Blue Dolphin Energy (BDCO) 10-Q 15 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 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	Sep. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Entity Common Stock Shares Outstanding		12,693,514
Document Quarterly Report	true
Document Transition Report	false
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
Entity Interactive Data Current	Yes

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
CURRENT ASSETS
Cash and cash equivalents	$ 2,177,000	$ 549,000
Restricted cash	48,000	48,000
Accounts receivable, net	63,000	214,000
Prepaid expenses and other current assets	1,431,000	3,564,000
Deposits	110,000	124,000
Inventory	1,088,000	1,062,000
Total current assets	4,917,000	5,561,000
LONG-TERM ASSETS
Total property and equipment, net	60,573,000	62,497,000
Operating lease right-of-use assets, net	375,000	498,000
Restricted cash, noncurrent	0	514,000
Surety bonds	230,000	230,000
Total long-term assets	61,178,000	63,739,000
TOTAL ASSETS	66,095,000	69,300,000
CURRENT LIABILITIES
Long-term debt less unamortized debt issue costs, current portion (in default)	33,788,000	33,692,000
Line of credit payable (in default)	4,754,000	8,042,000
Long-term debt, related party, current portion (in default)	19,818,000	16,010,000
Interest payable (in default)	8,384,000	6,408,000
Interest payable, related party (in default)	3,294,000	2,814,000
Accounts payable	2,583,000	3,274,000
Accounts payable, related party	155,000	155,000
Current portion of lease liabilities	209,000	194,000
Asset retirement obligations, current portion	2,370,000	2,370,000
Accrued expenses and other current liabilities	9,361,000	4,882,000
Total current liabilities	84,716,000	77,841,000
LONG-TERM LIABILITIES
Long-term lease liabilities, net of current	211,000	370,000
Deferred revenues	1,313,000	1,520,000
Long-term debt, net of current portion	843,000	355,000
Total long-term liabilities	2,367,000	2,245,000
TOTAL LIABILITIES	87,083,000	80,086,000
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock ($0.01 par value, 20,000,000 shares authorized; 12,693,514 shares issued at September 30, 2021 and December 31, 2020)	127,000	127,000
Additional paid-in capital	38,457,000	38,457,000
Accumulated deficit	(59,572,000)	(49,370,000)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	(20,988,000)	(10,786,000)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 66,095,000	$ 69,300,000

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	20,000,000,000	20,000,000,000
Common stock, shares issued	12,693,514,000	12,693,514,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
REVENUE FROM OPERATIONS
Refinery operations	$ 79,466,000	$ 41,929,000	$ 206,467,000	$ 120,185,000
Tolling and terminaling	924,000	1,001,000	2,777,000	3,214,000
Total revenue from operations	80,390,000	42,930,000	209,244,000	123,399,000
COST OF GOODS SOLD
Crude oil, fuel use, and chemicals	78,312,000	41,789,000	204,594,000	118,292,000
Other conversion costs	1,802,000	2,611,000	5,609,000	7,872,000
Total cost of goods sold	80,114,000	44,400,000	210,203,000	126,164,000
Gross profit (loss)	276,000	(1,470,000)	(959,000)	(2,765,000)
COST OF OPERATIONS
LEH operating fee	126,000	169,000	381,000	506,000
Other operating expenses	83,000	58,000	187,000	164,000
General and administrative expenses	649,000	684,000	1,919,000	1,859,000
Depletion, depreciation and amortization	693,000	690,000	2,079,000	1,992,000
Total cost of operations	1,551,000	1,601,000	4,566,000	4,521,000
Loss from operations	(1,275,000)	(3,071,000)	(5,525,000)	(7,286,000)
OTHER INCOME (EXPENSE)
Easement, interest and other income	0	70,000	2,000	170,000
Interest and other expense	(1,654,000)	(1,652,000)	(4,722,000)	(5,104,000)
Gain on extinguishment of debt	0	0	43,000	0
Total other expense	(1,654,000)	(1,582,000)	(4,677,000)	(4,934,000)
Loss before income taxes	(2,929,000)	(4,653,000)	(10,202,000)	(12,220,000)
Income tax expense	0	0	0	15,000
Net Loss	$ (2,929,000)	$ (4,653,000)	$ (10,202,000)	$ (12,235,000)
Loss per common share:
Basic	$ (0.23)	$ (0.37)	$ (0.80)	$ (0.98)
Diluted	$ (0.23)	$ (0.37)	$ (0.80)	$ (0.98)
Weighted average number of common shares outstanding:
Basic	12,693,514	12,693,514	12,693,514	12,534,493
Diluted	12,693,514	12,693,514	12,693,514	12,534,493

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
OPERATING ACTIVITIES
Net loss	$ (10,202,000)	$ (12,235,000)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depletion, depreciation and amortization	2,079,000	1,992,000
Deferred income tax	0	15,000
Amortization of debt issue costs	96,000	316,000
Guaranty fees paid in kind	456,000	457,000
Related-party interest expense paid in kind	826,000	361,000
Deferred revenues and expenses	(207,000)	(295,000)
Loss (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	243,000
Accounts receivable, related party	0	1,364,000
Prepaid expenses and other current assets	2,133,000	659,000
Deposits and other assets	14,000	34,000
Inventory	(26,000)	783,000
Accounts payable, accrued expenses and other liabilities	5,141,000	4,184,000
Accounts payable, related party	0	6,000
Net cash used in operating activities	(418,000)	(2,196,000)
INVESTING ACTIVITIES
Capital expenditures	0	(1,085,000)
Net cash used in investing activities	0	(1,085,000)
FINANCING ACTIVITIES
Proceeds from issuance of debt	500,000	300,000
Payments on debt	(13,000)	(2,351,000)
Net activity on related-party debt	209,000	5,502,000
Net cash provided by financing activities	696,000	3,451,000
Net change in cash, cash equivalents, and restricted cash	1,114,000	170,000
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	2,225,000	838,000
Non-cash investing and financing activities:
Financing of line of credit via related-party debt	2,317,000	1,789,000
Line of credit financed by offsetting tank leases less interest	971,000	273,000
Issuance of shares for services and/or to extinguish debt	0	120,000
Conversion of related-party notes to common stock	0	148,000
Interest paid	$ 727,000	$ 1,980,000

