Blue Dolphin Energy (BDCO) 10-Q 14 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 14, 2023
Cover [Abstract]
Entity Registrant Name	BLUE DOLPHIN ENERGY COMPANY
Entity Central Index Key	0000793306
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		14,921,968
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 12b Title	Common Stock, par value $0.01 per share
Trading Symbol	BDCO
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash and cash equivalents	$ 562	$ 520
Accounts receivable, net	29	1,148
Accounts receivable, related party	1,529	0
Prepaid expenses and other current assets	4,957	3,466
Deposits	110	110
Inventory	31,090	19,844
Total current assets	38,277	25,088
LONG-TERM ASSETS
Total property and equipment, net	56,246	57,436
Operating lease right-of-use assets, net	267	149
Restricted cash, noncurrent	1,000	1,001
Surety bonds	230	230
Total long-term assets	57,743	58,816
TOTAL ASSETS	96,020	83,904
CURRENT LIABILITIES
Long-term debt less unamortized debt issue costs, current portion	37,182	42,155
Long-term debt, related party, current portion	0	5,211
Interest payable	5,169	6,271
Interest payable, related party	0	4,094
Accounts payable	1,087	2,161
Accounts payable, related party	550	155
Current portion of operating lease liabilities	218	156
Income taxes payable	273	307
Asset retirement obligations, current portion	3,769	3,710
Accrued expenses and other current liabilities	6,538	6,114
Total current liabilities	54,786	70,334
LONG-TERM LIABILITIES
Long-term operating lease liabilities, net of current	38	0
Unearned contract renewal income, net of current	455	660
Long-term debt, net of current portion	6,652	2,322
Long-term debt, related party, net of current portion	4,000	0
Long-term interest payable, related party, net of current portion	4,308	0
Total long-term liabilities	15,453	2,982
TOTAL LIABILITIES	70,239	73,316
STOCKHOLDERS' EQUITY
Common stock ($0.01 par value, 20,000,000 shares authorized; 14,921,968 shares issued at June 30, 2023 and December 31, 2022)(1)	149	149
Additional paid-in capital	39,758	39,758
Accumulated deficit	(14,126)	(29,319)
TOTAL STOCKHOLDERS' EQUITY	25,781	10,588
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 96,020	$ 83,904

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Consolidated Balance Sheets
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	14,921,968	14,921,968
Common stock, shares outstanding	14,921,968	14,921,968

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
REVENUE FROM OPERATIONS
Refinery operations	$ 67,267	$ 135,208	$ 181,907	$ 244,965
Tolling and terminaling	1,611	914	3,632	1,840
Total revenue from operations	68,878	136,122	185,539	246,805
COST OF GOODS SOLD
Crude oil, fuel use, and chemicals	63,145	116,321	157,132	218,714
Other conversion costs	3,843	2,988	6,013	4,672
Total cost of goods sold	66,988	119,309	163,145	223,386
Gross profit	1,890	16,813	22,394	23,419
COST OF OPERATIONS
LEH operating fee, related party	103	184	247	310
Other operating expenses	69	57	160	68
General and administrative expenses	911	647	2,118	1,271
Depreciation and amortization	697	699	1,395	1,400
Accretion of asset retirement obligations	24	33	59	66
Total cost of operations	1,804	1,620	3,979	3,115
Income (loss) from operations	86	15,193	18,415	20,304
OTHER INCOME (EXPENSE)
Easement, interest and other income	50	0	52	0
Interest and other expense	(1,669)	(1,668)	(3,001)	(3,260)
Total other income (expense)	(1,619)	(1,668)	(2,949)	(3,260)
Income (loss) before income taxes	(1,533)	13,525	15,466	17,044
Income tax benefit (expense)	(27)	(115)	(273)	(156)
Net Income (loss)	$ (1,560)	$ 13,410	$ 15,193	$ 16,888
Income (loss) per common share:
Basic	$ (0.10)	$ 0.97	$ 1.02	$ 1.27
Diluted	$ (0.10)	$ 0.97	$ 1.02	$ 1.27
Weighted average number of common shares outstanding:
Basic	14,921,968	13,850,397	14,921,968	13,275,152
Diluted	14,921,968	13,850,397	14,921,968	13,275,152

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)
Balance, amount at Dec. 31, 2021	$ (23,627)	$ 127	$ 38,457	$ (62,211)
Balance, Shares at Dec. 31, 2021		12,693,514
Common stock issued for payment of debt, Amount	964	$ 19	945	0
Common stock issued for payment of debt, shares		1,853,080
Common stock issued for services, Amount	131	$ 2	129	0
Common stock issued for services, Shares		252,477
Net income	16,888			16,888
Balance, amount at Jun. 30, 2022	(5,644)	$ 148	39,531	(45,323)
Balance, shares at Jun. 30, 2022		14,799,071
Balance, amount at Dec. 31, 2022	10,588	$ 149	39,758	(29,319)
Balance, Shares at Dec. 31, 2022		14,921,968
Net income	15,193	$ 0	0	15,193
Balance, amount at Jun. 30, 2023	$ 25,781	$ 149	$ 39,758	$ (14,126)
Balance, shares at Jun. 30, 2023		14,921,968

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
OPERATING ACTIVITIES
Net income	$ 15,193	$ 16,888
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	1,395	1,400
Accretion of asset retirement obligations	59	66
Amortization of debt issue costs	102	102
Guaranty fees paid in kind	0	304
Related-party interest expense paid in kind	0	401
Deferred revenues and expenses	(205)	(225)
Loss on issuance of shares	0	235
Changes in operating assets and liabilities
Accounts receivable	1,119	(195)
Accounts receivable, related party	(1,529)	0
Prepaid expenses and other current assets	(1,491)	(1,019)
Inventory	(11,246)	(13,757)
Accounts payable, accrued expenses and other liabilities	(1,694)	673
Accounts payable, related party	395	0
Net cash provided by operating activities	2,098	4,873
INVESTING ACTIVITIES
Capital expenditures	(102)	(46)
Net cash used in investing activities	(102)	(46)
FINANCING ACTIVITIES
Proceeds from debt	0	1,500
Payments on debt principal	(744)	(8)
Net activity on related-party debt	(1,211)	(6,372)
Net cash used in financing activities	(1,955)	(4,880)
Net change in cash, cash equivalents, and restricted cash	41	(53)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD	1,521	57
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD	1,562	4
Non-cash investing and financing activities:
Financing of guaranty fees via long-term debt, related party	0	$ 304
Issuance of shares for services and/or to extinguish debt		860
Right of use assets financed via operating lease	215	$ 0
Interest paid	$ 3,362	$ 1,534

Organization

Organization	6 Months Ended
	Jun. 30, 2023
Organization
Organization	(1) Organization Company 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 1.25 million bbls of petroleum storage tank capacity in Nixon, Texas. Blue Dolphin trades on the OTCQX under the ticker symbol “BDCO.” Assets are organized in two business segments: ‘refinery operations’ (owned by LE) and ‘tolling and terminaling services’ (owned by LRM and NPS). ‘Corporate and other’ includes Blue Dolphin subsidiaries BDPL (inactive pipeline and facilities assets), BDPC (inactive leasehold interests in oil and gas wells), and BDSC (administrative services). See “Note (4)” to our consolidated financial statements for more information about our business segments. Unless the context otherwise requires, references in this report to “we,” “us,” “our,” or “ours,” refer to Blue Dolphin, one or more of its consolidated subsidiaries or all of them taken as a whole. Jonathan Carroll, our Chief Executive Officer, and an Affiliate together controlled approximately 83% of the voting power of our Common Stock as of the filing date of this report. An Affiliate also operates and manages all Blue Dolphin properties, funds working capital requirements during periods of working capital deficits, guarantees certain of our third-party secured debt, and 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 In accordance with GAAP accounting standards, we evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that our consolidated financial statements are issued. Management determined that certain factors may present substantial doubt about our ability to continue as a going concern. These factors include significant current debt, which impacts our ability to meet debt covenants, historical net losses, and historical working capital deficits. Our consolidated financial statements assume we will continue as a going concern and do not include any adjustments that might result from 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 could include selling assets, raising additional debt or equity capital, cutting costs, reducing cash requirements, restructuring debt obligations, or filing bankruptcy. Our significant current debt is the result of certain third-party loan agreements being classified within the current portion of long-term debt on our consolidated balance sheets at June 30, 2023 and December 31, 2022. Excluding accrued interest, we had current debt of $37.2 million and $47.4 million as of June 30, 2023 and December 31, 2022, respectively. Our significant current debt at June 30, 2023 consisted of bank debt to Veritex and GNCU and investor debt to John Kissick. Forbearance Agreements Veritex Forbearance Agreement . Kissick Forbearance Agreement . LEH Forbearance Agreement . Other Defaults . Refining Margins . Our results of operations and liquidity are highly dependent upon the margins that we receive for our refined products. The dollar per bbl commodity price difference between crude oil and condensate (input) and refined products (output) is the most significant driver of refining margins, and they have historically been subject to wide fluctuations. The general outlook for the oil and natural gas industry for the remainder of 2023 remains unclear given uncertainty surrounding the capital, credit, and commodity markets, financial institution health, the lingering Russian military conflict with Ukraine and associated sanctions on Russian crude products, the recession, and inflation. We can provide no assurances that refining margins and demand will remain at current levels. Working Capital Improvements . We continue to actively explore additional financing to refinance and restructure debt and further improve working capital. During the six months ended June 30, 2023, we entered into the LEH Forbearance Agreement and Kissick Forbearance Agreement. We also entered into the Veritex Forbearance Agreement in November 2022. During the six months ended June 30, 2022, we successfully secured an additional $1.5 million in working capital through CARES Act loans. There can be no assurance that we will be able to raise additional capital on acceptable terms, or at all. If we are unable to raise additional capital, we may not, in the short term, be able to purchase crude oil and condensate or meet debt payment obligations. In the long term, we may not be able to manage business disruptions or execute our business strategy. We may have to consider other options, such as selling assets, raising additional debt or equity capital, seeking bankruptcy protection, or ceasing operating. Operating Risks Successful execution of our business strategy depends on several critical factors, including having adequate working capital, favorable refining margins, and maintaining operation of the Nixon refinery. Working Capital . Refining Margins . Nixon Refinery Operation . The capital, credit, and commodity markets, financial institution health, the Russian military conflict with Ukraine and associated sanctions on Russian crude products, the recession, and inflation continue to evolve, and the extent to which these factors may impact working capital, commodity prices, refined product demand, our supply chain, financial condition, liquidity, results of operations, and future prospects will depend on future developments, which cannot be predicted with any degree of confidence. 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 can obtain additional financing on commercially reasonable terms or at all, or margins on our refined products will be favorable. Further, if lenders exercise their rights and remedies under secured loan agreements that are in default, or if Tartan terminates the Crude Supply Agreement, our business, financial condition, and results of operations will be materially adversely affected.

