan Due 2050 were junior to those securing the Pilot Obligations. While the SBA acknowledged this point and indicated a willingness to subordinate the loans, 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 Pilot 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.

ARO's

ARO's	6 Months Ended
	Jun. 30, 2021
ARO's
Note 12 . ARO's	(12) 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 June 30, 2021 and December 31, 2020, 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: June 30, December 31, 2021 2020 (in thousands) AROs, at the beginning of the period $ 2,370 $ 2,565 Liabilities settled - (195 ) 2,370 2,370 Less: AROs, current portion (2,370 ) (2,370 ) 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.

Lease Obligations

Lease Obligations	6 Months Ended
	Jun. 30, 2021
Lease Obligations
Note 13. Lease Obligatons	(13) Lease Obligations Lease Obligations Operating Lease Office Lease On May 11, 2021, BDSC and TR 801 Travis LLC reached an agreement to cure BDSC’s Houston office lease default. Under the terms of the arrangement, BDSC will pay TR 801 Travis LLC past due obligations, including rent installments and other charges totaling approximately $0.1 million (the “Past Due Obligations”), in equal monthly installments beginning June 1, 2021 and continuing through the August 31, 2023 lease expiration date. The Past Due Obligations are subject to an annual percentage rate of 4.50%. As revised, BDSC’ monthly base rent plus the prorated portion of the Past Due Obligations will approximate $0.02 million. BDSC made the revised monthly payment as required in June 2021. An Affiliate, LEH, subleases a portion of the Houston office space. Sublease income received from LEH totaled approximately $0.01 million for both the three months ended June 30, 2021 and 2020. Sublease income received from LEH totaled approximately $0.02 million for both the six months ended June 30, 2021 and 2020. See “Note (3)” to our consolidated financial statements for additional disclosures related to the Affiliate sub-lease. The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheet: June 30, December 31, Balance Sheet Location 2021 2020 (in thousands) Assets Operating lease ROU assets Operating lease ROU assets $ 787 $ 787 Less: Accumulated amortization on operating lease assets Operating lease ROU assets (370 ) (289 ) Total lease assets 417 498 Liabilities Current Operating lease Current portion of lease liabilities 204 194 204 194 Noncurrent Operating lease Long-term lease liabilities, net of current 266 370 Total lease liabilities $ 470 $ 564 Weighted average remaining lease term in years Operating lease 2.17 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: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Operating lease costs $ 51 $ 51 $ 102 $ 103 Finance lease costs: Depreciation of leased assets - 4 - 10 Interest on lease liabilities - 2 - 3 Total lease cost $ 51 $ 57 $ 102 $ 116 The table below presents supplemental cash flow information related to leases as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 48 $ 43 $ 95 $ 131 Operating cash flows for finance leases $ - $ 2 $ - $ 4 Financing cash flows for finance leases $ - $ 6 $ - $ 12 As of June 30, 2021, maturities of lease liabilities for the periods indicated were as follows: June 30, Operating Lease (in thousands) 2021 $ 204 2022 226 2023 40 $ 470 Future minimum annual lease commitments that are non-cancelable: Operating June 30, Lease (in thousands) 2021 $ 235 2022 260 2023 20 $ 515

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Taxes
Note 14. Income Taxes	(14) Income Taxes Tax Provision The provision for income tax expense for the periods indicated was as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Current Federal $ - $ - $ - $ (15 ) State - - - - Deferred Federal 500 893 1,167 1,591 State - - Change in valuation allowance (500 ) (893 ) (1,167 ) (1,591 ) Total provision for income taxes $ - $ - $ - $ (15 ) The TMT is treated as an income tax for financial reporting purposes. Deferred income taxes as of the dates indicated consisted of the following: June 30, December 31, 2021 2020 (in thousands) Deferred tax assets: NOL and capital loss carryforwards $ 16,180 $ 15,258 Business interest expense 3,987 3,343 Start-up costs (crude oil and condensate processing facility) 467 509 ARO liability/deferred revenue 498 498 Other 3 3 Total deferred tax assets 21,134 19,611 Deferred tax liabilities: Basis differences in property and equipment (7,587 ) (7,230 ) Total deferred tax liabilities (7,587 ) (7,230 ) 13,547 12,381 Valuation allowance (13,547 ) (12,381 ) Deferred tax assets, net $ - $ - 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, 2019 9,614 43,058 52,672 Net operating losses - 13,306 13,306 Balance at December 31, 2020 $ 9,614 $ 56,364 $ 65,978 Net operating losses - 6,108 4,390 Expiration of net operating losses (1,718 ) - (1,718 ) Balance at June 30, 2021 $ 7,896 $ 62,472 $ 70,368 Valuation Allowance. As of each reporting date, management considers new evidence, both positive and negative, to determine the realizability of deferred tax assets. Management considers whether it is more likely than not that some 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. At June 30, 2021 and December 31, 2020, management determined that cumulative losses incurred over the prior three-year period provided significant objective evidence that limited 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 June 30, 2021 and December 31, 2020.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share
Note 15. Earnings Per Share	(15) Earnings Per Share A reconciliation between basic and diluted income per share for the periods indicated was as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands, (in thousands, except share and per share amounts) except share and per share amounts) Net loss $ (4,099 ) $ (4,242 ) $ (7,273 ) $ (7,582 ) Basic and diluted income (loss) per share $ (0.32 ) $ (0.34 ) $ (0.57 ) $ (0.61 ) Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock 12,693,514 12,580,853 12,693,514 12,454,109 Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding. Diluted EPS for the three and six months ended June 30, 2021 and 2020 was the same as basic EPS as there were no stock options or other dilutive instruments outstanding.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies
Note 16. Commitments and Contingencies	(16) 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 during 2020, decommissioning of these assets has been delayed due to cash constraints associated with the ongoing impact of COVID-19. 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. Financial constraints do 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 June 30, 2021. At both June 30, 2021 and December 31, 2020, BDPL maintained $2.4 million 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 during 2020, decommissioning of these assets has been delayed due to cash constraints associated with the ongoing impact of COVID-19. We cannot currently estimate when decommissioning may occur. In the interim, BDPL provides BOEM and BSEE with updates regarding the project’s status. Financial constraints and BDPL’s pending appeal of the BOEM INCs do 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 June 30, 2021. At both June 30, 2021 and December 31, 2020, BDPL maintained approximately $0.9 million in credit and cash-backed pipeline rights-of-way bonds issued to BOEM. Other Legal Matters.

