ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Saturday, October 26, 1996             TAG: 9610280038
SECTION: VIRGINIA                 PAGE: C-3  EDITION: METRO 
DATELINE: VIRGINIA BEACH
SOURCE: Associated Press


EPA: N. CAROLINA HAS POWER TO BLOCK PIPELINE PROJECT CLEAN WATER ACT GIVES STATE AUTHORITY OVER LAKE GASTON LINE

The federal Environmental Protection Agency says the Clean Water Act gives North Carolina authority to block construction of the Lake Gaston pipeline.

The EPA stated its position in a letter Thursday to the Federal Energy Regulatory Commission. If FERC and a federal appeals court agree, the pipeline's staunchest opponent might be able to derail the project.

In September, the U.S. Court of Appeals for the District of Columbia said the dispute over the Clean Water Act must be resolved before the court will rule on whether Virginia Beach should have received FERC permission to build the pipeline.

Virginia Beach and Chesapeake have spent more than $75 million on the pipeline, which would carry water from the lake on the Virginia-North Carolina border to Virginia Beach. Half of the line already is in the ground.

Attorneys for Virginia Beach said the letter was an inaccurate reading of the law and predicted it would not be upheld by the courts.

``I think this is an environmental watchdog agency giving you the predictable environmental watchdog agency response,'' said Scott Hart, an attorney for Virginia Beach.

He said the letter is ``not a major concern.''

Pipeline opponents read the letter as an indication that their side will prevail when the commission and the court interpret the Clean Water Act.

``We're very pleased with the letter,'' said Alan Hirsch, North Carolina special deputy attorney general. ``This is the position that we have taken for several years, and we think it's unquestionably the correct one.''

William Ellis, an attorney for the Roanoke River Basin Association, a group of Virginia residents, business owners and political leaders upstream of Lake Gaston, said he was not surprised by the letter.

``I think they did what they had to do, and they did the right thing,'' Ellis said.

The letter says the pipeline will affect the flow of water along the Roanoke River in North Carolina, so the state deserves a legal review of the project.

According to the letter, the EPA has a strong interest in making sure states can protect and maintain water quality and would not want a legal precedent set against it.

The EPA argued that a section of the Clean Water Act provides ``one of the most critical authorities states have to ensure the protection of water quality and the elimination of water pollution.''

The FERC, which issued a permit more than a year ago, has jurisdiction over the project because it oversees the Virginia Power hydroelectric plant on Lake Gaston. To operate the pipeline, Virginia Beach needs to modify Virginia Power's permit to run its power plant.

The commission at first avoided ruling on the Clean Water Act issue, saying the permit ``would have no material adverse impact on North Carolina water quality.''

But the appeals court last month sent the matter back to the commission, giving it 60 days to rule. The court said it would not make a decision without hearing from the commission.


LENGTH: Medium:   62 lines


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