A town-sponsored proposal to build a new fueling station for boaters on the Oak Bluffs harbor received mixed reviews Thursday during a public hearing before the Martha’s Vineyard Commission. While some North Bluff residents said they opposed fuel tanks and pumps being built in front of their homes, others said they understood the importance of having gas for sale on the harbor this summer.

The town applied for the new pumping station after a series of lawsuits between Ralph Packer, owner of R.M. Packer Co., and Mark Wallace threatened to shut down fuel service for boaters this summer. Mr. Wallace currently leases the tanks and pumps on Church’s Pier from Mr. Packer, and the two are locked in legal battles stemming from a fuel delivery mishap in July of 2007.

During that incident, a delivery truck for R.M. Packer allegedly connected to one of Mr. Wallace’s fuel tanks beneath the Sand Bar and Grill that was already filled to capacity. Pressure in the tank built up and a safety valve at the top of the tank blew, shooting a geyser of diesel fuel into the air that reached all the way back to the Wash-A-Shore Laundromat on Circuit avenue extension.

Mr. Wallace blamed R.M. Packer for the mishap and Mr. Packer put the blame back on Mr. Wallace because a warning system in the tank failed to alert the delivery man.

Last June Mr. Packer sent a letter to Mr. Wallace stating that because of the mishap, his insurance company had barred him from delivering fuel to the station at Church’s Pier.

Mr. Wallace hired a new fuel supplier, Loud Fuel of Falmouth, and continued selling fuel on the harbor, although there were frequent complaints all summer that service was erratic and undependable.

Since then, Mr. Packer has initiated further lawsuits against Mr. Wallace, including the attempt to evict him from Church’s Pier. Meanwhile, the town stepped in with a proposal to build a pumping station and storage tanks along the harbor. The plan is currently being reviewed by the commission as a development of regional impact (DRI); it also needs approval from the town conservation commission, planning board and zoning board of appeals.

The plan calls for the installation of two 1,500-gallon tanks or one 2,000-gallon tank at the harbor master’s shack between the harbor sidewalk and parking lot. The fueling location would take place on the floating dock just north of the harbor master’s shack.

At Thursday’s commission meeting Mr. Wallace said his ongoing legal disputes with Mr. Packer will not impede his ability to provide fuel on the harbor this summer.

“The good news is we will be providing fuel in the harbor this summer. We spent a lot of money to make that happen. And I don’t see any problem with providing fuel all summer,” he said.

Several town officials disagreed, arguing that losing fuel service in the harbor could hurt the town’s summer economy.

“Fuel is a critical component to a harbor. If we didn’t have fuel this summer we could be looking at a reduction in revenue of $100,000 or more,” said town administrator Michael Dutton. “That harbor is an economic engine for this town.”

Commissioner Chris Murphy said he worried the plan would pit the town against private enterprise.

“I worry you will usurp private business and then not let them back into the system,” Mr. Murphy said. “I think it’s important to explain in great detail how this will work and how long you plan on staying [in business].”

Mr. Dutton said the plan is simply to provide service in the immediate future before a private and more permanent provider takes over.

“The town has as much interest in providing fuel on the harbor to the boating community as we do to the business community, whether that be retail, restaurants or ice cream shops; all businesses are affected by our harbor,” he said.

Harbor master Todd Alexander said he doubts Mr. Wallace can provide consistent and reliable fuel service this summer.

“We used to have two stations. Then last year it was down to one station with spotty service. Now with this ongoing issue, we may be down to no station,” Mr. Alexander said. “I can’t get a straight story when will they be open. I don’t know what the answer is, but I do know there may be no fuel on the harbor, and that is not acceptable.”

Mr. Packer said he hopes the harbor will have fuel service this summer, and he vowed to work with the town or a private business to make that happen. “The harbor has to have fuel, just like a grocery store has to have milk and eggs,” he said.

Doug Abdelnour Jr., owner of Nancy’s, said the uncertainty of gas service was a frequent theme around the harbor last summer. “It seems like a good idea to have a safety net. There were a lot of unhappy customers last year, and I know a lot of boaters skipped coming to Oak Bluffs altogether because they couldn’t fill up,” he said.

Several residents said they felt the new tanks and pumps would be an eyesore and bad for business.

“The town of Oak Bluffs needs fuel. But I think this is a terrible place,” said Injy Lew, a homeowner on the North Bluff. “There must be a better location for this.”

“I don’t want a gas depot in my front yard,” agreed Circuit avenue extension resident Kenneth Gallison.

Others questioned whether the town should get into the gas business.

The commission closed the public hearing, allowing the written record to remain open through yesterday afternoon. The proposal was scheduled to go back before the land use planning committee last night, and the commission has scheduled a special meeting this Thursday to consider and possibly vote on the plan.

At least one commissioner on Thursday offered positive feedback for the town proposal. “It seems to me if we approved the town’s temporary gas facility, that would provide their greatest incentive for them to work their differences out,” said Douglas Sederholm.