Texas-based oil producer subleases Kenai airport hangar

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KENAI, Alaska (AP) - A Texas-based oil and gas producer will sublease a hangar at the Kenai Municipal Airport for flights to its facilities on the west side of Cook Inlet.

The Peninsula Clarion reports the Kenai City Council approved the sublease between Schilling Rentals and Hilcorp at their meeting on Sept. 20.

Hilcorp, which became the largest producer in the Cook Inlet oil and gas industry after major producers Chevron and Marathon sold their interests in the region's declining oil fields to it in 2011 and 2012, flies at least one plane from the Kenai airport.

Kenai airport administration states Hilcorp flew 3,574 people from the Kenai airport in 2015 and 4,328 people in 2016.

Schilling Rentals previously subleased the hangar to ConocoPhillips.