Principles of Consolidation a_2

Principles of Consolidation and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Organization
Use of Estimates	Use of Estimates
Cash and Cash Equivalents	Cash and Cash Equivalents
Restricted Cash	Restricted Cash
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts
Inventory	Inventory
Property and Equipment	Property and Equipment. Refinery and Facilities 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	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 represents fees pursuant to: (i) tank storage agreements, whereby a customer agrees to pay a certain fee per tank based on tank size over a period of time for the storage of products and (ii) tolling agreements, whereby a customer agrees to pay a certain fee per gallon or barrel for throughput volumes moving through the naphtha stabilizer unit and a fixed monthly reservation fee for use of the naphtha stabilizer unit. 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 the 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 June 30, 2021. 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 June 30, 2021 and December 31, 2020. 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 June 30, 2021 and December 31, 2020, 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 June 30, 2021. 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.
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
New Pronouncements Issued, Not Yet Effective	New Pronouncements Issued, Not Yet Effective . Other new pronouncements issued but not yet effective are not expected to have a material impact on our financial position, results of operations, or liquidity.

Related-Party Transactions (Tab

Related-Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2021
Related-Party Transactions
Schedule of affiliate agreements/transactions	Agreement/Transaction Parties Effective Date Key Terms 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 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) (1) 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
Schedule of accounts payable, related party	June 30, December 31, 2021 2020 (in thousands) LEH June LEH Note (in default) $ 12,119 $ 9,446 BDPL-LEH Loan Agreement (in default) 7,134 6,814 LEH Total 19,253 16,260 Ingleside March Ingleside Note (in default) 1,045 1,013 Jonathan Carroll March Carroll Note (in default) 1,916 1,551 22,214 18,824 Less: Long-term debt, related party, current portion (in default) (19,080 ) (16,010 ) Less: Accrued interest payable, related party (in default) (3,134 ) (2,814 ) $ - $ -
Schedule of refinery operating expenses	Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands, except percent amounts) (in thousands, except percent amounts) Refinery operations LEH $ 20,979 30.2 % $ 4,587 24.8 % $ 37,059 28.8 % $ 22,302 27.7 % Third-Parties 47,539 68.5 % 12,772 69.2 % 89,942 69.8 % 55,954 69.5 % Tolling and terminaling Third-Parties 923 1.3 % 1,110 6.0 % 1,853 1.4 % 2,213 2.8 % $ 69,441 100.0 % $ 18,469 100.0 % $ 128,854 100.0 % $ 80,469 100.0 %
Schedule of accrued interest expenses	Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Jonathan Carroll Guaranty Fee Agreements First Term Loan Due 2034 $ 108 $ 108 $ 216 $ 216 Second Term Loan Due 2034 45 44 90 89 March Carroll Note (in default) 32 20 61 43 LEH BDPL-LEH Loan Agreement (in default) 160 160 320 320 June LEH Note (in default) 215 117 397 142 Ingleside March Ingleside Note (in default) 14 15 28 35 $ 574 $ 464 $ 1,112 $ 845

Revenue and Segment Informati_2

Revenue and Segment Information (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue and Segment Information
Schedule of business segment reporting	Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Net revenue (excluding intercompany fees and sales) Refinery operations $ 68,518 $ 17,359 $ 127,001 $ 78,256 Tolling and terminaling 923 1,110 1,853 2,213 Total net revenue 69,441 18,469 128,854 80,469 Intercompany fees and sales Refinery operations (581 ) (406 ) (1,147 ) (1,023 ) Tolling and terminaling 581 406 1,147 1,023 Total intercompany fees - - - - Operation costs and expenses (1) Refinery operations (70,054 ) (19,418 ) (129,343 ) (81,251 ) Tolling and terminaling (412 ) (258 ) (746 ) (513 ) Corporate and other (50 ) (47 ) (104 ) (106 ) Total operation costs and expenses (70,516 ) (19,723 ) (130,193 ) (81,870 ) Segment contribution margin (deficit) Refinery operations (2,117 ) (2,465 ) (3,489 ) (4,018 ) Tolling and terminaling 1,092 1,258 2,254 2,723 Corporate and other (50 ) (47 ) (104 ) (106 ) Total segment contribution deficit (1,075 ) (1,254 ) (1,339 ) (1,401 ) General and administrative expenses (2) Refinery operations (265 ) (327 ) (566 ) (631 ) Tolling and terminaling (68 ) (68 ) (136 ) (136 ) Corporate and other (410 ) (326 ) (823 ) (745 ) Total general and administrative expenses (743 ) (721 ) (1,525 ) (1,512 ) Depreciation and amortization Refinery operations (302 ) (294 ) (604 ) (582 ) Tolling and terminaling (340 ) (324 ) (680 ) (618 ) Corporate and other (51 ) (51 ) (102 ) (102 ) Total depreciation and amortization (693 ) (669 ) (1,386 ) (1,302 ) Interest and other non-operating expenses, net Refinery operations (708 ) (751 ) (1,306 ) (1,492 ) Tolling and terminaling (448 ) (616 ) (900 ) (1,386 ) Corporate and other (432 ) (231 ) (817 ) (474 ) Total interest and other non-operating expenses, net (1,588 ) (1,598 ) (3,023 ) (3,352 ) Income (loss) before income taxes Refinery operations (3,392 ) (3,837 ) (5,965 ) (6,723 ) Tolling and terminaling 236 250 538 583 Corporate and other (943 ) (655 ) (1,846 ) (1,427 ) Total loss before income taxes (4,099 ) (4,242 ) (7,273 ) (7,567 ) Income tax expense - - - (15 ) Net loss $ (4,099 ) $ (4,242 ) $ (7,273 ) $ (7,582 ) Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Capital expenditures Refinery operations $ - $ 286 $ - $ 292 Tolling and terminaling - 424 - 616 Corporate and other - - - - Total capital expenditures $ - $ 710 $ - $ 908 June 30, December 31, 2021 2020 (in thousands) Identifiable assets Refinery operations $ 45,679 $ 48,521 Tolling and terminaling 17,847 18,722 Corporate and other 1,559 2,057 Total identifiable assets $ 65,085 $ 69,300

