The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Tuesday, November 8, 1994              TAG: 9411080355
SECTION: LOCAL                    PAGE: B1   EDITION: FINAL 
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER 
                                             LENGTH: Medium:   74 lines

BEACH WINS OK TO TRY TO CONDEMN GASTON TRACT THAT COULD BYPASS FEDERAL OVERSIGHT

Virginia Beach's attempts to build the Lake Gaston pipeline took a step forward Monday when the State Corporation Commission granted the city permission to try to condemn four acres of land along the lakefront.

The city hopes that by seizing the Brunswick County land, which would serve as the pipeline's starting point, it can avoid a 6-month-long environmental study now being conducted by the Federal Energy Regulatory Commission.

The property is owned by Virginia Power, which is regulated by the federal agency. The city contends that if it can gain title, FERC will lose jurisdiction.

North Carolina, which is fighting the Gaston project, says the city can't use state powers to override federal regulators. North Carolina officials promised to battle any Virginia Beach efforts to condemn the property.

Virginia Beach's lawyer, M. Scott Hart, said Monday that the city will not go to court to seek condemnation immediately. Instead, he plans to use the corporation commission's ruling as ``ammunition'' against a federal injunction that has stalled the 76-mile pipeline project for four years.

The six-page commission decision, released late Monday, concludes that Virginia Beach needs the land along Lake Gaston and that Virginia Power, which operates two hydroelectric plants at the site, does not. The commission also sided with the Beach by not disputing the need for the pipeline.

It did not decide whether a state court can legally give Virginia Beach the power to condemn property overseen by a federal agency.

Virginia Beach is leading the fight to bring 60 million gallons of water a day to South Hampton Roads. Chesapeake is a one-sixth partner in the project, and the city of Franklin and Isle of White County have each asked for 1 million gallons per day.

In 1990, when it looked as if the Beach would build the pipeline before FERC had a chance tostudy its environmental impacts, North Carolina opponents got a federal court in their state to sign an injunction barring further construction without the agency's OK.

That injunction still stands.

Virginia's attorney general, James S. Gilmore III, who testified before the corporation commission last month on behalf of Virginia Beach, claimed Monday's decision as a victory.

``This is an important step toward securing much needed water for Virginia Beach, which fosters economic development and other benefits for the entire Commonwealth,'' he said in a prepared statement.

His counterpart in North Carolina, Michael F. Easley, said through a spokesman that the order was not a surprise and was not significant.

``The real issue is whether or not this makes any difference,'' he said. ``Even if they take the easements, that doesn't mean they can take the water. That's for FERC to decide.''

Landowners along the Roanoke River basin are trying to prevent the pipeline. The Roanoke River Basin Association argued against giving Virginia Beach permission to condemn the property.

``We're obviously very disappointed,'' W. Ewell Barr, president of the association, said Monday. ``We'll have to examine it and see what is our next course of action.''

Barr said he and other landowners believe that losing the Lake Gaston water to Virginia Beach means losing a piece of their future development.

``Virginia Beach's growth would be fed by the lifeblood of the Roanoke River basin,'' he said. ILLUSTRATION: Graphic

Color Staff map

Area shown: 4-acre site targeted by Virginia Beach

KEYWORDS: LAKE GASTON PIPELINE SCC STATE CORPORATION COMMISSION

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