9. Accounts Payable, Related Party	9 Months Ended
Sep. 30, 2014
Payables and Accruals [Abstract]
Accounts Payable, Related Party	LEH, our controlling shareholder, owns approximately 81% of our outstanding common stock, par value $0.01 per share (the “Common Stock”). Jonathan Carroll, Chairman of the Board of Directors (the “Board”), Chief Executive Officer, and President of Blue Dolphin, is the majority owner of LEH. LEH manages all of our subsidiaries and operates all of our assets, including the Nixon Facility, (the “Services”) pursuant to a Management Agreement dated February 15, 2012. On May 12, 2014, the Management Agreement was amended by: (i) extending the term to August 12, 2015, and (ii) changing the name of the agreement from “Management Agreement” to “Operating Agreement” (the “Operating Agreement”). With respect to the Nixon Facility, the Operating Agreement covers all refinery operating expenses with the exception of capital expenditures. Pursuant to the Operating Agreement for management and operation of the Nixon Facility, LEH receives as compensation: (i) weekly payments from GEL not to exceed $750,000 per month, (ii) reimbursement for certain accounting costs related to the preparation of financial statements of LE not to exceed $50,000 per month, (iii) $0.25 for each barrel processed at the Nixon Facility during the term of the Operating Agreement, up to a maximum quantity of 10,000 barrels per day determined on a monthly basis, and (iv) $2.50 for each barrel in excess of 10,000 barrels per day processed at the Nixon Facility during the term of the Operating Agreement, determined on a monthly basis. For all other assets, LEH is reimbursed at cost for all reasonable expenses incurred while performing the Services. All compensation owed to LEH under the Operating Agreement is to be paid to LEH within 30 days of the end of each calendar month. The Operating Agreement expires upon the earliest to occur of: (a) the date of the termination of the Joint Marketing Agreement pursuant to its terms, (b) August 12, 2015, or (c) upon written notice of either party to the Operating Agreement of a material breach of the Operating Agreement by the other party. Aggregate amounts expensed for Services at the Nixon Facility for the three months ended September 30, 2014 and 2013 were $2,496,514 (approximately $2.94 per barrel of throughput) and $2,629,518 (approximately $2.68 per barrel of throughput), respectively. Aggregate amounts expensed for Services at the Nixon Facility for the nine months ended September 30, 2014 and 2013 were $8,092,738 (approximately $2.78 per barrel of throughput) and $8,099,371 (approximately $2.73 per barrel of throughput). At September 30, 2014 and December 31, 2013, the amounts outstanding to LEH to fund our working capital requirements were $1,801,376 and $3,659,340, respectively, and are reflected in accounts payable, related party in our consolidated balance sheets.

9. Accounts Payable, Related Party

9 Months Ended

Sep. 30, 2014

LEH, our controlling shareholder, owns approximately 81% of our outstanding common stock, par value $0.01 per share (the “Common Stock”). Jonathan Carroll, Chairman of the Board of Directors (the “Board”), Chief Executive Officer, and President of Blue Dolphin, is the majority owner of LEH. LEH manages all of our subsidiaries and operates all of our assets, including the Nixon Facility, (the “Services”) pursuant to a Management Agreement dated February 15, 2012. On May 12, 2014, the Management Agreement was amended by: (i) extending the term to August 12, 2015, and (ii) changing the name of the agreement from “Management Agreement” to “Operating Agreement” (the “Operating Agreement”).

With respect to the Nixon Facility, the Operating Agreement covers all refinery operating expenses with the exception of capital expenditures. Pursuant to the Operating Agreement for management and operation of the Nixon Facility, LEH receives as compensation: (i) weekly payments from GEL not to exceed $750,000 per month, (ii) reimbursement for certain accounting costs related to the preparation of financial statements of LE not to exceed $50,000 per month, (iii) $0.25 for each barrel processed at the Nixon Facility during the term of the Operating Agreement, up to a maximum quantity of 10,000 barrels per day determined on a monthly basis, and (iv) $2.50 for each barrel in excess of 10,000 barrels per day processed at the Nixon Facility during the term of the Operating Agreement, determined on a monthly basis. For all other assets, LEH is reimbursed at cost for all reasonable expenses incurred while performing the Services. All compensation owed to LEH under the Operating Agreement is to be paid to LEH within 30 days of the end of each calendar month.

The Operating Agreement expires upon the earliest to occur of: (a) the date of the termination of the Joint Marketing Agreement pursuant to its terms, (b) August 12, 2015, or (c) upon written notice of either party to the Operating Agreement of a material breach of the Operating Agreement by the other party.

Aggregate amounts expensed for Services at the Nixon Facility for the three months ended September 30, 2014 and 2013 were $2,496,514 (approximately $2.94 per barrel of throughput) and $2,629,518 (approximately $2.68 per barrel of throughput), respectively. Aggregate amounts expensed for Services at the Nixon Facility for the nine months ended September 30, 2014 and 2013 were $8,092,738 (approximately $2.78 per barrel of throughput) and $8,099,371 (approximately $2.73 per barrel of throughput).

At September 30, 2014 and December 31, 2013, the amounts outstanding to LEH to fund our working capital requirements were $1,801,376 and $3,659,340, respectively, and are reflected in accounts payable, related party in our consolidated balance sheets.