Concentration of Risk (Tables)

Concentration of Risk (Tables)	6 Months Ended
	Jun. 30, 2021
Concentration of Risk
Schedule of significant customers	Three Months Ended Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable at June 30, June 30, 2021 3 75 % $ 0 June 30, 2020 3 69 % $ 0 Six Months Ended Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable at June 30, June 30, 2021 4 86 % $ 0 June 30, 2020 4 90 % $ 0
Schedule of percentages of all refined petroleum products sales to total sales	Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands, except percent amounts) (in thousands, except percent amounts) LPG mix $ 6 0 % $ - 0 % $ 12 0 % $ - 0 % Naphtha 15,264 22.3 % 3,160 18.2 % 29,488 23.2 % 14,675 18.8 % Jet fuel 20,979 30.6 % 4,587 26.4 % 37,059 29.2 % 22,302 28.5 % HOBM 16,012 23.4 % 3,691 21.3 % 31,675 24.9 % 18,882 24.1 % AGO 16,257 23.7 % 5,921 34.1 % 28,767 22.7 % 22,397 28.6 % $ 68,518 100.0 % $ 17,359 100.0 % $ 127,001 100.0 % $ 78,256 100.0 %

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2021
Prepaid Expenses and Other Current Assets
Schedule of Prepaid balances	June 30, December 31, 2021 2020 (in thousands) Prepaid insurance $ 1,597 $ 1,182 Prepaid crude oil and condensate 266 2,249 Prepaid easement renewal fees 88 99 Other prepaids 10 34 $ 1,961 $ 3,564

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2021
Inventory
Schedule of inventory	June 30, December 31, 2021 2020 (in thousands) Crude oil and condensate $ 587 $ 463 AGO 159 133 Naphtha 158 120 Chemicals 98 271 Propane 23 15 LPG mix 8 6 HOBM - 54 $ 1,033 $ 1,062

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment, Net
Schedule of property, plant and equipment	June 30, December 31, 2021 2020 (in thousands) Refinery and facilities $ 72,184 $ 72,184 Land 566 566 Other property and equipment 903 903 73,653 73,653 Less: Accumulated depletion, depreciation, and amortiation (16,503 ) (15,220 ) 57,150 58,433 CIP 4,064 4,064 $ 61,214 $ 62,497

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2021
Accrued Expenses and Other Current Liabilities
Schedule of accrued expenses and other current liabilities	June 30, December 31, 2021 2020 (in thousands) Unearned revenue from contracts with customers $ 3,878 $ 3,421 Insurance 783 541 Unearned contract renewal income 400 500 Taxes payable 214 58 Other payable 190 252 Customer deposits 173 10 Board of director fees payable 165 100 $ 5,803 $ 4,882