Principles of Consolidation and

Principles of Consolidation and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Principles of Consolidation and Significant Accounting Policies
Principles of Consolidation and Significant Accounting Policies	(2) Principles of Consolidation and Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements, which include Blue Dolphin and its subsidiaries, have been prepared in accordance with GAAP for interim consolidated financial information pursuant to the rules and regulations of the SEC under Article 10 of Regulation S-X and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in our audited financial statements have been condensed or omitted pursuant to the SEC’s rules and regulations. Significant intercompany transactions have been eliminated in the consolidation. In management’s opinion, all adjustments considered necessary for a fair presentation have been included, disclosures are adequate, and the presented information is not misleading. The consolidated balance sheet as of December 31, 2022 was derived from the audited financial statements at that date. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 as filed with the SEC. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023, or for any other period. Significant Accounting Policies A summary of significant Blue Dolphin accounting policies is presented to assist in understanding our consolidated financial statements. Our consolidated financial statements and accompanying notes are representations of management, who is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of our consolidated financial statements. Use of Estimates . We assessed certain accounting matters that require consideration of forecasted financial information in context with information reasonably available to us as of June 30, 2023 and through the filing date of this report. The accounting matters assessed included, but not limited to, our allowance for doubtful accounts, inventory valuation, and the carrying value of long-lived assets. Cash, Cash Equivalents, and Restricted Cash . The following table provides a reconciliation of cash, cash equivalents, and restricted cash as reported in the consolidated statements of cash flows: June 30, December 31, 2023 2022 (in thousands) Cash and cash equivalents $ 562 $ 520 Restricted cash, noncurrent 1,000 1,001 $ 1,562 $ 1,521 Accounts Receivable and Allowance for Doubtful Accounts Financial Instruments Inventory Property and Equipment Refinery and Facilities Pipelines and Facilities Because our pipelines and facilities assets have been inactive for an extended period of time, BOEM required that they be decommissioned prior to June 1, 2023. Although Blue Dolphin did not meet BSEE’s deadline, management obtained a decommissioning bid and engaged a consultant to oversee the project and obtain additional bids. Our ARO estimate could change materially based on updated bids. During the COVID-19 pandemic, completion of the work was cost prohibitive due to financial constraints. As an alternative, management began exploring alternatives to reactivate the assets, including potentially using the assets for offshore liquified natural gas (LNG) transfer or wind and water power generation. In late July 2023, BSEE requested that management provide the agency with a written update on BDPL’s path forward to meet decommissioning requirements. Management is working with the consultant to develop and submit a plan in the third quarter of 2023. Due to BDPL’s failure to complete decommissioning of the offshore pipeline and platform assets and remedy associated INCs within the timeframe mandated by BSEE, BDPL could be subject to regulatory oversight and enforcement, including but not limited to failing to correct an INC, civil penalties, and revocation of BDPL’s operator designation, which could have a material adverse effect on our earnings, cash flows, and liquidity. CIP Leases For operating leases, we record lease cost on a straight-line basis over the lease term; we record lease expenses in the appropriate line on the income statement based on the leased asset’s intended use. For finance 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 storage tank 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 storage tank agreement does not include ancillary services fees. We consider ancillary services as a separate performance obligation under the storage tank agreement. We satisfy the performance obligation and recognize the associated fee when we complete the requested service. Deferred Revenue Unearned Contract Renewal Income. Income Taxes Income taxes are calculated utilizing the applicable rates on items included in the determination of income for income tax purposes. Our effective tax rate may be different than what would be expected if the federal and state statutory rates were applied to income from continuing operations primarily because of amounts expensed for financial reporting that are not deductible for tax purposes. The benefit of an uncertain tax position is recognized in the financial statements if it meets a minimum recognition threshold. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more-likely-than-not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement. At June 30, 2023 and December 31, 2022, we had no uncertain tax positions for which a reserve or liability was necessary. Deferred Taxes Impairment or Disposal of Long-Lived Assets Management evaluated refinery and facilities assets for impairment in light of shifts in the capital, credit, and commodity markets, financial institution health, the Russian military conflict with Ukraine and associated sanctions on Russian crude products, the recession, and inflation. As of June 30, 2023 and December 31, 2022, we did not record any impairment of our long-lived assets. However, impairment may be required in the future if external events or circumstances change or if internal conditions shift materially. 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 .

RelatedParty Transactions

RelatedParty Transactions	6 Months Ended
	Jun. 30, 2023
RelatedParty Transactions
Related-Party Transactions	(3) Related-Party Transactions Affiliate Agreements Financial and Operational Agreements Agreement/Transaction Parties Effective Date Key Terms Blue Dolphin Guaranty Fee Agreement Blue Dolphin Jonathan Carroll 01/01/2023 Related to payoff of Blue Dolphin $2.0 million SBA loan; Jonathan Carroll receives a cash fee equal to 2.00% per annum of outstanding principal balance owed under Blue Dolphin Term Loan Due 2051 as consideration for providing his personal guarantee. Jet Fuel Purchase Agreements LE LEH 04/21/2023 Product agreements for the purchase of jet fuel by LE from LEH; first transaction dated April 21, 2023 for approximately 1.9 million gallons of jet fuel; second transaction dated May 10, 2023 for approximately 2.0 million gallons of jet fuel; the jet fuel was priced at LEH’s product cost; LE expects to sell the products back to LEH under the Jet Fuel Sales Agreement. Jet Fuel Sales Agreement LE LEH 04/01/2023 Sale of jet fuel by LE to LEH; 1-year term expiring earliest to occur of 03/31/2024 plus 30-day carryover or delivery of maximum jet fuel quantity; LEH is awarded jet fuel contracts under preferential pricing terms due to being HUBZone certified. LE Amended and Restated Guaranty Fee Agreement LE Jonathan Carroll 01/01/2023 Related to payoff of LE $25.0 million Veritex loan; Jonathan Carroll receives a cash fee equal to 2.00% per annum of outstanding principal balance owed under LE Term Loan Due 2034 as consideration for providing his personal guarantee. LE Master Services Agreement LE Ingleside 03/01/2023 For storage of products intended for customer receipt by barge; tank rental fee $0.1 million per month. LRM Amended and Restated Guaranty Fee Agreement LRM Jonathan Carroll 01/01/2023 Related to payoff of LRM $10.0 million Veritex loan; Jonathan Carroll receives a cash fee equal to 2.00% per annum of outstanding principal balance owed under LRM Term Loan Due 2034 as consideration for providing his personal guarantee. NPS Guaranty Fee Agreement NPS Jonathan Carroll 01/01/2023 Related to payoff of NPS $10.0 million GNCU loan; Jonathan Carroll receives a cash fee equal to 2.00% per annum of outstanding principal balance owed under NPS Term Loan Due 2031 as consideration for providing his personal guarantee. NPS Terminal Services Agreement NPS LEH 11/01/2022 For LEH storage of jet fuel at the Nixon facility; tank rental fee $0.2 million per month; 1-year term on an evergreen basis; either party may cancel upon 60 days’ prior written notice. Office Sub-Lease Agreement BDSC LEH 05/31/23 12-month extension of prior office sublease; term expires 08/31/2024; office lease Houston, Texas; rent approximately $0.003 million per month Second Amended and Restated Operating Agreement Blue Dolphin LE LRM NPS BDPL BDPC BDSC LEH 04/01/2023 1-year term; expires 04/01/2024 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 Debt Agreements Loan Description Parties Maturity Date Interest Rate Loan Purpose June LEH Note Blue Dolphin LEH Jan 2019 8.00% Blue Dolphin working capital; reflected amounts owed to LEH under the Second Amended and Restated Operating Agreement BDPL-LEH Loan Agreement (in forbearance) BDPL LEH Aug 2018 16.00% Original principal amount of $4.0 million; Blue Dolphin working capital June LEH Note Forbearance and Defaults LEH Forbearance Agreement Covenants, Guarantees and Security. 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. Certain BDPL property serves as collateral under the BDPL-LEH Loan Agreement. See “Notes (1) and (10)” 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. Related-Party Financial Impact Working Capital . Consolidated Balance Sheets Accounts receivable, related party Accounts payable, related party Long-term debt, related party, net of current portion and accrued interest payable, related party, net of current portion . June 30, December 31, 2023 2022 (in thousands) LEH June LEH Note $ - $ 1,211 BDPL-LEH Loan Agreement (in forbearance) 8,308 8,094 LEH Total 8,308 9,305 Less: Long-term debt, related party, current portion - (5,211 ) Less: Accrued interest payable, related party - (4,094 ) $ 8,308 $ - Consolidated Statements of Operations Total revenue from operations . Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands, except percent amounts) (in thousands, except percent amounts) Refinery operations LEH $ 25,419 36.9 % $ 51,337 37.7 % $ 60,764 32.7 % $ 85,855 34.8 % Third-Parties 41,848 60.7 % 83,871 61.6 % 121,143 65.3 % 159,110 64.5 % Tolling and terminaling LEH 540 0.8 % - - 1,080 0.6 % - - Third-Parties 1,071 1.6 % 914 0.7 % 2,552 1.4 % 1,840 0.7 % $ 68,878 100.0 % $ 136,122 100.0 % $ 185,539 100.0 % $ 246,805 100.0 % Interest expense. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Jonathan Carroll Guaranty Fee Agreements First Term Loan Due 2034 (in forbearance) $ 101 $ 108 $ 203 $ 216 Second Term Loan Due 2034 (in forbearance) 42 45 84 90 Blue Dolphin Term Loan Due 2051 10 - 20 - NPS Term Loan Due 2031 (in default) 50 - 100 - LEH BDPL-LEH Loan Agreement (in forbearance) 164 160 324 320 June LEH Note - 124 - 385 $ 367 $ 437 $ 731 $ 1,011 Other . The LEH operating fee, related party totaled $0.1 million for the three-month period ended June 30, 2023 compared to approximately $0.2 million for the three-month period ended June 30, 2022. The LEH operating fee, related party totaled approximately $0.2 million for the six-month period ended June 30, 2023 compared to approximately $0.3 million for the six-month period ended June 30, 2022. The decrease in both comparative periods related to lower refinery operating expenses on lower throughput. Lease expense associated with the LE Master Services Agreement totaled $0.3 million and $0.6 million for the three-month period ended June 30, 2023 and six-month period ended June 30, 2023, respectively.

Revenue and Segment Information

Revenue and Segment Information	6 Months Ended
	Jun. 30, 2023
Revenue and Segment Information
Revenue and Segment Information	(4) Revenue and Segment Information We have two reportable business segments: (i) refinery operations, which derives revenue from refined product sales, and (ii) tolling and terminaling, which derives revenue from storage tank rental fees, ancillary services fees (such as for in-tank blending), and tolling and reservation fees for use of the naphtha stabilizer at the Nixon refinery. ‘Corporate and other’ as presented in the segment information includes BDSC, BDPL, and BDPC. Revenue from Contracts with Customers Disaggregation of Revenue Receivables from Contracts with Customers Contract Liabilities Remaining Performance Obligations Contract Balances June 30, December 31, 2023 2022 Accounts receivable (including related-party), beginning of period $ 1,148 $ 126 Accounts receivable (including related-party), end of period 1,434 1,148 Unearned revenue, beginning of period $ 3,888 $ 4,388 Unearned revenue, end of period 3,643 3,888 Segment Information Business segment information for the periods indicated (and as of the dates indicated) was as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Refinery operations $ 67,267 $ 135,208 $ 181,907 $ 244,965 Tolling and terminaling 1,611 914 3,632 1,840 Total revenue from operations 68,878 136,122 185,539 246,805 Intercompany processing fees (1) Refinery operations (595 ) (675 ) (1,171 ) (1,328 ) Tolling and terminaling 595 675 1,171 1,328 Total intercompany processing fees - - - - Costs of good sold (2) Refinery operations (66,532 ) (118,736 ) (162,332 ) (222,194 ) Tolling and terminaling (456 ) (573 ) (813 ) (1,192 ) Total costs of goods sold (66,988 ) (119,309 ) (163,145 ) (223,386 ) Gross profit Refinery operations 140 15,797 18,404 21,443 Tolling and terminaling 1,750 1,016 3,990 1,976 Total gross profit 1,890 16,813 22,394 23,419 Other operating and general and administrative expenses (3) Refinery operations (410 ) (370 ) (979 ) (663 ) Tolling and terminaling (156 ) (53 ) (626 ) (123 ) Corporate and other (541 ) (498 ) (979 ) (929 ) Total other operating and general and administrative expenses (1,107 ) (921 ) (2,584 ) (1,715 ) Depreciation and amortization Refinery operations (304 ) (306 ) (608 ) (613 ) Tolling and terminaling (342 ) (342 ) (684 ) (684 ) Corporate and other (51 ) (51 ) (103 ) (103 ) Total depreciation and amortization (697 ) (699 ) (1,395 ) (1,400 ) Interest and other non-operating expenses, net Refinery operations (932 ) (703 ) (1,609 ) (1,420 ) Tolling and terminaling (490 ) (409 ) (960 ) (827 ) Corporate and other (197 ) (556 ) (380 ) (1,013 ) Total interest and other non-operating expenses, net (1,619 ) (1,668 ) (2,949 ) (3,260 ) Income (loss) before income taxes Refinery operations (1,506 ) 14,418 15,208 18,747 Tolling and terminaling 762 212 1,720 342 Corporate and other (789 ) (1,105 ) (1,462 ) (2,045 ) Total income (loss) before income taxes (1,533 ) 13,525 15,466 17,044 Income tax expense (27 ) (115 ) (273 ) (156 ) Net income (loss) $ (1,560 ) $ 13,410 $ 15,193 $ 16,888 (1) (2) (3) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Capital expenditures Refinery operations $ 102 $ 46 $ 102 $ 46 Tolling and terminaling - - - - Corporate and other - - - - Total capital expenditures $ 102 $ 46 $ 102 $ 46 June 30, December 31, 2023 2022 (in thousands) Identifiable assets Refinery operations $ 77,729 $ 64,359 Tolling and terminaling 17,020 17,836 Corporate and other 1,271 1,709 Total identifiable assets $ 96,020 $ 83,904

