Fuel Dispute Arises At San Bernardino Airport

Feb. 8, 2012
SBD Properties has been a major presence at the airport for the past several years, but the company's activities have become increasingly controversial after FBI agents raided airport offices in September.

SAN BERNARDINO - A spokesman for the company that has managed the fuel farm at San Bernardino International Airport disputed airport administrators' attempt to cancel the firm's ability to continue to sell fuel.

"We don't believe that the purported termination letter is justified under the agreement," said Coby King, a spokesman for SBD Properties. "We'll need to remind the authorities of what the agreement is and what the remedy is if there has been a default."

According to a published report, SBIA officials moved to end the airport's fueling agreement with SBD Properties as a result of the company not having enough fuel for an aircraft.

SBD Properties has been a major presence at the airport for the past several years, but the company's activities have become increasingly controversial after FBI agents raided airport offices in September.

At the airport, SBD Properties' business interests include not only the fuel farm but also the lease for SBIA's Million Air franchise. Million Air is a high-end chain of companies serving charter jets.

Both companies are tied to Scot Spencer, who is a subject of the FBI investigation and has taken a lead role in developing several facilities at SBIA, where officials are trying to convert the former Norton Air Force Base into a commercial airport.

Former airport chief Donald Rogers resigned after last year's FBI raid and the airport's board replaced him with interim director A.J. Wilson.

Wilson could not be reached for comment.

In a phone conversation, King confirmed that SBD Properties received a termination letter from SBIA officials but disputed accounts that a customer was unable to obtain fuel.

At one point - King did not have a confirmed date - a customer with a 727 jet requested 2,500 gallons of fuel. That order was later reduced to 1,000 gallons, which King said was provided.

SBD Properties also provided another customer with 600 gallons of fuel that same day, and has previously delivered as much as 400,000 gallons to Boeing, King said.

Boeing has used SBIA for test flights.

San Bernardino International Airport Authority board members have a scheduled meeting on Wednesday. The agenda includes a discussion of mid-year budget adjustments.

Contact Andrew via email , by phone at 909-386-3872 or 909-483-8550, or follow him on Twitter @InlandBizz .

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