Third-Party Long-Term Debt (Tab

Third-Party Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2021
Third-Party Long-Term Debt
Schedule of 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 (2)(3) LE-Kissick $11.7 Jan 2018 No payments to date; payment rights subordinated 16.00% Working capital; reduced arbitration award payable to GEL SBA EIDLs BDEC Term Loan Due 2051 (4) Blue Dolphin-SBA $0.5 Jun 2051 $0.003 million 3.75% Working capital LE Term Loan Due 2050 (5) LE-SBA $0.15 Aug 2050 $0.0007 million 3.75% Working capital NPS Term Loan Due 2050 (5) NPS-SBA $0.15 Aug 2050 $0.0007 million 3.75% Working capital Equipment Loan Due 2025 (6) 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 June 30, 2021, restricted cash (current portion) was $0.05 million and restricted cash, noncurrent was $0. At December 31, 2020, restricted cash (current portion) was $0.05 million and restricted cash, noncurrent was $0.5 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 arbitration award payable to GEL 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) Payment is deferred for the first eighteen (18) months of the loan; the first payment is due December 2022; interest accrues during the deferral period. The BDEC Term Loan Due 2051 is not forgivable. (5) Payments are deferred for the first twelve (12) months of the loan; the first payment is due September 2021; interest accrues during the deferral period. The LE Term Loan Due 2050 and NPS Term Loan Due 2050 are not forgivable. (6) In May 2019, LE entered into a 12-month equipment rental agreement with the option to purchase the backhoe at maturity. The equipment rental agreement matured in May 2020. In October 2020, LE entered into the Equipment Loan Due 2025 to finance the purchase of the backhoe. The backhoe continues to be used at the Nixon facility.
Schedule of long term debt	June 30, December 31, 2021 2020 (in thousands) Veritex Loans LE Term Loan Due 2034 (in default) $ 23,468 $ 22,840 LRM Term Loan Due 2034 (in default) 9,738 9,473 Notre Dame Debt (in default) 9,812 9,413 SBA EIDLs BDEC Term Loan Due 2051 503 - LE Term Loan Due 2050 155 152 NPS Term Loan Due 2050 155 152 Equipment Loan Due 2025 62 71 43,893 42,101 Less: Current portion of long-term debt, net (33,756 ) (33,692 ) Less: Unamortized debt issue costs (1,685 ) (1,749 ) Less: Accrued interest payable (in default) (7,605 ) (6,305 ) $ 847 $ 355
Schedule of debt issue costs	June 30, December 31, 2021 2020 (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 (757 ) (693 ) $ 1,685 $ 1,749
Schedule of accrued interest related to our long-term debt, net	June 30, December 31, 2021 2020 (in thousands) Notre Dame Debt (in default) $ 4,834 $ 4,435 Veritex Loans LE Term Loan Due 2034 (in default) 1,923 1,295 LRM Term Loan Due 2034 (in default) 835 571 SBA EIDLs BDEC Term Loan Due 2051 3 - LE Term Loan Due 2050 5 2 NPS Term Loan Due 2050 5 2 7,605 6,305 Less: Accrued interest payable (in default) (7,605 ) (6,305 ) Long-term Interest Payable, Net of Current Portion $ - $ -

Line of Credit Payable (Tables)

Line of Credit Payable (Tables)	6 Months Ended
	Jun. 30, 2021
Line of Credit Payable
Schedule of 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% Settlement payment to GEL, NPS purchase of crude oil from Pilot, and working capital
Schedule of line of credit	June 30, December 31, 2021 2020 (in thousands) Amended Pilot Line of Credit (in default) $ 6,044 $ 8,145 Less: Interest payable, short-term (103 ) (103 ) $ 5,941 $ 8,042

AROs (Tables)

AROs (Tables)	6 Months Ended
	Jun. 30, 2021
ARO's
Schedule of asset retirement obligations	June 30, December 31, 2021 2020 (in thousands) AROs, at the beginning of the period $ 2,370 $ 2,565 Liabilities settled - (195 ) 2,370 2,370 Less: AROs, current portion (2,370 ) (2,370 ) Long-term AROs, at the end of the period $ - $ -

Lease Obligations (Tables)

Lease Obligations (Tables)	6 Months Ended
	Jun. 30, 2021
Lease Obligations (Tables)
Schedule of lease-related assets and liabilities	June 30, December 31, Balance Sheet Location 2021 2020 (in thousands) Assets Operating lease ROU assets Operating lease ROU assets $ 787 $ 787 Less: Accumulated amortization on operating lease assets Operating lease ROU assets (370 ) (289 ) Total lease assets 417 498 Liabilities Current Operating lease Current portion of lease liabilities 204 194 204 194 Noncurrent Operating lease Long-term lease liabilities, net of current 266 370 Total lease liabilities $ 470 $ 564 Weighted average remaining lease term in years Operating lease 2.17 Weighted average discount rate Operating lease 8.25 % Finance leases 8.25 %
Schedule of lease costs	Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Operating lease costs $ 51 $ 51 $ 102 $ 103 Finance lease costs: Depreciation of leased assets - 4 - 10 Interest on lease liabilities - 2 - 3 Total lease cost $ 51 $ 57 $ 102 $ 116
Schedule of supplemental cash flow information related to leases	Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 48 $ 43 $ 95 $ 131 Operating cash flows for finance leases $ - $ 2 $ - $ 4 Financing cash flows for finance leases $ - $ 6 $ - $ 12
Schedule of maturities of operating lease liabilities	June 30, Operating Lease (in thousands) 2021 $ 204 2022 226 2023 40 $ 470
Schedule of future minimum annual lease commitments	Operating June 30, Lease (in thousands) 2021 $ 235 2022 260 2023 20 $ 515

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2021
Income Taxes
Schedule of income tax expense	Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands) (in thousands) Current Federal $ - $ - $ - $ (15 ) State - - - - Deferred Federal 500 893 1,167 1,591 State - - Change in valuation allowance (500 ) (893 ) (1,167 ) (1,591 ) Total provision for income taxes $ - $ - $ - $ (15 )
Schedule of deferred tax assets and deferred tax liabilities	June 30, December 31, 2021 2020 (in thousands) Deferred tax assets: NOL and capital loss carryforwards $ 16,180 $ 15,258 Business interest expense 3,987 3,343 Start-up costs (crude oil and condensate processing facility) 467 509 ARO liability/deferred revenue 498 498 Other 3 3 Total deferred tax assets 21,134 19,611 Deferred tax liabilities: Basis differences in property and equipment (7,587 ) (7,230 ) Total deferred tax liabilities (7,587 ) (7,230 ) 13,547 12,381 Valuation allowance (13,547 ) (12,381 ) Deferred tax assets, net $ - $ -
Schedule of NOL carryforwards	Net Operating Loss Carryforward Pre-Ownership Change Post-Ownership Change Total (in thousands) Balance at December 31, 2019 9,614 43,058 52,672 Net operating losses - 13,306 13,306 Balance at December 31, 2020 $ 9,614 $ 56,364 $ 65,978 Net operating losses - 6,108 4,390 Expiration of net operating losses (1,718 ) - (1,718 ) Balance at June 30, 2021 $ 7,896 $ 62,472 $ 70,368

