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

DATE: SATURDAY, July 8, 1995                   TAG: 9507100073
SECTION: VIRGINIA                    PAGE: C-3   EDITION: NEW RIVER VALLEY 
SOURCE: Associated Press
DATELINE: VIRGINIA BEACH                                LENGTH: Short

ENVIRONMENTAL STUDY OKS GASTON PIPELINE

A federal environmental study released Friday gave another thumbs up to the Lake Gaston water pipeline, a day after North Carolina's governor threatened to return to court to fight the project.

The long-awaited release of the environmental impact statement prepared by the Federal Energy Regulatory Commission's staff has been viewed as a major step in the final regulatory hurdle for the 76-mile pipeline, which Virginia Beach officials have been trying to build for more than a decade.

The study concluded that the proposed pipeline would be ``the best source'' to meet Virginia Beach's future water needs. The finding had been expected, since a draft report released earlier this year indicated the study would be favorable to the project.

FERC's approval of the pipeline is needed because the lake is used by Virginia Power to generate electricity. The commission is expected to decide at its July 26 meeting whether to grant a permit for a water intake facility.

``We expect a favorable decision,'' said Louis R. Jones, a Virginia Beach City Council member and leader of the city's effort to reach a settlement with North Carolina on the project.

The settlement talks collapsed Thursday when North Carolina Gov. Jim Hunt pulled his state out of the negotiations and said he was willing to go back to court to fight the project.

Memo: NOTE: Shorter version ran in Metro edition.

by CNB