Concentration of Risk

Concentration of Risk	6 Months Ended
	Jun. 30, 2023
Concentration of Risk
Concentration of Risk	(5) Concentration of Risk Bank Accounts Financial instruments that potentially subject us to concentrations of risk consist primarily of cash, trade receivables and payables. We maintain cash balances at financial institutions in Houston, Texas. The FDIC insures certain financial products up to a maximum of $250,000 per depositor. At June 30, 2023 and December 31, 2022, our cash balances (including restricted cash) exceeded the FDIC insurance limit per depositor by $1.1 million and $0.9 million, respectively. Instability and volatility in the capital, credit, and commodity markets, as well as with financial institutions, could adversely affect our cash balances (including restricted cash) in excess of FDIC insurance limits per depositor. In the event that banks in which we maintain our cash balances (including restricted cash) fail, there can be no assurance that the federal government and the Federal Reserve would intervene. Key Supplier Operation of the Nixon refinery depends on our ability to purchase adequate amounts of crude oil and condensate. We have a long-term, non-exclusive crude supply agreement in place with Tartan. The volume-based Crude Supply Agreement expires when we receive 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). Tartan must provide notice of non-renewal at least 60 days before the expiration of any renewal term. As of June 30, 2023, we received approximately 15.4 million bbls, or 62.4%, of the total allowable contracted volume under the Crude Supply Agreement. For the three months ended June 30, 2023 and 2022, we received approximately 1.0 million bbls, or 4.1%, and 1.1 million bbls, or 4.6%, respectively, of the total allowable contracted volume under the Crude Supply Agreement. For the six months ended June 30, 2023 and 2022, we received approximately 2.0 million bbls, or 8.1%, and 2.2 million bbls, or 8.9%, respectively, of the total allowable contracted volume under the Crude Supply Agreement. During the three and six months ended June 30, 2023, substantially all of our crude was sourced from Tartan under the Crude Supply Agreement. During the three and six months ended June 30, 2022, all of our crude oil was sourced from Tartan under the Crude Supply Agreement. At June 30, 2023, accounts payable for crude oil and condensate was $0. Related to the Crude Supply Agreement, Tartan stores crude oil at the Nixon facility under a terminal services agreement dated as of June 1, 2019. Under the terminal services agreement, crude oil owned by Tartan is stored at the Nixon facility at a specified rate per bbl of the storage tank’s shell capacity. The terminal services agreement renews on a one-year evergreen basis. Tartan must provide notice of non-renewal at least 60 days before the expiration of any renewal term. 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 significant current debt, certain of which is in default, historical net losses, working capital deficits, and margin volatility. If Tartan 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, which could result in refinery downtime and could materially affect our business, financial condition, and results of operations. We established relationships with other crude suppliers to mitigate supply-based risks that could cause a business disruption. Customers Significant Customers Three Months Ended Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable at June 30, June 30, 2023 3 83.7 % $ 1.5 million June 30, 2022 2 63.9 % $ 0 Six Months Ended Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable at June 30, June 30, 2023 3 72.7 % $ 1.5 million June 30, 2022 2 59.1 % $ 0 One of our significant customers is LEH, an Affiliate. The Affiliate purchases our jet fuel under a Jet Fuel Sales Agreement and bids on jet fuel contracts under preferential pricing terms due to HUBZone certification. The Affiliate also stores jet fuel at the Nixon Facility. For both the three months ended June 30, 2023 and 2022, the Affiliate accounted for approximately 37.7% of total revenue from operations. For the six months ended June 30, 2023 and 2022, the Affiliate accounted for approximately 33.3% and 34.8% of total revenue from operations, respectively. Customer Concentration Refined Product Sales We sell our products primarily in the U.S. within PADD 3. Occasionally we sell refined products to customers that export to other countries, such as naphtha and distillate to Mexico. Total refined product sales by distillation (from light to heavy) for the periods indicated consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands, except percent amounts) (in thousands, except percent amounts) LPG mix $ 57 0.1 % $ - 0.0 % $ 112 0.1 % $ - 0.0 % Naphtha 9,174 13.6 % 27,382 22.3 % 29,903 16.4 % 55,136 23.2 % Jet fuel 25,419 37.8 % 51,337 30.6 % 60,764 33.4 % 85,855 29.2 % HOBM 10,197 15.2 % 20,827 23.4 % 43,685 24.0 % 43,902 24.9 % AGO 22,420 33.3 % 35,662 23.7 % 47,443 26.1 % 60,072 22.7 % $ 67,267 100.0 % $ 135,208 100.0 % $ 181,907 100.0 % $ 244,965 100.0 % An Affiliate, LEH, purchases all of our jet fuel. See “Note (3)” to our consolidated financial statements for additional disclosures related to Affiliate agreements and arrangements.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	6 Months Ended
	Jun. 30, 2023
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets	(6) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets as of the dates indicated consisted of the following: June 30, December 31, 2023 2022 (in thousands) Prepaid crude oil and condensate $ 2,577 $ 2,183 Prepaid insurance 2,211 1,066 Other prepaids 126 163 Prepaid easement renewal fees 43 54 $ 4,957 $ 3,466

Inventory

Inventory	6 Months Ended
	Jun. 30, 2023
Inventory
Inventory	(7) Inventory Inventory as of the dates indicated consisted of the following: June 30, December 31, 2023 2022 (in thousands) Naphtha $ 10,418 $ 1,056 HOBM 10,059 14,879 Jet 9,139 - Crude oil and condensate 955 3,458 AGO 315 301 Chemicals 176 116 Propane 25 27 LPG mix 3 7 $ 31,090 $ 19,844

PropertyPlant and EquipmentNet

PropertyPlant and EquipmentNet	6 Months Ended
	Jun. 30, 2023
PropertyPlant and EquipmentNet
Property, Plant and Equipment, Net	(8) Property, Plant and Equipment, Net Property, plant and equipment, net, as of the dates indicated consisted of the following: June 30, December 31, 2023 2022 (in thousands) Refinery and facilities $ 72,675 $ 72,675 Land 566 566 Other property and equipment 913 913 74,154 74,154 Less: Accumulated depreciation and amortiation (21,679 ) (20,387 ) 52,475 53,767 CIP 3,771 3,669 $ 56,246 $ 57,436

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2023
Accrued Expenses and Other Current Liabilities
Accrued Expenses and Other Current Liabilities	(9) Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities as of the dates indicated consisted of the following: June 30, December 31, 2023 2022 (in thousands) Unearned revenue from contracts with customers $ 3,643 $ 3,888 Insurance 1,346 568 Unearned contract renewal income 480 480 Accrued fines and penalties 407 407 Taxes payable 214 64 Customer deposits 163 173 Other payable 160 324 Board of director fees payable 125 210 $ 6,538 $ 6,114

ThirdParty LongTerm Debt

ThirdParty LongTerm Debt	6 Months Ended
	Jun. 30, 2023
ThirdParty LongTerm Debt
Third-Party Long-Term Debt	(10) Third-Party Long-Term Debt Loan Agreements Loan Description Parties Principal (in millions) Origination / Maturity Monthly Principal and Interest Payment Interest Rate Loan Purpose Veritex Loans LE Term Loan Due 2034 ( in forbearance (1) LE Veritex $25.0 Jun 2015 / Jun 2034 $0.2 million WSJ Prime + 2.75% Refinance loan; capital improvements LRM Term Loan Due 2034 ( in forbearance (1) LRM Veritex $10.0 Dec 2015 / Dec 2034 $0.1 million WSJ Prime + 2.75% Refinance bridge loan; capital improvements Kissick Debt (in forbearance) ( 2)(3)(4) LE Kissick $11.7 Jun 2006 / Jan 2018 $0.5 million 6.25% Working capital GNCU Loan NPS Term Loan Due 2031( in default (5) NPS GNCU $10.0 Oct 2021 / Oct 2031 $0.1 million 5.75% Working capital SBA EIDLs Blue Dolphin Term Loan Due 2051 (as modified) (6) Blue Dolphin SBA $2.0 May 2021 / Jun 2051 $0.01 million 3.75% Working capital LE Term Loan Due 2050 (7) LE SBA $0.15 Aug 2020 / Aug 2050 $0.0007 million 3.75% Working capital NPS Term Loan Due 2050 (7) NPS SBA $0.15 Aug 2020 / Aug 2050 $0.0007 million 3.75% Working capital Equipment Loan Due 2025 (8) LE Texas First $0.07 Oct 2020 / Oct 2025 $0.0013 million 4.50% Equipment Lease Conversion (1) (2) (3) (4) (5) (6) (7) (8) Outstanding Principal, Debt Issue Costs, and Accrued Interest Third-party long-term debt, including outstanding principal and accrued interest, as of the dates indicated was as follows: June 30, December 31, 2023 2022 (in thousands) Veritex Loans LE Term Loan Due 2034 (in forbearance) $ 20,268 $ 20,801 LRM Term Loan Due 2034 (in forbearance) 8,460 8,671 Kissick Debt (in forbearance) 9,874 11,006 GNCU Loan NPS Term Loan Due 2031 ( in default 9,975 9,975 SBA EIDLs BDEC Term Loan Due 2051 2,118 2,082 LE Term Loan Due 2050 161 162 NPS Term Loan Due 2050 161 162 Equipment Loan Due 2025 33 38 51,050 52,897 Less: Current portion of long-term debt, net (37,182 ) (42,155 ) Less: Unamortized debt issue costs (2,047 ) (2,149 ) Less: Accrued interest payable (5,169 ) (6,271 ) $ 6,652 $ 2,322 Unamortized debt issue costs associated with the Veritex and GNCU loans as of the dates indicated consisted of the following: June 30, December 31, 2023 2022 (in thousands) Veritex Loans LE Term Loan Due 2034 (in forbearance) $ 1,674 $ 1,674 LRM Term Loan Due 2034 (in forbearance) 768 768 GNCU Loan NPS Term Loan Due 2031 ( in default 730 730 Less: Accumulated amortization (1,125 ) (1,023 ) $ 2,047 $ 2,149 Amortization expense was $0.05 million for both three-month periods ended June 30, 2023 and 2022. Amortization expense was $0.1 million for both six-month periods ended June 30, 2023 and 2022. Accrued interest related to third-party long-term debt, reflected as accrued interest payable in our consolidated balance sheets, as of the dates indicated consisted of the following: June 30, December 31, 2023 2022 (in thousands) Kissick Debt (in forbearance) $ 4,896 $ 6,028 Veritex Loans LE Term Loan Due 2034 (in forbearance) 49 53 LRM Term Loan Due 2034 (in forbearance) 67 66 GNCU Loan NPS Term Loan Due 2031 (in default) 17 17 SBA EIDLs BDEC Term Loan Due 2051 118 82 LE Term Loan Due 2050 11 12 NPS Term Loan Due 2053 11 12 Equipment Loan Due 2025 - 1 5,169 6,271 Less: Accrued interest payable (5,169 ) (6,271 ) Long-term Interest Payable, Net of Current Portion $ - $ - The debt associated with the LE Term Loan Due 2034, LRM Term Loan Due 2034, and NPS Term Loan Due 2031 was classified within the current portion of long-term debt on our consolidated balance sheets at June 30, 2023 and December 31, 2022. Although the debt associated with the Kissick Debt was classified within the current portion of long-term debt on our consolidated balance sheet at December 31, 2022, the Kissick Debt was reclassified to long-term debt, net of current portion at June 30, 2023 as a result of the Kissick Forbearance Agreement. Forbearance and Defaults Veritex Forbearance Agreement Kissick Forbearance Agreement. Other Defaults We can provide no assurance that: (i) our assets or cash flow will be sufficient to fully repay borrowings under secured loan agreements that are in default, either upon maturity or if accelerated, (ii) LE, LRM, NPS, or BDPL will be able to refinance or restructure the debt, and/or (iii) third parties will provide future forbearances or default waivers, particularly if the banks with whom we have relationships fail. If one or more banks fail, we could be exposed to additional events of default (if not cured or waived) under existing secured loan agreements. Defaults under our secured loan agreements and any exercise by third parties of their rights and remedies related to such defaults may have a material adverse effect on our business, the trading price of our Common Stock, and on the value of an investment in our Common Stock, and holders of our Common Stock could lose their investment in our Common Stock in its entirety. If the debt associated with secured loan agreements is accelerated and we are unable to refinance or restructure the debt or obtain default waivers, we may have to consider other options. These options could include selling assets, raising additional debt or equity capital, cutting costs, reducing cash requirements, or filing bankruptcy. See “Notes (1) and (3)” 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. Guarantees and Security Loan Description Guarantees Security Veritex Loans LE Term Loan Due 2034 ( in forbearance · · (1) · · · · · LRM Term Loan Due 2034 ( in forbearance · · (1) · · · · · · Kissick Debt (in forbearance) ( 2) --- Subordinated deed of trust that encumbers the crude distillation tower and general assets of LE GNCU Loan NPS Term Loan Due 2031 (in default) · · (1) · · · · SBA EIDLs Blue Dolphin Term Loan Due 2051 --- · LE Term Loan Due 2050 --- · NPS Term Loan Due 2050 --- · Equipment Loan Due 2025 --- · (1) (2)

