
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, July 1, 1995                   TAG: 9507030038
SECTION: VIRGINIA                    PAGE: C3   EDITION: METRO 
SOURCE: ASSOCIATED PRESS
DATELINE: VIRGINIA BEACH                                 LENGTH: Medium

VIRGINIA BEACH, N.C. CONTINUE TO NEGOTIATE ON LAKE GASTON DEAL

City leaders and North Carolina officials worked Friday on a possible Lake Gaston water pipeline deal but appeared in no hurry with the passing of the deadline for an earlier settlement.

That tentative agreement, signed April 28 and requiring approval by the Virginia and North Carolina legislatures within 60 days, collapsed this week after Virginia Gov. George Allen and Democratic leaders could not come to terms on a timetable for a special Lake Gaston session.

Instead, Allen declined Wednesday to call a special session. The new talks appear to be aimed at bypassing the General Assembly altogether.

Both Virginia Beach and North Carolina asked the Federal Energy Regulatory Commission to delay its decision on the proposed pipeline until July 7 while their discussions continue, a commission spokeswoman said.

The commission is expected to release a staff environmental study that is favorable to the 76-mile project, which North Carolina has fought since it was first proposed a dozen years ago.

Commission approval would mark the final regulatory hurdle in the long-standing battle. If Virginia Beach and North Carolina can come to terms, the only remaining opposition would come from areas along the Roanoke River basin that fear a water transfer of up to 60 million gallons a day could stymie economic development in their region.

Sen. Marc Basnight, president pro tempore of the North Carolina Senate, said Friday that he knew of no deal on the pipeline but that he would oppose anything that didn't include input from affected communities downstream of the lake, which straddles the Virginia-North Carolina border.

``Because of the sensitive nature of discussions, details of any proposed agreement will not be released at this time,'' Virginia Beach Mayor Meyera Oberndorf said.

Virginia Beach has been seeking a new long-term water supply because its current supplier, Norfolk, can guarantee only about 30 million gallons a day.

Virginia Beach, the state's largest city with 400,000 residents, uses about 32 million gallons a day, paying a penalty to Norfolk for the excess. It is able to stay at the level only with mandatory restrictions on such uses as watering lawns and washing cars.

by CNB