Note 10 - AROs

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Asset Retirement Obligation Disclosure [Text Block]

(10) AROs

Refinery and Facilities. Management has concluded that there is no legal or contractual obligation to dismantle or remove our refinery and facilities assets. Management believes that our 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 for plugging and abandoning our oil and gas properties. We recorded a liability for the fair value of an ARO at the time the asset was installed or placed in service. From time to time we adjust the liability due to changes in estimates or the timing of decommissioning the assets. ARO liability as of the dates indicated was as follows:

	September 30,		December 31
	2025		2024
	(in thousands)
AROs, at the beginning of the period	$	2,999	$	4,504
Liabilities settled		-		(1,505	)
Changes in estimate		3,026		-
		6,025		2,999
Less: AROs, current portion		6,025		2,999
Long-term AROs, at the end of the period	$	-	$	-

BDPL's ARO estimate was  $6.0 million and $3.0 million in AROs related to decommissioning our pipeline and facilities assets at  September 30, 2025 and December 31, 2024, respectively. During the three months ended September 30, 2025, we determined that the estimated future cost of decommissioning these assets changed, and as a result, we recorded a $3.0 million increase in our ARO liability at September 30, 2025. During the nine months ended September 30, 2024, we settled ARO liabilities totaling $1.5 million related to our pipeline and facilities assets and we incurred approximately $0.9 million in additional decommissioning related expenses due to the impact of poor weather conditions.