AROs

AROs	6 Months Ended
	Jun. 30, 2023
AROs
ARO's	(11) AROs Refinery and Facilities Management has concluded that there is no legal or contractual obligation to dismantle or remove refinery and facilities assets. Management believes that refinery and facilities assets have indeterminate lives under FASB ASC guidance for estimating AROs because dates or ranges of dates upon which we would retire these assets cannot reasonably be estimated at this time. When a legal or contractual obligation to dismantle or remove refinery and facilities assets arises and a date or range of dates can reasonably be estimated for the retirement of these assets, we will estimate the cost of performing the retirement activities and record a liability for the fair value of that cost using present value techniques. Pipelines and Facilities and Oil and Gas Properties We have AROs associated with decommissioning our pipelines and facilities assets, as well as plugging and abandoning our oil and gas properties. We recorded a discounted liability for the fair value of an ARO with a corresponding increase to the carrying value of the related long-lived asset at the time the asset was installed or placed in service, and we depreciated the amount added to property and equipment. We recorded an additional increase in liability during the twelve months ended December 31, 2022 due to a further change in timing. Because our pipelines and facilities assets have been inactive for an extended period of time, BOEM required that they be decommissioned prior to June 1, 2023. Although Blue Dolphin did not meet BSEE’s deadline, management obtained a decommissioning bid and engaged a consultant to oversee the project and obtain additional bids. Our ARO estimate could change materially based on updated bids. During the COVID-19 pandemic, completion of the work was cost prohibitive due to financial constraints. As an alternative, management began exploring alternatives to reactivate the assets, including potentially using the assets for offshore liquified natural gas (LNG) transfer or wind and water power generation. In late July 2023, BSEE requested that management provide the agency with a written update on BDPL’s path forward to meet decommissioning requirements. Management is working with the consultant to develop and submit a plan in the third quarter of 2023. Due to BDPL’s failure to complete decommissioning of the offshore pipeline and platform assets and remedy associated INCs within the timeframe mandated by BSEE, BDPL could be subject to regulatory oversight and enforcement, including but not limited to failing to correct an INC, civil penalties, and revocation of BDPL’s operator designation, which could have a material adverse effect on our earnings, cash flows, and liquidity. ARO liability as of the dates indicated was as follows: June 30, December 31, 2023 2022 (in thousands) AROs, at the beginning of the period $ 3,710 $ 3,461 Changes in estimates of existing obligations - 114 Accretion expense 59 135 - - Less: AROs, current portion (3,769 ) (3,710 ) Long-term AROs, at the end of the period $ - $ - See “Note (15)” to our consolidated financial statements for disclosures related to decommissioning of our offshore pipelines and platform assets and related risks.

Lease Obligations

Lease Obligations	6 Months Ended
	Jun. 30, 2023
Lease Obligations
Lease Obligatons	(12) Lease Obligations Lease Obligations Office Lease An Affiliate, LEH, subleases a portion of the Houston office space. BDSC received sublease income from LEH totaling $0.01 million for both three-month periods ended June 30, 2023 and 2022. Sublease income from LEH totaled $0.02 million for both six-month periods ended June 30, 2023 and 2022. See “Note (3)” to our consolidated financial statements for additional disclosures related to the Affiliate sub-lease. Tank Lease The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheet: June 30, December 31, Balance Sheet Location 2023 2022 (in thousands) Assets Operating lease ROU assets Operating lease ROU assets $ 1,003 $ 787 Less: Accumulated amortization on operating lease assets Operating lease ROU assets (736 ) (638 ) Total lease assets 267 149 Liabilities Current Operating lease Current portion of lease liabilities 218 156 Noncurrent Operating lease Long-term lease liabilities, net of current 38 - Total lease liabilities $ 256 $ 156 Weighted average remaining lease term in years Operating lease (1) 1.17 Weighted average discount rate Operating lease 8.25 % (1) The following table presents information related to lease costs incurred for operating and finance leases: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Operating lease costs $ 51 $ 51 $ 103 $ 103 Short-term lease expense, related party 300 - 400 - Total lease cost $ 351 $ 51 $ 503 $ 103 The table below presents supplemental cash flow information related to leases as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 59 $ 49 $ 116 $ 101 As of June 30, 2023, maturities of lease liabilities for the periods indicated were as follows: June 30, Operating Lease (in thousands) 2024 $ 218 2025 38 $ 256 Future minimum annual lease commitments that are non-cancelable: Operating June 30, Lease (in thousands) 2024 $ 117 2025 154 $ 271

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Taxes
Income Taxes	(13) Income Taxes The Inflation Reduction Act ("IRA") was enacted into law in August 2022. The IRA imposes a 15% alternative minimum tax on corporations whose average annual adjusted financial statement income during the most recently completed three-year period exceeds $1.0 billion. We do not fall within the category of “applicable corporations” and are therefore exempt from payment of an alternative minimum tax. Tax Provision The provision for income tax benefit (expense) for the periods indicated was as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Current Federal $ (5 ) $ - $ (120 ) $ - State (22 ) (115 ) (153 ) (156 ) Deferred Federal 331 (2,809 ) (3,096 ) (3,895 ) Change in valuation allowance (331 ) 2,809 3,096 3,895 Total provision for income taxes $ (27 ) $ (115 ) $ (273 ) $ (156 ) GAAP treats Texas margins tax, a form of business tax imposed on an entity’s gross profit rather than its net income, like an income tax for financial reporting purposes. Deferred income taxes as of the dates indicated consisted of the following: June 30, December 31, 2023 2022 (in thousands) Deferred tax assets: NOL and capital loss carryforwards $ 8,571 $ 11,088 Business interest expense 3,023 3,524 Start-up costs (crude oil and condensate processing facility) 297 339 ARO liability/deferred revenue 791 779 Other 70 43 Total deferred tax assets 12,752 15,773 Deferred tax liabilities: Basis differences in property and equipment (8,291 ) (8,216 ) Total deferred tax liabilities (8,291 ) (8,216 ) 4,461 7,557 Valuation allowance (4,461 ) (7,557 ) 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 Under IRC Section 382, a corporation that undergoes an “ownership change” is subject to limitations on its use of pre-change NOL carryforwards to offset future taxable income. Within the meaning of IRC Section 382, an “ownership change” occurs when the aggregate stock ownership of stockholders who own more than 5% (after applying certain look-through rules) increase by more than fifty percent (50% over such stockholders’ lowest percentage ownership during the testing period (generally three years). Based on the tax rule, ownership changes occurred in 2005 and 2012. The 2005 ownership change related to a series of private placements; the 2012 ownership change related to a reverse acquisition. The 2005 and 2012 ownership changes limit the use of pre-change NOL carryforwards to offset future taxable income. The annual use limitation generally equals the value of the common stock, on an aggregate basis, when the ownership change occurred multiplied by a specified tax-exempt interest rate. The 2012 ownership change will subject approximately $16.3 million in NOL carryforwards generated before the ownership change to an annual use limitation of approximately $0.6 million per year. We may use any unused portions of the limitation in subsequent years. Because of the yearly restriction, approximately $6.7 million in NOL carryforwards generated before the 2012 ownership change will expire unused. NOL carryforwards generated after the 2012 ownership change but before 2018 are not subject to an annual use limitation; we can use these NOL carryforwards for 20 years in addition to NOL carryforward amounts generated before the ownership change. NOL carryforwards that were generated beginning in 2018 may only be used to offset 80% of taxable income and are carried forward indefinitely. NOL Carryforwards Available for Use Net Operating Loss Carryforward Pre-Ownership Change Post-Ownership Change Total (in thousands) Balance at December 31, 2021 $ 7,897 $ 65,511 $ 73,408 Net operating losses used and expired (6,127 ) (22,384 ) (28,511 ) Balance at December 31, 2022 $ 1,770 $ 43,127 $ 44,897 Net operating losses used and expired (638 ) (10,583 ) (11,221 ) Balance at June 30, 2023 $ 1,132 $ 32,544 $ 33,676 Valuation Allowance We have NOL carryforwards that remain available for future use. At June 30, 2023 and December 31, 2022, there were no uncertain tax positions for which a reserve or liability was necessary.