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share
Schedule of sarnings per share	Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands, (in thousands, except share and per share amounts) except share and per share amounts) Net loss $ (4,099 ) $ (4,242 ) $ (7,273 ) $ (7,582 ) Basic and diluted income (loss) per share $ (0.32 ) $ (0.34 ) $ (0.57 ) $ (0.61 ) Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock 12,693,514 12,580,853 12,693,514 12,454,109

Organization (Details Narrative

Organization (Details Narrative) - USD ($)	May 04, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Net loss per common share		$ (0.32)	$ (0.34)	$ (0.57)	$ (0.61)
Working capital deficit		$ (77,400,000)		$ (77,400,000)		$ (72,300,000)
Default interest rate	14.00%
Ownership percentage				5.00%
Working capital deficit, excluding the current portion of long-term debt		(24,500,000)		$ (24,500,000)		$ (22,600,000)
Tank lease amount		600,000	$ 200,000	1,200,000	$ 200,000
Interest incurred				542,000	1,608,000
Terminal Services Agreement [Member]
Tank lease amount		600,000	200,000	1,200,000	200,000
Interest incurred		300,000	400,000	600,000	800,000
Veritex Loans [Member]
Principal and interest payments		$ 0	$ 900,000	$ 0	$ 900,000
Affiliates [Member]
Ownership percentage				82.00%

Principles of Consolidation a_3

Principles of Consolidation and Significant Accounting Policies (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Organization
Allowance for doubtful accounts	$ 100,000	$ 100,000
Estimated useful life	25 years
Uncertain tax position , description	benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement.

RelatedParty Transactions (Deta

RelatedParty Transactions (Details)	6 Months Ended
	Jun. 30, 2021USD ($)
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
Fees payable description	The fees are payable 50% in cash and 50% in Common Stock
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
Fees payable description	The fees are payable 50% in cash and 50% in Common Stock
LEH - LE
Type	Jet Fuel Sales Agreement
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
Effective date	4/1/2020
Jonathan Carroll - Blue Dolphin
Type	March Carroll Note (in default)
Interest rate	8.00%
Key terms/purpose	Blue Dolphin working capital; reflects amounts owed to Jonathan Carroll under the guaranty fee agreements
Maturity date	Jan 2019
Ingleside - Blue Dolphin
Type	March Ingleside Note (in default)
Interest rate	8.00%
Key terms/purpose	Blue Dolphin working capital
Maturity date	Jan 2019
LEH - Blue Dolphin
Type	June LEH Note (in default)
Interest rate	16.00%
Key terms/purpose	Blue Dolphin working capital; reflects amounts owed to LEH under the Amended and Restated Operating Agreement
Maturity date	Jan 2019
LEH - BDSC
Type	Office Sub-Lease Agreement
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
Effective date	1/1/2018
LEH - Blue Dolphin, LE, LRM, NPS, BDPL, BDPC and BDSC
Type	Amended and Restated Operating Agreement
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
Effective date	4/1/2020
LEH - BDPL
Type	BDPL-LEH Loan Agreement (in default)
Interest rate	16.00%
Key terms/purpose	Blue Dolphin working capital
Maturity date	Aug 2018
Loan agreement amount	$ 4,000,000

RelatedParty Transactions (De_2

RelatedParty Transactions (Details 1) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Prepaid operating expenses, related party	$ 22,214	$ 18,824
Less: Long-term debt, related party, current portion, in default	(19,080)	(16,010)
Less: Interest payable, related party, in default	(3,134)	(2,814)
Long-term debt - net of current portion, related party	0	0
LEH
Prepaid operating expenses, related party	19,253	16,260
LEH | June LEH Note (in default)
Prepaid operating expenses, related party	12,119	9,446
LEH | BDPL Loan Agreement (in default)
Prepaid operating expenses, related party	7,134	6,814
Ingleside | March Ingleside Note (in default)
Prepaid operating expenses, related party	1,045	1,013
Jonathan Carroll | March Carroll Note (in default)
Prepaid operating expenses, related party	$ 1,916	$ 1,551

RelatedParty Transactions (De_3

RelatedParty Transactions (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Total revenues	$ 69,441	$ 18,469	$ 128,854	$ 80,469
Total revenues, percent	100.00%	100.00%	100.00%	100.00%
LEH
Refinery operations revenues	$ 20,979	$ 4,587	$ 37,059	$ 22,302
Refinery operations revenues, percent	30.20%	24.80%	28.80%	27.70%
Third Parties
Refinery operations revenues	$ 47,539	$ 12,772	$ 89,942	$ 55,954
Refinery operations revenues, percent	68.50%	69.20%	69.80%	69.50%
Tolling and terminaling revenues	$ 923	$ 1,110	$ 1,853	$ 2,213
Tolling and terminaling revenues, percent	1.30%	6.00%	1.40%	2.80%

RelatedParty Transactions (De_4

RelatedParty Transactions (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest expenses under loan and guarantee, related party	$ 574	$ 464	$ 1,112	$ 845
LEH | June LEH Note (in default)
Interest expenses under loan and guarantee, related party	215	117	397	142
LEH | BDPL Loan Agreement (in default)
Interest expenses under loan and guarantee, related party	160	160	320	320
Ingleside | March Ingleside Note (in default)
Interest expenses under loan and guarantee, related party	14	15	28	35
Jonathan Carroll | March Carroll Note (in default)
Interest expenses under loan and guarantee, related party	32	20	61	43
Jonathan Carroll | First Term Loan Due 2034
Interest expenses under loan and guarantee, related party	108	108	216	216
Jonathan Carroll | Second Term Loan Due 2034
Interest expenses under loan and guarantee, related party	$ 45	$ 44	$ 90	$ 89

