Bangor negotiates BIA fuel extension

BANGOR – The city negotiated three more months to work out an agreement with ExxonMobil Corp. for supplying fuel to its airport, but officials are working on a contingency plan if the fuel giant decides to end its contract.

Bangor city councilors on Monday approved a 90-day extension of the city’s contract with ExxonMobil, which has supplied fuel to Bangor International Airport for more than 30 years.

“This [extension] gives both sides time to see if there are any alternatives,” City Manager Edward Barrett said Tuesday. “[ExxonMobil] has indicated they would like to stay but their decision, ultimately, is economical.”

Earlier this month, company officials told the council’s Transportation and Infrastructure Committee that a revision in a state tax law forced their hand. The new formula is complex, but Robert Zamora, ExxonMobil’s U.S. general aviation business development manager, told committee members that the change taxes his company at a rate six times greater than the profit generated by fuel sales at BIA.

In light of the tax law change, ExxonMobil indicated it planned to give its six-month termination notice, which is required through the current agreement.

With an extra 90 days, the city has time to examine other fuel supply options, but Barrett said no decision has been made and he’s hopeful that ExxonMobil might reconsider.

“They are a leader in the airline fuel industry and we’ve always had a good working relationship with them, so we’ll see where things go,” the city manager said. “We’re keeping in close communication with them.”

Airport director Rebecca Hupp was unavailable Tuesday for comment but said earlier this month that ExxonMobil has invested considerably in the airport’s infrastructure in recent years. Hupp also said any other fuel provider would suffer the same tax burden and that now is an unfavorable time to seek competitive bids, given the state of the airline industry.

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