BANGOR – City officials learned more Tuesday about the company seeking to take over Bangor International Airport’s fuel handling and storage operations.

Earlier this summer, Exxon Mobil Corp., BIA’s supplier since 1976, notified city leaders that it did not plan to renew its contract for fuel handling and storage at the airport.

The company said that a change in state tax law that redefined how Maine taxes corporate revenue had resulted in a disproportionately high tax rate that essentially would make its service to BIA unprofitable. It asked to turn its rights and responsibilities over to its main distributor, Western Petroleum Co., based in Eden Prairie, Minn.

And Western Petroleum wants the business.

During a meeting with members of the City Council’s transportation and infrastructure committee, Western Petroleum’s Greg Bartness and Dave Jewett provided a brief overview of their company’s history and talked about what the company could bring to BIA.

According to Bartness, vice president for aviation fuel supplies, Western was founded in 1969 and remains privately owned by an executive management team. It provides a range of products, including aviation fuels, diesel, gasoline and propane, to large corporations, governmental entities and independent businesses.

Its corporate sales last year totaled $2.1 billion, up sharply from $1.6 billion in 2006, Bartness said.

If Western gets the green light to supply BIA, aviation fuel will be shipped to Bucksport from major supply terminals in New York Harbor or Nova Scotia. From Bucksport, the fuel will be trucked to Bangor.

The company’s backup plan calls for trucking fuel from a terminal in Portland.

According to Bartness, Western’s supply history in Maine includes providing an average of 16 million gallons a year to the Maine Air National Guard Base, adjacent to BIA.

It held the base’s annual fuel contract for three years until April, when it lost out to Exxon Mobil by one-third of a cent per gallon.

Bartness said Western is sharpening its pencil for the next round of bidding for serving the Bangor Air Guard base because its business, along with that of BIA, are part of the company’s long-range business strategy. “Ideally, we would like to mesh the two supply systems together,” he said. But even after a presentation by two officials from Western Petroleum Co., questions remain.

An extension of the city’s contract with Exxon Mobil Corp. is set to end on Sept. 30. But city officials hope for another 120-day extension in order to get a few more questions answered and to evaluate options.

City Solicitor Norman Heitmann said Exxon is amenable to the city’s extension request, which will go before the full council for a vote during its next regular meeting, at 7:30 p.m. Monday.

The city also is working to hire a consultant specializing in airport fuel pricing and related issues.

dgagnon@bangordailynews.net

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