Organization

Organization	9 Months Ended
	Sep. 30, 2021
Organization
Note 1. Organization	(1) Organization Overview Blue Dolphin was formed in 1986 as a Delaware corporation. The company is an independent downstream energy company operating in the Gulf Coast region of the United States. Operations primarily consist of a light sweet-crude, 15,000-bpd crude distillation tower, and approximately 1.2 million bbls of petroleum storage tank capacity in Nixon, Texas. Blue Dolphin trades on the OTCQX under the ticker symbol “BDCO.” Assets are primarily organized in two segments: ‘refinery operations’ (owned by LE) and ‘tolling and terminaling services’ (owned by LRM and NPS). ‘Corporate and other’ includes 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 “Blue Dolphin,” “we,” “us,” “our,” or “ours” refer to Blue Dolphin, one or more of Blue Dolphin’s 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. In addition, 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 determined that certain factors raise substantial doubt about our ability to continue as a going concern. These factors include defaults under secured loan agreements, margin volatility, and historical net losses and working capital deficits, as discussed more fully below. Our consolidated financial statements assume we will continue as a going concern and do not include any adjustments that might result from this uncertainty. Our ability to continue as a going concern depends on sustained positive operating margins and adequate working capital for, amongst other requirements, purchasing crude oil and condensate and making payments on long-term debt. If we are unable to process crude oil and condensate into sellable refined products or make required debt payments, we may consider other options. These options might include selling assets, raising additional debt or equity capital, cutting costs, reducing cash requirements, restructuring debt obligations, or filing bankruptcy. Defaults Under Secured Loan Agreements Third-Party Defaults · Veritex Loans – For both three-month periods ended September 30, 2021, and 2020, principal and interest payments to Veritex totaled $0. For the nine-month periods ended September 30, 2021, and 2020, principal and interest payments to Veritex totaled $0 and $0.3 million, respectively. As of the filing date of this report, LE and LRM were in default related to required monthly payments under the LE Term Loan Due 2034 and LRM Term Loan Due 2034. 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 concerning collateral securing obligors’ obligations under these loan agreements, and exercise any other rights and remedies available. Any exercise by Veritex of its rights and remedies under these 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. These adverse market actions could lead to holders of our common stock losing their investment in its entirety. We cannot assure investors that: (i) our assets or cash flow will be sufficient to repay borrowings under our secured loan agreements with Veritex fully, either upon maturity or if accelerated, (ii) LE and LRM will be able to refinance or restructure the payments of the debt, or (iii) Veritex, as first lien holder, will provide future default waivers. Borrowers and Veritex maintain ongoing dialogue regarding potential restructuring and refinance opportunities related to this debt. · Amended Pilot Line of Credit – On October 4, 2021, NPS repaid all obligations owed to Pilot under the Amended Pilot Line of Credit. However, NPS was in default as of September 30, 2021, and December 31, 2020, for failure of the borrower or any guarantor to pay past-due obligations when due. The debt, which accrued interest at a default rate of fourteen percent (14%) per annum, was classified within the current portion of long-term debt on our consolidated balance sheets at September 30, 2021, and December 31, 2020. Due to NPS’ default under the Amended Pilot Line of Credit, Pilot applied payments owed to NPS under two terminal services agreements against NPS’ payment obligations to Pilot under the Amended Pilot Line of Credit from June 2020 to September 2021. For both three-month periods ended September 30, 2021, and 2020, the tank lease payment setoff totaled $0.6 million. For the nine-month periods ended September 30, 2021, and 2020, the tank lease payment setoff totaled $1.7 million and $0.8 million, respectively. The amount of interest NPS incurred under the Amended Pilot Line of Credit totaled $0.2 million and $0.4 million, respectively, for the three months ended September 30, 2021, and 2020. For the nine months ended September 30, 2021, and 2020, interest was $0.7 million and $1.1 million, respectively. See “Note (11) Line of Credit Payable” and “Note (17) Subsequent Events” to our consolidated financial statements for additional disclosures related to the Amended Pilot Line of Credit. · Kissick Debt – Under a 2015 subordination agreement, John Kissick agreed to subordinate his 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, LE has made no payments under the subordinated Kissick Debt. Mr. Kissick has taken no action due to the non-payment. Related-Party Defaults As of the filing date of this report, Blue Dolphin was in default concerning 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. 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. Substantial Current Debt As of September 30, 2021, and December 31, 2020, we had current debt of $58.4 million and $57.7 million, respectively, consisting of bank debt, related party debt, and the line of credit payable to Pilot, although the Pilot debt was subsequently repaid. Substantial current debt is primarily the result of secured loan agreements being in default. As a result, these debt obligations were classified within the current portion of long-term debt on our consolidated balance sheets at September 30, 2021, and December 31, 2020. Margin Volatility Historical Net Losses and Working Capital Deficits Net Losses . Working Capital Deficits Cash and cash equivalents totaled $2.2 million and $0.5 million at September 30, 2021, and December 31, 2020, respectively. Restricted cash (current portion) totaled $0.05 million at both September 30, 2021, and December 31, 2020. Restricted cash, noncurrent totaled $0 and $0.5 million at September 30, 2021, and December 31, 2020, respectively. Our financial health has been materially and adversely affected by defaults in our secured loan agreements, margin volatility, and historical net losses and working capital deficits. If Pilot terminates the crude supply agreement or terminal services agreement, our ability to acquire crude oil and condensate could be adversely affected. If producers experience crude supply constraints and increased transportation costs, our crude acquisition costs may rise, or we may not receive sufficient amounts to meet our needs. During the three-month periods ended September 30, 2021, and 2020, our refinery experienced 6 days and 8 days of downtime, respectively, due to crude deficiencies associated with COVID-19 related cash constraints. During the nine-month periods ended September 30, 2021, and 2020, our refinery experienced 11 days and 16 days of downtime, respectively. Operating Risks Successful execution of our business strategy depends on several critical factors, including having adequate working capital to meet contractual, operational, regulatory, and safety needs 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. Earlier state and federal mandates that regulated business closures due to COVID-19 deemed our business essential, and we remained open. If future restrictive directives become necessary, we expect to continue operating. However, additional governmental mandates will likely result in business and operational disruptions, including demand destruction, liquidity strains, supply chain challenges, travel restrictions, controls on in-person gathering, and workforce availability. Management continues to take steps to mitigate risk, avoid business disruptions, manage cash flow, and remain competitive in a volatile commodity price environment. Mitigation steps include: adjusting throughput and production based on market conditions, optimizing receivables and payables by prioritizing payments, managing inventory to avoid buildup, monitoring discretionary spending, and delaying capital expenditures. To safeguard personnel, 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. We can provide no guarantees that: our business strategy will be successful, Affiliates will continue to fund our working capital needs when we experience working capital deficits, we will meet regulatory requirements to provide additional financial assurance (supplemental pipeline bonds) and decommission offshore pipelines and platform assets, we will be able to obtain additional financing on commercially reasonable terms or at all, or margins on our refined products will be favorable. Further, if Veritex exercises its 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	9 Months Ended
	Sep. 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, including Blue Dolphin and its subsidiaries, were prepared under GAAP for interim consolidated financial information according 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 usually included in our audited financial statements were condensed or omitted according to the SEC’s rules and regulations. Significant intercompany transactions were eliminated in the consolidation. In management’s opinion, consolidated financial statements include all necessary adjustments for a fair presentation, disclosures are adequate, and the presented information is not misleading. We derived the consolidated balance sheet as of December 31, 2020, from the audited financial statements at that date. We recommend that investors read the consolidated financial statements and notes in this report together with the consolidated financial statements and notes in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, Significant Accounting Policies The summary of Blue Dolphin’s significant accounting policies assists investors 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. We consistently applied these accounting policies in the preparation of our consolidated financial statements. Our accounting policies conform to GAAP. 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. For operating leases, we record lease rental payments on a straight-line basis over the lease term; we record lease expenses on the income statement based on the leased asset’s intended use. For finance leases (previously referred to under GAAP as capital leases), we amortize lease payments for the ROU asset on a straight-line basis over the lesser of the leased asset’s useful life or the lease term; we record amortization expenses on the income statement in ‘depreciation and amortization expense;’ we record interest expense on the income statement in ‘interest and other expense.’ Revenue Recognition Refinery Operations Revenue We consider a variety of facts and circumstances in assessing the point of a 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. We include incurred transportation, shipping, and handling costs in the cost of goods sold. We do not include excise and other taxes collected from customers and remitted to governmental authorities in revenue. Tolling and Terminaling Revenue We typically satisfy performance obligations for tolling and terminaling operations over time. We determine the transaction price at agreement inception based on the guaranteed minimum amount of revenue over the agreement term. We allocate the transaction price to the single performance obligation that exists under the agreement. 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. The fixed cost under the customer’s tank storage agreement does not include ancillary service fees. We consider ancillary services as a separate performance obligation under the tank storage agreement. We satisfy the performance obligation and recognize the associated fee when we complete the requested service. Deferred Revenue Income Taxes Management uses significant judgment 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 assess the realizability of deferred tax assets. We weigh whether there is a more than 50% probability of realizing a portion or all the deferred tax assets. Realization depends on the generation of future taxable income before the expiration of any NOL carryforwards. We record a valuation allowance against deferred income tax assets if there is a more than 50% probability of not realizing some portion of the asset. We recognize an uncertain tax positions benefit in our financial statements if deferred tax assets meet a minimum recognition threshold. First, we determine whether there is a more than 50% probability that our income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If we meet the criteria, we record a benefit in the financial statements equal to the largest amount greater than 50% likely to be realized upon settlement with taxing authorities. See “Note (14)” to our consolidated financial statements for more information related to income taxes. Impairment or Disposal of Long-Lived Assets Commodity price market volatility associated with the 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 September 30, 2021. We did not record any impairment of our refinery and facilities assets for the periods presented. Asset Retirement Obligations Refinery and Facilities Pipeline and Facilities; Oil and Gas Properties 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.

RelatedParty Transactions

RelatedParty Transactions	9 Months Ended
	Sep. 30, 2021
RelatedParty Transactions
Note 3. Related-Party Transactions	(3) Related-Party Transactions Affiliate Operational Agreements Summary Blue Dolphin and certain of its subsidiaries are parties to several operational agreements with Affiliates. Management believes that these related-party agreements are arm’s-length 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 $0.01 million per month Amended and Restated Operating Agreement LEH Blue Dolphin LE LRM NPS BDPL BDPC 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. We reflect such borrowings in our consolidated balance sheets in accounts payable, related party, 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) (2) Guarantees, Security, and Defaults Loan Description Guarantees Security Event(s) of Default March Carroll Note (in default) --- --- Borrower failure to pay past due payment obligations; loan matured January 2019 March Ingleside Note (in default) --- --- Borrower failure to pay past due payment obligations; loan matured January 2019 June LEH Note (in default) --- --- Borrower failure to pay past due payment obligations; loan matured January 2019 BDPL-LEH Loan Agreement --- Certain BDPL property Borrower failure 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. September 30, December 31, 2021 2020 (in thousands) LEH June LEH Note (in default) $ 12,644 $ 9,446 BDPL-LEH Loan Agreement (in default) 7,294 6,814 LEH Total 19,938 16,260 Ingleside March Ingleside Note (in default) 1,059 1,013 Jonathan Carroll March Carroll Note (in default) 2,115 1,551 23,112 18,824 Less: Long-term debt, related party, current portion (in default) (19,818 ) (16,010 ) Less: Accrued interest payable, related party (in default) (3,294 ) (2,814 ) $ - $ - Consolidated Statements of Operations Total revenue from operations. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands, except percent amounts) (in thousands, except percent amounts) Refinery operations LEH $ 24,214 30.1 % $ 11,942 27.8 % $ 61,271 29.3 % $ 34,244 27.8 % Third-Parties 55,252 68.7 % 29,987 69.9 % 145,196 69.4 % 85,941 69.6 % Tolling and terminaling Third-Parties 924 1.2 % 1,001 2.3 % 2,777 1.3 % 3,214 2.6 % $ 80,390 100.0 % $ 42,930 100.0 % $ 209,244 100.0 % $ 123,399 100.0 % Interest expense. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Jonathan Carroll Guaranty Fee Agreements First Term Loan Due 2034 $ 108 $ 108 $ 323 $ 324 Second Term Loan Due 2034 45 45 134 134 March Carroll Note (in default) 33 23 94 66 LEH BDPL-LEH Loan Agreement (in default) 160 160 480 480 June LEH Note (in default) 293 102 690 245 Ingleside March Ingleside Note (in default) 14 15 42 50 $ 653 $ 453 $ 1,763 $ 1,299 Other. The LEH operating fee totaled approximately $0.1 million and $0.2 million for the three-month periods ended September 30, 2021, and 2020, respectively. The LEH operating fee totaled approximately $0.4 million and $0.5 million for the nine months ended September 30, 2021, and 2020, respectively. Decreases in both periods was the result of lower operating costs.

