Blue Dolphin Energy Company (OTCMKTS:BDCO) Files An 8-K Termination of a Material Definitive Agreement

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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.

The information included in Item 8.01 of this Current Report on
Form 8-K is incorporated by reference into this Item 1.02.
Item 8.01 Other Events.
On February 10, 2017, Blue Dolphin Pipe Line Company
(“BDPL“), a wholly-owned subsidiary of Blue Dolphin
Energy Company, completed several related transactions with
Freeport LNG Expansion, L.P. (“FLEX“) and its
affiliates, as described below.
As previously disclosed, BDPL and FLNG Land II, LLC
(“FLNG“), an affiliate of FLEX, were parties to a
Pipeline Easement dated November 5, 2005 and a Master Easement
Agreement dated December 11, 2013 (together, the
Easements“). The Easements provided FLNG and its
affiliates:
a pipeline easement and right of way across certain
property owned by BDPL located in Brazoria County Texas
(the “BDPL Property“) to certain property owned
by FLNG; and
rights of ingress and egress across the BDPL Property to
the property owned by FLNG.
Under the Easements, FLNG was required to pay to BDPL (i)
$500,000 in October of each year through 2019 and (ii) $10,000 in
October of each year after 2019 for so long as FLNG desired to
use the rights of ingress and egress across the property.
On February 10, 2017, BDPL sold approximately 15 acres of the
BDPL Property to FLIQ Common Facilities, LLC, an affiliate of
FLEX, for cash proceeds of approximately $539,000.
In connection with the sale of real estate, FLNG paid to BDPL
approximately $1,336,000 as consideration for the full
satisfaction and discharge of FLNG’s future annual payment and
other obligations to BDPL under the Easements.
Also as previously disclosed, in connection with the entry into
the Master Easement Agreement referred to above, BDPL and FLEX
entered into a Letter of Intent dated December 11, 2013 (the
Letter of Intent“), to which BDPL and FLEX committed to
study the feasibility of jointly developing facilities to source
and supply liquefied natural gas for sale to third parties for
use as transportation fuel in the U.S. domestic transportation
markets. In connection with the sale of real estate, BDPL and
FLEX terminated the Letter of Intent. No definitive agreements
for any transaction contemplated by the Letter of Intent were
entered into between the parties prior to the termination of the
Letter of Intent.


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 down -0.38 at 3.37 with 1,169 shares trading hands.

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