Earnings and Dividends Per Shar

Earnings and Dividends Per Share	6 Months Ended
	Jun. 30, 2023
Income (loss) per common share:
Earnings and Dividends Per Share	(14) Earnings and Dividends Per Share A reconciliation between basic and diluted income per share for the periods indicated was as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands, (in thousands, except share and per share amounts) except share and per share amounts) Net income (loss) $ (1,560 ) $ 13,410 $ 15,193 $ 16,888 Earnings per share Basic and diluted income (loss) per share $ (0.10 ) $ 0.97 $ 1.02 $ 1.27 Basic and diluted shares used in computing earnings per share 14,921,968 13,850,397 14,921,968 13,275,152 Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding plus dilutive instruments. Diluted EPS for the three months ended June 30, 2023 and 2022 was the same as basic EPS as there were no stock options or other dilutive instruments outstanding. Shareholders are entitled to receive such dividends as may be declared by our Board out of funds legally available for such purpose. However, no dividend may be declared or paid unless after-tax profit was made in the preceding fiscal year, we are in compliance with covenants in our secured loan agreements, we are current on all required debt payments, and we have received prior written concurrence from certain of our lenders.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and contingencies (Note 15)
Commitments and Contingencies	(15) Commitments and Contingencies Second Amended and Restated Operating Agreement See “Note (3)” to our consolidated financial statements for additional disclosures related to operation and management of all Blue Dolphin assets by an Affiliate under the Second Amended and Restated Operating Agreement. BSEE Offshore Pipelines and Platform Decommissioning BDPL has pipelines and platform assets that are subject to BSEE’s idle iron regulations. Idle iron regulations mandate lessees and rights-of-way holders to permanently abandon and/or remove platforms and other structures when they are no longer useful for operations. Until such structures are abandoned or removed, lessees and rights-of-way holders are required to inspect and maintain the assets in accordance with regulatory requirements. In December 2018, BSEE issued an INC to BDPL for failing to flush and fill Pipeline Segment No. 13101. Management met with BSEE in August 2019 to address BDPL’s plans with respect to decommissioning its offshore pipelines and platform assets. BSEE proposed that BDPL re-submit pipeline and platform decommissioning permit applications, including a safe boarding plan, by February 2020. BDPL submitted permit applications to BSEE in February 2020 and the USACOE in March 2020. In April 2020, BSEE issued a second INC to BDPL for failing to perform the required structural surveys for the GA-288C Platform. BDPL completed the required platform surveys in June 2020. In August 2022, BSEE issued a third INC to BDPL for failing to complete decommissioning its main offshore pipeline and anchor platform. In addition, pursuant to a September 2022 letter, BSEE ordered BDPL to complete pipeline decommissioning and removal of the anchor platform by June 1, 2023. In March 2023, BSEE issued a fourth INC to BDPL for failing to perform the required structural surveys for the GA-288C platform for 2021 and 2022, and for failing to provide BSEE with such survey results. In April 2023, BSEE granted BDPL an extension until May 30, 2023 for completing the required surveys. Although BDPL requested a second extension to complete the platform inspections, BDPL’s request was denied by BSEE. Although Blue Dolphin did not meet BSEE’s decommissioning deadline, management obtained a decommissioning bid and engaged a consultant to oversee the project and obtain additional bids. Our ARO estimate could change materially based on updated bids. During the COVID-19 pandemic, completion of the work was cost prohibitive due to financial constraints. As an alternative, management began exploring alternatives to reactivate the assets, including potentially using the assets for offshore liquified natural gas (LNG) transfer or wind and water power generation. In late July 2023, BSEE requested that management provide the agency with a written update on BDPL’s path forward to meet decommissioning requirements. Management is working with the consultant to develop and submit a plan in the third quarter of 2023 for completing the platform inspections, decommissioning the pipelines, and removing the platform. Due to BDPL’s failure to complete decommissioning of the offshore pipeline and platform assets and remedy associated INCs within the timeframe mandated by BSEE, BDPL could be subject to regulatory oversight and enforcement, including but not limited to failing to correct an INC, civil penalties, and revocation of BDPL’s operator designation, which could have a material adverse effect on our earnings, cash flows, and liquidity. We cannot currently estimate when decommissioning may occur or predict the outcome of the BSEE INCs. Accordingly, we did not record a liability related to potential penalties on our consolidated balance sheets as of June 30, 2023 and December 31, 2022. At both June 30, 2023 and December 31, 2022, BDPL maintained $3.7 million in AROs related to abandonment of these assets, which amount does not include potential penalties. Defaults Under Secured Loan Agreements with Third Parties and Related Parties See “Notes (1), (3), and (10)” 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. Failing to obtain and comply with these permits or environmental, health, or safety laws could result in fines, penalties or other sanctions, or a revocation of our permits. Legal Matters In the ordinary course of business, we are involved in legal matters incidental to the routine operation of our business, such as mechanic’s liens and contract-related disputes. We may also become party to lawsuits, administrative proceedings, and governmental investigations, including environmental, regulatory, and other matters. Large, and sometimes unspecified, damages or penalties may be sought from us in some matters and certain matters may require years to resolve. Although we cannot provide assurance, we believe that an adverse resolution of the matters described below would not have a material impact on our liquidity, consolidated financial position, or consolidated results of operations. Unresolved Matters. Pilot Dispute Related to Terminal Services Agreement On October 28, 2022, Pilot commenced an action and application for a temporary restraining order against NPS in Harris County District Court (the “Texas Action”). After a hearing on the application on October 28, 2022, Pilot’s application for the temporary restraining order was denied the same day. On December 2, 2022, NPS filed its answer in the Texas Action. On December 6, 2022, NPS provided notice under Section 7.206(a) of the Texas Business and Commerce Code of its intent to sell the remaining inventory of Pilot’s jet fuel at the Nixon facility by January 7, 2023. After a series of negotiations, NPS agreed to forbear from exercising its remedies under the Texas Business and Commerce Code while the parties explored a potential compromise of the dispute pursuant to the Pilot Forbearance and Accommodation Agreement, with a forbearance period terminating on February 28, 2023. As part of the Pilot Forbearance and Accommodation Agreement, Pilot paid NPS approximately $1.5 million in January 2023. On March 31, 2023, NPS and Pilot executed the Pilot Forbearance Amendment, extending the forbearance period and all deadlines in the unresolved Texas Action to June 15, 2023. As part of the Pilot Forbearance Amendment, Pilot paid NPS approximately $1.1 million and $0.2 million in April and June 2023, respectively. The parties also negotiated the sale of all 185,000 bbls of stored jet fuel in April 2023. On June 16, 2023, following expiration of the Pilot Forbearance and Accommodation Agreement, the parties agreed to extend the deadline for responses to outstanding discovery requests in the Texas Action to August 31, 2023. As of the filing date of this report, no settlement was reached between the parties. BOEM Additional Financial Assurance (Supplemental Pipeline Bonds) BDPL historically maintained $0.9 million in financial assurance to BOEM for the decommissioning of its trunk pipeline offshore in federal waters. Following an agency restructuring of the financial assurance program, in March 2018 BOEM ordered BDPL to provide additional financial assurance totaling approximately $4.8 million for five (5) existing pipeline rights-of-way. In June 2018, BOEM issued BDPL INCs for each right-of-way that failed to comply. BDPL appealed the INCs to the IBLA. Although the IBLA granted multiple extension requests, the Office of the Solicitor of the U.S. Department of the Interior indicated that BOEM would not consent to further extensions. The solicitor’s office signaled that BDPL’s adherence to milestones identified in an August 2019 meeting between management and BSEE may help in future discussions with BOEM related to the INCs. Decommissioning of these assets will significantly reduce or eliminate the amount of financial assurance required by BOEM, which may serve to partially or fully resolve the INCs. BDPL’s pending appeal of the BOEM INCs does not relieve BDPL of its obligations to provide additional financial assurance or of BOEM’s authority to impose financial penalties. There can be no assurance that we will be able to meet additional financial assurance (supplemental pipeline bond) requirements. If BDPL is required by BOEM to provide significant additional financial assurance (supplemental pipeline bonds) or is assessed significant penalties under the INCs, we will experience a significant and material adverse effect on our operations, liquidity, and financial condition. We are currently unable to predict the outcome of the BOEM INCs. Accordingly, we did not record a liability on our consolidated balance sheets as of June 30, 2023 and December 31, 2022. At both June 30, 2023 and December 31, 2022, BDPL maintained approximately $0.9 million in pipeline rights-of-way surety bonds issued to BOEM through RLI Corp. However, as noted below, we may need to secure a new bonding relationship. Of the pipeline rights-of-way bonds, $0.7 million was credit-backed and $0.2 million was cash-backed.” RLI Surety Bonds OSHA Settlement Agreement TCEQ Proposed Agreed Order Pilot Dispute Related to Set-Off Payments Defaults under Secured Loan Agreements Counterparty Contract-Related Dispute

Principles of Consolidation a_2

Principles of Consolidation and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Principles of Consolidation and Significant Accounting Policies
Basis of Presentation	The accompanying unaudited consolidated financial statements, which include Blue Dolphin and its subsidiaries, have been prepared in accordance with GAAP for interim consolidated financial information pursuant to the rules and regulations of the SEC under Article 10 of Regulation S-X and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in our audited financial statements have been condensed or omitted pursuant to the SEC’s rules and regulations. Significant intercompany transactions have been eliminated in the consolidation. In management’s opinion, all adjustments considered necessary for a fair presentation have been included, disclosures are adequate, and the presented information is not misleading. The consolidated balance sheet as of December 31, 2022 was derived from the audited financial statements at that date. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 as filed with the SEC. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023, or for any other period.
Significant Accounting Policies	A summary of significant Blue Dolphin accounting policies is presented to assist in understanding our consolidated financial statements. Our consolidated financial statements and accompanying notes are representations of management, who is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of our consolidated financial statements.
Use of Estimates	Use of Estimates . We assessed certain accounting matters that require consideration of forecasted financial information in context with information reasonably available to us as of June 30, 2023 and through the filing date of this report. The accounting matters assessed included, but not limited to, our allowance for doubtful accounts, inventory valuation, and the carrying value of long-lived assets.
Cash, Cash Equivalents, and Restricted Cash	Cash, Cash Equivalents, and Restricted Cash . The following table provides a reconciliation of cash, cash equivalents, and restricted cash as reported in the consolidated statements of cash flows: June 30, December 31, 2023 2022 (in thousands) Cash and cash equivalents $ 562 $ 520 Restricted cash, noncurrent 1,000 1,001 $ 1,562 $ 1,521
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts
Financial Instruments	Financial Instruments
Inventory	Inventory
Property and Equipment	Property and Equipment Refinery and Facilities Pipelines and Facilities Because our pipelines and facilities assets have been inactive for an extended period of time, BOEM required that they be decommissioned prior to June 1, 2023. Although Blue Dolphin did not meet BSEE’s deadline, management obtained a decommissioning bid and engaged a consultant to oversee the project and obtain additional bids. Our ARO estimate could change materially based on updated bids. During the COVID-19 pandemic, completion of the work was cost prohibitive due to financial constraints. As an alternative, management began exploring alternatives to reactivate the assets, including potentially using the assets for offshore liquified natural gas (LNG) transfer or wind and water power generation. In late July 2023, BSEE requested that management provide the agency with a written update on BDPL’s path forward to meet decommissioning requirements. Management is working with the consultant to develop and submit a plan in the third quarter of 2023. Due to BDPL’s failure to complete decommissioning of the offshore pipeline and platform assets and remedy associated INCs within the timeframe mandated by BSEE, BDPL could be subject to regulatory oversight and enforcement, including but not limited to failing to correct an INC, civil penalties, and revocation of BDPL’s operator designation, which could have a material adverse effect on our earnings, cash flows, and liquidity. CIP
Leases	Leases For operating leases, we record lease cost on a straight-line basis over the lease term; we record lease expenses in the appropriate line on the income statement based on the leased asset’s intended use. For finance 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 storage tank 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 storage tank agreement does not include ancillary services fees. We consider ancillary services as a separate performance obligation under the storage tank agreement. We satisfy the performance obligation and recognize the associated fee when we complete the requested service.
Deferred Revenue	Deferred Revenue
Unearned Contract Renewal Income	Unearned Contract Renewal Income.
Income Taxes	Income Taxes Income taxes are calculated utilizing the applicable rates on items included in the determination of income for income tax purposes. Our effective tax rate may be different than what would be expected if the federal and state statutory rates were applied to income from continuing operations primarily because of amounts expensed for financial reporting that are not deductible for tax purposes. The benefit of an uncertain tax position is recognized in the financial statements if it meets a minimum recognition threshold. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more-likely-than-not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement. At June 30, 2023 and December 31, 2022, we had no uncertain tax positions for which a reserve or liability was necessary.
Deferred Taxes	Deferred Taxes
Impairment or Disposal of Long-Lived Assets	Impairment or Disposal of Long-Lived Assets Management evaluated refinery and facilities assets for impairment in light of shifts in the capital, credit, and commodity markets, financial institution health, the Russian military conflict with Ukraine and associated sanctions on Russian crude products, the recession, and inflation. As of June 30, 2023 and December 31, 2022, we did not record any impairment of our long-lived assets. However, impairment may be required in the future if external events or circumstances change or if internal conditions shift materially.
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 .

Principles of Consolidation a_3

Principles of Consolidation and Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2023
Principles of Consolidation and Significant Accounting Policies
Schedule of reconciliation of cash, cash equivalents, and restricted cash	June 30, December 31, 2023 2022 (in thousands) Cash and cash equivalents $ 562 $ 520 Restricted cash, noncurrent 1,000 1,001 $ 1,562 $ 1,521

RelatedParty Transactions (Tabl

RelatedParty Transactions (Tables)	6 Months Ended
	Jun. 30, 2023
RelatedParty Transactions
Long-term debt, related party, current portion (in default) and accrued interest payable, related party.	June 30, December 31, 2023 2022 (in thousands) LEH June LEH Note $ - $ 1,211 BDPL-LEH Loan Agreement (in forbearance) 8,308 8,094 LEH Total 8,308 9,305 Less: Long-term debt, related party, current portion - (5,211 ) Less: Accrued interest payable, related party - (4,094 ) $ 8,308 $ -
Schedule of revenue from operations	Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands, except percent amounts) (in thousands, except percent amounts) Refinery operations LEH $ 25,419 36.9 % $ 51,337 37.7 % $ 60,764 32.7 % $ 85,855 34.8 % Third-Parties 41,848 60.7 % 83,871 61.6 % 121,143 65.3 % 159,110 64.5 % Tolling and terminaling LEH 540 0.8 % - - 1,080 0.6 % - - Third-Parties 1,071 1.6 % 914 0.7 % 2,552 1.4 % 1,840 0.7 % $ 68,878 100.0 % $ 136,122 100.0 % $ 185,539 100.0 % $ 246,805 100.0 %
Interest Expenses	Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Jonathan Carroll Guaranty Fee Agreements First Term Loan Due 2034 (in forbearance) $ 101 $ 108 $ 203 $ 216 Second Term Loan Due 2034 (in forbearance) 42 45 84 90 Blue Dolphin Term Loan Due 2051 10 - 20 - NPS Term Loan Due 2031 (in default) 50 - 100 - LEH BDPL-LEH Loan Agreement (in forbearance) 164 160 324 320 June LEH Note - 124 - 385 $ 367 $ 437 $ 731 $ 1,011

