Murphy Oil hangar to be offered to MUSA

The El Dorado Airport Commission inquired this week about the status of two hangars that are tied to an existing and a former oil company at South Arkansas Arkansas Regional Airport at Goodwin Field.

On Monday, commissioners briefly discussed hangars that belong to Murphy Oil and the former Long Brothers Oil Company in Norphlet.

Murphy Oil announced in May that it will close its El Dorado headquarters after 70 years and relocate to Houston, Texas, citing low crude oil prices, the economic effects of the coronavirus (COVID-19) pandemic and an uncertain post-COVID recovery.

The company’s exploration and production offices are based in Houston.

COVID-19 has also affected operations, including fuel sales and flight activity, SARA.

Both took hard hits when the virus first began affecting

Arkansas, but aviation activity and fuel sales have started to slowly pick up within the past few weeks, reported Johnathan Estes, manager of SARA.

Airport commissioners are keeping watch over the potential economic impact that the Murphy Oil closure could have on SARA and the pullout of its two company jets and corporate hangar at the municipal airport.

Mickey Murfee, chairman of the EAC, inquired about Murphy Oil’s plans for the hangar.

Commissioner Scott Cowling, who is also aviation manager and chief pilot for Murphy Oil, said the hangar has been appraised and the matter is pending, noting that the respective company executives are determining how to proceed with the situation.

“The first card on the table to offer it to Murphy USA,” Cowling said, referring to Murphy’s sister company that is headquartered in El Dorado and operates retail gas stations.

Estes said he learned that Murphy plans to sell its two corporate jets, a Dassault Falcon

2000 and a Cessna Citation Sovereign.

Murfee also asked Estes about the status of an expired ground lease for a hangar belonging to Long Brothers.

Earlier this year, airport commissioners voted not to renew the ground lease for the hangar, per an option that is part of the lease agreement, saying that the lease has long expired and the hangar has become unsightly due to a lack of maintenance and repairs.

Estes said the hangar has to be removed down to the concrete slab foundation and two underground fuel tanks must be pulled from the site — work that has to be done in compliance with Arkansas Department of Environmental Quality standards.

The tanks belonged to an old, privately-owned fixed base operation at SARA, he said.

Estes said he has issued a reminder about the commission’s decision to terminate the ground lease.