Revenue and Segment Information

Revenue and Segment Information	9 Months Ended
	Sep. 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, focused on refining and marketing petroleum products at the Nixon facility, and (ii) tolling and terminaling, focused on tolling and storing petroleum products for third parties 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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Net revenue (excluding intercompany fees and sales) Refinery operations $ 79,466 $ 41,929 $ 206,467 $ 120,185 Tolling and terminaling 924 1,001 2,777 3,214 Total net revenue 80,390 42,930 209,244 123,399 Intercompany fees and sales Refinery operations (650 ) (595 ) (1,797 ) (1,618 ) Tolling and terminaling 650 595 1,797 1,618 Total intercompany fees - - - - Operation costs and expenses (1) Refinery operations (79,593 ) (43,691 ) (208,936 ) (124,942 ) Tolling and terminaling (521 ) (709 ) (1,267 ) (1,222 ) Corporate and other (83 ) (58 ) (187 ) (164 ) Total operation costs and expenses (80,197 ) (44,458 ) (210,390 ) (126,328 ) Segment contribution margin (deficit) Refinery operations (777 ) (2,357 ) (4,266 ) (6,375 ) Tolling and terminaling 1,053 887 3,307 3,610 Corporate and other (83 ) (58 ) (187 ) (164 ) Total segment contribution margin (deficit) 193 (1,528 ) (1,146 ) (2,929 ) General and administrative expenses (2) Refinery operations (282 ) (414 ) (848 ) (1,045 ) Tolling and terminaling (70 ) (132 ) (206 ) (268 ) Corporate and other (423 ) (307 ) (1,246 ) (1,052 ) Total general and administrative expenses (775 ) (853 ) (2,300 ) (2,365 ) Depreciation and amortization Refinery operations (302 ) (301 ) (906 ) (883 ) Tolling and terminaling (340 ) (338 ) (1,020 ) (956 ) Corporate and other (51 ) (51 ) (153 ) (153 ) Total depreciation and amortization (693 ) (690 ) (2,079 ) (1,992 ) Interest and other non-operating expenses, net Refinery operations (747 ) (679 ) (2,053 ) (2,171 ) Tolling and terminaling (384 ) (599 ) (1,284 ) (1,985 ) Corporate and other (523 ) (304 ) (1,340 ) (778 ) Total interest and other non-operating expenses, net (1,654 ) (1,582 ) (4,677 ) (4,934 ) Income (loss) before income taxes Refinery operations (2,108 ) (3,751 ) (8,073 ) (10,474 ) Tolling and terminaling 259 (182 ) 797 401 Corporate and other (1,080 ) (720 ) (2,926 ) (2,147 ) Total loss before income taxes (2,929 ) (4,653 ) (10,202 ) (12,220 ) Income tax expense - - - (15 ) Net loss $ (2,929 ) $ (4,653 ) $ (10,202 ) $ (12,235 ) (1) (2) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Capital expenditures Refinery operations $ - $ 3 $ - $ 295 Tolling and terminaling - 174 - 790 Corporate and other - - - - Total capital expenditures $ - $ 177 $ - $ 1,085 September 30, December 31, 2021 2020 (in thousands) Identifiable assets Refinery operations $ 44,939 $ 48,521 Tolling and terminaling 19,878 18,722 Corporate and other 1,278 2,057 Total identifiable assets $ 66,095 $ 69,300

Risk Concentration

Risk Concentration	9 Months Ended
	Sep. 30, 2021
Risk Concentration
Note 5. Risk Concentration	(5) Risk Concentration Bank Accounts Financial instruments that potentially subject us to risk concentrations consist primarily of cash, trade receivables, and accounts 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 September 30, 2021, and December 31, 2020, we had cash balances (including restricted cash) that exceeded the FDIC insurance limit per depositor of $1.9 million and $0.6 million, respectively. Key Supplier The 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 volume-based crude supply agreement expires when Pilot sells us 24.8 million net bbls of crude oil. After that, the crude supply agreement automatically renews for successive one-year terms (each such term, a “Renewal Term”). Either party may provide the other with notice of non-renewal at least 60 days before the expiration of any Renewal Term. Effective June 30, 2020, Pilot assigned its rights, title, interest, and obligations in the crude supply agreement to Tartan Oil LLC, a Pilot affiliate. As of September 30, 2021, the total volume we received under the crude supply agreement was approximately 7.9 million bbls. 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. Our financial health has been materially and adversely affected by defaults in our secured loan agreements, margin volatility, and historical net losses and working capital deficits. If Pilot terminates the crude supply agreement or terminal services agreement, our ability to acquire crude oil and condensate could be adversely affected. If producers experience crude supply constraints and increased transportation costs, our crude acquisition costs may rise, or we may not receive sufficient amounts to meet our needs. During the three-month periods ended September 30, 2021, and 2020, our refinery experienced 6 days and 8 days of downtime, respectively, due to crude deficiencies associated with COVID-19 related cash constraints. During the nine-month periods ended September 30, 2021, and 2020, our refinery experienced 11 days and 16 days of downtime, respectively. Due to NPS’ default under the Amended Pilot Line of Credit, Pilot applied payments owed to NPS under two terminal services agreements against NPS’ payment obligations to Pilot under the Amended Pilot Line of Credit from June 2020 to September 2021. For both three-month periods ended September 30, 2021, and 2020, the tank lease payment setoff totaled $0.6 million. For the nine-month periods ended September 30, 2021, and 2020, the tank lease payment setoff totaled $1.7 million and $0.8 million, respectively. The amount of interest NPS incurred under the Amended Pilot Line of Credit totaled $0.2 million and $0.4 million, respectively, for the three months ended September 30, 2021, and 2020. For the nine months ended September 30, 2021, and 2020, interest was $0.7 million and $1.1 million, respectively. See “Note (1) Organization – Going Concern,” “Note (11) Line of Credit Payable,” and “Note (17) Subsequent Events” to our consolidated financial statements for additional disclosures related to the Amended Pilot Line of Credit. Significant Customers We routinely assess the financial strength of our customers. To date, we 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 September 30, September 30, 2021 3 69 % $ 0 September 30, 2020 4 80 % $ 0 One of our significant customers is LEH, an Affiliate. Due to a HUBZone certification, the Affiliate purchases our jet fuel under a Jet Fuel Sales Agreement and bids on jet fuel contracts under preferential pricing terms. The Affiliate accounted for 30% and 28% of total revenue from operations for the three months ended September 30, 2021, and 2020, respectively. The Affiliate represented $0 in accounts receivable at both September 30, 2021, and 2020, respectively. Nine Months Ended Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable at September 30, September 30, 2021 3 72 % $ 0 September 30, 2020 4 82 % $ 0 The Affiliate accounted for 29% and 28% of total revenue from operations for the nine months ended September 30, 2021, and 2020, respectively. The Affiliate represented $0 in accounts receivable at both September 30, 2021, and 2020, respectively. Outstanding amounts under certain related party agreements can significantly vary from period to period based on the timing of sales and payments. Concerning the Amended and Restated Operating Agreement, we add any amount that remains outstanding at the end of the quarter to the June LEH Note. We classify the June LEH Note within long-term debt, related party, current portion (in default) on the consolidated balance sheets. At September 30, 2021, and December 31, 2020, the total amount we owed to LEH under long-term debt, related-party agreements including accrued interest totaled $19.9 million and $16.3 million, respectively. See “Notes (3) and (16)” to our consolidated financial statements for additional disclosures related to transactions with Affiliates. Customer Concentration Refined Product Sales Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands, except percent amounts) (in thousands, except percent amounts) LPG mix $ 9 0 % $ - 0 % $ 21 0 % $ - 0 % Naphtha 20,440 22.3 % 7,847 18.7 % 49,928 23.2 % 22,523 18.7 % Jet fuel 24,212 30.6 % 11,942 28.5 % 61,271 29.2 % 34,244 28.5 % HOBM 17,607 23.4 % 12,196 29.1 % 49,282 24.9 % 31,077 25.9 % AGO 17,198 23.7 % 9,944 23.7 % 45,965 22.7 % 32,341 26.9 % $ 79,466 100.0 % $ 41,929 100.0 % $ 206,467 100.0 % $ 120,185 100.0 % 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	9 Months Ended
	Sep. 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: September 30, December 31, 2021 2020 (in thousands) Prepaid insurance $ 935 $ 1,182 Prepaid crude oil and condensate 360 2,249 Prepaid easement renewal fees 82 99 Other prepaids 54 34 $ 1,431 $ 3,564

Inventory

Inventory	9 Months Ended
	Sep. 30, 2021
Inventory
Note 7. Inventory	(7) Inventory Inventory as of the dates indicated consisted of the following: September 30, December 31, 2021 2020 (in thousands) Crude oil and condensate $ 536 $ 463 AGO 259 133 Naphtha 142 120 Chemicals 108 271 Propane 27 15 LPG mix 16 6 HOBM - 54 $ 1,088 $ 1,062

Property Plant and Equipment Ne

Property Plant and Equipment Net	9 Months Ended
	Sep. 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: September 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 (17,145 ) (15,220 ) 56,508 58,433 CIP 4,065 4,064 $ 60,573 $ 62,497 We capitalize the interest cost incurred on funds used to construct property, plant, and equipment. We record capitalized interest as part of the asset it relates to, and we depreciate the capitalized interest over the asset’s useful life. The capitalized interest cost included in CIP was $0 at September 30, 2021, and December 31, 2020. We funded capital expenditures for expansion at the Nixon facility through long-term debt from Veritex, revenue from operations, and working capital from Affiliates. At September 30, 2021, and December 31, 2020, we reflected Veritex-derived amounts not used for capital expenditures in restricted cash (current and non-current portions) on our consolidated balance sheets.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Sep. 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: September 30, December 31, 2021 2020 (in thousands) Unearned revenue from contracts with customers $ 7,713 $ 3,421 Unearned contract renewal income 400 500 Insurance 385 541 Other payable 282 252 Taxes payable 210 58 Board of director fees payable 198 100 Customer deposits 173 10 $ 9,361 $ 4,882

