There are may missing section breaks in the On Basilisk Station. I am reading it in .lrf format myself. Maybe notify them citing an example?
I have noticed that there are occasions where rtf2lrf misses section breaks but I cannot pin it down in a repeatable fashion. Using lrf2lrs and manually putting them back in with a double CR tab in the correct place) then lrs2lrf again sorts the problem for me but we shouldn't *have* to do it.