Blue Dolphin Energy Company (OTCMKTS:BDCO) Files An 8-K Termination of a Material Definitive Agreement
Item 1.02
|
Termination of a Material Definitive Agreement. |
Lazarus Energy, LLC, a wholly owned subsidiary of Blue Dolphin
Energy Company (the Company), was a party to a Crude Oil
Supply and Throughput Services Agreement (as amended and
supplemented, the Crude Supply Agreement) and a Joint
Marketing Agreement (as amended and supplemented, the
JMA), each dated August 12, 2011, with GEL Tex Marketing,
LLC (GEL). to the Crude Supply Agreement, GEL previously
supplied the Companys Nixon Facility with crude oil and
condensate. to the JMA, the Company and GEL previously jointly
marketed and sold refined petroleum products produced at the
Nixon Facility and shared the associated gross profits.
As previously disclosed, the Company and GEL are involved in an
on-going dispute related to the Crude Supply Agreement and the
JMA. Also as previously disclosed, the Company has asserted that
GEL materially breached the parties agreements in April 2016 by
refusing to deliver the Companys operational requirements of
crude oil for an extended period of time. The Company spent the
next several months unwinding its relationship with GEL. These
efforts were hindered by the previously-disclosed temporary
injunction, which required continued interaction with GEL. As
disclosed in the Companys Annual Report on Form 10-K for the year
ended December 31, 2016, the Company ceased purchases of crude
oil and condensate from GEL under the Crude Supply Agreement in
November 2016 and suspended the marketing and sale of refined
petroleum products under the Joint Marketing Agreement following
the processing of all crude oil and condensate supplied by GEL.
The Company did not disclose the termination of these agreements
because of the ongoing dispute between the parties related to the
agreements.
GEL recently relinquished its claims for equitable and
declaratory relief and its ability to keep the contracts in force
and effect on a going-forward basis. Therefore, the Company is
now filing this Current Report on Form 8-K to confirm that the
parties agreements, including the Crude Supply Agreement and the
JMA, have terminated.
Arbitration proceedings related to the dispute with GEL are
currently in progress. The Company remains unable to predict the
outcome of these proceedings or their ultimate impact, if any, on
its business, financial condition or results of operations.
About Blue Dolphin Energy Company (OTCMKTS:BDCO)
Blue Dolphin Energy Company (Blue Dolphin) is an independent refiner and marketer of petroleum products. The Company’s primary asset is an approximately 15,000 barrels per day (bpd) crude oil and condensate processing facility that is located in Nixon, Texas (the Nixon Facility). The Nixon Facility is situated on approximately 60 acres in Nixon, Wilson County, Texas. The Company operates through two segments: Refinery Operations and Pipeline Transportation. Business activities related to its refinery operations business segment are conducted at the Nixon Facility. Business activities related to its pipeline transportation business segment are primarily conducted in the Gulf of Mexico through the Company’s pipeline assets and leasehold interests in oil and gas properties. As part of its refinery business segment, it conducts petroleum storage and terminaling operations under third-party lease agreements at the Nixon Facility. Blue Dolphin Energy Company (OTCMKTS:BDCO) Recent Trading Information
Blue Dolphin Energy Company (OTCMKTS:BDCO) closed its last trading session 00.00 at 2.10 with 180 shares trading hands.