ThirdParty LongTerm Debt

ThirdParty LongTerm Debt	9 Months Ended
	Sep. 30, 2021
ThirdParty LongTerm Debt
Note 10 .Third-Party Long-Term Debt	(10) Third-Party Long-Term Debt As of the filing date of this report, we are in default under our Veritex loans and the Kissick Debt. See ‘Defaults’ within this Note (10) for more information related to these defaults. 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 Kissick 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) (2) (3) (4) (5) (6) 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: September 30, December 31, 2021 2020 (in thousands) Veritex Loans LE Term Loan Due 2034 (in default) $ 23,827 $ 22,840 LRM Term Loan Due 2034 (in default) 9,881 9,473 Kissick Debt (in default) 10,011 9,413 SBA EIDLs BDEC Term Loan Due 2051 507 - LE Term Loan Due 2050 155 152 NPS Term Loan Due 2050 155 152 Equipment Loan Due 2025 59 71 44,595 42,101 Less: Current portion of long-term debt, net (33,788 ) (33,692 ) Less: Unamortized debt issue costs (1,653 ) (1,749 ) Less: Accrued interest payable (in default) (8,311 ) (6,305 ) $ 843 $ 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 (789 ) (693 ) $ 1,653 $ 1,749 Amortization expense was $0.03 million for both three-month periods ended September 30, 2021, and 2020. Amortization expense was $0.09 million for both nine-month periods ended September 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: September 30, December 31, 2021 2020 (in thousands) Kissick Debt (in default) $ 5,033 $ 4,435 Veritex Loans LE Term Loan Due 2034 (in default) 2,282 1,295 LRM Term Loan Due 2034 (in default) 979 571 SBA EIDLs BDEC Term Loan Due 2051 7 - LE Term Loan Due 2050 5 2 NPS Term Loan Due 2050 5 2 8,311 6,305 Less: Accrued interest payable (in default) (8,311 ) (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 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 lien on real property interests of LRM • First lien on all LRM fixtures, furniture, machinery, and equipment • First lien on all LRM contractual rights, general intangibles, and instruments, except for 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 Kissick 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 security interest in the equipment (backhoe). (1) (2) (3) 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. 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. USDA regulations require that Veritex, as the lender, retain both the guaranteed and unguaranteed portions of the loan, service the entire underlying loan, and remain mortgage or secured party of record. The same collateral must secure both the guaranteed and unguaranteed parts of the loan with equal lien priority. Borrowers cannot pay or otherwise subordinate the USDA-guaranteed portion of a loan to the 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 Kissick 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 Kissick Debt ( in default Failure of borrower to pay past-due obligations; loan matured January 2019 --- Veritex Loans. As the first lienholder, 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. These adverse market actions could lead to holders of our common stock losing their investment in its entirety. Kissick Debt. We cannot assure investors that: (i) our assets or cash flow will be sufficient to fully repay borrowings under our secured loan agreements with Veritex and Mr. Kissick, either upon maturity or if accelerated, (ii) we will be able to refinance or restructure the payments of the debt, or (iii) lenders will provide future default waivers. 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	9 Months Ended
	Sep. 30, 2021
Line of Credit Payable
Note 11 . Line of Credit Payable	(11) Line of Credit Payable On October 4, 2021, NPS repaid all obligations owed to Pilot under the Amended Pilot Line of Credit. However, NPS was in default as of September 30, 2021, and December 31, 2020. This debt was classified within the current portion of long-term debt on our consolidated balance sheets at September 30, 2021, and December 31, 2020. See “Note (17)” for additional disclosures related to the 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: September 30, December 31, 2021 2020 (in thousands) Amended Pilot Line of Credit (in default) $ 4,827 $ 8,145 Less: Interest payable, short-term (73 ) (103 ) $ 4,754 $ 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 LE’s obligations under a particular tank lease agreement if Veritex were to foreclose on LE property that NPS was leasing from LE so long as LE met certain conditions. 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 --- NPS was in default under the Amended Pilot Line of Credit at September 30, 2021, and December 31, 2020. On October 4, 2021, NPS repaid all obligations owed to Pilot under the Amended Pilot Line of Credit. In May 2020, when NPS failed to pay off the Amended Pilot Line of Credit at maturity, Pilot sent NPS (as borrower), and LRM, LEH, LE, and Blue Dolphin (each a guarantor and collectively guarantors), a notice demanding immediate payment. Under the Amended Pilot Line of Credit, 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. Due to NPS’ default under the Amended Pilot Line of Credit, Pilot applied payments owed to NPS under two terminal services agreements against NPS’ payment obligations to Pilot under the Amended Pilot Line of Credit from June 2020 to September 2021. For both three-month periods ended September 30, 2021, and 2020, the tank lease payment setoff totaled $0.6 million. For the nine-month periods ended September 30, 2021, and 2020, the tank lease payment setoff totaled $1.7 million and $0.8 million, respectively. The amount of interest NPS incurred under the Amended Pilot Line of Credit totaled $0.2 million and $0.4 million, respectively, for the three months ended September 30, 2021, and 2020. For the nine months ended September 30, 2021, and 2020, interest was $0.7 million and $1.1 million, respectively. See “Note (1) Organization – Going Concern,” “Note (11) Line of Credit Payable,” and “Note (17) Subsequent Events” to our consolidated financial statements for additional disclosures related to the Amended Pilot Line of Credit. In November 2020, Pilot notified NPS and guarantors that LE and NPS’ entry into the LE Term Loan Due 2050 and NPS Term Loan Due 2050 was a breach of the Amended Pilot Line of Credit; Pilot demanded full repayment of the Pilot Obligations, including through the use of SBA EIDL loan proceeds. Pilot also notified the SBA that the liens securing the LE Term Loan Due 2050 and NPS Term Loan Due 2050 were junior to liens securing the Pilot Obligations. While the SBA acknowledged this point and indicated a willingness to subordinate these loans to Pilot, Pilot has taken no further actions 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.

AROs

AROs	9 Months Ended
	Sep. 30, 2021
AROs
Note 12 . ARO's	(12) AROs Refinery and Facilities We believe we have no legal or contractual obligation to dismantle or remove the refinery and facilities assets. Further, we believe that these assets have indeterminate lives because we cannot reasonably estimate the dates or ranges of dates upon which we would retire these assets. Management will record an asset retirement obligation for these assets when a definitive obligation arises and retirement dates are evident. Pipelines and Facilities and Oil and Gas Properties We have AROs associated with decommissioning our pipelines and facilities assets and plugging and abandoning our oil and gas properties. When we placed these assets in service, we recorded a discounted liability for the fair value of the ARO with a corresponding increase to the carrying value of the related long-lived asset. Subsequently, 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. The ARO liability was fully accreted at September 30, 2021, and December 31, 2020. See “Note (16)” to our consolidated financial statements for disclosures related to decommissioning our offshore pipelines and platform assets and related risks. ARO liability as of the dates indicated was as follows: September 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 reflect preparation costs in the period associated with decommissioning our offshore pipelines and platform assets.

Lease Obligations

Lease Obligations	9 Months Ended
	Sep. 30, 2021
Lease Obligations
Note 13. Lease Obligatons	(13) Lease Obligations Lease Obligations Operating Lease Office Lease . In March 2021, BDSC defaulted on the office lease due to non-payment. In May 2021, BDSC and TR 801 Travis LLC (“Building Lessor”) reached an agreement to cure BDSC’s office lease default. Under the terms of the May arrangement, BDSC agreed to pay Building Lessor past due obligations, including rent installments and other charges totaling approximately $0.1 million (the “Past Due Obligations”), in equal monthly installments beginning in June 2021, and continuing through lease expiration The Past Due Obligations are subject to an annual percentage rate of 4.50%. As revised, BDSC’s monthly base rent plus the prorated portion of the Past Due Obligations is $0.02 million. BDSC made the June 2021 revised lease payment. However, as of the filing date of this report, BDSC was in default related to required monthly lease payments for July through November 2021. In an October 11, 2021, letter, Building Lessor notified BDSC of its new default under the office lease due to non-payment. Default under the office lease permits Building Lessor to declare the amounts owed under the office lease immediately due and payable, exercise its rights concerning collateral securing obligors’ obligations under the office lease, including property placed in or upon the leased premises, and exercise any other rights and remedies available. Although BDSC intends to cure the lease default, we can provide no assurance that our efforts will be successful. An Affiliate, LEH, subleases a portion of the Houston office space. BDSC received sublease income from LEH totaling $0.01 million for both the three months ended September 30, 2021, and 2020. Sublease income totaled $0.03 million for both nine-month periods ended September 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: September 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 (412 ) (289 ) Total lease assets 375 498 Liabilities Current Operating lease Current portion of lease liabilities 209 194 209 194 Noncurrent Operating lease Long-term lease liabilities, net of current 211 370 Total lease liabilities $ 420 $ 564 Weighted average remaining lease term in years Operating lease 1.92 Weighted average discount rate Operating lease 8.25 % Finance leases 8.25 % The following table presents information related to leasing costs for operating and finance leases: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Operating lease costs $ 51 $ 51 $ 154 $ 154 Finance lease costs: Depreciation of leased assets - 3 - 13 Interest on lease liabilities - - - 3 Total lease cost $ 51 $ 54 $ 154 $ 170 The table below presents supplemental cash flow information related to leases as follows: Three Months Ended Nine Months Ended September 30, September 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 $ 49 $ 44 $ 148 $ 130 Operating cash flows for finance leases $ - $ - $ - $ 4 Financing cash flows for finance leases $ - $ 5 $ - $ 17 As of September 30, 2021, maturities of lease liabilities for the periods indicated were as follows: September 30, Operating Lease (in thousands) 2021 $ 209 2022 211 2023 - $ 420 Future minimum annual lease commitments that are non-cancelable: Operating September 30, Lease (in thousands) 2021 $ 236 2022 220 2023 - $ 456