RelatedParty Transactions (De_5

RelatedParty Transactions (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Related-Party Transactions
Lease payments received under the office sub-lease agreement with LEH	$ 10,000	$ 10,000	$ 100,000	$ 10,000
LEH operating fee	$ 100,000	$ 200,000	$ 300,000	$ 300,000

Revenue and Segment Informati_3

Revenue and Segment Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Total revenue from operations	$ 69,441,000	$ 18,469,000	$ 128,854,000	$ 80,469,000
Intercompany fees and sales	0	0	0	0
Operation costs and expenses	(70,516,000)	(19,723,000)	(130,193,000)	(81,870,000)
Segment contribution margin (deficit)	(1,075,000)	(1,254,000)	(1,339,000)	(1,401,000)
General and administrative expenses	(743,000)	(531,000)	(1,270,000)	(1,175,000)
Depreciation and amortization	(693,000)	(699,000)	(1,386,000)	(1,302,000)
Interest and other non-operating expenses, net	(1,588,000)	(1,598,000)	(3,023,000)	(3,352,000)
Income (loss) before income taxes	(4,099,000)	(4,242,000)	(7,273,000)	(7,567,000)
Income tax expense	0	0	0	(15,000)
Net loss	(4,099,000)	(4,242,000)	(7,273,000)	(7,582,000)
Capital expenditures	0	710,000	0	908,000
Total assets	65,085,000		65,085,000		$ 69,300,000
Refinery Operations
Total revenue from operations	68,518,000	127,001,000	17,359,000	78,256,000
Intercompany fees and sales	(581,000)	(406,000)	(1,147,000)	(1,023,000)
Operation costs and expenses	(70,054,000)	(19,418,000)	(129,343,000)	(81,251,000)
Segment contribution margin (deficit)	(2,117,000)	(2,465,000)	(3,489,000)	(4,018,000)
General and administrative expenses	265,000	372,000	566,000	(631,000)
Depreciation and amortization	(302,000)	(294,000)	(604,000)	(582,000)
Interest and other non-operating expenses, net	(708,000)	(751,000)	(1,306,000)	(1,492,000)
Income (loss) before income taxes	(3,392,000)	(3,837,000)	(5,965,000)	(6,723,000)
Capital expenditures	0	286,000	0	292,000
Total assets	45,679,000		45,679,000		48,521,000
Tolling and Terminaling
Total revenue from operations	923,000	1,110,000	1,853,000	2,213,000
Intercompany fees and sales	581,000	406,000	1,147,000	1,023,000
Operation costs and expenses	(412,000)	(258,000)	(746,000)	(513,000)
Segment contribution margin (deficit)	1,092,000	1,258,000	2,254,000	2,723,000
General and administrative expenses	68,000	68,000	136,000	(136,000)
Depreciation and amortization	(340,000)	(324,000)	(680,000)	(618,000)
Interest and other non-operating expenses, net	(448,000)	(616,000)	(900,000)	(1,386,000)
Income (loss) before income taxes	236,000	250,000	538,000	583,000
Capital expenditures	0	424,000	0	616,000
Total assets	17,847,000		17,847,000		18,722,000
Corporate & Other
Operation costs and expenses	(50,000)	(47,000)	(104,000)	(106,000)
Segment contribution margin (deficit)	(50,000)	(47,000)	(104,000)	(106,000)
General and administrative expenses	410,000	326,000	823,000	(745,000)
Depreciation and amortization	(51,000)	(51,000)	(102,000)	(102,000)
Interest and other non-operating expenses, net	(432,000)	(231,000)	(817,000)	(474,000)
Income (loss) before income taxes	(943,000)	(655,000)	(1,846,000)	(1,427,000)
Capital expenditures	0	$ 0	0	$ 0
Total assets	$ 1,559,000		$ 1,559,000		$ 2,057,000

Concentration of Risk (Details)

Concentration of Risk (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Concentration of risk	100.00%	100.00%	100.00%	100.00%
4 Significant Customers
Concentration of risk			86.00%	90.00%
Portion of accounts receivable	$ 0	$ 0	$ 0	$ 0
3 Significant Customers
Concentration of risk	75.00%	69.00%
Portion of accounts receivable	$ 0	$ 0	$ 0	$ 0

Concentration of Risk (Details

Concentration of Risk (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Total refined petroleum product sales	$ 68,518	$ 17,359	$ 127,001	$ 78,256
Concentration risk	100.00%	100.00%	100.00%	100.00%
HOBM
Total refined petroleum product sales	$ 16,012	$ 3,691	$ 31,675	$ 18,882
Concentration risk	23.40%	21.30%	24.90%	24.10%
Naphtha
Total refined petroleum product sales	$ 15,264	$ 3,160	$ 29,488	$ 14,675
Concentration risk	22.30%	18.20%	23.20%	18.80%
AGO
Total refined petroleum product sales	$ 16,257	$ 5,921	$ 28,767	$ 22,397
Concentration risk	23.70%	34.10%	22.70%	28.60%
Jet Fuel
Total refined petroleum product sales	$ 20,979	$ 4,587	$ 37,059	$ 22,302
Concentration risk	30.60%	26.40%	29.20%	28.50%
LPG Mix
Total refined petroleum product sales	$ 6	$ 0	$ 12	$ 0
Concentration risk	0.00%	0.00%	0.00%	0.00%