Revenue and Segment Informati_2

Revenue and Segment Information (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue and Segment Information
Schedule of contract balances	June 30, December 31, 2023 2022 Accounts receivable (including related-party), beginning of period $ 1,148 $ 126 Accounts receivable (including related-party), end of period 1,434 1,148 Unearned revenue, beginning of period $ 3,888 $ 4,388 Unearned revenue, end of period 3,643 3,888
Schedule of business segment Infirmation	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Refinery operations $ 67,267 $ 135,208 $ 181,907 $ 244,965 Tolling and terminaling 1,611 914 3,632 1,840 Total revenue from operations 68,878 136,122 185,539 246,805 Intercompany processing fees (1) Refinery operations (595 ) (675 ) (1,171 ) (1,328 ) Tolling and terminaling 595 675 1,171 1,328 Total intercompany processing fees - - - - Costs of good sold (2) Refinery operations (66,532 ) (118,736 ) (162,332 ) (222,194 ) Tolling and terminaling (456 ) (573 ) (813 ) (1,192 ) Total costs of goods sold (66,988 ) (119,309 ) (163,145 ) (223,386 ) Gross profit Refinery operations 140 15,797 18,404 21,443 Tolling and terminaling 1,750 1,016 3,990 1,976 Total gross profit 1,890 16,813 22,394 23,419 Other operating and general and administrative expenses (3) Refinery operations (410 ) (370 ) (979 ) (663 ) Tolling and terminaling (156 ) (53 ) (626 ) (123 ) Corporate and other (541 ) (498 ) (979 ) (929 ) Total other operating and general and administrative expenses (1,107 ) (921 ) (2,584 ) (1,715 ) Depreciation and amortization Refinery operations (304 ) (306 ) (608 ) (613 ) Tolling and terminaling (342 ) (342 ) (684 ) (684 ) Corporate and other (51 ) (51 ) (103 ) (103 ) Total depreciation and amortization (697 ) (699 ) (1,395 ) (1,400 ) Interest and other non-operating expenses, net Refinery operations (932 ) (703 ) (1,609 ) (1,420 ) Tolling and terminaling (490 ) (409 ) (960 ) (827 ) Corporate and other (197 ) (556 ) (380 ) (1,013 ) Total interest and other non-operating expenses, net (1,619 ) (1,668 ) (2,949 ) (3,260 ) Income (loss) before income taxes Refinery operations (1,506 ) 14,418 15,208 18,747 Tolling and terminaling 762 212 1,720 342 Corporate and other (789 ) (1,105 ) (1,462 ) (2,045 ) Total income (loss) before income taxes (1,533 ) 13,525 15,466 17,044 Income tax expense (27 ) (115 ) (273 ) (156 ) Net income (loss) $ (1,560 ) $ 13,410 $ 15,193 $ 16,888
Total capital expenditure	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Capital expenditures Refinery operations $ 102 $ 46 $ 102 $ 46 Tolling and terminaling - - - - Corporate and other - - - - Total capital expenditures $ 102 $ 46 $ 102 $ 46
Identifiable assets	June 30, December 31, 2023 2022 (in thousands) Identifiable assets Refinery operations $ 77,729 $ 64,359 Tolling and terminaling 17,020 17,836 Corporate and other 1,271 1,709 Total identifiable assets $ 96,020 $ 83,904

Concentration of Risk (Tables)

Concentration of Risk (Tables)	6 Months Ended
	Jun. 30, 2023
Concentration of Risk
Schedule of significant customers	Three Months Ended Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable at June 30, June 30, 2023 3 83.7 % $ 1.5 million June 30, 2022 2 63.9 % $ 0 Six Months Ended Number Significant Customers % Total Revenue from Operations Portion of Accounts Receivable at June 30, June 30, 2023 3 72.7 % $ 1.5 million June 30, 2022 2 59.1 % $ 0
Schedule of percentages of all refined petroleum products sales to total sales	Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (in thousands, except percent amounts) (in thousands, except percent amounts) LPG mix $ 57 0.1 % $ - 0.0 % $ 112 0.1 % $ - 0.0 % Naphtha 9,174 13.6 % 27,382 22.3 % 29,903 16.4 % 55,136 23.2 % Jet fuel 25,419 37.8 % 51,337 30.6 % 60,764 33.4 % 85,855 29.2 % HOBM 10,197 15.2 % 20,827 23.4 % 43,685 24.0 % 43,902 24.9 % AGO 22,420 33.3 % 35,662 23.7 % 47,443 26.1 % 60,072 22.7 % $ 67,267 100.0 % $ 135,208 100.0 % $ 181,907 100.0 % $ 244,965 100.0 %

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Prepaid Expenses and Other Current Assets
Schedule of Prepaid Expenses & other current assets	June 30, December 31, 2023 2022 (in thousands) Prepaid crude oil and condensate $ 2,577 $ 2,183 Prepaid insurance 2,211 1,066 Other prepaids 126 163 Prepaid easement renewal fees 43 54 $ 4,957 $ 3,466

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory
Schedule of inventory	June 30, December 31, 2023 2022 (in thousands) Naphtha $ 10,418 $ 1,056 HOBM 10,059 14,879 Jet 9,139 - Crude oil and condensate 955 3,458 AGO 315 301 Chemicals 176 116 Propane 25 27 LPG mix 3 7 $ 31,090 $ 19,844

Property Plant and Equipment Ne

Property Plant and Equipment Net (Tables)	6 Months Ended
	Jun. 30, 2023
PropertyPlant and EquipmentNet
Schedule of property, plant and equipment	June 30, December 31, 2023 2022 (in thousands) Refinery and facilities $ 72,675 $ 72,675 Land 566 566 Other property and equipment 913 913 74,154 74,154 Less: Accumulated depreciation and amortiation (21,679 ) (20,387 ) 52,475 53,767 CIP 3,771 3,669 $ 56,246 $ 57,436

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Accrued Expenses and Other Current Liabilities
Schedule of accrued expenses and other current liabilities	June 30, December 31, 2023 2022 (in thousands) Unearned revenue from contracts with customers $ 3,643 $ 3,888 Insurance 1,346 568 Unearned contract renewal income 480 480 Accrued fines and penalties 407 407 Taxes payable 214 64 Customer deposits 163 173 Other payable 160 324 Board of director fees payable 125 210 $ 6,538 $ 6,114

ThirdParty LongTerm Debt (Table

ThirdParty LongTerm Debt (Tables)	6 Months Ended
	Jun. 30, 2023
ThirdParty LongTerm Debt
Schedule of long term debt	June 30, December 31, 2023 2022 (in thousands) Veritex Loans LE Term Loan Due 2034 (in forbearance) $ 20,268 $ 20,801 LRM Term Loan Due 2034 (in forbearance) 8,460 8,671 Kissick Debt (in forbearance) 9,874 11,006 GNCU Loan NPS Term Loan Due 2031 ( in default 9,975 9,975 SBA EIDLs BDEC Term Loan Due 2051 2,118 2,082 LE Term Loan Due 2050 161 162 NPS Term Loan Due 2050 161 162 Equipment Loan Due 2025 33 38 51,050 52,897 Less: Current portion of long-term debt, net (37,182 ) (42,155 ) Less: Unamortized debt issue costs (2,047 ) (2,149 ) Less: Accrued interest payable (5,169 ) (6,271 ) $ 6,652 $ 2,322
Schedule of unamortized debt issue cost	June 30, December 31, 2023 2022 (in thousands) Veritex Loans LE Term Loan Due 2034 (in forbearance) $ 1,674 $ 1,674 LRM Term Loan Due 2034 (in forbearance) 768 768 GNCU Loan NPS Term Loan Due 2031 ( in default 730 730 Less: Accumulated amortization (1,125 ) (1,023 ) $ 2,047 $ 2,149
Schedule of accrued interest related to third party long-term debt, net	June 30, December 31, 2023 2022 (in thousands) Kissick Debt (in forbearance) $ 4,896 $ 6,028 Veritex Loans LE Term Loan Due 2034 (in forbearance) 49 53 LRM Term Loan Due 2034 (in forbearance) 67 66 GNCU Loan NPS Term Loan Due 2031 (in default) 17 17 SBA EIDLs BDEC Term Loan Due 2051 118 82 LE Term Loan Due 2050 11 12 NPS Term Loan Due 2053 11 12 Equipment Loan Due 2025 - 1 5,169 6,271 Less: Accrued interest payable (5,169 ) (6,271 ) Long-term Interest Payable, Net of Current Portion $ - $ -

AROs (Tables)

AROs (Tables)	6 Months Ended
	Jun. 30, 2023
AROs
Schedule of asset retirement obligations	June 30, December 31, 2023 2022 (in thousands) AROs, at the beginning of the period $ 3,710 $ 3,461 Changes in estimates of existing obligations - 114 Accretion expense 59 135 - - Less: AROs, current portion (3,769 ) (3,710 ) Long-term AROs, at the end of the period $ - $ -

Lease Obligations (Tables)

Lease Obligations (Tables)	6 Months Ended
	Jun. 30, 2023
Lease Obligations
Schedule of lease-related assets and liabilities	June 30, December 31, Balance Sheet Location 2023 2022 (in thousands) Assets Operating lease ROU assets Operating lease ROU assets $ 1,003 $ 787 Less: Accumulated amortization on operating lease assets Operating lease ROU assets (736 ) (638 ) Total lease assets 267 149 Liabilities Current Operating lease Current portion of lease liabilities 218 156 Noncurrent Operating lease Long-term lease liabilities, net of current 38 - Total lease liabilities $ 256 $ 156
Schdule of lease cost	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Operating lease costs $ 51 $ 51 $ 103 $ 103 Short-term lease expense, related party 300 - 400 - Total lease cost $ 351 $ 51 $ 503 $ 103
Schedule of lease costs incurred for operating and finance leases	Weighted average remaining lease term in years Operating lease (1) 1.17 Weighted average discount rate Operating lease 8.25 %
Schedule of supplemental cash flow information related to leases	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 59 $ 49 $ 116 $ 101
Schedule of maturities of lease liabilities	June 30, Operating Lease (in thousands) 2024 $ 218 2025 38 $ 256
Schedule of future minimum annual lease commitments	Operating June 30, Lease (in thousands) 2024 $ 117 2025 154 $ 271

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2023
Income Taxes
Schedule of provision for income tax expense benefit	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Current Federal $ (5 ) $ - $ (120 ) $ - State (22 ) (115 ) (153 ) (156 ) Deferred Federal 331 (2,809 ) (3,096 ) (3,895 ) Change in valuation allowance (331 ) 2,809 3,096 3,895 Total provision for income taxes $ (27 ) $ (115 ) $ (273 ) $ (156 )
Schedule of deferred tax assets and deferred tax liabilities	June 30, December 31, 2023 2022 (in thousands) Deferred tax assets: NOL and capital loss carryforwards $ 8,571 $ 11,088 Business interest expense 3,023 3,524 Start-up costs (crude oil and condensate processing facility) 297 339 ARO liability/deferred revenue 791 779 Other 70 43 Total deferred tax assets 12,752 15,773 Deferred tax liabilities: Basis differences in property and equipment (8,291 ) (8,216 ) Total deferred tax liabilities (8,291 ) (8,216 ) 4,461 7,557 Valuation allowance (4,461 ) (7,557 ) 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, 2021 $ 7,897 $ 65,511 $ 73,408 Net operating losses used and expired (6,127 ) (22,384 ) (28,511 ) Balance at December 31, 2022 $ 1,770 $ 43,127 $ 44,897 Net operating losses used and expired (638 ) (10,583 ) (11,221 ) Balance at June 30, 2023 $ 1,132 $ 32,544 $ 33,676

Earnings and Dividends Per Sh_2

Earnings and Dividends Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Income (loss) per common share:
Schedule of earnings per share	Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands, (in thousands, except share and per share amounts) except share and per share amounts) Net income (loss) $ (1,560 ) $ 13,410 $ 15,193 $ 16,888 Earnings per share Basic and diluted income (loss) per share $ (0.10 ) $ 0.97 $ 1.02 $ 1.27 Basic and diluted shares used in computing earnings per share 14,921,968 13,850,397 14,921,968 13,275,152