Income Taxes

Income Taxes	9 Months Ended
	Sep. 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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Current Federal $ - $ - $ - $ (15 ) State - - - - Deferred Federal 615 975 1,782 2,566 State - - Change in valuation allowance (615 ) (975 ) (1,782 ) (2,566 ) Total provision for income taxes $ - $ - $ - $ (15 ) GAAP treats TMT like an income tax for financial reporting purposes. Deferred income taxes as of the dates indicated consisted of the following: September 30, December 31, 2021 2020 (in thousands) Deferred tax assets: NOL and capital loss carryforwards $ 16,646 $ 15,258 Business interest expense 4,335 3,343 Start-up costs (crude oil and condensate processing facility) 445 509 ARO liability/deferred revenue 498 498 Other 3 3 Total deferred tax assets 21,927 19,611 Deferred tax liabilities: Basis differences in property and equipment (7,765 ) (7,230 ) Total deferred tax liabilities (7,765 ) (7,230 ) 14,162 12,381 Valuation allowance (14,162 ) (12,381 ) Deferred tax assets, net $ - $ - Deferred Income Taxes Balances for deferred income tax represent the effects of temporary differences between carrying amounts and the actual income tax basis of our assets and liabilities; the balances also reflect NOL carryforwards. We record the balances based on tax rates we expect to be in effect when 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 - 8,331 8,331 Expiration of net operating losses (1,718 ) - (1,718 ) Balance at September 30, 2021 $ 7,896 $ 64,695 $ 72,591 Valuation Allowance We have NOL carryforwards that remain available for future use. At September 30, 2021, and December 31, 2020, there were no uncertain tax positions for which a reserve or liability was necessary.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 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 Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands, (in thousands, except share and per share amounts) except share and per share amounts) Net loss $ (2,929 ) $ (4,653 ) $ (10,202 ) $ (12,235 ) Basic and diluted loss per share $ (0.23 ) $ (0.37 ) $ (0.80 ) $ (0.98 ) Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock 12,693,514 12,693,514 12,693,514 12,534,493 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 nine months ended September 30, 2021, and 2020 was the same as basic EPS; no stock options or other dilutive instruments were outstanding.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 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 the 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 or remove platforms and other structures when they are no longer active. Until such facilities are decommissioned, lessees and rights-of-way holders must inspect and maintain them per 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 in August 2019 to address BDPL’s plans concerning decommissioning its offshore pipelines and platform assets. BSEE proposed BDPL re-submit permit applications for pipeline and platform decommissioning and a safe boarding plan for the platform. BSEE imposed a deadline of six (6) months (February 2020) to submit the permit applications and safe boarding plan. Further, BSEE mandated BDPL complete approved, permitted work within twelve (12) months (August 2020). BDPL timely submitted the permit applications and safe boarding plan to BOEM and BSEE on February 11, 2020; we submitted related permits to the USACOE on March 25, 2020. Although we planned decommissioning activities for 2020, offshore weather conditions and cash constraints associated with the ongoing COVID-19 pandemic led to delays. We cannot currently estimate when decommissioning will occur. 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 comply with the INC, and BSEE approved BDPL’s extension request. BDPL completed the structural surveys and resolved the INC in June 2020. Financial constraints do not relieve BDPL of its obligations to remedy BSEE INCs or of BSEE’s authority to impose financial penalties. If BDPL fails to complete decommissioning of the facilities assets or remedy the INCs within a timeframe deemed 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. Such BSEE actions 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 September 30, 2021. At both September 30, 2021, and December 31, 2020, BDPL maintained $2.4 million in AROs related to decommissioning these assets. Defaults Under Secured Loan Agreements with Third Parties and Related 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, sanctions, or revocation of our permits. Legal Matters BOEM Additional Financial Assurance (Supplemental Pipeline Bonds) In March 2018, BOEM ordered BDPL to provide additional financial assurance totaling approximately $4.8 million for five (5) existing pipeline rights-of-way. BDPL historically maintained $0.9 million in financial security. In June 2018, BOEM issued BDPL INCs for each right-of-way that failed to comply. BDPL appealed the INCs to the IBLA. Because the IBLA is separate and independent from the agencies whose decisions it reviews, BDPL’s appeal to BOEM took considerable time to matriculate through the appeals process. Ultimately, the Office of the Solicitor of the U.S. Department of the Interior signaled that, once BDPL completes abandonment operations, the amount of financial assurance required by BOEM will be significantly reduced or eliminated. In addition, BOEM’s INCs will be partially or fully resolved. Although we planned decommissioning activities for 2020, offshore weather conditions and cash constraints associated with the ongoing COVID-19 pandemic led to delays. We cannot currently estimate when decommissioning will occur. Further, we cannot currently estimate when we can provide additional financial assurance (supplemental pipeline bonds). 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. If BOEM requires BDPL to provide significant additional financial security or assesses 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 September 30, 2021. At both September 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

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events
Note 17. Subsequent Events	(17) Subsequent Event NPS Term Loan Due 2031 NPS entered into a Loan Agreement with Greater Nevada Credit Union, as lender (“Lender”), for a term loan in the aggregate principal amount of $10.0 million (the “NPS Loan”) effective October 1, 2021. The NPS Loan has a ten-year term with a fixed interest rate of 5.75%. The loan requires monthly interest-only payments beginning in October 2021 and continuing through the first thirty-six (36) months. After that, principal and interest payments will be due monthly through loan maturity in October 2031. We plan to use proceeds from the NPS Loan for working capital purposes. NPS secured the NPS Loan by a deed of trust lien on approximately 56 acres of land and improvements owned by LE in Wilson County, Texas, a leasehold deed of trust lien on certain property leased by NPS from LE, an assignment of leases and rents, and certain personal property. The NPS Loan contains various customary terms and conditions, including representations and warranties, affirmative and negative covenants respecting the business of the parties to the NPS Loan, financial covenants respecting debt service coverage ratio, ratio of debt to net worth and ratio of current assets to current liabilities, and events of default. NPS Repayment of Line of Credit Payable On October 4, 2021, NPS repaid all obligations owed to Pilot under the Amended Pilot Line of Credit. The payoff, which totaled approximately $5.0 million, included all outstanding principal and accrued interest . As a result of the payoff, the loan agreement and associated pledge agreement, subordination agreement, and guaranty agreement were terminated.

Principles of Consolidation a_2

Principles of Consolidation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 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	Leases. For operating leases, we record lease rental payments on a straight-line basis over the lease term; we record lease expenses on the income statement based on the leased asset’s intended use. For finance leases (previously referred to under GAAP as capital leases), we amortize lease payments for the ROU asset on a straight-line basis over the lesser of the leased asset’s useful life or the lease term; we record amortization expenses on the income statement in ‘depreciation and amortization expense;’ we record interest expense on the income statement 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 a 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. We include incurred transportation, shipping, and handling costs in the cost of goods sold. We do not include excise and other taxes collected from customers and remitted to governmental authorities in revenue. Tolling and Terminaling Revenue We typically satisfy performance obligations for tolling and terminaling operations over time. We determine the transaction price at agreement inception based on the guaranteed minimum amount of revenue over the agreement term. We allocate the transaction price to the single performance obligation that exists under the agreement. 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. The fixed cost under the customer’s tank storage agreement does not include ancillary service fees. We consider ancillary services as a separate performance obligation under the tank storage agreement. We satisfy the performance obligation and recognize the associated fee when we complete the requested service. Deferred Revenue
Income Taxes	Income Taxes Management uses significant judgment 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 assess the realizability of deferred tax assets. We weigh whether there is a more than 50% probability of realizing a portion or all the deferred tax assets. Realization depends on the generation of future taxable income before the expiration of any NOL carryforwards. We record a valuation allowance against deferred income tax assets if there is a more than 50% probability of not realizing some portion of the asset. We recognize an uncertain tax positions benefit in our financial statements if deferred tax assets meet a minimum recognition threshold. First, we determine whether there is a more than 50% probability that our income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If we meet the criteria, we record a benefit in the financial statements equal to the largest amount greater than 50% likely to be realized upon settlement with taxing authorities. 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 Commodity price market volatility associated with the 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 September 30, 2021. We did not record any impairment of our refinery and facilities assets for the periods presented.
Asset Retirement Obligations	Asset Retirement Obligations Refinery and Facilities Pipeline and Facilities; Oil and Gas Properties
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.

RelatedParty Transactions (Tabl

RelatedParty Transactions (Tables)	9 Months Ended
	Sep. 30, 2021
RelatedParty 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 $0.01 million per month Amended and Restated Operating Agreement LEH Blue Dolphin LE LRM NPS BDPL BDPC 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 Loan Description Guarantees Security Event(s) of Default March Carroll Note (in default) --- --- Borrower failure to pay past due payment obligations; loan matured January 2019 March Ingleside Note (in default) --- --- Borrower failure to pay past due payment obligations; loan matured January 2019 June LEH Note (in default) --- --- Borrower failure to pay past due payment obligations; loan matured January 2019 BDPL-LEH Loan Agreement --- Certain BDPL property Borrower failure to pay past due payment obligations; loan matured August 2018
Schedule of accounts payable, related party	September 30, December 31, 2021 2020 (in thousands) LEH June LEH Note (in default) $ 12,644 $ 9,446 BDPL-LEH Loan Agreement (in default) 7,294 6,814 LEH Total 19,938 16,260 Ingleside March Ingleside Note (in default) 1,059 1,013 Jonathan Carroll March Carroll Note (in default) 2,115 1,551 23,112 18,824 Less: Long-term debt, related party, current portion (in default) (19,818 ) (16,010 ) Less: Accrued interest payable, related party (in default) (3,294 ) (2,814 ) $ - $ -
Schedule of refinery operating expenses	Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands, except percent amounts) (in thousands, except percent amounts) Refinery operations LEH $ 24,214 30.1 % $ 11,942 27.8 % $ 61,271 29.3 % $ 34,244 27.8 % Third-Parties 55,252 68.7 % 29,987 69.9 % 145,196 69.4 % 85,941 69.6 % Tolling and terminaling Third-Parties 924 1.2 % 1,001 2.3 % 2,777 1.3 % 3,214 2.6 % $ 80,390 100.0 % $ 42,930 100.0 % $ 209,244 100.0 % $ 123,399 100.0 %
Schedule of accrued interest expenses	Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Jonathan Carroll Guaranty Fee Agreements First Term Loan Due 2034 $ 108 $ 108 $ 323 $ 324 Second Term Loan Due 2034 45 45 134 134 March Carroll Note (in default) 33 23 94 66 LEH BDPL-LEH Loan Agreement (in default) 160 160 480 480 June LEH Note (in default) 293 102 690 245 Ingleside March Ingleside Note (in default) 14 15 42 50 $ 653 $ 453 $ 1,763 $ 1,299