Concentration of Risk (Detail_2

Concentration of Risk (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Concentration of Risk
Balances in excess of FDIC insurance limit	$ 0		$ 0		$ 600,000
Cash FDIC insured amount	250,000		250,000
Tank lease amount	600,000	$ 200,000	1,200,000	$ 200,000
Interest incurred	$ 300,000	$ 400,000	$ 600,000	$ 800,000
Total revenue percentage			The Affiliate accounted for 29% and 28%

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Prepaid Expenses and Other Current Assets
Prepaid insurance	$ 1,597	$ 1,182
Prepaid crude oil and condensate	266	2,249
Prepaid easement renewal fees	88	99
Other prepaids	10	34
Total	$ 1,961	$ 3,564

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventories, net	$ 1,033	$ 1,062
AGO
Inventories, net	159	133
Naphtha
Inventories, net	158	120
LPG Mix
Inventories, net	8	6
HOBM
Inventories, net	0	54
Crude Oil and Condensate
Inventories, net	587	463
Chemicals
Inventories, net	98	271
Propane
Inventories, net	$ 23	$ 15

Property Plant and Equipment Ne

Property Plant and Equipment Net (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment, Net
Refinery and facilities	$ 72,184	$ 72,184
Land	566	566
Other property and equipment	903	903
Total	73,653	73,653
Less: accumulated depletion, depreciation and amortization	(16,503)	(15,220)
Property, plant and equipment, gross	57,150	58,433
Construction in progress	4,064	4,064
Property, plant and equipment, net	$ 61,214	$ 62,497

Property Plant and Equipment _2

Property Plant and Equipment Net (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment, Net
Interest cost capitalized	$ 0	$ 0

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Accrued Expenses and Other Current Liabilities
Unearned revenue from contracts with customers	$ 3,489,000	$ 3,421,000
Insurance	783,000	541,000
Unearned contract renewal income	400,000	500,000
Taxes payable	214,000	58,000
Other payable	190,000	252,000
Customer deposits	173,000	10,000
Board of director fees payable	165,000	100,000
Total	$ 5,803,000	$ 4,882,000

ThirdParty LongTerm Debt (Detai

ThirdParty LongTerm Debt (Details)	6 Months Ended
	Jun. 30, 2021USD ($)
Notre Dame Debt (in default)
Original principal amount	$ 11,700,000
Maturity date	Jan 2018
Interest rate	16.00%
Monthly principal and interest payment	$ 0
LE Term Loan Due 2034
Original principal amount	$ 25,000,000
Maturity date	Jun 2034
Interest rate	WSJ Prime + 2.75%
Monthly principal and interest payment	$ 200,000
LRM Term Loan Due 2034
Original principal amount	$ 10,000,000
Maturity date	Dec 2034
Interest rate	WSJ Prime + 2.75%
Monthly principal and interest payment	$ 100,000
LE Term Loan Due 2050
Original principal amount	$ 150,000
Maturity date	Aug 2050
Interest rate	3.75%
Monthly principal and interest payment	$ 700
NPS Term Loan Due 2050
Original principal amount	$ 150,000
Maturity date	Aug 2050
Interest rate	3.75%
Monthly principal and interest payment	$ 700
Equipment Loan Due 2025
Original principal amount	$ 70,000
Maturity date	Oct 2025
Interest rate	4.50%
Monthly principal and interest payment	$ 1,300

ThirdParty LongTerm Debt (Det_2

ThirdParty LongTerm Debt (Details 1) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Principal balance outstanding	$ 43,893,000	$ 42,101,000
Less: current portion of long-term debt, net	(33,756,000)	(33,692,000)
Less: unamortized debt issue costs	(1,685)	(1,749)
Less: accrued interest payable (in default)	(7,605,000)	(6,305,000)
Long term debt	847,000	355,000
BDEC Term Loan Due 2051 [Member]
Principal balance outstanding	503,000	0
Less: accrued interest payable (in default)	(3,000)	0
Notre Dame Debt (in default)
Principal balance outstanding	9,812,000	9,413,000
Less: accrued interest payable (in default)	(4,834,000)	(4,435,000)
LE Term Loan Due 2034
Principal balance outstanding	23,468,000	22,840,000
Less: accrued interest payable (in default)	(1,923,000)	(1,295,000)
LRM Term Loan Due 2034
Principal balance outstanding	9,738,000	9,473,000
Less: accrued interest payable (in default)	(835,000)	(571,000)
LE Term Loan Due 2050
Principal balance outstanding	155,000	152,000
Less: accrued interest payable (in default)	(5,000)	(2,000)
NPS Term Loan Due 2050
Principal balance outstanding	155,000	152,000
Less: accrued interest payable (in default)	(5,000)	(2,000)
Equipment Loan Due 2025
Principal balance outstanding	$ 62,000	$ 71,000

ThirdParty LongTerm Debt (Det_3

ThirdParty LongTerm Debt (Details 2) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Less: accumulated amortization	$ (757)	$ (693)
Unamortized debt issue costs, net	1,685	1,749
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

ThirdParty LongTerm Debt (Det_4

ThirdParty LongTerm Debt (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Third-Party Long-Term Debt
Amortization expense	$ 30,000	$ 30,000	$ 60,000	$ 60,000

Line of Credit Payable (Details

Line of Credit Payable (Details) - Amended Pilot Line Of Credit (in default)	6 Months Ended
	Jun. 30, 2021USD ($)
Principal amount	$ 13,000
Maturity date	May 2020
Interest rate	14.00%