Organization (Details Narrative

Organization (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	May 31, 2023	Apr. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Substantial Current Debt			$ 37,200,000		$ 37,200,000		$ 47,400,000
Net income				$ 13,400,000	1,520,000	$ 16,900,000
Net loss			1,600,000
Working capital deficit			(16,500,000)		(16,500,000)		(45,200,000)
Improved working capital deficit			28,700,000		28,700,000
Working capital deficit, excluding the current portion of long-term debt			(20,700,000)		(20,700,000)		$ (2,100,000)
Improved Working capital deficit, excluding the current portion of long-term debt			18,600,000		18,600,000
Additional working capital through CARES Act loans			1,500,000		$ 1,500,000
Ownership percentage					15%
Interest incurred					$ 4,300,000
Veritex Loans
Payment reserve account			1,000,000		1,000,000
Attorney fees					400
Payment for late fees					400,000
Kissick Forbearance Agreement [Member]
Monthly payments		$ 500,000
Final payment					400,000
Payment made by affiliate			$ 1,500,000		2,000,000
LEH Forbearance Agreement [Member]
Monthly payments	$ 50,000
Payment made by affiliate	$ 50,000
Principal and interest monthly payments					$ 400,000
Affiliates [Member]
Ownership percentage					83%

Principles of Consolidation a_4

Principles of Consolidation and Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Principles of Consolidation and Significant Accounting Policies
Cash and cash equivalents	$ 562	$ 520
Restricted cash, noncurrent	1,000	1,001
Total	$ 1,562	$ 1,521

Principles of Consolidation a_5

Principles of Consolidation and Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Allowance for doubtful accounts	$ 0	$ 60
Impairment loss		$ 100	$ 1,100
Uncertain tax position , description	benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement
Refinery and Facilities
Estimated useful life	25 years
Minimum [Member]
Estimated useful life	10 years
Maximum [Member]
Estimated useful life	22 years

RelatedParty Transactions (Deta

RelatedParty Transactions (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Long-term debt - net of current portion, related party	$ 8,308	$ 0
Less: Long-term debt, related party, current portion	0	(5,211)
Less: Accrued interest payable, related party	0	4,094
LEH
Prepaid operating expenses, related party	8,308	9,305
June LEH Note (in default) | LEH
Prepaid operating expenses, related party	0	1,211
BDPL-LEH Loan Agreement (in forbearance) | LEH
Prepaid operating expenses, related party	$ 8,308	$ 8,094

RelatedParty Transactions (De_2

RelatedParty Transactions (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total revenues	$ 68,878,000	$ 136,122,000	$ 185,539,000	$ 246,805,000
Total revenues, percent	100%	100%	100%	100%
LEH
Refinery operations revenues	$ 25,419,000	$ 51,337,000	$ 60,764,000	$ 85,855,000
Refinery operations revenues, percent	36.90%	37.70%	32.70%	34.80%
LEH | Tolling And Terminating
Tolling and terminaling revenues	$ 540,000	$ 0	$ 1,080,000	$ 0
Tolling and terminaling revenues, percent	0.80%	0%	0.60%	0%
Third Parties
Refinery operations revenues	$ 41,848,000	$ 83,871,000	$ 121,143,000	$ 159,110,000
Refinery operations revenues, percent	60.70%	61.60%	65.30%	64.50%
Third Parties | Tolling And Terminating
Tolling and terminaling revenues	$ 1,071,000	$ 914,000	$ 2,552,000	$ 1,840,000
Tolling and terminaling revenues, percent	100%	0.70%	1.40%	0.70%

RelatedParty Transactions (De_3

RelatedParty Transactions (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest expenses under loan and guarantee, related party	$ 367	$ 437	$ 731	$ 1,011
June LEH Note (in default) | LEH
Interest expenses under loan and guarantee, related party	0	124	0	385
BDPL-LEH Loan Agreement (in forbearance) | LEH
Interest expenses under loan and guarantee, related party	164	160	324	320
First Term Loan Due 2034 | Jonathan Carroll
Interest expenses under loan and guarantee, related party	101	108	203	216
Second Term Loan Due 2034 | Jonathan Carroll
Interest expenses under loan and guarantee, related party	42	45	84	90
NPS Term Loan Due 2031 | Jonathan Carroll
Interest expenses under loan and guarantee, related party	50	0	100	0
Blue Dolphin Term Loan Due 2051 | Jonathan Carroll
Interest expenses under loan and guarantee, related party	$ 10	$ 0	$ 20	$ 0

RelatedParty Transactions (De_4

RelatedParty Transactions (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2023	May 31, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
BDPL Forbearance Agreement, Description	Pursuant to the LEH Forbearance Agreement, LEH agreed to forbear from exercising any of its rights and remedies related to existing defaults pertaining to payment violations under the BDPL-LEH Loan Agreement. Under the terms of the LEH Forbearance Agreement, BDPL agreed to make interest-only monthly payments approximating $0.05 million beginning in May 2023, continuing on the fifteenth of each month through April 2025. Beginning in May 2025, BDPL agreed to make principal and interest monthly payments approximating $0.4 million through April 2027. Interest shall be incurred throughout the agreement term, including the interest-only payment period. As part of the BDPL Loan Agreement, BDPL paid LEH $0.05 million in each of May, June, and July 2023. As of the filing date of this report, the BDPL-LEH Loan Agreement was in forbearance related to past defaults
LEH operating fee			$ 100,000	$ 200,000	$ 500,000	$ 300,000
Lease expense			300,000		600,000
Sublease income			10,000	10,000		20,000
Accounts receivable, related party	$ 1,500,000		1,500,000		1,500,000		$ 0
Accounts payable, related party	$ 600,000		600,000		600,000		$ 200,000
LEH Forbearance Agreement [Member]
Monthly payments		$ 50,000
Principal and interest monthly payments					400,000
Payment made by affiliate		$ 50,000
June LEH Note (in default) | LEH
Sublease income			$ 10,000	$ 10,000	$ 20,000	$ 200,000

Revenue and Segment Informati_3

Revenue and Segment Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Revenue and Segment Information
Accounts receivable (including related-party), beginning of period	$ 1,148	$ 126
Accounts receivable (including related-party), end of period	1,434	1,148
Unearned revenue, beginning of period	3,888	4,388
Unearned revenue, end of period	$ 3,643	$ 3,888

Revenue and Segment Informati_4

Revenue and Segment Information (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Total revenue from operations	$ 68,878,000	$ 136,122,000	$ 185,539,000	$ 246,805,000
Intercompany processing fees	0	0	0	0
Total costs of goods sold	(66,988,000)	(119,309,000)	(163,145,000)	(223,386,000)
Total gross profit	1,890,000	16,813,000	22,394,000	23,419,000
Total other operating and general and administrative expenses	(1,107,000)	(921,000)	(2,584,000)	(1,715,000)
Total depreciation and amortization	(697,000)	(699,000)	(1,395,000)	(1,400,000)
Total interest and other non-operating expenses, net	(1,619,000)	(1,668,000)	(2,949,000)	(3,260,000)
Income (loss) before income taxes	1,533,000	13,525,000	(15,466,000)	17,044,000
Income tax expense	27,000	115,000	273,000	156,000
Total capital expenditures	102,000	46,000	102,000	46,000
Net income	(1,560,000)	13,410,000	15,193,000	16,888,000
Total identifiable assets	96,020,000		96,020,000		$ 83,904,000
Income (loss) before income taxes	1,533,000	(13,525,000)	(15,466,000)	(17,044,000)
Refinery Operations
Total revenue from operations	0	135,208,000	0	244,965,000
Intercompany processing fees	(595,000)	(675,000)	(1,171,000)	(1,328,000)
Total costs of goods sold	(66,532,000)	(118,736,000)	(162,332,000)	(222,194,000)
Total gross profit	140,000	15,797,000	18,404,000	21,443,000
Total other operating and general and administrative expenses	(410,000)	(370,000)	(979,000)	(663,000)
Total depreciation and amortization	(304,000)	(306,000)	(608,000)	(613,000)
Total capital expenditures	102,000	46,000	102,000	46,000
Total identifiable assets	77,729,000		77,729,000		64,359,000
Income (loss) before income taxes	1,506,000	14,418,000	15,208,000	18,747,000
Total interest and other non-operating expenses, net	(932,000)	(703,000)	(1,609,000)	(1,420,000)
Tolling and Terminaling
Total revenue from operations	1,611,000	914,000	3,632,000	1,840,000
Intercompany processing fees	595,000	675,000	1,171,000	1,328,000
Total costs of goods sold	(456,000)	(573,000)	(813,000)	(1,192,000)
Total gross profit	1,750,000	1,016,000	3,990,000	1,976,000
Total other operating and general and administrative expenses	(156,000)	(53,000)	(626,000)	(123,000)
Total depreciation and amortization	(342,000)	(342,000)	(684,000)	(684,000)
Total capital expenditures	0	0	0	0
Total identifiable assets	17,020,000		17,020,000		17,836,000
Income (loss) before income taxes	762,000	212,000	1,720,000	342,000
Total interest and other non-operating expenses, net	(490,000)	(409,000)	(960,000)	(827,000)
Corporate and Other
Total other operating and general and administrative expenses	(541,000)	(498,000)	(979,000)	(929,000)
Total depreciation and amortization	(51,000)	(51,000)	(103,000)	(103,000)
Total capital expenditures	0	0	0	0
Total identifiable assets	1,271,000		1,271,000		$ 1,709,000
Income (loss) before income taxes	789,000	1,105,000	1,462,000	2,045,000
Total interest and other non-operating expenses, net	$ (197,000)	$ (556,000)	$ (380,000)	$ (1,013,000)

Concentration of Risk (Details)

Concentration of Risk (Details) - Customer Concentration Risk [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Number Significant Customers	3	2	3	2
Total Revenue from Operations	83.70%	63.90%	72.70%	59.10%
Portion of accounts receivable	$ 1.5		$ 1.5	$ 0

Concentration of Risk (Details

Concentration of Risk (Details 1) - Customer Concentration Risk [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total refined petroleum product sales	$ 67,267	$ 135,208	$ 181,907	$ 244,965
Concentration risk	100%	100%	100%	100%
AGO
Total refined petroleum product sales	$ 22,420	$ 35,662	$ 47,443	$ 60,072
Concentration risk	33.30%	23.70%	26.10%	22.70%
Jet Fuel
Total refined petroleum product sales	$ 25,419	$ 51,337	$ 60,764	$ 85,855
Concentration risk	37.80%	30.60%	33.40%	29.20%
HOBM
Total refined petroleum product sales	$ 10,197	$ 20,827	$ 43,685	$ 43,902
Concentration risk	15.20%	23.40%	24%	24.90%
LPG Mix
Total refined petroleum product sales	$ 57	$ 0	$ 112	$ 0
Concentration risk	0.10%	0%	0.10%	0%
Naphtha
Total refined petroleum product sales	$ 9,174	$ 27,382	$ 29,903	$ 55,136
Concentration risk	13.60%	22.30%	16.40%	23.20%

Concentration of Risk (Detail_2

Concentration of Risk (Details Narrative)	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) bbl	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) bbl	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Total revenue percentage	37.70%	37.70%	33.30%	34.80%
Balances in excess of FDIC insurance limit	$ 1,100,000		$ 1,100,000		$ 900,000
Cash FDIC insured amount	$ 250,000		$ 250,000
Crude oil, received | bbl	24,800		24,800
Accounts payable	$ 1,087,000		$ 1,087,000		$ 2,161,000
Crude Supply Agreement
Allowable contracted volume under the Crude Supply Percentage	4.10%	4.60%	8.10%	8.90%
Crude oil, received | bbl	15,400		15,400
Crude oil, percentage volume	62.40%		62.40%
Allowable contracted volume under the Crude Supply	$ 1,000,000	$ 1,100,000	$ 2,000,000	$ 2,200,000
Accounts payable	$ 0		$ 0

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Prepaid Expenses and Other Current Assets
Prepaid crude oil and condensate	$ 2,577	$ 2,183
Prepaid insurance	2,211	1,066
Other prepaids	126	163
Prepaid easement renewal fees	43	54
Prepaid expenses, net	$ 4,957	$ 3,466

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory	$ 31,090	$ 19,844
Crude Oil and Condensate
Inventory	955	3,458
AGO
Inventory	315	301
Chemicals
Inventory	176	116
Propane
Inventory	25	27
Jet
Inventory	9,139	0
HOBM
Inventory	10,059	14,879
Naphtha
Inventory	10,418	1,056
LPG Mix
Inventory	$ 3	$ 7

Property Plant and Equipment _2

Property Plant and Equipment Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Less: Accumulated depletion, depreciation, and amortization	$ (21,679)	$ (20,387)
Property, plant and equipment, net excluding CIP	52,475	53,767
CIP	3,771	3,669
Property, plant and equipment, net	56,246	57,436
Total	74,154	74,154
Refinery and Facilities
Total	72,675	72,675
Land
Total	566	566
Other Property and Equipment
Total	$ 913	$ 913