Revenue and Segment Informati_2

Revenue and Segment Information (Tables)	9 Months Ended
	Sep. 30, 2021
Revenue and Segment Information
Schedule of business segment reporting	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Net revenue (excluding intercompany fees and sales) Refinery operations $ 79,466 $ 41,929 $ 206,467 $ 120,185 Tolling and terminaling 924 1,001 2,777 3,214 Total net revenue 80,390 42,930 209,244 123,399 Intercompany fees and sales Refinery operations (650 ) (595 ) (1,797 ) (1,618 ) Tolling and terminaling 650 595 1,797 1,618 Total intercompany fees - - - - Operation costs and expenses (1) Refinery operations (79,593 ) (43,691 ) (208,936 ) (124,942 ) Tolling and terminaling (521 ) (709 ) (1,267 ) (1,222 ) Corporate and other (83 ) (58 ) (187 ) (164 ) Total operation costs and expenses (80,197 ) (44,458 ) (210,390 ) (126,328 ) Segment contribution margin (deficit) Refinery operations (777 ) (2,357 ) (4,266 ) (6,375 ) Tolling and terminaling 1,053 887 3,307 3,610 Corporate and other (83 ) (58 ) (187 ) (164 ) Total segment contribution margin (deficit) 193 (1,528 ) (1,146 ) (2,929 ) General and administrative expenses (2) Refinery operations (282 ) (414 ) (848 ) (1,045 ) Tolling and terminaling (70 ) (132 ) (206 ) (268 ) Corporate and other (423 ) (307 ) (1,246 ) (1,052 ) Total general and administrative expenses (775 ) (853 ) (2,300 ) (2,365 ) Depreciation and amortization Refinery operations (302 ) (301 ) (906 ) (883 ) Tolling and terminaling (340 ) (338 ) (1,020 ) (956 ) Corporate and other (51 ) (51 ) (153 ) (153 ) Total depreciation and amortization (693 ) (690 ) (2,079 ) (1,992 ) Interest and other non-operating expenses, net Refinery operations (747 ) (679 ) (2,053 ) (2,171 ) Tolling and terminaling (384 ) (599 ) (1,284 ) (1,985 ) Corporate and other (523 ) (304 ) (1,340 ) (778 ) Total interest and other non-operating expenses, net (1,654 ) (1,582 ) (4,677 ) (4,934 ) Income (loss) before income taxes Refinery operations (2,108 ) (3,751 ) (8,073 ) (10,474 ) Tolling and terminaling 259 (182 ) 797 401 Corporate and other (1,080 ) (720 ) (2,926 ) (2,147 ) Total loss before income taxes (2,929 ) (4,653 ) (10,202 ) (12,220 ) Income tax expense - - - (15 ) Net loss $ (2,929 ) $ (4,653 ) $ (10,202 ) $ (12,235 ) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Capital expenditures Refinery operations $ - $ 3 $ - $ 295 Tolling and terminaling - 174 - 790 Corporate and other - - - - Total capital expenditures $ - $ 177 $ - $ 1,085 September 30, December 31, 2021 2020 (in thousands) Identifiable assets Refinery operations $ 44,939 $ 48,521 Tolling and terminaling 19,878 18,722 Corporate and other 1,278 2,057 Total identifiable assets $ 66,095 $ 69,300

Risk Concentration (Tables)

Risk Concentration (Tables)	9 Months Ended
	Sep. 30, 2021
Risk Concentration
Schedule of significant customers	Three Months Ended Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable at September 30, September 30, 2021 3 69 % $ 0 September 30, 2020 4 80 % $ 0 Nine Months Ended Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable at September 30, September 30, 2021 3 72 % $ 0 September 30, 2020 4 82 % $ 0
Schedule of percentages of all refined petroleum products sales to total sales	Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands, except percent amounts) (in thousands, except percent amounts) LPG mix $ 9 0 % $ - 0 % $ 21 0 % $ - 0 % Naphtha 20,440 22.3 % 7,847 18.7 % 49,928 23.2 % 22,523 18.7 % Jet fuel 24,212 30.6 % 11,942 28.5 % 61,271 29.2 % 34,244 28.5 % HOBM 17,607 23.4 % 12,196 29.1 % 49,282 24.9 % 31,077 25.9 % AGO 17,198 23.7 % 9,944 23.7 % 45,965 22.7 % 32,341 26.9 % $ 79,466 100.0 % $ 41,929 100.0 % $ 206,467 100.0 % $ 120,185 100.0 %

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2021
Prepaid Expenses and Other Current Assets
Schedule of Prepaid balances	September 30, December 31, 2021 2020 (in thousands) Prepaid insurance $ 935 $ 1,182 Prepaid crude oil and condensate 360 2,249 Prepaid easement renewal fees 82 99 Other prepaids 54 34 $ 1,431 $ 3,564

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2021
Inventory
Schedule of inventory	September 30, December 31, 2021 2020 (in thousands) Crude oil and condensate $ 536 $ 463 AGO 259 133 Naphtha 142 120 Chemicals 108 271 Propane 27 15 LPG mix 16 6 HOBM - 54 $ 1,088 $ 1,062

Property Plant and Equipment _2

Property Plant and Equipment Net (Tables)	9 Months Ended
	Sep. 30, 2021
Property Plant and Equipment Net
Schedule of property, plant and equipment	September 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 (17,145 ) (15,220 ) 56,508 58,433 CIP 4,065 4,064 $ 60,573 $ 62,497

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2021
Accrued Expenses and Other Current Liabilities
Schedule of accrued expenses and other current liabilities	September 30, December 31, 2021 2020 (in thousands) Unearned revenue from contracts with customers $ 7,713 $ 3,421 Unearned contract renewal income 400 500 Insurance 385 541 Other payable 282 252 Taxes payable 210 58 Board of director fees payable 198 100 Customer deposits 173 10 $ 9,361 $ 4,882

ThirdParty LongTerm Debt (Table

ThirdParty LongTerm Debt (Tables)	9 Months Ended
	Sep. 30, 2021
ThirdParty LongTerm 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 Kissick 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
Schedule of long term debt	September 30, December 31, 2021 2020 (in thousands) Veritex Loans LE Term Loan Due 2034 (in default) $ 23,827 $ 22,840 LRM Term Loan Due 2034 (in default) 9,881 9,473 Kissick Debt (in default) 10,011 9,413 SBA EIDLs BDEC Term Loan Due 2051 507 - LE Term Loan Due 2050 155 152 NPS Term Loan Due 2050 155 152 Equipment Loan Due 2025 59 71 44,595 42,101 Less: Current portion of long-term debt, net (33,788 ) (33,692 ) Less: Unamortized debt issue costs (1,653 ) (1,749 ) Less: Accrued interest payable (in default) (8,311 ) (6,305 ) $ 843 $ 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 (789 ) (693 ) $ 1,653 $ 1,749
Schedule of accrued interest related to our long-term debt, net	September 30, December 31, 2021 2020 (in thousands) Kissick Debt (in default) $ 5,033 $ 4,435 Veritex Loans LE Term Loan Due 2034 (in default) 2,282 1,295 LRM Term Loan Due 2034 (in default) 979 571 SBA EIDLs BDEC Term Loan Due 2051 7 - LE Term Loan Due 2050 5 2 NPS Term Loan Due 2050 5 2 8,311 6,305 Less: Accrued interest payable (in default) (8,311 ) (6,305 ) Long-term Interest Payable, Net of Current Portion $ - $ -

Line of Credit Payable (Tables)

Line of Credit Payable (Tables)	9 Months Ended
	Sep. 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	September 30, December 31, 2021 2020 (in thousands) Amended Pilot Line of Credit (in default) $ 4,827 $ 8,145 Less: Interest payable, short-term (73 ) (103 ) $ 4,754 $ 8,042

AROs (Tables)

AROs (Tables)	9 Months Ended
	Sep. 30, 2021
AROs
Schedule of asset retirement obligations	September 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)	9 Months Ended
	Sep. 30, 2021
Lease Obligations (Tables)
Schedule of lease-related assets and liabilities	September 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 (412 ) (289 ) Total lease assets 375 498 Liabilities Current Operating lease Current portion of lease liabilities 209 194 209 194 Noncurrent Operating lease Long-term lease liabilities, net of current 211 370 Total lease liabilities $ 420 $ 564 Weighted average remaining lease term in years Operating lease 1.92 Weighted average discount rate Operating lease 8.25 % Finance leases 8.25 %
Schedule of lease costs	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Operating lease costs $ 51 $ 51 $ 154 $ 154 Finance lease costs: Depreciation of leased assets - 3 - 13 Interest on lease liabilities - - - 3 Total lease cost $ 51 $ 54 $ 154 $ 170
Schedule of supplemental cash flow information related to leases	Three Months Ended Nine Months Ended September 30, September 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 $ 49 $ 44 $ 148 $ 130 Operating cash flows for finance leases $ - $ - $ - $ 4 Financing cash flows for finance leases $ - $ 5 $ - $ 17
Schedule of maturities of operating lease liabilities	September 30, Operating Lease (in thousands) 2021 $ 209 2022 211 2023 - $ 420
Schedule of future minimum annual lease commitments	Operating September 30, Lease (in thousands) 2021 $ 236 2022 220 2023 - $ 456

