ITEM 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF
DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.

To achieve certain cost reductions, effective February 28, 2009, Mr. William J. Dale's employment with Blue Dolphin Energy Company was terminated. Mr. Dale served as Principal Financial Officer and held the positions of Chief Financial Officer, Treasurer and Secretary.

Also effective February 28, 2009, the Board of Directors of Blue Dolphin Energy Company appointed Mr. T. Scott Howard, currently Blue Dolphin's Principal Accounting Officer, Assistant Treasurer and Assistant Secretary, to additionally serve as the Company's Principal Financial Officer and Treasurer, and Mr. Thomas Heath, currently Executive Vice President of the Company to serve as Secretary. The position of Chief Financial Officer will not be filled at this time.