An estimated $1 million upgrade to bring fuel storage tanks at Las Cruces International Airport into compliance with state environmental regulations is being questioned by some pilots and a longtime airport business.
"It's really appalling the city would spend that much in taxpayer dollars for something that's not really needed," said Hal Kading, owner of Southwest Aviation, the only fixed-base operator at airport. "I believe they could modify the existing storage area, and bring it into compliance, at a far less cost than the city wants to spend now."
Cheryl Rodriguez, airport administrator, said the New Mexico Environment Department has amended state statutes on how those types of tanks are supposed to be built and maintained. State law now mandates that any public or private entity that owns and operates an above-ground storage tank -- such as three the city owns, and two others owned by Southwest Aviation -- must bring the facility that houses those tanks into regulatory compliance.
"It is important to note that numerous airports statewide similar to Las Cruces are all presently engaged in bringing their aviation fuel facilities into NMED compliance," Rodriguez said.
The existing fuel farm facility is at the southeast corner of the airport on a street called Gasoline Alley. All of the five tanks and the existing facility currently do not meet state regulatory rules.
"Therefore, to ensure the continued economic viability and success of the Las Cruces International Airport, the city of Las Cruces is making the financial commitment, along with the state of New Mexico Department of Transportation Aviation Division, for capital improvements to the fuel farm," Rodriguez said. "Capital improvements will entail two new above-ground storage tanks an ancillary fuel pump system as well as the proper secondary containment area for all fuel trucks that must load or unload aviation fuel.
"Estimated construction costs to bring the fuel facility into regulatory compliance are estimated to cost approximately $1 million."
Rodriguez added the two new above-ground storage tanks will be large enough to support planes and other aircraft that use the airport. The fuel farm will be owned by the city.
"Southwest Aviation is currently our fixed-based operator for the airport that provides fuel services to the aviation community," Rodriguez said. "Presently, it is our intent that Southwest Aviation will continue to provide this service to the aviation community. It is anticipated that Southwest Aviation will lease the fuel farm facility, as it currently does from the city."
Kading said the city's intent to own the fuel farm was apparently because of concerns that Southwest Aviation might someday go out of business and could leave the airport without fuel service.
"We have no intentions of going out of business," Kading said. "If anything, we're trying to renegotiate a new lease with the city to stay at the airport."
City officials have sought bids for building a new fuel farm, and Rodriguez said it is anticipated a new facility could be operational by the end of the year. The estimated $1 million to build a new fuel farm would be evenly split by the city and NMDOT's Aviation Division.
Doug Newton, a Las Cruces pilot who owns several planes and hangars at Las Cruces International Airport, said he is concerned a city-owned fuel farm could raise the price of fuel sold at the airport.
"Business at the airport is way down because of the high fuel prices already being charged," Newton said. "Except for El Paso, the fuel prices here are the highest of any other airports in the region."
Newton added the two fuel storage tanks owned by Southwest Aviation would be large enough to store enough fuel to meet the demands of aircraft using Las Cruces International Airport.
Rodriguez said fuel prices are influenced by market conditions, and are set by fuel providers and operators.
Steve Ramirez can be reached at 575-541-5452
Copyright 2013 - Las Cruces Sun-News, N.M.