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2021
Income Taxes
Schedule of income tax expense	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands) (in thousands) Current Federal $ - $ - $ - $ (15 ) State - - - - Deferred Federal 615 975 1,782 2,566 State - - Change in valuation allowance (615 ) (975 ) (1,782 ) (2,566 ) Total provision for income taxes $ - $ - $ - $ (15 )
Schedule of deferred tax assets and deferred tax liabilities	September 30, December 31, 2021 2020 (in thousands) Deferred tax assets: NOL and capital loss carryforwards $ 16,646 $ 15,258 Business interest expense 4,335 3,343 Start-up costs (crude oil and condensate processing facility) 445 509 ARO liability/deferred revenue 498 498 Other 3 3 Total deferred tax assets 21,927 19,611 Deferred tax liabilities: Basis differences in property and equipment (7,765 ) (7,230 ) Total deferred tax liabilities (7,765 ) (7,230 ) 14,162 12,381 Valuation allowance (14,162 ) (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 - 8,331 8,331 Expiration of net operating losses (1,718 ) - (1,718 ) Balance at September 30, 2021 $ 7,896 $ 64,695 $ 72,591

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share
Schedule of earnings per share	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands, (in thousands, except share and per share amounts) except share and per share amounts) Net loss $ (2,929 ) $ (4,653 ) $ (10,202 ) $ (12,235 ) Basic and diluted loss per share $ (0.23 ) $ (0.37 ) $ (0.80 ) $ (0.98 ) Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock 12,693,514 12,693,514 12,693,514 12,534,493

Organization (Details Narrative

Organization (Details Narrative) - USD ($)	May 04, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Net loss per common share		$ (0.23)	$ (0.37)	$ (0.80)	$ (0.98)
Working capital deficit		$ (79,800,000)		$ (79,800,000)		$ (72,300,000)
Default interest rate	14.00%
Working capital deficit, excluding the current portion of long-term debt		(26,200,000)		(26,200,000)		(22,600,000)
Substantial Current Debt		58,400,000		58,400,000		57,700,000
Cash and cash equivalents		2,200,000		$ 2,200,000		$ 500,000
Ownership percentage				5.00%
Tank lease amount		600,000	$ 600,000	$ 1,700,000	$ 800,000
Interest incurred				727,000	1,980,000
Terminal Services Agreement [Member]
Tank lease amount		600,000	600,000	1,700,000	800,000
Interest incurred		200,000	400,000	700,000	1,100,000
Veritex Loans [Member]
Principal and interest payments		$ 0	$ 0	$ 0	$ 300,000
Affiliates [Member]
Ownership percentage				82.00%

Principles of Consolidation a_3

Principles of Consolidation and Significant Accounting Policies (Details Narrative) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Organization
Allowance for doubtful accounts	$ 0	$ 0.1
Estimated useful life	25 years
Uncertain tax position , description	benefit in the financial statements equal to the largest amount greater than 50% likely to be realized upon settlement

RelatedParty Transactions (Deta

RelatedParty Transactions (Details) $ in Millions	9 Months Ended
	Sep. 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	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	04/01/2021
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	8.00%
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 $0.01 million per month
Effective date	01/01/2018
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	04/01/2020
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

RelatedParty Transactions (De_2

RelatedParty Transactions (Details 1) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Prepaid operating expenses, related party	$ 23,112,000	$ 18,824,000
Less: Long-term debt, related party, current portion, in default	(19,818,000)	(16,010,000)
Less: Interest payable, related party, in default	(3,294,000)	(2,814,000)
Long-term debt - net of current portion, related party	0	0
LEH
Prepaid operating expenses, related party	19,938,000	16,260,000
LEH | June LEH Note (in default)
Prepaid operating expenses, related party	12,644,000	9,446,000
LEH | BDPL Loan Agreement (in default)
Prepaid operating expenses, related party	7,294,000	6,814,000
Ingleside | March Ingleside Note (in default)
Prepaid operating expenses, related party	1,059,000	1,013,000
Jonathan Carroll | March Carroll Note (in default)
Prepaid operating expenses, related party	$ 2,115,000	$ 1,551,000

RelatedParty Transactions (De_3

RelatedParty Transactions (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Total revenues	$ 80,390	$ 42,930	$ 209,244	$ 123,399
Total revenues, percent	100.00%	100.00%	100.00%	100.00%
LEH
Refinery operations revenues	$ 24,214	$ 11,942	$ 61,271	$ 34,244
Refinery operations revenues, percent	30.10%	27.80%	29.30%	27.80%
Third Parties
Refinery operations revenues	$ 55,252	$ 29,987	$ 145,196	$ 85,941
Refinery operations revenues, percent	68.70%	69.90%	69.40%	69.60%
Tolling and terminaling revenues	$ 924	$ 1,001	$ 2,777	$ 3,214
Tolling and terminaling revenues, percent	1.20%	2.30%	1.30%	2.60%

RelatedParty Transactions (De_4

RelatedParty Transactions (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest expenses under loan and guarantee, related party	$ 653	$ 453	$ 1,763	$ 1,299
Jonathan Carroll | March Carroll Note (in default)
Interest expenses under loan and guarantee, related party	33	23	94	66
Jonathan Carroll | First Term Loan Due 2034
Interest expenses under loan and guarantee, related party	108	108	323	324
Jonathan Carroll | Second Term Loan Due 2034
Interest expenses under loan and guarantee, related party	45	45	134	134
LEH | BDPL Loan Agreement (in default)
Interest expenses under loan and guarantee, related party	160	160	480	480
LEH | June LEH Note (in default)
Interest expenses under loan and guarantee, related party	293	102	690	245
Ingleside | March Ingleside Note (in default)
Interest expenses under loan and guarantee, related party	$ 14	$ 15	$ 42	$ 50

RelatedParty Transactions (De_5

RelatedParty Transactions (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
RelatedParty Transactions
Lease payments received under the office sub-lease agreement with LEH	$ 10,000	$ 10,000	$ 30,000	$ 30,000
LEH operating fee	$ 100,000	$ 200,000	$ 400,000	$ 500,000

Revenue and Segment Informati_3

Revenue and Segment Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Total revenue from operations	$ 80,390,000	$ 42,930,000	$ 209,244,000	$ 123,399,000
Intercompany fees and sales	0	0	0	0
Operation costs and expenses	(80,197,000)	(44,458,000)	(210,390,000)	(126,328,000)
Segment contribution margin (deficit)	193,000	(1,528,000)	(1,146,000)	(2,929,000)
General and administrative expenses	775	853	2,300	2,365
Depreciation and amortization	(693,000)	(690,000)	(2,079,000)	(1,992,000)
Interest and other non-operating expenses, net	(1,654,000)	(1,582,000)	(4,677,000)	(4,934,000)
Income (loss) before income taxes	(2,929,000)	(4,653,000)	(10,202,000)	(12,220,000)
Income tax expense	0	0	0	(15,000)
Net loss	(2,929,000)	(4,653,000)	(10,202,000)	(12,235,000)
Capital expenditures	0	177,000	0	1,085,000
Total assets	66,095,000		66,095,000		$ 69,300,000
General and administrative expenses	(649,000)	(684,000)	(1,919,000)	(1,859,000)
Refinery Operations
Total revenue from operations	79,466,000	41,929,000	206,467,000	120,185,000
Intercompany fees and sales	(650,000)	(595,000)	(1,797,000)	(1,618,000)
Operation costs and expenses	(79,593,000)	(43,691,000)	(208,936,000)	(124,942,000)
Segment contribution margin (deficit)	(777,000)	(2,357,000)	(4,266,000)	(6,375,000)
Depreciation and amortization	302,000	301,000	906,000	883,000
Interest and other non-operating expenses, net	(747,000)	(679,000)	(2,053,000)	(2,171,000)
Income (loss) before income taxes	(2,108,000)	(3,751,000)	(8,073,000)	(10,474,000)
Capital expenditures	0	3,000	0	295,000
Total assets	44,939,000		44,939,000		48,521,000
General and administrative expenses	(282,000)	(414,000)	(848,000)	(1,045,000)
Tolling and Terminaling
Total revenue from operations	924,000	1,001,000	2,777,000	3,214,000
Intercompany fees and sales	650,000	595,000	1,797,000	1,618,000
Operation costs and expenses	(521,000)	(709,000)	(1,267,000)	(1,222,000)
Segment contribution margin (deficit)	1,053,000	887,000	3,307,000	3,610,000
Depreciation and amortization	340,000	338,000	1,020,000	956,000
Interest and other non-operating expenses, net	(384,000)	(599,000)	(1,284,000)	(1,985,000)
Income (loss) before income taxes	259,000	(182,000)	797,000	401,000
Capital expenditures	0	174,000	0	790,000
Total assets	19,878,000		19,878,000		18,722,000
General and administrative expenses	(70,000)	(132,000)	(206,000)	(268,000)
Corporate & Other
Operation costs and expenses	(83,000)	(58,000)	(187,000)	(164,000)
Segment contribution margin (deficit)	(83,000)	(58,000)	(187,000)	(164,000)
Depreciation and amortization	51,000	51,000	153,000	153,000
Interest and other non-operating expenses, net	(523,000)	(304,000)	(1,340,000)	(778,000)
Income (loss) before income taxes	(1,080,000)	(720,000)	(2,926,000)	(2,147,000)
Capital expenditures	0	0	0	0
Total assets	1,278,000		1,278,000		$ 2,057,000
General and administrative expenses	$ (423,000)	$ (307,000)	$ (1,246,000)	$ (1,052,000)

Concentration of Risk (Details)

Concentration of Risk (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Concentration of risk	100.00%	100.00%	100.00%	100.00%
3 Significant Customers
Concentration of risk	69.00%		72.00%
Portion of accounts receivable	$ 0	$ 0	$ 0	$ 0
4 Significant Customers
Concentration of risk		80.00%		82.00%
Portion of accounts receivable	$ 0	$ 0	$ 0	$ 0