Line of Credit Payable (Detai_2

Line of Credit Payable (Details 1) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Line of credit, gross	$ 43,893	$ 42,101
Less: accrued interest payable (in default)	(7,605)	(6,305)
Line of credit	5,941	8,042
Amended Pilot Line Of Credit (in default)
Line of credit, gross	6,044	8,145
Less: accrued interest payable (in default)	(103)	(103)
Line of credit	$ 5,941	$ 8,042

Line of Credit Payable (Detai_3

Line of Credit Payable (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Set-off of tank rental fees under line of credit payable			$ 1,201,000
Interest expenses	$ 1,588,000	$ 1,678,000	3,068,000	$ 3,452,000
Terminal Services Agreement [Member]
Set-off of tank rental fees under line of credit payable	600,000	200,000	1,200,000	200,000
Interest expenses	$ 300,000	$ 400,000	$ 600,000	$ 800,000

AROS (Details)

AROS (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
ARO's
AROs, at the beginning of the period	$ 2,370,000	$ 2,565,000
Liabilities settled	0	(195,000)
Less: asset retirement obligations, current portion	2,370,000	2,370,000
Long-term asset retirement obligations, at the end of the period	$ (2,370)	$ (2,370)

Lease Obligations (Details)

Lease Obligations (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Lease Obligations (Tables)
Operating lease right-of-use assets, gross	$ 787	$ 787
Less: accumulated amortization on operating lease assets	(370)	(289)
Operating lease right-of-use assets, net	417	498
Current portion of operating lease	204	194
Long-term portion of operating lease	266	370
Total lease liabilities	$ 470	$ 564
Weighted average remaining lease term in years - operating lease	2 years 2 months 1 day
Weighted average discount rate - operating lease	8.25%
Weighted average discount rate - finance lease	8.25%

Lease Obligations (Details 1)

Lease Obligations (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lease Obligations (Tables)
Operating lease costs	$ 51	$ 51	$ 102	$ 103
Depreciation of leased assets	0	4	0	10
Interest on lease liabilities	0	2	0	3
Total lease cost	$ 51	$ 57	$ 102	$ 116

Lease Obligations (Details 2)

Lease Obligations (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lease Obligations (Tables)
Operating cash flows for operating lease	$ 48	$ 43	$ 95	$ 131
Operating cash flows for finance leases	0	2	0	4
Financing cash flows for finance leases	$ 0	$ 6	$ 0	$ 12

Lease Obligations (Details 3)

Lease Obligations (Details 3) $ in Thousands	Jun. 30, 2021USD ($)
Operating Lease
2021	$ 204
2022	226
2023	40
Total minimum rental payments	$ 470

Lease Obligations (Details 4)

Lease Obligations (Details 4) $ in Thousands	Jun. 30, 2021USD ($)
Lease Obligations (Tables)
2021	$ 235
2022	260
2023	20
Total	$ 515

Lease Obligations (Details Narr

Lease Obligations (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lease term			5 years
Rent installments and other charges	$ 10,000	$ 10,000	$ 100,000	$ 10,000
Past obligations of rent			$ 20,000
Annual inteest rate			4.50%
Affiliates [Member]
income received from rent lease	$ 10,000	$ 10,000	$ 20,000	$ 20,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Taxes
Current federal	$ 0	$ 0	$ 0	$ (15,000)
Current state	0	0	0	0
Deferred federal	1,167,000	893,000	500,000	1,591,000
Deferred state	0	(500,000)	0	(1,167,000)
Change in valuation allowance	0	(893,000)	0	(1,591,000)
Total provision for income taxes	$ 0	$ 0	$ 0	$ (15,000)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Deferred tax assets:
NOL and capital loss carryforwards	$ 16,180	$ 15,258
Business interest expense	3,987	3,343
Start-up costs (crude oil and condensate processing facility)	467	509
ARO liability/deferred revenue	498	498
Other	3	3
Total deferred tax assets	21,134	19,611
Deferred tax liabilities:
Basis differences in property and equipment	(7,587)	(7,230)
Total deferred tax liabilities	(7,587)	(7,230)
Deferred tax assets, net	13,547	12,381
Valuation allowance	(13,547)	(12,381)
Deferred tax assets, net	$ 0	$ 0

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Beginning balance	$ 65,978,000	$ 52,672,000
Net operating losses	738,000	13,306,000
Expiration of net operating losses	(1,718)
Ending balance	66,715,000	65,978,000
Pre-Ownership Change
Beginning balance	9,614,000	9,614,000
Net operating losses	0	0
Expiration of net operating losses	(1,718)
Ending balance	7,896,000	9,614,000
Post-Ownership Change
Beginning balance	56,364,000	43,058,000
Net operating losses	2,456,000	13,306,000
Ending balance	$ 58,819,000	$ 56,364,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) $ in Millions	6 Months Ended
	Jun. 30, 2021USD ($)
Income Taxes
Ownership percentage	5.00%
NOL and capital loss carryforwards	$ 16.3
Annual use limitation	0.6
NOL carryforwards ,annual use limitation	$ 6.7

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share
Net loss	$ (4,099)	$ (4,242)	$ (7,273)	$ (7,582)
Basic and diluted income (loss) per share	$ (0.32)	$ (0.34)	$ (0.57)	$ (0.1)
Basic and Diluted
Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock	12,693,514	12,580,853	12,693,514	12,454,109

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Mar. 31, 2018	Jun. 30, 2021
Organization
Trunk pipeline, federal waters	$ 2.4	$ 0.9