Blueknight Statement on Federal Energy Regulatory Commission Policy Revision

No anticipated impact to BKEP

OKLAHOMA CITY–(BUSINESS WIRE)–Blueknight Energy Partners, L.P. (“BKEP” or the “Partnership”) (Nasdaq:
BKEP)(Nasdaq: BKEPP) today announced that revisions by the Federal
Energy Regulatory Commission (“FERC”) regarding its 2005 policy for
recovery of income taxes are not expected to have an impact to the
earnings and cash flow of BKEP. The FERC announced today that it would
revise its 2005 Policy Statement for Recovery of Income Tax costs so
that it no longer will allow interstate pipelines owned by master
limited partnerships to recover an income tax allowance in the cost of
service.

BKEP does not own any interstate pipelines. BKEP’s owned pipelines are intrastate
only and its tariffs are regulated by state agencies, not federal, as
such, BKEP does not anticipate any impact to its tariffs.

About Blueknight Energy Partners, L.P.

BKEP owns and operates a diversified portfolio of complementary
midstream energy assets consisting of:

• 10.3 million barrels of liquid asphalt storage located at 56 terminals
  in 26 states;
• 6.9 million barrels of above-ground crude oil terminalling facilities
  located primarily in Oklahoma, approximately 6.6 million barrels of
  which are located at the Cushing Interchange in Cushing, Oklahoma;
• 655 miles of crude oil pipeline located primarily in Oklahoma and
  Texas; and
• 150 crude oil transportation and oilfield services vehicles deployed
  in Kansas, Oklahoma and Texas.

BKEP provides integrated terminalling, gathering and transportation
services for companies engaged in the production, distribution and
marketing of liquid asphalt and crude oil. BKEP is headquartered in
Oklahoma City, Oklahoma. For more information, visit the Partnership’s
web site at www.bkep.com.

Contacts

BKEP
Investor Relations, 918-237-4032
[email protected]
or
Media
Contact:
Brent Gooden, 405-715-3232 or 405-818-1900