Concentration of Risk (Details

Concentration of Risk (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Total refined petroleum product sales	$ 79,466,000	$ 41,929,000	$ 206,467,000	$ 120,185,000
Concentration risk	100.00%	100.00%	100.00%	100.00%
LPG Mix
Total refined petroleum product sales	$ 9,000	$ 0	$ 21,000	$ 0
Concentration risk	0.00%	0.00%	0.00%	0.00%
Naphtha
Total refined petroleum product sales	$ 20,440,000	$ 7,847,000	$ 49,928,000	$ 22,523,000
Concentration risk	22.30%	18.70%	23.20%	18.70%
Jet Fuel
Total refined petroleum product sales	$ 24,212,000	$ 11,942,000	$ 61,271,000	$ 34,244,000
Concentration risk	30.60%	28.50%	29.20%	28.50%
HOBM
Total refined petroleum product sales	$ 17,607,000	$ 12,196,000	$ 49,282,000	$ 31,077,000
Concentration risk	23.40%	29.10%	24.90%	25.90%
AGO
Total refined petroleum product sales	$ 17,198,000	$ 9,944,000	$ 45,965,000	$ 32,341,000
Concentration risk	23.70%	23.70%	22.70%	26.90%

Risk Concentration (Details Nar

Risk Concentration (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Risk Concentration
Balances in excess of FDIC insurance limit	$ 1,900,000		$ 1,900,000		$ 600,000
Line of Credit	200,000	$ 400,000	700,000	$ 1,100,000
Long term debt, related-party	19,900,000		19,900,000		$ 16,300,000
Cash FDIC insured amount	250,000		250,000
Tank lease amount	$ 600,000	$ 600,000	$ 1,700,000	$ 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	Sep. 30, 2021	Dec. 31, 2020
Prepaid Expenses and Other Current Assets
Prepaid insurance	$ 935	$ 1,182
Prepaid crude oil and condensate	360	2,249
Prepaid easement renewal fees	82	99
Other prepaids	54	34
Total	$ 1,431	$ 3,564

Inventory (Details)

Inventory (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Inventories, net	$ 1,088,000	$ 1,062,000
LPG Mix
Inventories, net	16,000	6,000
Naphtha
Inventories, net	142,000	120,000
HOBM
Inventories, net	0	54,000
AGO
Inventories, net	259,000	133,000
Crude Oil and Condensate
Inventories, net	536,000	463,000
Chemicals
Inventories, net	108,000	271,000
Propane
Inventories, net	$ 27,000	$ 15,000

Property Plant and Equipment _3

Property Plant and Equipment Net (Details) - USD ($) $ in Thousands	Sep. 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	(17,145)	(15,220)
Property, plant and equipment, gross	56,508	58,433
Construction in progress	4,065	4,064
Property, plant and equipment, net	$ 60,573	$ 62,497

Property Plant and Equipment _4

Property Plant and Equipment Net (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 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 ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accrued Expenses and Other Current Liabilities
Unearned revenue from contracts with customers	$ 7,713	$ 3,421
Insurance	400	500
Unearned contract renewal income	385	541
Taxes payable	282	58
Other payable	210	252
Customer deposits	198	10
Board of director fees payable	173	100
Total	$ 9,361	$ 4,882

ThirdParty LongTerm Debt (Detai

ThirdParty LongTerm Debt (Details)	9 Months Ended
	Sep. 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
BDEC Term Loan Due 2051 [Member]
Original principal amount	$ 500,000
Maturity date	Jun 2051
Interest rate	3.75
Monthly principal and interest payment	$ 3,000
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 ($)	Sep. 30, 2021	Dec. 31, 2020
Principal balance outstanding	$ 44,595,000	$ 42,101,000
Less: current portion of long-term debt, net	(33,788,000)	(33,692,000)
Less: unamortized debt issue costs	(1,653)	(1,749)
Less: accrued interest payable (in default)	(8,311,000)	(6,305,000)
Long term debt	843,000	355,000
BDEC Term Loan Due 2051 [Member]
Principal balance outstanding	507,000	0
Less: accrued interest payable (in default)	(7,000)	0
Notre Dame Debt (in default)
Principal balance outstanding	10,011,000	9,413,000
Less: accrued interest payable (in default)	(5,033,000)	(4,435,000)
LE Term Loan Due 2034
Principal balance outstanding	23,827,000	22,840,000
Less: accrued interest payable (in default)	(2,282,000)	(1,295,000)
LRM Term Loan Due 2034
Principal balance outstanding	9,881,000	9,473,000
Less: accrued interest payable (in default)	(979,000)	(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	$ 59,000	$ 71,000

ThirdParty LongTerm Debt (Det_3

ThirdParty LongTerm Debt (Details 2) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Less: accumulated amortization	$ (789)	$ (693)
Unamortized debt issue costs, net	1,653	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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
ThirdParty LongTerm Debt
Principal and interest payments	$ 0	$ 0	$ 0	$ 300,000
Amortization expense	$ 30,000	$ 30,000	$ 90,000	$ 90,000

Line of Credit Payable (Details

Line of Credit Payable (Details) - Amended Pilot Line Of Credit (in default)	9 Months Ended
	Sep. 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	Sep. 30, 2021	Dec. 31, 2020
Line of credit, gross	$ 44,595	$ 42,101
Less: accrued interest payable (in default)	(8,311)	(6,305)
Line of credit	4,754	8,042
Amended Pilot Line Of Credit (in default)
Line of credit, gross	4,827	8,145
Less: accrued interest payable (in default)	(73)	(103)
Line of credit	$ 4,754	$ 8,042

Line of Credit Payable (Detai_3

Line of Credit Payable (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest expenses	$ 1,654	$ 1,652	$ 4,722	$ 5,104
Terminal Services Agreement [Member]
Interest expenses	$ 200	$ 400	$ 700	$ 1,100

AROS (Details)

AROS (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
AROs
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	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Lease Obligations (Tables)
Operating lease right-of-use assets, gross	$ 787	$ 787
Less: accumulated amortization on operating lease assets	(412)	(289)
Operating lease right-of-use assets, net	375	498
Current portion of operating lease	209	194
Long-term portion of operating lease	211	370
Total lease liabilities	$ 420	$ 564
Weighted average remaining lease term in years - operating lease	1 year 11 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 ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lease Obligations (Tables)
Operating lease costs	$ 51,000	$ 51,000	$ 154,000	$ 154,000
Depreciation of leased assets	0	3,000	0	13,000
Interest on lease liabilities	0	0	0	3,000
Total lease cost	$ 51,000	$ 54,000	$ 154,000	$ 170,000

Lease Obligations (Details 2)

Lease Obligations (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lease Obligations (Tables)
Operating cash flows for operating lease	$ 49,000	$ 44,000	$ 148,000	$ 130,000
Operating cash flows for finance leases	0	0	0	4,000
Financing cash flows for finance leases	$ 0	$ 5,000	$ 0	$ 17,000

Lease Obligations (Details 3)

Lease Obligations (Details 3)	Sep. 30, 2021USD ($)
Operating Lease
2021	$ 209,000
2022	211,000
2023	0
Total minimum rental payments	$ 420,000

Lease Obligations (Details 4)

Lease Obligations (Details 4)	Sep. 30, 2021USD ($)
Lease Obligations (Tables)
2021	$ 236,000
2022	220,000
2023	0
Total	$ 456,000

Lease Obligations (Details Narr

Lease Obligations (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lease term			5 years
Past obligations of rent			$ 20,000
Annual inteest rate			4.50%
Rent installments and other charges			$ 100,000
Affiliates [Member]
Income received from rent lease	$ 10,000	$ 10,000	$ 30,000	$ 30,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Taxes
Current federal	$ 0	$ 0	$ 0	$ (15)
Current state	0	0	0	0
Deferred federal	615	975	1,782	2,566
Deferred state	0		0
Change in valuation allowance	(615)	(975)	(1,782)	(2,566)
Total provision for income taxes	$ 0	$ 0	$ 0	$ (15)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Deferred tax assets:
NOL and capital loss carryforwards	$ 16,646,000	$ 15,258,000
Business interest expense	4,335,000	3,343,000
Start-up costs (crude oil and condensate processing facility)	445,000	509,000
ARO liability/deferred revenue	498,000	498,000
Other	3,000	3,000
Total deferred tax assets	21,927,000	19,611,000
Deferred tax liabilities:
Basis differences in property and equipment	(7,765,000)	(7,230,000)
Total deferred tax liabilities	(7,765,000)	(7,230,000)
Deferred tax assets, gross	14,162,000	12,381,000
Valuation allowance	(14,162,000)	(12,381,000)
Deferred tax assets, net	$ 0	$ 0

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Beginning balance	$ 65,978,000	$ 52,672,000
Net operating losses	8,331,000	13,306,000
Expiration of net operating losses	(1,718)
Ending balance	72,591,000	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	8,331,000	13,306,000
Expiration of net operating losses	0
Ending balance	$ 64,695,000	$ 56,364,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) $ in Millions	9 Months Ended
	Sep. 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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share
Net loss	$ (2,929)	$ (4,653)	$ (10,202)	$ (12,235)
Basic and diluted income (loss) per share	$ (0.23)	$ (0.37)	$ (0.80)	$ (0.98)
Basic and Diluted
Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock	12,693,514	12,693,514	12,693,514	12,534,493

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
	Mar. 31, 2018	Sep. 30, 2021
Organization
Additional financial assurance provided by BDPL	$ 4.8
Trunk pipeline, federal waters	$ 2.4	$ 0.9

Subsequent Event (Details Narra

Subsequent Event (Details Narrative) - Subsequent Event [Member] - Loan Agreement [Member] $ in Millions	Oct. 01, 2021USD ($)
Debt Instrument, Principal Payment	$ 10
Debt Instrument, Interest Rate	5.75%