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accrued Expenses and Other Current Liabilities
Unearned revenue from contracts with customers	$ 3,643	$ 3,888
Insurance	1,346	568
Unearned contract renewal income	480	480
Accrued fines and penalties	407	407
Taxes payable	214	64
Customer deposits	163	173
Other payable	160	324
Board of director fees payable	125	210
Total	$ 6,538	$ 6,114

ThirdParty LongTerm Debt (Detai

ThirdParty LongTerm Debt (Details)	6 Months Ended
	Jun. 30, 2023 USD ($)
LE Term Loan Due 2034
Original principal amount	$ 25,000,000
Maturity date	Jun 2015 / Jun 2034
Monthly principal and interest payment	$ 200,000
Interest rate	WSJ Prime + 2.75
LRM Term Loan Due 2034
Original principal amount	$ 10,000,000
Maturity date	Dec 2015 / Dec 2034
Monthly principal and interest payment	$ 100,000
Interest rate	WSJ Prime + 2.75
Kissick Debt
Original principal amount	$ 1,170,000
Maturity date	Jun 2006 / Jan 2018
Interest rate	6.25%
Monthly principal and interest payment	$ 500,000
NPS Term Loan Due 2031
Original principal amount	$ 10,000,000
Maturity date	Oct 2021 / Oct 2031
Interest rate	5.75%
Monthly principal and interest payment	$ 100,000
BDEC Term Loan Due 2051
Original principal amount	$ 2,000,000
Maturity date	May 2021 / Jun 2051
Interest rate	3.75%
Monthly principal and interest payment	$ 10,000
LE Term Loan Due 2050
Original principal amount	$ 150,000
Maturity date	Aug 2020 / Aug 2050
Interest rate	3.75%
Monthly principal and interest payment	$ 700
NPS Term Loan Due 2050
Original principal amount	$ 1,500
Maturity date	Aug 2020 / Aug 2050
Interest rate	3.75%
Monthly principal and interest payment	$ 700
Equipment Loan Due 2025
Original principal amount	$ 70,000
Maturity date	Oct 2020 / Oct 2025
Interest rate	4.50%
Monthly principal and interest payment	$ 1,300

ThirdParty LongTerm Debt (Det_2

ThirdParty LongTerm Debt (Details 1) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Long-term debt, carrying amount	$ 51,050	$ 52,897
Less: current portion of long-term debt, net	(37,182)	(42,155)
Less: unamortized debt issue costs	(2,047)	(2,149)
Less: accrued interest payable (in default)	(5,169)	(6,271)
Long-term debt, noncurrent	6,652	2,322
LE Term Loan Due 2034
Long-term debt, carrying amount	20,268	20,801
Less: accrued interest payable (in default)	(49)	(53)
LRM Term Loan Due 2034
Long-term debt, carrying amount	8,460	8,671
Less: accrued interest payable (in default)	(67)	(66)
Kissick Debt
Long-term debt, carrying amount	9,874	11,006
NPS Term Loan Due 2031
Long-term debt, carrying amount	9,975	9,975
Less: accrued interest payable (in default)	(17)	(17)
BDEC Term Loan Due 2051
Long-term debt, carrying amount	2,118	2,082
Less: accrued interest payable (in default)	(118)	(82)
LE Term Loan Due 2050
Long-term debt, carrying amount	161	162
Less: accrued interest payable (in default)	(11)	(12)
NPS Term Loan Due 2050
Long-term debt, carrying amount	161	162
Less: accrued interest payable (in default)	(11)	(12)
Equipment Loan Due 2025
Long-term debt, carrying amount	33	38
Less: accrued interest payable (in default)	$ 0	$ (1)

ThirdParty LongTerm Debt (Det_3

ThirdParty LongTerm Debt (Details 2) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Less: accumulated amortization	$ (1,125,000)	$ (1,023,000)
Unamortized debt issue costs, net	2,047,000	2,149,000
LE Term Loan Due 2034
Unamortized debt issue costs, gross	1,674,000	1,674,000
LRM Term Loan Due 2034
Unamortized debt issue costs, gross	768,000	768,000
NPS Term Loan Due 2031
Unamortized debt issue costs, gross	$ 730,000	$ 730,000

ThirdParty LongTerm Debt (Det_4

ThirdParty LongTerm Debt (Details 3) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Less: accrued interest payable (in default)	$ (5,169)	$ (6,271)
Long-term interest payable, net of current portion	0	0
Accrued interest payable	5,169	6,271
LE Term Loan Due 2034
Accrued interest payable	49	53
LRM Term Loan Due 2034
Accrued interest payable	67	66
NPS Term Loan Due 2031
Accrued interest payable	17	17
BDEC Term Loan Due 2051
Accrued interest payable	118	82
LE Term Loan Due 2050
Accrued interest payable	11	12
NPS Term Loan Due 2050
Accrued interest payable	11	12
Equipment Loan Due 2025
Accrued interest payable	0	1
Notre Dame Debt
Accrued interest payable	$ 4,896	$ 6,028

ThirdParty LongTerm Debt (Det_5

ThirdParty LongTerm Debt (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2017
Amortization expense	$ 50,000	$ 50,000	$ 100,000	$ 100,000
Restricted cash, noncurrent	1,000,000		1,000,000		$ 1,001,000
Restricted cash, noncurrent	1,000,000		$ 1,000,000
Veritex
Description of payment agreement			(i) $4.3 million in past due principal and interest at the non-default rate (excluding late fees), (ii) $1.0 million into a payment reserve account, and (iii) $0.04 million in Veritex attorney fees. In the event that LE and LRM pay off all amounts due under the LE Term Loan Due 2034 and LRM Term Loan Due 2034 on or before September 30, 2023, Veritex also agreed to waive late fees totaling approximately $0.4 million in the aggregate
Restricted cash, noncurrent	1,000,000		$ 1,000,000		$ 1,000,000
Kissick
Restricted cash, current						$ 8,000,000
Amount paid into payment reserve account						$ 3,700,000
April 2023 Kissick Forbearance Agreement
Agrement description			monthly payments of $0.5 million beginning in April 2023, continuing on the first of each month through February 2025. LE agreed to make a final payment of $0.4 million to Kissick Noteholder on March 1, 2025. LE paid Kissick Noteholder $1.5 million and $2.0 million for the three and six months ended June 30, 2023, respectively. As of the filing date of this report, the Kissick Debt was in forbearance related to past defaults
Description of payment agreement			LE began making monthly payments of $0.5 million to Kissick Noteholder in April 2023; as modified, interest on outstanding principal and accrued and unpaid interest decreased from 16.00% to 6.25% per year
BDEC Term Loan Due 2051
Debt, increase (decrease), net			$ 1,500,000
Original principal amount, before modification	$ 500,000		$ 500,000

AROS (Details)

AROS (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
AROs
AROs, at the beginning of the period	$ 3,710	$ 3,461
Changes in estimates of existing obligations	0	114
Accretion expense	59	135
Liabilities settled	0	0
Less: AROs, current portion	(3,769)	(3,710)
Long-term AROs, at the end of the period	$ 0	$ 0

Lease Obligations (Details)

Lease Obligations (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Lease Obligations
Operating lease ROU assets	$ 1,003	$ 787
Less: accumulated amortization on operating lease assets	(736)	(638)
Total lease assets	267	149
Current portion of operating lease	218	156
Long-term portion of operating lease	38	0
Total lease liabilities	$ 256	$ 156
Weighted average remaining lease term in years - operating lease	1 year 2 months 1 day
Weighted average discount rate - operating lease	8.25%

Lease Obligations (Details 1)

Lease Obligations (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Lease Obligations
Operating lease costs	$ 51	$ 51	$ 103	$ 103
Short-term lease expense, related party	300	0	400	0
Total lease cost	$ 351	$ 51	$ 503	$ 103

Lease Obligations (Details 2)

Lease Obligations (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Lease Obligations
Operating cash flows for operating lease	$ 59	$ 49	$ 116	$ 101

Lease Obligations (Details 3)

Lease Obligations (Details 3) $ in Thousands	Jun. 30, 2023 USD ($)
Operating Lease [Member]
2024	$ 218
2025	38
Total minimum rental payments	256
Annual Lease [Member]
2024	117
2025	154
Total minimum rental payments	$ 271

Lease Obligations (Details Narr

Lease Obligations (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Lease Obligations
Sublease income	$ 10,000	$ 10,000		$ 20,000
Monthly base rental amount			$ 20,000
Office lease amended agreement			In May 2023, BDSC signed a 12-month extension to its existing operating lease. The extended term commences on September 1, 2023 and expires on August 31, 2024. Under the amended agreement, the annual rent was reduced from $31.00 per square foot to $30.00 per square foot, resulting in a monthly base rental amount of $0.02 million
Lease expense	$ 300,000		$ 400,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Taxes
Current federal	$ (5)	$ 0	$ (120)	$ 0
Current state	22	115	153	156
Deferred federal	331	(2,809)	(3,096)	(3,895)
Change in valuation allowance	(331)	2,809	3,096	3,895
Income tax expense	$ (27)	$ 115	$ 273	$ 156

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Deferred tax assets:
NOL and capital loss carryforwards	$ 8,571	$ 11,088
Business interest expense	3,023	3,524
Start-up costs (crude oil and condensate processing facility)	297	339
ARO liability/deferred revenue	791	779
Other	70	43
Total deferred tax assets	12,752	15,773
Deferred tax liabilities:
Basis differences in property and equipment	(8,291)	(8,216)
Total deferred tax liabilities	(8,291)	(8,216)
Deferred tax assets, gross	4,461	7,557
Valuation allowance	(4,461)	(7,557)
Deferred tax assets, net	$ 0	$ 0

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Beginning balance	$ 44,897	$ 73,408
Net operating losses used and expired	(11,221)	(28,511)
Ending balance	33,676	44,897
Pre-Ownership Change
Beginning balance	1,770	7,897
Net operating losses used and expired	(638)	(6,127)
Ending balance	1,132	1,770
Post-Ownership Change
Beginning balance	43,127	65,511
Net operating losses used and expired	(10,583)	(22,384)
Ending balance	$ 32,544	$ 43,127

Income Taxes (Details Narrative

Income Taxes (Details Narrative) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Income Taxes
Ownership percentage	15%
Description of Inflation Reduction Act ("IRA") law	The IRA imposes a 15% alternative minimum tax on corporations whose average annual adjusted financial statement income during the most recently completed three-year period exceeds $1.0 billion
NOL and capital loss carryforwards	$ 16.3
Annual use limitation	$ 0.6
Description of net loss carryforwards	NOL carryforwards generated after the 2012 ownership change but before 2018 are not subject to an annual use limitation; we can use these NOL carryforwards for 20 years in addition to NOL carryforward amounts generated before the ownership change. NOL carryforwards that were generated beginning in 2018 may only be used to offset 80% of taxable income and are carried forward indefinitely
NOL carryforwards, annual use limitation	$ 6.7

Earnings and Dividends Per Sh_3

Earnings and Dividends Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income (loss) per common share:
Net income	$ (1,560)	$ 13,410	$ 15,193	$ 16,888
Earnings per share
Basic and diluted income (loss) per share	$ (0.10)	$ 0.97	$ 1.02	$ 1.27
Basic and diluted shares used in computing earnings per share	14,921,968	13,850,397	14,921,968	13,275,152

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	1 Months Ended		6 Months Ended
	Jun. 30, 2023	Apr. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Mar. 31, 2018
NPS disputed payment			$ 1,500,000
NPS payment	$ 200,000	$ 1,100,000
Additional financial assurance provided by BDPL					$ 4,800,000
Cash-backed			200,000
Credit-backed			700,000
Administrative penalty			400,000
Accrued expenses and other current liabilities penalty	400,000		400,000
Accrued expenses and other current liabilities	400,000		400,000
BSEE INCs [Member]
Trunk pipeline, federal waters	3,700,000		3,700,000	$ 3,700,000
BOEM INCs [Member]
Trunk pipeline, federal waters	900,000		900,000
RLI Surety Bonds [Member]
Collateralized in cash	200,000		200,000
Letter of credit	1,000,000		$ 1,000,000
Bonds collateral requirement percentage rate			50%
Bonds aggregate value	$ 1,200,000		$ 1,200,000